Scare tactics over Johnson County property assessments

With references to descending plagues, panicking leaders, shifting tax burdens and schools losing funding, it seems Kansas City Star contributor Steve Rose’s March 3 column about retail property tax appeals was written to scare citizens in Johnson County.

As Rose puts it, “in this hyper-political world today” it is concerning that his attempt to frighten is filled with inaccurate information. And his claims are very similar to public statements made by Johnson County Appraiser Paul Welcome and Commission Chairman Ed Eilert.

Here is some clarity: From 2015 to 2016, the Johnson County appraisal office increased many businesses’ property values, some by more than 100 percent — especially retail stores like Target, Walmart, Lowe’s, Hobby Lobby and Home Depot. What would a Kansas homeowner do if the county appraiser doubled his or her home value in one year? The natural reaction of most would be to appeal the increase, which is what businesses are doing.

However, if you read Rose’s column or have heard Welcome or Eilert speak, you would believe it is the businesses that are trying to change the way retail stores are appraised.

Rose wrote these stores’ appeals are “based on radically different appraisal methods,” and that “longtime appraisers say the new method of appraising these stores is complete nonsense.” Those statements are false. There are no new methods of appraising being sponsored by retailers. Welcome is the only one attempting to circumvent state law by applying a new appraisal method.

This is not an issue that came “suddenly, out of the blue” as Rose claims. In 2015, Johnson County had 57 discount retailers and other retailers’ property valued for $400 million (rounded), an increase from the 2014 valuation total of $346 million. In 2016, using his new valuation method based on the quality of the sales in the stores, Welcome raised these same discount and big box retailers to $743 million — a 104 percent increase.

It escaped mention that Johnson County has already acknowledged its 2016 values were overstated and has voluntarily reduced many of them.

Rose claims that if retail property owners win their appeals, the tax burden will shift to homeowners — another statement that is not true. Property taxes are determined by valuation and mill levy. If property taxes are valued at a certain dollar amount, and taxpayers appeal that valuation, there’s no way a “shift” can take place unless the county increases the mill levy to bring in more revenue — or if Welcome applies his new appraisal method on homeowners.

Kansas law is clear that only the property should be considered, and not the economics of the owner or user of the property. The method applied by Welcome has never been approved by the Kansas Legislature or the Appraisal Institute. It is not included in the Uniform Standards of Professional Appraisal Practices. It has been debunked by the Kansas Court of Appeals and the Kansas Board of Tax Appeals.

Bottom line: Johnson County business owners are playing defense and somehow it is being portrayed that they caused the problem. County leaders should admit what they are really doing. Rather than asking for voter approval to increase taxes, they are attempting to increase tax revenue through unsubstantiated valuation increases on businesses so county spending can increase.

This story was originally published March 31, 2018 at 8:30 PM with the headline "Scare tactics over Johnson County property assessments."