What Commercial Property Owners Need to Know
It’s that time again—Jackson County’s greatest (and least loved) recurring performance: The Tax Assessment Shuffle. Each round brings a new plot twist—higher values, legal battles, surprise reclassifications—and 2025 is no exception.
If you’re trying to make sense of the chaos, we’ve got your back. Here’s a quick overview of what’s happening, why it matters, and how to protect your property and your bottom line.
TL;DR Summary
2025 commercial and residential property assessments in Jackson County are out—and many are up sharply. Residential properties may see relief due to the recent Missouri State Tax Commission order, but commercial owners aren’t covered, so now’s the time to review your valuation and consider an appeal.
A Fast-Changing Landscape: Lawsuits, Rollbacks, and Legal Limits
Following tens of thousands of appeals and mounting legal pressure, the Missouri State Tax Commission (STC) issued formal orders directing Jackson County to roll back 2023 and 2024 assessments of residential properties due to widespread violations of state law, including improper valuation increases and lack of physical inspections.
As part of the corrective measures, 2025 assessments for Class 1 (residential) properties are now capped at no more than 15% above their rolled-back 2023 values. But the important caveat This protection applies only to Class 1 residential properties—primarily 1–4 unit housing. Commercial properties, including multifamily with 5+ units, are not included in this cap.
NOTE for Residential Refunds: Refunds have been publicly discussed, but no official order requires them yet, and there’s no clear path forward since much of the collected tax revenue has already been spent.
What Should You Do Now? Know Your Valuation—and Your Options:
If you’re unsure whether your new value is fair—or if it’s just too big of a jump all at once—it helps to understand the three primary methods counties (and tax consultants) use to estimate market value:
- Sales Comparison Approach: Based on recent sales of comparable properties.
- Income Approach: Based on your property’s actual or potential income and operating expenses.
- Cost Approach: Based on land value plus the cost to rebuild (minus depreciation).
Jackson County tends to lean on market averages and sales comps. But if your income or operating data paints a different picture, you may be able to challenge the valuation and preserve your cash flow.
Common appeal triggers:
- Your value increased sharply—even if the new number is in the ballpark of market, you may have a case to phase it in or soften the blow to lessen the impact based on the wide range of market transactions which have occurred.
- Your value increased AND you had high vacancy or poor financial performance as of January 1, 2025. – Use your “as-is” financials and the income approach to build a more accurate picture.
- Your expenses are significantly above market, affecting NOI and reducing value under an income analysis.
See our Q&A with PTAG’s Ryan Katz below for more insight on how to prepare your case.
Initial STR Reclassifications Quickly Walked Back by County Vote
Upon the initial release of 2025 tax assessments, KCMO-registered short-term rental (STR) owners discovered their properties had been quietly reclassified as commercial by Jackson County. This raised concerns—particularly for owner-occupied homes and ADUs—about higher tax rates and inconsistent treatment between STRs registered in KCMO and those in other municipalities that are not required to register.
However, following public feedback and advocacy from the STR community, County legislators acted quickly to reverse the decision. A vote passed on Wednesday, June 18, ensures that STRs will remain classified as residential and are therefore included in the 15% cap on 2025 assessment increases (as discussed above).
If you own an STR, it’s still worth verifying your classification to ensure it reflects the rollback correctly.
EXPERT Q&A
with Ryan Katz, Director of Real Estate at PTAG
How can commercial property owners determine if their 2025 valuation is appeal worthy?
For mostly all commercial properties, real property values are determined by the county assessor’s estimated income approach. For income producing properties, properties with rent paying tenants and operating expenses, the best evidence in support of an appeal is a comparison of the property’s actual rental income and operating expenses to the county’s estimate. Items such as vacancy, recent lease rates and high operating expenses are strong evidence of a lower value, as the county is generally not aware of these issues when issuing their values.
For owner occupied properties, a slightly different approach is best. Since these properties do not have rental income, a comparison of the county’s model to recently completed market leases can also support a reduced value, as it helps demonstrate the range of the market for a particular property.
In both instances, items such as a recent sale price of the subject property, or other market sales can also be
used to support a lower value.
What makes the income approach effective in an appeal, and what documents should owners gather?
The income approach is effective because in almost all instances, the county is estimating the operating
income of the property to help set the value. The property’s actual income and expenses can help show
where the county has over estimated and also help provide information that the county could not be
aware of when setting their value. For example, due to the large number of parcels valued by the county, they cannot be aware that a specific property has significant vacancy which reduces the income potential of the property. Providing the financial information can help demonstrate this.
When filing an appeal, we generally present a three year history of a property’s income and expenses as well as a rent roll as of January 1 of the valuation year.
If a commercial owner appealed in 2023 or 2024, how should that influence their approach in 2025?
In Missouri, real property is revalued every two years, on the odd year (2023, 2025, 2027, etc.). If a property owner appealed in the prior valuation cycle, they should not assume their reduced value carried forward to this cycle. Each cycle stands on its own and the county assessor is required by law to
appraise each property at what it believes to be the fair market value, regardless of the prior value. In
many cases, a follow up appeal of the new value is also required.
What's the full timeline and step-by-step process to appeal in Jackson County?
The most important date is the appeal deadline of July 14th . Property owners must appeal the 2025 market value by this date and late appeals will not be accepted and a property owner may have to pay tax on an incorrect value.
After filing an appeal, a hearing with the County Board of Equalization will be held. This generally occurs in late summer or early fall.
Should a property owner not be satisfied with the Board of Equalization decision, a further appeal to the Missouri State Tax Commission can be filed within 30 days of the Board of Equalization decision.
Due to the extended time frame and large number of appeals expected to be filed in Jackson County this year, PTAG anticipates scheduling multiple meetings with the county assessor prior to the Board of Equalization hearings to attempt to resolve our appeals prior to this hearing, avoiding possible extended wait times for a hearing.
Are there strategies for phasing in a large valuation increase, even if the market value seems accurate?
The county assessor is required to set what they believe to be the fair market value of the property.
Unfortunately, state law in Missouri does not allow for a phase in period. However, if a property receives
a large increase in value that appears to be within the market, an appeal to reduce the value may still be successful. The market provides a range of appropriate values and evidence may be available to show that a lower value may still be in that range. Additionally, property specific factors such as maintenance issues, may also be considered.
It should be noted that some properties may simply have been under valued in the past and are now being more fairly valued.
How can PTAG Help?
PTAG specializes in assisting commercial property owners ensure they are paying their fair amount of property taxes. Located in Overland Park, we specialize in working in all counties of the metropolitan area. Our services include reviewing the assessor’s value making a recommendation as to whether an appeal is appropriate. If we do not feel an appeal would be beneficial, we will make that recommendation, providing assurance you are receiving a fair value.
Should an appeal be appropriate, we will file the appeal on your behalf, prepare the evidence, and attend allappeal hearings on your behalf.
Lastly, PTAG’s fee is contingent on providing tax savings to property owners. If we are unable to provide a benefit, there is no fee for our services.