Cole County commissioners hear Missouri State Tax Commission compliance notice for assessor; potential funding and equalization consequences discussed

Commissioners reviewed a notification from the Missouri State Tax Commission (MSTC) that Cole County's final residential sales study for 2023 "is not within acceptable parameters." The MSTC letter, dated Jan. 31, 2025, prompted commissioners to place the assessor's memorandum of understanding (MOU) with the state on the agenda for discussion.

Presiding Commissioner and the Western District Commissioner described the MSTC's follow-up process and potential consequences outlined in the MSTC flowchart: if the MOU is not satisfied, the state could withhold state-distributed assessment funds (the MSTC and commissioners referenced an approximate $120,000 figure) and could issue an equalization order to the board of equalization; unresolved orders could be referred to the attorney general's office. "If the MOU is not followed, state funds will be withheld," one commissioner said, noting a potential $120,000 shortfall to the assessor's assessment fund.

Commissioners said the county clerk and assessor were notified but that commissioners learned of the letter only after Feb./Mar. communications; the MSTC indicated it attempted to contact the assessor beginning the day after the letter and that contact attempts were not consistently answered. The commission cited MSTC staff member Larry Jones as describing calls and texts to the assessor, with limited responses such as "assessments are progressing." The board pressed for direct answers from the assessor about whether the county anticipates compliance with the MOU and whether an equalization order will be necessary.

Commissioners and staff discussed how sales data are collected and trimmed for the sales ratio study, noting Missouri is a non-reporting state and not every sale is reported to assessors. Commissioners asked whether the county's ratios were previously represented as among the best in the state; staff said the last passing score had been in the mid-90s in prior years, but more recent reports showed a drop below established thresholds (one year at 83.9% produced an MOU requirement; the most recent report cited in discussion was in the high 60s, around 67%). One commissioner noted that 85 of 115 assessors statewide were out of compliance, per MSTC information provided to the county.

Commissioners asked about the timeline and next steps: the assessor must submit Form 11 (annual assessment totals) by the statutory deadline in midyear (discussed as June 1 or June 30 in the meeting) and the board of equalization may make adjustments before final totals are distributed to political subdivisions. Staff explained that appraisal-driven valuation increases above statutory limits can require levy rollbacks by political subdivisions and that the effect on school districts and other taxing entities depends on the Form 11 totals and any board of equalization adjustments.

The commission did not take formal action but asked to receive clarifying information from the assessor and the MSTC and to monitor the process. Commissioners said they would seek more detailed updates from the assessor and requested answers to whether the assessor had been in contact with MSTC staff and what remedial steps would be completed by the submission of Form 11.