PROCESS PROMPTS HIGHER TAX BILLS

JACKSON, Mo. -- Cape Girardeau County property owners can expect to pay higher taxes this fall because of reassessment, required every under state law every odd-numbered year.

Cape Girardeau County Assessor Jerry Reynolds estimates real estate assessed valuations and tax bills could climb by 7 percent, on average, excluding any levy hikes.

In the rapidly developing Jackson area, assessed valuations are expected to increase by about 8 percent.

"That is an average," Reynolds said. Some assessed valuations could be lower, he said.

But the increases will be less than in 1997 when, faced with a State Tax Commission order, residential and commercial property values in Cape Girardeau County were increased by about 25 percent to better reflect market values.

After reassessment this year, the total assessed valuation in the city of Jackson is expected to climb from $90.3 million to $98.2 million. Reynolds has yet to crunch all the numbers for real estate in the city of Cape Girardeau.

In the even years, property is only reassessed if new construction and improvements have taken place on the land. The assessor's office looks at the cost of new construction and real estate transactions to help determine the assessed valuation for homes and businesses.

Cape Girardeau County has over 32,000 parcels of agricultural, commercial and residential land. The assessed valuation countywide totaled over $490 million last year. With continued development and the subdividing of land, the number of parcels is growing by about 300 a year.

Crunching numbers

Reynolds said reassessment, on average, could boost the value of a $100,000 home to $107,000. That assessed valuation for tax purposes would increase from $19,000 to $20,330.

Assessed values are calculated at 32 percent of market value for commercial property and 19 percent for residential property. Farm land is assessed at 12 percent of the productivity value of the land based on a soil classification system set up by the State Tax Commission.

Cape Girardeau County land owners pay a total levy of about $4.50, on average, which includes tax levies for schools, cities, fire districts and other local taxing entities. Last year, the total tax rate ranged from a low of $3.77 per $100 assessed valuation in the Millersville, Mo., area to a high of $4.93 in the Whitewater, Mo., area.

With a $4.50 tax rate, the owner of the home now valued at $107,000 would pay more than $914 in real estate taxes, an increase of about $60, Reynolds said.

In the city of Cape Girardeau, real estate taxes for that same home would total nearly $950, a $63 increase.

Reynolds' estimates don't take into account any levy hikes, and there is at least one on the way.

Jackson area residents can expect to see even higher tax bills, on average, because of a school levy hike. The Jackson School District levy has increased 10 cents to $3.31 per $100 assessed valuation because voters last November approved a $6 million bond issue for expansion of the junior high school.

County Collector Diane Diebold expects to hear from Jackson School District taxpayers this fall, upset over higher taxes.

"Two things are going to hit them, reassessment and a tax levy increase," she said.

Possible levy

Taxpayers in the Cape Girardeau School District also could see a levy hike this year. The Cape Girardeau Board of Education is considering asking voters in August to approve a levy hike to increase teachers' salaries and pay other operating costs. The district would have to hold the election in August at the latest for any levy hike to be included in the 2001 tax bills.

School districts pay close attention to reassessment because increased real estate valuations put more tax money in their pockets. About 72 percent of a person's total estate taxes go to his or her school district.

Real estate taxes in 2000 generated $9.7 million for the Cape Girardeau School District and $5.3 million for the Jackson School District.

"Reassessment, in terms of dollars, is always good for a school district because property values go up. That increases school district revenue," said Dr. Dan Steska, Cape Girardeau School District superintendent.

Cape Girardeau school officials are waiting for the assessor to calculate the new assessed valuation for the district. The increased valuation has a bearing on calculating any tax measure that would be submitted to the voters, Steska said.

An increase in the assessed valuation could lessen the size of the tax hike needed, he said.

Steska said the rising value of a piece of property can be both good and bad news to the owner. "If the property goes up, the bad side is you have to pay more taxes. The good side is when you sell it, it is worth a lot more."

Reassessment is of less importance to cities like Cape Girardeau and Jackson, which generate little of their revenue from real estate taxes.

Jackson's real estate tax last year generated about $844,000 for the city or little more than 5 percent of its $16 million budget.

Cape Girardeau's levy raised less than $2 million, which amounts to less than 4 percent of the city's $57.5 million budget.

Tax appeal

County taxpayers won't have to wait until fall to see their new assessments. Reynolds said his office this spring will notify taxpayers whose properties have been increased in value through reassessment.

Reassessment must be completed by May 15. After that, taxpayers can appeal the assessments through the county's Board of Equalization and ultimately even to the State Tax Commission.

In Cape Girardeau and other first-class counties, the board can start hearing appeals on the first Monday in June. The board must adjourn by the last Saturday in July. This year, appeals can he heard from June 4 to July 28.

The board includes the three county commissioners, the assessor and the county auditor.

Reynolds said people have to present valid reasons why their assessments should be lowered. "You can't come to the Board of Equalization and say your taxes are too high."

The Board of Equalization makes few changes, he said.

APPEAL PROCESS

* The Cape Girardeau County assessor's office will notify taxpayers this spring if their assessments were increased.

* Taxpayers who want to appeal their increased assessments can contact the Cape Girardeau County assessor's office at 243-2468.

* Taxpayers can appeal to the county's Board or Equalization between June 4 and July 28.

* Taxpayers can appeal to the State Tax Commission by Aug. 15 or 30 days after the final action of the Board of Equalization, whichever date is later.

Source: State Tax Commission and Cape Girardeau County assessor's office