Missouri residential property is assessed at what percentage of market value?
Audio Lesson
Duration: 2:26
Question & Answer
Review the question and all answer choices
100%
A is incorrect because Missouri does not assess residential property at 100% of market value. This would mean the full market value would be taxed, which would result in substantially higher property taxes than what Missouri homeowners actually pay.
19%
33.3%
C is incorrect because while 33.3% (or one-third) is a common assessment rate in many states, Missouri specifically uses 19% for residential properties. This lower rate is a distinctive feature of Missouri's tax system that test-takers should recognize.
50%
D is incorrect because Missouri does not use a 50% assessment rate for residential properties. While some states may use rates around 50% for certain property types, Missouri's residential rate is specifically set at 19% by state law.
Why is this correct?
B is correct because Missouri law specifically mandates that residential properties be assessed at 19% of their market value for tax purposes. This assessment rate is established by state statute and is significantly lower than assessment rates in many other states, making it a distinctive feature of Missouri's property tax system.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests your knowledge of Missouri property tax assessment rates, which is crucial for real estate professionals when advising clients on property values, tax implications, and investment potential. Understanding assessment percentages helps agents calculate approximate property taxes and explain tax burdens to buyers. The question specifically asks about residential property assessment rates in Missouri. Assessment rates determine what percentage of a property's market value will be used to calculate property taxes. In Missouri, residential properties are assessed at 19% of their market value, which is significantly lower than many other states. This lower assessment rate helps keep property taxes more affordable for homeowners. The question is challenging because assessment rates vary significantly by state and property type, and many states use different rates for different property classifications. Missouri's 19% rate is notably lower than the 33.3% rate used in many other states, making it a distinctive feature of Missouri's tax system that test-takers should remember.
Knowledge Background
Essential context and foundational knowledge
Property assessment rates are established by state legislatures and determine what percentage of a property's market value will be used to calculate property taxes. These rates vary significantly by state and property type. Missouri's Constitution sets assessment limits, with residential properties specifically assessed at 19% of market value. This lower assessment rate helps keep property taxes more affordable for homeowners. Commercial properties in Missouri may be assessed at different rates. The assessment percentage is multiplied by the property's market value to determine the assessed value, which is then used to calculate property taxes when multiplied by the local tax rate.
Nineteen percent is the rate, for Missouri residential property great
Recite this rhyme when thinking about Missouri residential property assessment rates to remember the specific 19% figure.
When encountering assessment rate questions, first identify the state and property type. Missouri residential = 19%. If you see '33.3%' or 'one-third', think of other states, not Missouri.
Real World Application
How this concept applies in actual real estate practice
When showing a property in Kansas City to a relocation client from Texas, you need to explain the tax implications. The Texas client is accustomed to properties being assessed at 100% of market value. You explain that in Missouri, residential properties are assessed at only 19% of market value, which means their property tax bill will be significantly lower than what they're used to, even with the same home value. This knowledge helps you position the property as more affordable from a tax perspective, addressing a key concern for your relocating client.
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