The Independence School District has dismissed its lawsuit against Jackson County over a property tax plan that the district said would claw back spending it already budgeted.
Jackson County leaders have been trying to figure out how to pay back residents after the 2023 property tax assessment process saw property values skyrocket. After years of undervaluing homes, property values increased by an average of 30%, but some homeowners saw spikes of more than 200%.
Interim Jackson County Executive Phil LeVota has proposed tax credits for future property tax bills and capping the 2025 commercial property assessments.
The Independence School District and Fort Osage School District responded by filing a lawsuit to prevent the county from clawing back or withholding money from the districts in order to provide tax credits or place a cap on commercial properties taxes.
The Independence School District and Jackson County announced on Friday that they had reached an agreement and the district had dismissed its suit.
“Rather than continuing with costly litigation, we chose compromise,” LeVota said. “Rather than continuing fighting between agencies who have the same goal of protecting the citizens, we chose collaboration, and rather than continuing the stress on families in Jackson County, we chose closure.”
Friday’s announcement follows a multiyear saga of lawsuits and public criticism over property taxes from residents and county legislators. The county’s reluctance to lower property taxes was one of the driving factors for voters to recall former County Executive Frank White Jr. last year.
Jackson County voters also overwhelmingly decided last year to elect their assessor, instead of leaving it to the county executive to appoint the person who values and assesses property.
Last week, the county announced a proposed settlement that would issue tax credits over the next three years to eligible property owners, totaling the amount the county overcharged in 2023 and 2024. A judge still needs to sign off on the settlement.
LeVota has promised relief for Jackson County homeowners since taking office nine months ago. But a dozen local school districts raised alarms that his plans could cause them to lose hundreds of millions of dollars.
On Friday, LeVota said he understands school districts did not cause the tax assessment problem, but he has to “make it right by the taxpayers first.”
Funding at stake for Jackson County schools
Refunds on previous assessments weren’t an option because that money was already spent by taxing jurisdictions like local governments and school districts. But tax credits for future property bills would still result in less money for schools and libraries.
The Independence School District said it would lose out on more than $15 million and Fort Osage would lose $7 million from the 2023 and 2024 property tax credits, according to the districts’ lawsuit.
Anthony J. Mondaine, president of the Independence school board, said the district doesn’t apologize for putting its kids first and will continue doing everything it can to protect public education and advocate for each Jackson County resident “who deserves to be made whole.”
“We're a school district that leans on our taxpayers for bonds and all kinds of resources, and so we need to demonstrate to this community and the taxpayers that we are one, we are united, and we care, and we can long suffer together to some degree to get to the greater good, and that that is what brought us together,” Mondaine said.
Mondaine said the district came to the decision based on continued discussion with the county, understanding the tax credit process and how to help those affected. However, he said there will be a fiscal impact on the district, but doesn’t have the specific numbers on how much of a hit it will see.
“Everyone in Jackson County who pays taxes has seen what is happening here,” Mondaine said. “We are not exempt from that, but we are in a strong position to get through this.”
No representatives from the Fort Osage School District were at Friday’s news conference, but a district spokesperson said in a statement that it “will continue to carefully consider developments as they occur while remaining focused on our responsibility to provide the high-quality educational experiences our students and families deserve.”
“From the outset, our hope has been to work collaboratively with all parties to identify a fair, transparent, and lawful path forward that serves the interests of everyone involved,” a district spokesperson said. “We recognize this situation has been frustrating for property owners, and we also understand the uncertainty it has created for public entities, including school districts that rely on local property tax revenue to provide essential services.”
The district noted property tax revenue helps fund teachers and support staff, transportation, classroom resources, student safety, technology and other extracurriculars.
LeVota said he was focused on Independence at Friday’s event, but he anticipates having discussions with Fort Osage moving forward.
