A Property Tax Assessment Review Is Critical in 2021 - Here's Why

Created 1 years 113 days ago
by RitaP

Categories: categoryFinancial Fitness
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by Karen Stern

In Missouri, 2021 is a property tax reassessment year. As always, this could mean an increase in your tax liability. With the added effects of COVID-19 on property values to consider, this also means that values – and your tax liability – could decrease. However, whether values will be reduced enough to reflect the economic problems caused by the pandemic remains to be seen.

Regardless of how 2021 property value is ultimately assessed, a review of your assessment in the current market is crucial because that assessment will hold for the next two tax years and will keep your tax liability to a minimum.

Here are some key items to note as you await your 2021 assessment notice:

- In Missouri, property value assessment notices will be sent out during April and May. Review your notice immediately once it arrives.

- In most Missouri counties, notices will only be sent out if the assessed value is higher than the previous value. A notice is not required if the assessed value is the same as or lower than the previous reassessment.

- Assessments must be based on fair market value as of January 1, 2021.

- If you have made substantial changes to a property, such as an expansion or new construction, conducting a review can be particularly prudent.

- The deadline to file a formal assessment appeal in Missouri will be either June 21, 2021, or July 12, 2021.

If you own commercial property, consider hiring an experienced property tax consultant who can review your property characteristics to identify savings opportunities. Property tax experts can also complete a review of your assessment and work through the appeals process on your behalf, if necessary.

To learn more, contact Kevin Scoles, Director, Real Estate Property Tax at Brown Smith Wallace, at kscoles@bswllc.com.

Karen Stern, CPA, (kstern@bswllc.com), partner in charge, Brown Smith Wallace Entrepreneurial Services Group, provides tax and accounting services for companies ranging from start-ups to $20 million in revenue.