Jackson County homeowners could get credit back from 2023 taxes. Here’s when, how
Homeowners across Jackson County can officially look forward to getting money back from their 2023 property tax bills in the form of credits over the next few years.
Interim Jackson County Executive Phil LeVota on Thursday rolled out more details about how the new tax credit program – which could bring unprecedented direct compensation to residents still frustrated by steep increases in the 2023 tax cycle – will work. Its impact on the county’s and its taxing districts’ finances are still unknown.
LeVota has made property tax reform a major project in the first few weeks of his brief tenure at the helm of the county.
“This is kind of one of the last phases of what we’re doing on the tax relief thing,” LeVota said.
Correcting tax values
The new tax credits follow a 2024 State Tax Commission order that instructed Jackson County to roll back a majority of its 2023 residential assessment values over concerns that the values had not been communicated appropriately to homeowners.
Jackson County initially resisted the order, bringing – and losing – a lawsuit against the state.
But even after Jackson County came to an agreement with the state, residents didn’t get any money back from the ordeal. Those 2023 tax bills had long been paid, and that money had already been distributed and spent by taxing jurisdictions like area school districts and cities. In an effort to get homeowners back some of that tax money they overpaid according to the state’s order, LeVota announced last month that the county plans to issue tax credits to homeowners whose residential property values increased by more than 15% in the 2023 assessment cycle.
Now, he’s added that residents will see these credits on their future tax bills, even if they’ve already appealed their old assessment and agreed on a new value with the county’s Board of Equalization.
Who is eligible?
The county has isolated 142,000 residential property owners who faced a property value increase of over 15% in 2023, along with 6,200 commercial property owners to whom the county might also issue credits, LeVota said.
Credits will be issued on Jackson County residents’ 2026, 2027 and 2028 tax bills, leading to a partial reduction in each bill over the course of three years.
Those who have sold their homes since 2023, however, will not be eligible for tax credits, LeVota said. Additionally, anyone selling their home before 2028 will lose out on any credits not issued by the time of sale.
“You’re done,” LeVota said. “You sold your property. You do not have any issue with tax relief.”
Future financing
LeVota said he is not clear yet on how much the credits will cost the county or how they’ll impact future tax revenue. The three-year payment structure is intended to spread out the impact on schools, fire protection districts and other taxing entities, he said.
The final financial impact of the promised credits will not be reflected on residents’ tax bills until 2028. Meanwhile, LeVota’s term as interim county executive will end by January 1, 2027, and he has pledged not to seek re-election.
“We’ll crunch those numbers,” LeVota said. “The issues that we’ll face in the future, we’ll face in the future.”
The financial impact on Jackson County school districts – whose budgets rely largely on property taxes collected from the houses and businesses zoned within their purview – is particularly unknown, LeVota said. The interim county executive met with 20 KC-area superintendents earlier this week, he said, where many “expressed their frustration” over the planned credits.
“It affects their bottom dollar,” LeVota said. “I wanted to let them know I’m sympathetic and I want to work with them. I didn’t just want to say, ‘That’s how it is, deal with the budgets.’”
LeVota said he’s not concerned about the potential of residents re-experiencing sticker shock from 2027 values a year after the planned reductions on their bills begin.
“If we have a fair process for valuation, I think that takes care of itself,” LeVota said. “Now, everybody’s realizing that values go up. They go up all the time. And we’re in this mess because previous administrations… did not evaluate properties in the manner it should by smaller increments.”
As residents continue to determine whether they’ll be able to benefit from the new tax policy, the county has established a hotline staffed by both the collection and assessment departments.
Starting next week, those with questions about their promised future tax credits can call the Taxpayer Assistance Hotline at 816-881-4455, or can send an email to taxquestions@jacksongov.org.
Noelle Alviz-Gransee contributed reporting.
