Ratio Study Update  
Discrimination In Ratio of Assessment
Updated April 2009

- 2005 Commercial Ratio Update - April 2009

- 2005 Commercial Ratio Case Information

- 2001 – 2004 Ratio Refund Distribution Information

2005 Commercial Ratio Case Update - April 2009

We received a favorable but flawed decision from the State Tax Commission (STC) regarding your 2005/2006 tax appeals based on discrimination.

The good news is that the STC agreed with PAR that the average level of assessment for commercial property was 25% for the 2005/2006 tax cycle instead of the statutory mandated level of 32%.

However, the STC also ruled that in order for property to be discriminated against, the difference between the average level of assessment (25%) and actual level of assessment for a particular property must be ‘grossly excessive.’

The Commission, we believe, mistakenly arrives at the conclusion that a property may be 15-20% over assessed without being considered ‘grossly excessive.’

We believe their reasoning is based on an inaccurate interpretation of law and statistical and assessing standards.  Therefore, we will appeal the decision to the Circuit Court in order to achieve a more acceptable standard.

Click here to read the decision.

2005 Commercial Ratio Case Information

In 2005, Property Assessment Review again filed appeals to the State Tax Commission of Missouri based upon the discrimination in assessment.

We have again hired a nationally recognized expert on ratio studies, Robert Gloudemans, to help build our case and establish the prevailing level of assessment. He literally ‘wrote the book’ on ratio studies. In this case the book is the International Association of Assessing Officers (IAAO) Standards on Sales Ratio Studies. Robert Gloudemans is currently gathering data to conduct a sales ratio study to determine the prevailing level of assessment in 2005/2006.

We will most likely have our hearing before the State Tax Commission in late 2007 and expect that we will achieve a successful result by the end of the year. However, historically these types of schedules are subject to change and continuances.

2001 – 2004 Ratio Refund Distribution Information

In May 2005, Property Assessment Review settled our 2001-2004 discrimination appeals in St. Louis County. Years of hard work has finally achieved the expected result. In addition to value reductions obtained at the Board of Equalization and the State Tax Commission, PAR achieved tax refunds for our clients of approximately 11% for 2002 and 12% per year for 2003 and 2004.

From December 2005 to August 2006, St. Louis County issued refund distribution checks in batches of 40 to 50 parcels per check with appeal numbers, locator numbers, refund amounts and interest amounts per parcel and appeal year.

After receipt of each County distribution check, PAR sent notifications to those parcel owners on the corresponding County distribution list that their refund was available and to verify ownership of the parcel for the indicated years. After the fully signed and initially Ownership Verification was received, PAR promptly issued checks payable to the ownership for the refund less PAR’s fee along with the County's adjusted tax bill.

We have now settled all 2001-2004 ratio appeals. If you have any questions regarding the distribution, please call Dave Dempsey or Steve Weber at 314-361-4600.

"The research concludes that under Missouri law the property tax assessments in both St. Louis City and St. Louis County are too low and, therefore, all the property tax rates are too high. The only way for the system to be fair is if everybody is appraised at a level at or near 100 percent, as required by law and demanded by professional standards.”
- Dr. Mark Tranel, Director,
University of Missouri, St. Louis

Media Coverage

Commercial Owners Will Get Tax Refunds
St. Louis Post-Dispatch June 7, 2005

Assessments Are Called Inaccurate
St. Louis Post-Dispatch July 25, 2004

Assessed Value of County Declines
St. Louis Post-Dispatch August 9th, 2004

Magoo Goes Assessing
St. Louis Post-Dispatch August 9th, 2004

copyright property assessment review 2003