Property taxes are due by year's end. Blame the used car market for the higher bill.
With the deadline for tax payments about two weeks away, people may still be wondering why their personal property taxes have increased so much.
The reason: Demand for vehicles is high, while supply is lower than usual due to computer chip shortages, inflation and supply chain problems. That has led to used vehicles being valued at a higher amount.
According to the State Tax Commission of Missouri, analysts don't expect the inventory of vehicles to return to pre-pandemic levels until late in 2023. The computer chip shortage may not be alleviated until 2024.
Why does that impact my property tax?
The surging value of used cars is reflected in the amount of personal property for which local residents are taxed.
County assessors in Missouri are responsible for determining the value of vehicles and other personal property.
To determine fair market value for motor vehicles, assessors use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide. The county assessor must perform a physical inspection before assigning a value greater than the trade-in value. If the vehicle is two years old or newer than its model year, the assessor can use a value other than the average without inspecting the vehicle.
From February:Used cars cost 40.5% more than last year as gas prices rise. New car prices also climbing
After determining market value, the assessor multiples it by 33.3% to find the property's assessed value. From there, the county collector calculates the taxes by multiplying the value by the tax levy.
Greene County Assessor Brent Johnson declined an interview to discuss how the process was handled locally. Robert Jehle, public information officer for Greene County, said that Johnson “has previously spoken with citizens of the county regarding this very issue."
Why are used cars so expensive?
The average used car sale in September 2022 was 30.3% higher than it was in January 2021, according to the National Automobile Dealers' Association. While wholesale used car prices peaked in December 2021 and have cooled since then, prices are still higher than they were pre-pandemic. NADA doesn't think that prices for used cars will ever be the same.
"We do not expect a return to price levels seen before the COVID-19 pandemic; rather we expect that there will be a new floor for industry-wide wholesale prices somewhere between their pre-pandemic levels and the highs seen in December 2021," said Patrick Manzi, chief economist, in a Nov. 9, 2022, article.
What if I think my bill is too high for what I own?
If you think your property has been overvalued, you can contact the Greene County Assessor's Office by phone at 417-868-4101; in person from 8 a.m. to 4:30 p.m. Monday through Friday at 940 N. Booneville Ave., Room 35; or by email at assessoronline@greenecountymo.gov.
More:Greene County residents can begin paying real estate, personal taxes online
Where can I pay my bill?
You can pay your bill in person from 8 a.m. to 4:30 p.m. Monday through Friday at 940 Booneville Ave., Room 107; online at greenecountymo.gov/collector; or you can mail your payment to 940 Booneville Ave., Room 107. Property tax bills are due by Dec. 31, 2022. Payments postmarked after Dec. 31, 2022, will be counted as late and are subject to a fine.
This article originally appeared on Springfield News-Leader: Surging used car values behind higher Greene County property tax bills
