A Missouri county assessor is reviewing the property tax records for a parcel that contains a mixed-use building: the ground floor is a retail shop and the upper two floors contain four residential apartments. The true market value of the entire building is $600,000. The assessor determines that 40% of the building's value is attributable to the commercial retail space and 60% is attributable to the residential apartments. Which approach correctly calculates the total assessed value of this mixed-use property under Missouri law?
Correct Answer
C) Apply 32% to the commercial portion ($240,000) and 19% to the residential portion ($360,000), yielding a total assessed value of $145,200.
For mixed-use properties in Missouri, the assessor must apply the correct classification ratio to each portion of the property separately, based on its use. The commercial retail space represents 40% of $600,000 = $240,000; assessed at 32%: $240,000 × 32% = $76,800. The residential apartments represent 60% of $600,000 = $360,000; assessed at 19%: $360,000 × 19% = $68,400. Total assessed value = $76,800 + $68,400 = $145,200. This approach reflects Missouri's tiered system applied proportionally to each use classification.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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