Assessor Warns Of Higher Taxes On Used Cars, Wants Resident Action

Personal Prefaces:

1. I extend my condolences to those affected by this morning's violent storms that have killed at least three people in Washington County, Ark., and at least three more in Dent and Phelps counties in Missouri. My thoughts and prayers are with friends who are in the impacted areas.
2. I relay the following report with full disclosure of my status as a tax-paying resident of Clay County, Missouri, and owner of a used car which may be impacted.

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Clay County residents have received a letter along with their personal property statements, warning them of higher taxes if they don't petition Jefferson City.

In a call-to-action (transcribed below), assessor Cathy Rinehart warns that many will see the value of their used car increase when their tax bills arrive in April. She writes that it's because state statute requires her and the state's assessors to use values from the October issue of the NADA's Used Car Guide.

The rise, she adds, is from fewer new cars being manufactures, thus increasing the resale value of used cars.

Rinehart suggests that residents write to lawmakers in Jefferson City, asking that assessments instead come from the Kelley Blue Book or be based on the vehicle's weight.

Missouri residents have until March 1 to submit their updated personal property lists or incur a late penalty.

The entirety of her letter (formatting & misspellings inclusive) is transcribed below:

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Jan 1, 2011

Dear Citizens of Clay County,

There is an issue I would like to bring to your attention. All assessors of Missouri are required to use the October NADA to place values on vehicles. [Statue137.115 (9.) The assessor of each county and each city not within a county shall use the trade-in value published in the October issue of the National Automobile Dealers' Official Used Car Guide,]

In 2011, NADA has increased the value of sevewral vehicle models. In April some of you will be receiving an increase value change notice on your vehicle. This is because fewer new cars were manufactured, and used cars are now worth more.

Because I must use NADA trade-in value I believe the taxpayers are entitled to advanced notification. I believe it is my sworn duty to you, as your assessor, to provide a means to correct this situation for everyone in Missouri. There are two solutions, both involving your help:

1. Change the law to read that the assessor "may" use the Kelly Blue Book for true market value. (Kelly Blue Book is used by car dealers through out the State. Kelly Blue Book historically represents a lower value than NADA.)
   
2. Change the Constitution of Missouri to have the DMV charge you by the weight of the vehicle. Thus eliminating personal property being valued by the assessment department. You would still pay personal property taxes but it would be based on weight vs. value

Your help is requested by contacting your newly elected State Representatives and Senator. Please, call, write, e-mail, snail mail, or talk to your State Representative. The law needs to be changed. Just like you got the law changed to waive penalties for a county error. (Thank you again for your help with that.)

For your convenience on the back of this letter, I have included State Representatives' contact information. Please, help me, help you. The only way we can get a different value guide is with your voice.

Also, to avoid any assessment penalties please fill out the 2011 assessment list and return it to the assessment department before March 1, 2011.

As always, it is an honor to be your assessor.

Sincerely:

Cathy Rinehart
My Motto: “I know who I work for, You, the citizens of Clay County.”