Tax bill on your car more expensive this year? Breaking down KC’s personal property taxes

Tax season may be well behind us, but property tax season is right around the corner in Missouri and Kansas. Residents will start getting their bills in November.

There are two types of property taxes: “Real” property tax applies to land and anything attached to it, like houses and buildings, while “personal” property tax applies to vehicles and other moveable possessions like your boat, livestock, trailers and farm equipment.

This guide applies to personal property tax. Here’s what to know as bills start to arrive.

Why is my bill so high?

Many residents have reported receiving personal property tax bills that are higher than last year’s, even though their vehicles are a year older. Jackson County Assessor’s Office Deputy Director Maureen Monaghan says that this has to do with increased prices due to the state of the economy.

“Property taxes are based upon value, and many people are seeing an increase in their vehicle value,” she told The Star. She added that her department is required to use the vehicle values listed in the previous October’s issue of the National Automobile Dealers’ Association price guide.

“We’ve seen those values go up in that evaluation guide,” she said. This delay between evaluation and taxation also means that even if vehicle values go down next year, residents’ bills won’t reflect that decrease until the following year.

Monaghan estimated that the majority of residents in her jurisdiction are probably seeing higher values on their bills than they saw last Fall.

When is my personal property tax due?

In Missouri, your personal property tax is due by Dec. 31.

In Kansas, half your bill is due on Dec. 20. The other half is due the following May 10.

Both states allow you to pay your bill online. You can also pay it in person or send your payment in the mail, as long as it is postmarked by the due date. Consult the instructions included with your bill for more specifics.

What if my bill is wrong or I can’t pay it?

If you think the property value listed on your bill is wrong, you can file an appeal with the county’s Board of Equalizations by emailing boardofequalization@jacksongov.org or calling 816-881-3309. However, you will still have to pay your bill while the appeal is being reviewed.

Jackson County doesn’t have any assistance programs in place to help residents reduce their personal property tax bill or pay it in installments. But if you’re a senior over the age of 62, you may qualify for the county’s “Quad Program,” which allows you to pay real estate property tax on your home in four installments rather than all at once.

What do I have to pay personal property tax on?

The most common type of taxed personal property is vehicles: that means your car, motorcycle, truck, boat or other heavy transportation. You may also need to pay personal property taxes on livestock and machinery like farm equipment or office equipment.

Personal property tax is calculated based on what you owned on Jan. 1 of a given year. That means that if you bought a car or moved to Missouri with your car on Jan. 2 or later, you won’t have to pay property tax on it until next year. But if you owned a car on Jan. 1 and sold it on Jan. 2 or later, you will still have to pay property tax on it for 2022.

Monaghan added that under state law, “household items” like apparel, computers, furniture and other belongings are not counted as “personal property” for taxation purposes.

“For most people, it’s going to be just their vehicles,” she said.

Who collects my personal property taxes?

Your county is responsible for collecting your personal property taxes. That means Kansas City residents within Jackson, Clay or Platte counties will pay personal property taxes to those counties. Residents of Kansas City, Kansas, will pay personal property taxes to Wyandotte County.

Your personal property tax bill will be sent by mail to the residential address that your county’s Assessment Office has on file. If you recently moved and haven’t yet updated your address with the office, your bill might be mailed to your old address.

If you don’t receive a personal property tax bill in the mail this November, call your county’s collector’s office in Missouri or treasurer’s office in Kansas. Here are the numbers to call in the Kansas City area:

• Jackson County: 816-881-3232

• Clay County: 816-407-3200

• Platte County: 816-858-3356

• Wyandotte County: 913-573-2823

• Johnson County: 913-715-2600

How is my personal property tax calculated?

Here’s a handy chart from the Kansas Department of Commerce showing a simplified version of how property tax is calculated. The example below calculates the tax on “real” property, but the same basic formula applies to personal property.

Here’s where each component comes from:

• Appraised Value: How much your property is worth in an open and fair marketplace. In Missouri, this is calculated using the October issue of the National Automobile Dealers’ Association price guide. Since car prices are high right now, this number may be higher than you expect.

• Classification Rate: This percentage is applied equally to the same types of property. All vehicles get a classification rate of 33.33% in Missouri, while all vehicles except boats get a classification rate of 30% in Kansas.

• Assessed Value: This is the adjusted value of your property that is used for tax purposes. This value is obtained by multiplying the appraised or “true” value by the classification rate.

• Mill Levy: This taxation rate depends on exactly where you live– not just your city and county, but your park district, library district, fire services district and more. The overall rate may change year to year based on the cost of the public services these various districts provide.

• Property Tax: This is the amount on your bill that you are required to pay. In addition to the assessed value multiplied by the mill levy, you may see additional charges for special projects, like a sidewalk your city added in front of your house.

Why am I being asked to pay tax on a car I don’t own anymore?

Personal property tax is calculated based on what you owned on Jan. 1 of a given year. If you owned the car on Jan. 1, 2022, you have to pay property tax on it for the full year of 2022.

If you’re being asked to pay tax on a car or other property that you didn’t own on Jan. 1 of this year, contact your county’s assessor’s or treasurer’s office using the numbers above.

What if I lease my car or other vehicle?

If you do not own your personal property outright, you do not have to pay personal property tax on it. Instead, your leasing company must pay the tax on your car or other vehicle. However, the company may pass this cost along to you.

Do you have more questions about personal property taxes in Missouri or Kansas? You can email kcq@kcstar.com.