Politics & Government

Too Much In Taxes? Pattonville School District Cited In Audit

Report says the district collected property taxes at a higher than certified rate in 2011.

The Pattonville School District is being taken to task by Missouri State Auditor Tom Schweich in a report released last month, claiming the district was one of six taxing entities which collected property taxes at a higher than certified amount in 2011.

An audit says the entities together collected a total of $495,742 in tax revenue. A large majority of that amount, $483,419 went to Pattonville's operating funds. The district was certified to collect at a rate of 3.7550 percent, but the audit reports it collected at a rate of 3.9345 percent.

Ron Orr, Pattonville's Chief Financial Officer, says the district's tax rates are within voter approved-limits and that the district disagrees with the Auditor's calculation of personal property taxes, which has been complicated by changes in state laws over the years, specifically in ways which impact St. Louis County taxing authorities.

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According to Orr:

"...because Pattonville has reached its voter approved maximums in all classes of property and property values declined so significantly, the district will collect about $950,000 less in tax revenues than the previous year. The district continues to feel the impact of Commercial tax protests, which over time have continued to shift their tax burden to our homeowners."

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Orr cited the recent decision to as a decision which could mean millions of dollars in lost property tax revenue.

Schewich's report says it has forwarded the information to the Missouri Attorney General's office. Orr said Pattonville officials has been working with both offices. A call seeking comment from the Attorney General's office last week has not been returned.

Read the audit here

Statement by Ronald Orr, Pattonville Chief Financial Officer:

"All tax rates set by the Pattonville School District are within voter approved maximums.  This year due to continued declines in property values the district reached it maximum tax rate.  In reviewing the tax rate calculations the district is in disagreement with the State Auditors Office on how to calculate the rate for Personal Property.  Following 2003 the Missouri legislature passed a series of changes to the laws regarding tax rate calculations, which established the four different tax rates taxpayers pay in St. Louis County.  The changes made by the Missouri legislature attempted to freeze the Personal Property tax rate when property values are increasing, but the State Auditors Office is interpreting those changes to also apply when property values decrease.  This results in only St. Louis County taxing entities such as Pattonville not being able to receive revenue approved by its voters.  Through the actions of the Missouri Legislature this is not an issue in any county other than St. Louis County.  We anticipate this impacts typical homeowners less than $20 per year.  Even so, because Pattonville has reached its voter approved maximums in all classes of property and property values declined so significantly, the district will collect about $950,000 less in tax revenues than the previous year.  The district continues to feel the impact of Commercial tax protests, which over time have continued to shift their tax burden to our homeowners.  The seemingly arbitary decision by the County Board of Equalization to lower property values for Harrahs this fall is one such example.  That decision alone reduced potential revenue for the district by several million dollars.

Pattonville has been actively working with the State Auditors Office and the Attorney Generals Office since September on this issue.  Our legal arguments are based on the following: The State Auditors Office interpretation in effect creates a special law that is discriminatory against St. Louis County taxing districts, and is in violation of the Equal Protection Clause of the United States and Missouri Constitutions. The interpretation of the State Auditors Office is in violation of the Hancock Amendment in that it results in an unequal tax burden.

The State Auditors Office failed to notify the district of their disagreement within the mandatory time limitations set forth in MO statute.


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