Real Estate Tax Appeals
Early in August Gateway staff and consultants were successful in appealing the real estate tax assessments for four General Partners of 14 LIHTC properties in St. Louis County. Under prior precedents, State Tax Commission decisions, and court cases recognized by many county assessors in Missouri, the accepted methodology for valuing LIHTC properties has recently utilized the “income method”. This methodology has not been consistently applied by assessors and many of these properties have consequently been significantly overvalued.
Gateway compiled the appropriate information for properties where the appraised value often exceeded $25,000 per unit and, using the income approach to valuation, led the appeal process for the owners. Although the revised valuations have not yet been finalized, we are hopeful that these appeals will result in real estate tax savings of vital importance to properties where rents must remain affordable to low-income residents. In the coming weeks Gateway will finalize appeals for six properties in the City of St. Louis, as well.