Home values increased by up to 70% in some KC ZIP codes. How does yours compare?

Property tax bills are arriving in the mail in Jackson County — and some homeowners may be surprised by how much they have to pay.

That’s due in part to large increases in home values across the county. Assessment department data obtained by The Star through a public records request shows that residential property values rose by around 33.7% overall this year — and some areas saw much higher increases than others.

Wondering how your neighborhood compares? The map below shows how much home values rose overall in each ZIP code during this year’s valuation process. Hover over your ZIP code to see the increase in total values of all its residential property this year.

How do home values impact property taxes?

Your property taxes are calculated by multiplying a portion of your home’s value by your property tax rate, which is decided by your taxing jurisdictions.

A higher home value usually leads to higher taxes, although this isn’t a guarantee.

Taxing jurisdictions are the groups that provide a variety of services in your area, like your local school district, fire stations, libraries, city and county governments, community colleges and special funds for things like mental health resources and services for people with disabilities.

These groups set property tax rates, called “levies,” which combine into the overall rate homeowners have to pay.

Taxing jurisdictions overlap in a complicated web of coverage areas, so your exact combination of tax levies might be different from the house next door or your friend down the street. You can find out your taxing jurisdictions by looking up your property in the county’s online property account portal.

Why do home value increases vary throughout Jackson County?

Jackson County’s property valuation data shows the highest increases to home values on Kansas City’s East Side and in the historic Northeast, with the lowest increases in affluent neighborhoods on the Kansas-Missouri state line.

Less than 25% of the residents in the three ZIP codes with the highest home value increases are white, while the three areas with the lowest increases are all more than 75% white, according to U.S. Census demographic data.

The areas hit hardest by high increases also have consistently lower median individual incomes than those impacted the least by this year’s valuations.

The median income in the East Side 64128 ZIP code, which saw its home values increase by more than 70%, is less than $21,000 per year. By comparison, the median income in the 64112 zip code near the Country Club Plaza is over $54,000 per year. This area saw home values increase by less than 20%.

When reached for comment, the Jackson County Assessment Office said that development on the East Side is partially responsible for the area’s high value increases.

“The market was hot, and there were several investors buying property in these areas,” said spokesperson Eric Hodson, who also acknowledged that the county has undervalued homes in the past. Recent years have seen an influx of out-of-state investors attempting to buy homes on the East Side, in what some call a “land grab” of real estate in communities of color.

But local real estate agent Stacy Johnson-Cosby, who ran several workshops this summer for homeowners trying to navigate the county’s assessment appeals process, says the current market for East Side homes doesn’t reflect the county’s explanations.

“Realistically, there are not buyers that are coming in that are willing to pay 60, 70, 80 percent above what the property is really worth in those areas,” she said. “It can’t be the case across the board that there’s such a wide variety of disparities.”

The property assessment debacle

Sky-high home valuations, an appeals system that many found confusing and a new partnership between the county and private firm Tyler Technologies caused controversy this summer as valuation notices reached homeowners, leading to an investigation by the Missouri state auditor’s office and a lawsuit against the county by the city of Lee’s Summit.

Now, as the year ends, homeowners are receiving the property tax bills based on these controversial assessments.

While a higher home valuation doesn’t necessarily mean a higher tax bill, some property owners have expressed concern over their ability to stay in their homes — and landlords have even indicated that higher taxes could drive them to increase the rent they charge their tenants.

“There’s some people who missed the notices in general. Some people do not even know that this is going on,” Johnson-Cosby said. “They will get their tax bill, the value is going to be wrong (and) they’ve missed the deadline to fight it. They won’t be able to pay their taxes.”

Both Missouri and Jackson County have adopted a new plan to freeze property taxes for seniors receiving Social Security — but the program doesn’t go into effect until 2024.

Do you have more questions about housing affordability in the Kansas City area? Ask the Service Journalism team at kcq@kcstar.com.