Large tax levy increases on individual St. Louis County residential properties since year 2000 have been caused by the ever escalating assessed market values of homes that far outstrip the Consumer Price Index (CPI).  The end result has been unjustifiable tax increases for taxing jurisdictions such as School Districts, St. Louis County government, Fire Districts, State and Municipal Services, and many other services such as the Zoo, Libraries, Sewers, etc.  Except for two years, it appears that the St. Louis County Government had not adjusted the residential tax revenues downward to comply with Missouri State law and the Hancock Amendment to the Missouri State Constitution.  

       The St. Louis County Assessor has published a two page letter entitled, "Frequently Asked Questions about Reassessment" that states, "Your taxes may rise more than inflation – for instance, voters in your area may authorize a tax increase for the fire district, etc., or your assessed value may have grown more than the average for other homes in your area.  However, Property taxes do not increase automatically when home values go up and they seldom grow in proportion with the higher market values.  State laws and the Hancock Amendment to the Missouri State Constitution set tax rate ceilings and allow for adjustments only based on cost-of-living increases or increases approved by voters".  The Hancock Amendment uses "Consumer Price Index" (CPI).  Therefore, any property tax increases are subject to the CPI, unless otherwise approved by the voters (we are unaware of any significant voter approved increases).  Discussions with residential property owners substantiates that since 1985 the residential property tax has ALWAYS increased at the same rate as property reassessments for individual owners.  Basically, however, the St. Louis County government does not appear to be in compliance with Missouri State law and the Hancock Amendment when the CPI for the total property tax levy is exceeded.

      To put into perspective what is happening in St. Louis county there are approximately 370,000 residences in the County of which 271,000 residences have had an assessed value increase of greater than 15% and the median reassessment of the approximately 370,000 residences EXCEED 22% for 2007.  Based on discussions with the St. Louis County Collector's office, homeowners will pay the sticker price increase unless the tax rates are reduced so as to not exceed the CPI!   We are hoping that the taxing jurisdictions will reduce the tax rates consistent with the CPI.  It is conceivable that tax levy increases could significantly exceed the CPI.  However, we have been told by county officials that this will not happen and they will adhere to the CPI.  Based on prior years and the taxing jurisdiction's ability to increase tax rates we are concerned that the tax levy for 2007 may exceed the CPI.

      Since the assessed valuation of property in St. Louis County for 2007, excluding new construction and improvements, have increased at a significantly larger percentage increase than the CPI, then a "rollback" of the tax rates is required to yield the same amount as would have been received from the levy on the prior assessed value, as required by the Hancock Amendment.  TABLE 1 below summarizes the large percentage increases in property taxes resulting from reassessments.  The TABLE 1 shows the tax year, increases/decreases in tax dollars collected, CPI percentages, and the percent increases/decreases as compared to the CPI.

TAX TABLE 1*

Revised June 13, 2007
Revised July 9, 2007

             NOTES:   *Table applies to real property taxes and is based on information from the St. Louis County Tax Collector's offices.
                          ** Based on property taxes collected by St. Louis County government.  Increase from prior year shown.
                        *** Tax levy exceeds Hancock Amendment CPI cap.

      Based on Tax Table 1 it would appear that St. Louis County has not been in compliance with Missouri State laws and the Hancock Amendment since at least tax year 2000, as pertains to property tax levies.  What is most disturbing is that the St. Louis County government appears to disregard the financial damage being done to many wage earners as well as our most vulnerable elderly citizens on fixed incomes.  This situation is mainly caused by the reassessment method used by the County.  Many County residents are becoming financially strapped as a result of increased tax levies.  Many elderly retirees on fixed incomes claim that even the Homestead Preservation Act provisions provide little financial help in alleviating there financial burden. 

      The fair and equitable process of residential property assessments and tax levies in St. Louis County is broken.  But it is not all the fault of St. Louis County.  Our State legislatures (senators and representatives) are as much at fault for allowing the sad situation we are in today.  At the Brentwood Recreation Center on May 12, 2007 a town meeting was called by State Representative T. Scott Muschany, R-Frontenac.  With respect to the assessment and tax levies, one of the attendees at the meeting stated, "The politicians create a bureaucratic jungle. The County points to the State.  The State points to the County and they all point to the computer system that compiles the numbers.  The system is flawed and it's predatory".  Representative Muschany said, St. Louis County is passing the buck if anyone from its Assessor's staff tells property owners that fixing the problem lies with the State Legislature.  Muschany said that the taxing districts and St. Louis County government have full discretion to reduce their tax levies to make any increase in assessment neutral.  He further stated that the Hancock Amendment tax-rate rollback only applies if the taxing district is already at its maximum allowable rate – and many aren't!  Muschany said he'd start the process to get that loophole changed, seeking voter approval of a constitutional amendment.  But he said HE CAN'T FILE ANY MEASURE IN THE HOUSE, TO TRIGGER A REFERENDUM, UNTIL DECEMBER 2007!  In the meantime many property owners may lose their homes, businesses and/or suffer financial hardships.  

      Apparently, at the national level, according to U.S. Census Bureau statistics, the rates of increase of property tax levies have been unprecedented.  Between 2000 and 2004 the property tax levies have risen an astonishing 27.7% nationwide. Per the U.S. Census Bureau the Missouri's property tax levies have increased to between 25% and 30%.  And, the rate of increase is expected to be even greater for years 2005 to 2007!             

      Since the State legislators and the St. Louis County government have not insured compliance with Missouri State law and the Hancock Amendment to the Missouri State Constitution in all cases nor corrected the unfair method of assessment we feel the only course of action is to petition and demand immediate action to reduce the tax levies to no greater than the CPI and change the "Fair Market Value" method of reassessment.  We feel that the current methods of reassessment and tax levying are taxation without representation.  The Hancock Amendment may be reviewed and downloaded by clicking on the button below.

Note: Summary write-up revised on June 13, 2007 and July 9, 2007 and reflects discussions with county officials.

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