New agricultural productivity values took effect on Jan. 1, 2015, according to Daviess County Assessor Betty Harmison. The assessor recently received information about the increase from the State Tax Commission.
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The most recent study conducted for the State Tax Commission indicated an increase in productivity values per acre for agricultural and horticultural land. In December of 2013, the State Tax Commission of Missouri proposed the study’s range of productive values to the General Assembly. The legislature had 60 days to reject the recommended increase in 2014.
These values are used universally in the state. The 2015 productivity valuation increase is the first in 20 years. The last increase was in 1995. State statutes dictate that agricultural and horticultural properties are to be assessed at 12% of true value. The agricultural land productivity value changes are as follows:
Agricultural – 2015 – 1995
Soil Grade – Ag Values – Ag Values
1 – $1,035 – $985
2 – 850 – 810
3 – 645 – 615
4 – 405 – 385
5 – 205 – 195
6 – 158 – 150
7 – 79 – 75
8 – 31 – 30
Mrs. Harmison cites the effect of this increase in the following example: If you have an acre of land in Class 1 Soil Grade, your valuation will increase $50 in appraised value. (From $985 to $1,035 – see chart above.) You will pay taxes on 12% of that $50 (as set by statute), which is $6.00 assessed value. If you have a levy of $6.50, this will increase your taxes (for one acre) by 39 cents.
The increase in the valuation varies by the agricultural soil grade, as shown in the chart. The increase ranges from only $1 for an agricultural soil grade of 8, to $50 for an agricultural soil grade of 1.