General Real Property Information

Market Value

Simply stated, market value is the most probable price in terms of money that a property will bring in an open and competitive market. Not all sales are consummated at market value, but the intent of the Assessor is to estimate the fair market value of each property in Boone County as of tax day as required by law. The value assigned by the Assessor's Office should represent fair market value as of January 1 of the tax year. The only properties not valued at market are Agricultural properties which are valued in soil productivity grades.

Assessment of Your Property

Missouri law requires a re-evaluation of property values every two years (each odd year). The purpose of this reassessment is the equalization among taxpayers, as well as adjusting any values to better reflect current market conditions as of the tax date. New construction is added on an annual basis. General economic conditions such as interest rates, inflation rates, supply and demand, and changes in tax laws will influence the value of real estate. As property values change in the market place, those changes must be reflected on the assessments. The Assessor does not create the value, but rather interprets the real estate market.

How Does the Assessor Value My Real Property?

A number of methods are used. The assessor's staff looks at new construction that has taken place, sales prices of comparable property located nearby, the condition of your property, and any other factors that can help place an accurate value on the property.

Three techniques are available:

  1. Cost Approach – First, the value of the land is estimated, as if vacant. The assessor then adds the amount it would take to replace your structure with one of the similar utility, including current costs of materials and labor, profit, overhead, permit fees, and the like. If your structure is not new, the assessor then approximates depreciation from all causes, and subtracts that from the calculation of replacement cost.
  2. Market (sales comparison) Approach – Your property is evaluated based on comparable properties that have recently sold, and is adjusted for differences such as a garage, finished basement, or better location. Where there are frequent sales and similarities in properties, this can be the most reliable approach for residential property.
  3. Income Approach – This approach works well for apartments, shopping centers and office buildings. The assessor estimates potential gross income from rentals, then subtracts an amount for vacancies and operating expenses. The amount of net income is then converted to a value for the property, using a process called capitalization.

Value of Your Property & Amount of Taxes You Pay

The market value of your property is multiplied by the statutory level of assessment. Residential property is assessed at 19% of market value, Agricultural at 12% and Commercial & all other at 32%. This "assessed value" is then multiplied by the tax rate (per $100) for your particular area.

Though the value of your property affects your share of taxes, the actual amount you will pay is not established until October 31. It will be determined by the budget needs of the taxing jurisdictions i.e. school, city, fire district(s) etc. The taxing jurisdictions decide what services they will provide in the coming year and how much money they will need to provide those services. Once this decision is made, a tax rate is adopted that will generate the needed dollars. This rate is then applied to the individual assessed values and tax bills are generated.

The value of your property is subject to change every two years (excluding new construction) however, your tax rate (established by the taxing jurisdictions) is subject to change annually. The County Assessor is not responsible for establishing the tax rate for any taxing jurisdiction.