- Introduced -

SB 663 - This act makes several modifications to the law of property reassessment, including creation of "The Missouri Homestead Preservation Act," which contains the following provisions:

1) Limits the increase in assessed valuation of residential property, for people under 65 and for those 65 and older who have resided on the property for less than 5 years, to the lesser of the Consumer Price Index increase or 5 percent per two-year reassessment period; and

2) Freezes assessed valuation of residential property owned by people 65 and older who have used the property as a homestead for 5 years or longer. Condemnation proceedings or other judicial "takings" exempt the owner from the 5-year requirement. Age and years of residence are determined on January first of each odd-numbered year, with such information provided to the local assessor by the owner.

This portion of the act has an effective date of January 1, 2003 (if approved by voters in November 2002), and applies to all taxable years beginning after December 31, 2002, and is similar to SB 40 (2001).

Current law requires that if the assessor increases the assessed valuation of a parcel of real property by more than 17%, the assessor shall perform a physical inspection of the property. This act reduces the 17% threshold to 5%. The owner of a parcel of property which is to be physically inspected has the right to request an interior inspection as a part of the physical inspection. The act defines the minimum requirements of a physical inspection and prohibits the use of so-called "drive-by inspections".

The act also clarifies that if a property owner appeals an assessed valuation figure, the assessor's office has the burden to prove that the assessed valuation accurately reflects market value. The assessor also carries the burden to prove that any required physical inspection met the statutory requirements. In the event the assessor fails to carry his or her burden regarding the physical inspection, the property owner prevails on the appeal as a matter of law.

In the event the property owner prevails on the appeal of an assessed valuation of property, the property owner shall be awarded reasonable appraisal expenses, attorney fees and court costs.

The act has a referendum clause.

JEFF CRAVER