Assessment is the official valuation of property for ad valorem taxation: ad valorem means at value. Therefore, the job of the county assessor is to determine the market value of real and personal property: this gives the "at value" price.
How is market value determined? The appraisal of property uses three standard approaches to value to determine market value. They are:
The sales comparison approach to value estimation involves a process of comparing prices paid for similar properties, prices asked by owners, and offers made by prospective buyers.
It is assumed that a typical purchaser will not pay more to buy a property than it will cost to buy a comparable substitute property. The price a typical purchaser pays is usually the result of an extensive shopping process in which he/she is constantly comparing available alternatives.
On the other hand, the seller usually tries to obtain the highest possible price for his/her property, based on market information. Although some sales deviate from the market norm, a sufficient number reflect the overall pattern of purchasers and sellers.
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Typically, the assessor surveys buyers of properties, consults various records, interviews various people and entities in the real estate business, and has taken other appropriate measures to find recent sales of properties similar to the subject. Also, the assessor considers usually only considers arms-length transactions for the sales comparison approach.
An arm's-length transaction is between unrelated parties under no duress. Sales between family members or foreclosures are not usually considered at arm's length.
The cost approach is based on the supposition that an informed buyer would pay no more than the cost of producing a substitute property with the same utility as the subject property. It is very useful when the property being appraised has relatively new improvements or specialized improvements for which there exists no comparable properties on the market.
The cost approach for existing buildings gives a value indication by estimating the replacement cost of the existing structures and other improvements based on current labor and material costs. Any depreciation observed is deducted from the replacement cost estimate to provide a depreciated replacement cost estimate. The estimated market value of the land is then added to the estimate to obtain an indication of total property value.
Replacement cost is different than reproduction cost. Replacement cost is the estimated cost to construct, at current prices, a building with utility equivalent to the building being appraised, using modern materials and current standards, design, and layout. This is the basis used in the assessment process. The other cost approach, reproduction cost, is the estimated cost to construct, at current prices, an exact duplicate of the building or structure.
The cost approach is the basis of the automated valuation model (A VM) and is monitored and reconciled with the sales approach and income approach to modify the final valuation modeL
The cost approach is of particular significance when applied to those properties capable of generating an income stream. In this situation, the future benefits are monetary in nature and can be measured in terms of dollars.
An income/expense analysis of the market allows the assessor to convert income to potential worth. This may be derived with gross/monthly income market multipliers or complex discounted cash flow analyses capitalized at market-derived rates. Needless to say, this is the most complex method of establishing value.
Theincome approach is used in the automated valuation model (A VM) and is monitored and reconciled with the sales approach and cost approach to modify the final valuation modeL
After the county assessor establishes the market value of all property, personal and real, a percentage of the market value is applied to establish an assessed value. This percentage is determined by property classification. These are the percentages for real property:
[ICON] ASSESSMENT CALENDAR fICON] ASSESSMENT CALENDAR
| DATE | ACTIVITY |
| January 1 | Property valuation date for all real and |
| personal property | |
| March 1 | Personal property assessment lists due; |
| postmark by this date to avoid penalty | |
| May 31 | Assessment roll to be completed by assessor |
| and turned over to county clerk. | |
| July (Beginning 2no | Board of Equalization for appeals of value |
| Monday) | |
| September | State appeals due by September 30 or 30 days |
| after BOE (appeal must have been filed with | |
| BOE to appeal to STC) | |
| September 1 | Tax rates must be set by all political |
| subdivisions certified by county clerk | |
| November | Tax bills prepared and mailed by county |
| collector | |
| December 31 | Property tax bills due in full |
[ICON] ASSESSMENT CALENDAR fICON] ASSESSMENT CALENDAR
| DATE | ACTIVITY |
| January 1 | Property valuation date for all real and |
| personal property | |
| March 1 | Personal property assessment lists due; |
| postmark by this date to avoid penalty | |
| May 31 | Assessment roll to be completed by assessor |
| and turned over to county clerk. | |
| July (Beginning 2no | Board of Equalization for appeals of value |
| Monday) | |
| September | State appeals due by September 30 or 30 days |
| after BOE (appeal must have been filed with | |
| BOE to appeal to STC) | |
| September 1 | Tax rates must be set by all political |
| subdivisions certified by county clerk | |
| November | Tax bills prepared and mailed by county |
| collector | |
| December 31 | Property tax bills due in full |
Your valuation must have increased 5% or more in an odd numbered year or 2.5% or more in an even numbered year.
Jefferson City, MO 65109
Your valuation must have increased 5% or more in an odd numbered year or 2.5% or more in an even numbered year.
Jefferson City, MO 65109
You do have the right to appeal if you do not al:,Tfee with the valuation placed on your property. If you do not agree with your value, we highly encourage you to contact our office first to discuss the matter. This is referred to as the Informal Process: it does not jeopardize any of your rights, and usually solves the matter.