State auditor blasts Jackson County in initial review of property tax assessment

KANSAS CITY, Mo. (KCTV) - The Missouri State Auditor has released a preliminary audit which flat out states the Jackson County Assessment Department failed to comply with state law.

The newly-released report stated property values that increased more than 15% are likely invalid. This means about 69% of all homes in Jackson County are affected.

The preliminary audit calls on County Executive Frank White, the County Legislature and the Assessment Department to offer solutions. The report suggests limiting 2023 values to 15%, using prior years’ assessed valuations or allowing additional appeals.

You can read the entire report below.

“Given the objective and irrefutable evidence uncovered by Missouri State Auditor Scott Fitzpatrick and his team that the Assessor failed to comply with State Law, I am requesting immediate action on the part of the Board of Equalization to set a “cap” on 2023 Assessed value increases,” said County Legislator Sean Smith.

What the audit reveals about physical inspections

The audit focused on a lack of physical inspections despite them being required by state law.

The audit pointed out homeowners should have been notified and offered interior inspections at the same time as exterior inspections.

The county has painted a picture of a careful process of physical inspections which involve tape measurements of the exterior of homes and their workers knocking on doors. Many homeowners called that fiction and say that simply did not happen.

They point to Ring doorbells that would have captured video of someone being on their property.

A KCTV5 investigation analyzed pictures from physical inspections in one Independence neighborhood that revealed an employee did 52 inspections in 36 minutes. It averages out to about 41 seconds per property.

ALSO READ: What one neighborhood reveals about Jackson County assessment inspections

Homeowners told KCTV5 they have no memory of this employee taking measurements, knocking on doors or leaving behind clear information to allow them to request an interior inspection.

The state audit concluded homeowners should have received clear information about their rights but did not.

The preliminary audit confirmed complaints from homeowners across Jackson County that questioned how the county could make sweeping changes based on little information.

Data expert and homeowner Preston Smith immediately reacted to the findings.

“What the Assessment Department and Frank White have done to the people of Jackson County is criminal. I am anxiously awaiting to hear whether the State Auditor will be making criminal referrals to the Attorney General. But justice should occur and we are not there yet,” said Preston Smith.

Smith helped KCTV5 reveal a major data error the county was forced to correct.

Jackson County Assessor responds

Jackson County Assessor Gail McCann Beatty released a statement regarding the preliminary report Monday afternoon.

“As the Jackson County Assessor, I acknowledge the preliminary findings presented by the Missouri State Auditor’s Office regarding our assessment process. These preliminary findings are being carefully reviewed and thoroughly analyzed by our internal team. While we believe there are mistakes in these preliminary findings, we remain actively engaged with the auditors to ensure a comprehensive understanding of their observations and correct any inaccuracies. Specifically, it is our position that Section 137.115 was fully complied with,” McCann Beatty said.

She also used the statement to address claims that Jackson County did not review each property.

“For two years, Jackson County completed an extensive review of each residential parcel. The review included having an associate document each property by photographing, measuring, and collecting up-to-date information. Property owners were provided with an opportunity to provide additional information by using a postage paid or online questionnaire. Only after all inspections were completed did the Assessment Department determine a market value and notifications were sent to each owner,” McCann Beatty said.

McCann Beatty continued:

“There appears to be a mistaken belief that physical, exterior inspections are conducted after a valuation is determined. However, the case relied upon the Auditor in the preliminary report shows that it is standard for inspections to be conducted before valuations are estimated. The case cited in the preliminary report states:

The inspection was within a relevant time period of the valuation date of January 1, 2007. Further, St. Louis County is the largest assessment jurisdiction in the state. Over a quarter of a million residential parcels required inspection before the 2007 assessment could be completed. The purpose of Section 137.115 RSMo is to ensure that the taxpayer’s property is inspected before an increase of over 15% may be finalized. An inspection occurring in October 2006, fulfills the inspection purpose of the statute.

“Further, the State Auditor’s current interpretation regarding physical inspections should cause concern among assessors statewide as such a theory would have significant impacts on their assessment process.

“Nonetheless, we will provide further updates and detailed actions following the release of the final audit report. Until then, we remain dedicated to upholding fair and equitable property assessments, ensuring that our assessment process aligns with industry best practices.”

ALSO READ: $356,270 is Jackson County’s favorite assessment number. Why that might be wrong.

KCTV5 previously reported more than 550 homes were assessed at 356,270—most were recent sales. This included a million-dollar property and two empty lots.

A record 55,000 appeals were filed in Jackson County.

The state auditor’s office will continue with its review and issue a final report in 2024.

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