Good Morning Everyone,

Just wanted to share a noteworthy development for those of us investing—or considering investing—in Jackson County, Missouri (Kansas City metro area).

The Missouri State Tax Commission (STC) ruled in August 2024 that about 75% of Jackson County's residential property assessments from 2023 were inaccurate. As a result, they ordered that:

• Any property value increase over 15% must be rolled back, unless it was due to new construction.

• Jackson County failed to follow required legal steps, including on-site inspections and proper notifications for large value increases.

More than 54,000 property tax appeals were filed by homeowners last year—many of which are still pending.

Jackson County has filed a lawsuit to challenge the ruling. The county claims that the STC overstepped its legal authority and that its order is not enforceable. A bench trial is scheduled for January 13, 2025.

If you own or are eyeing rentals in Jackson County, this could have a few key implications:

• Cash flow forecasts might change depending on how the tax assessments shake out.

• Valuation comps may shift if the county is forced to redo assessments.

• There is uncertainty around whether tax relief will actually be applied, as county officials say the revenue collected has already been distributed to local taxing entities.

As of now, the county has publicly stated that no refunds or credits will be issued even if the court upholds the STC order.

As someone actively analyzing deals in KC, this is a good reminder of how important it is to:

• Stay up to date on local property tax policy and appeals processes.

• Understand how tax law changes may impact your buy-and-hold or BRRRR strategy.

• Have a buffer for unexpected tax hikes in your pro forma, especially in areas undergoing reassessment or gentrification.

• KMBC News: Jackson County headed to trial over assessment rollback

• KMBC Summary of the STC Order

Curious—any other investors here with property in Jackson County? Have you received updated assessments, or appealed yours recently? What’s been your experience?

#Missouri #KansasCityInvesting #PropertyTaxes #BRRRR #RealEstateNews #LandlordTips #DueDiligence