Two-Year Assessment Cycle

# (1)

The assessed value of real property shall be calculated by determining its true value in money on January 1 of each odd-numbered year. The value shall remain the same for the subsequent even-numbered year unless there has been new construction or property im-provements between January 1 of the odd-numbered year and January 1 of the fol-lowing even-numbered year.

# (2)

In those instances in which new construc-tion or property improvements have occurred between January 1 of an odd-numbered year and January 1 of an even-numbered year, the true value in money of the property as newly constructed or improved shall be determined as of January 1 of the odd-numbered year.

# (A)

The valuation of the property shall take into consideration the new construction or property improvements and shall assign to that new construction or property improve-ments the value which would have been attributed to new construction or improve-ments on January 1 of the odd-numbered year as though they had existed on that date.

# (B)

Examples.
1. On January 1, 1991, the subject prop-erty is a five (5)-acre vacant lot. On Dec-ember 1, 1991, construction of a strip shop-ping center is completed. For the 1992 tax year, the assessed value is calculated by determining the true value in money of a shopping center of the same size, construc-tion, location and use as the subject property as of January 1, 1991, and multiplying that amount by the appropriate statutory assessed value percentage.
2. On January 1, 1991, the subject prop-erty is a three (3)-bedroom ranch style house with thirteen hundred (1,300) square feet. On August 1, 1991, the addition of a second story and seven hundred (700) square feet is completed. For the 1992 tax year, the assessed value is calculated by determining the true value in money of a two (2)-story, two-thousand (2,000) square foot residence of the same construction and location as the JASON KANDER (1/29/13) subject as of January 1, 1991, and multiply-ing that amount by the appropriate statutory assessed value percentage.

# (3)

A property improvement consists of any change to the physical characteristics of the property, whether that change is one that causes an increase or a reduction in value.
Changes in zoning, neighborhood conditions or economic conditions which directly or indirectly affect the property will not warrant a change in the assessed value for the even-numbered year.

(A) Examples.

# 1.

Assuming value is affected, a change in the assessed value for the 1992 tax year is warranted (see paragraph (2)(B)2.)

# 2.

On January 1, 1991, the subject prop-erty is a three (3)-bedroom ranch style house with thirteen hundred (1,300) square feet. On December 1, 1991, the house burns to the ground. A change in the assessed value for the 1992 tax year is warranted.

# 3.

On January 1, 1991, the subject prop-erty is a five (5)-acre vacant lot zoned agri-cultural. On December 1, 1991, the property is rezoned commercial. No new construction is added to the property. A change in the assessed value for the 1992 tax year is not warranted.

# 4.

On January 1, 1991, the subject prop-erty is a three (3)-bedroom ranch style house located on ten (10) acres of land in the rural area of the county. On December 1, 1991, the county began operation of a landfill on prop-erty adjacent to the subject property. The location and operation of the landfill nega-tively affect the value of the subject property.
A change in the value for the 1992 tax year is not warranted.

# 5.

On January 1, 1991, the subject prop-erty is a three (3)-bedroom ranch style house with thirteen hundred (1,300) square feet which is twenty (20) years old. On January 1, 1992, the subject property is twenty-one (21) years old. It is generally recognized in the appraisal of property that as property ages it physically deteriorates and it may be neces-sary to make a deduction for physical depre-ciation under the cost approach for value. A change in value for the 1992 tax year is not warranted.

# (4)

The examples used in this rule are by way of illustration only and not to be deemed to be the only instances to which this rule applies.
AUTHORITY: sections 137.115, RSMo Supp.
1992 and 138.320, RSMo 1986.* Original rule filed May 14, 1991, effective Oct. 31, 1991.
*Original authority: 137.115, RSMo 1939, amended 1945, 1951, 1959, 1972, 1973, 1981, 1983, 1985, 1985, 1986, 1987, 1989, 1990, 1991, 1992 and 138.320, RSMo 1939, amended 1945.