Most residential property owners in Jackson County would receive tax credits under a proposed settlement announced Thursday.
The county violated state law when it raised property taxes on many homeowners by more than 15% in 2023. Some taxpayers saw increases far above that threshold.
Now, if the potential beneficiaries weigh in and a judge signs off on the settlement, Jackson County must pay back every bit of the money it overcharged in 2023 and 2024 to all the people who paid extra.
Ken McClain, a partner in the firm Humphrey, Farrington and McClain, which sued the county, said about 207,000 taxpayers were affected and would be eligible for relief.
The settlement includes former property owners and those who moved away or sold homes and stayed in the county, and would comprise all the money the county collected that was illegally gathered under state law.
“The value of this is tremendous,” said McClain. “Never in the history of class actions that I'm aware of in something of this size do you have 100% refund.”
The county will issue tax credits toward their next three years to current property owners, totaling the amount the county overcharged in 2023 and 2024.
People who paid the higher taxes those years but have since sold their property in Jackson County will be able to apply for tax refunds.
The settlement complies with a new county law and an executive order, as well as a memorandum of understanding passed unanimously Monday.
Jackson County Executive Phil LeVota called the settlement a “major step forward” in a press conference Thursday morning. He had previously promised relief for Jackson County property owners.
That was a reversal for Jackson County, which fought both the Missouri State Tax Commission and taxpayers in several lawsuits over the tax assessments and higher bills.
The county’s resistance to lowering property taxes, even after being sued by the state tax commission to do so, contributed to a groundswell of anger targeted at then-County Executive Frank White, and helped lead to his recall last year.
The settlement must face judicial review. The people eligible to be part of the class will receive notices and have a chance to object.
“I don't know why someone would object if they understand it, because it's the full remedy that you could get under the law,” said McClain.
The settlement also faces a challenge from the Independence and Fort Osage school districts, who argue the payments will force them to claw back spending they already budgeted.
