Jackson County officials said Monday they are exploring possible legal action against a state tax commission order they say was issued solely to protect Missouri Attorney General Andrew Bailey.
The Missouri State Tax Commission last week ordered the county to revoke most of its 2023 property assessments, concluding that they had been done illegally and had led to a huge increase in property values.
“This is unconstitutional. This is unprecedented. And there is not even any evidence to support it,” County Councilman Bryan Covinsky said at a press conference in Kansas City about the commission’s order.
Covinsky said the county will work with school districts and other taxing authorities to determine the best way to lift the order.
The commission’s order came eight months after a lawsuit filed by Bailey against Jackson County. Bailey accused officials of failing to follow proper procedures when assessing properties last year. According to Bailey’s lawsuit, property values in the county increased by an average of 30 percent. Bailey claims the county failed to offer a physical inspection to property owners who faced increases of 15 percent or more.
But with only one day of trial left in Bailey’s case against the county, the commission ordered a reversal of the tax assessments and Bailey demanded that the lawsuit be dismissed.
Missouri Attorney General seeks dismissal of lawsuit one day before scheduled testimony
Both the order and the motion to dismiss were filed one day before Bailey was to give evidence regarding his contact with Sean Smith, a Jackson County official, that appeared to violate legal ethics rules. They also came one day after Bailey won the Republican primary for a full term as attorney general.
The judge in the case Bailey’s motion to dismiss granted on Thursday, eliminating the possibility of Bailey being questioned under oath in the case.
Covinsky and District Administrator Frank White Jr. claimed Bailey’s office was losing and knew it.
“Attorney General Bailey dismissed a case that he himself called the most important in the history of his office,” White said. “Let’s not forget that Attorney General Bailey dismissed the case the day after he was elected because he was afraid to answer questions under oath.”
Deputy Attorney General Jay Atkins said in an email that the goal of Bailey’s lawsuit is to provide relief to Jackson County taxpayers.
“The Tax Commission’s order does just that,” Atkins said. “(Attorney General) Bailey was proud to work with the State Tax Commission to hold Jackson County accountable and provide taxpayers with the relief they deserve. We look forward to defending the State Tax Commission’s lawful order.”
The Commission could not be immediately reached for comment.
In a legal memo to White, Covinsky recommended that the county continue to operate as it did prior to the tax commission’s order, “unless and until a court of competent jurisdiction orders otherwise.” He argued that “no government agency is required to comply with an unlawful order.”
Both Bailey and one of his deputies met with Smith while the trial was ongoing, in apparent violation of Missouri Supreme Court rules that prohibit attorneys from communicating about litigation with people the other attorney represents in the case without the other attorney’s consent.
Bailey and Smith insisted that the meeting was nothing more than a campaign event.
But his deputy, Travis Woods, also spoke to Smith without permission. The judge found that Woods had violated the rules of conduct and Bailey was sentenced to join the witness statement as punishment.
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Now Jackson County and its taxing authorities – including school districts, fire districts and police departments – face a budget dilemma.
The State Tax Commission’s order directs Jackson County to roll back property assessments that have increased by more than 15% since the last assessment.
Instead of providing refunds to homeowners whose property values have risen sharply, the order will simply redistribute the tax burden, officials said. County Tax Assessor Gail McCann Beatty said poorer communities could face disproportionately high tax bills compared to huge, stately homes in the city’s Country Club District.
The reason for this is a provision in the Missouri State Constitution that limits local governments’ ability to raise revenue. The Hancock Amendment directs local governments to adjust their property tax rates to avoid windfall gains. When property values rise, the tax rate falls.
If the tax rates are rolled back, taxing authorities will raise their tax rates to provide money for schools, fire departments and other services, Jackson County officials said. But they must do so by Oct. 1, leaving the county and taxing districts with a difficult time deciding how to proceed.
“If they don’t get it through property values, they’ll get it through property tax rates. They’ll adjust it upward,” said County Administrator Troy Schulte, “so I don’t see a scenario where taxpayers won’t be hit significantly.”
