Subclassifications of Real Estate

Under Missouri Revised Statute, §137.016, real estate is subclassified as:

  1. Residential
  2. Agricultural and horticultural; or
  3. Utility, industrial, commercial, railroad or other.

Under the same statute, “residential” property is defined as:

all real property improved by a structure which is used or intended to be used for residential living by human occupants, vacant land in connection with an airport, land used as a golf course, and manufactured home parks, but residential property shall not include other similar facilities used primarily for transient housing. For the purposes of this section, “transient housing” means all rooms available for rent or lease for which the receipts from the rent or lease of such rooms are subject to state sales tax pursuant to subdivision (6) of subsection 1 of section 144.020

“Agricultural and horticultural” property is defined as:

all real property used for agricultural purposes and devoted primarily to the raising and harvesting of crops; to the feeding, breeding and management of livestock which shall include breeding, showing, and boarding of horses; to dairying, or to any other combination thereof; and buildings and structures customarily associated with farming, agricultural, and horticultural uses. Agricultural and horticultural property shall also include land devoted to and qualifying for payments or other compensation under a soil conservation or agricultural assistance program under an agreement with an agency of the federal government. Agricultural and horticultural property shall further include land and improvements, exclusive of structures, on privately owned airports that qualify as reliever airports under the Nation Plan of Integrated Airports System, to receive federal airport improvement project funds through the Federal Aviation Administration. Real property classified as forest croplands shall not be agricultural or horticultural property so long as it is classified as forest croplands and shall be taxed in accordance with the laws enacted to implement section 7 of article X of the Missouri Constitution.

and “Utility, industrial, commercial, railroad and other real property” is defined as:

all real property used directly or indirectly, for any commercial, mining, industrial, manufacturing, trade, professional, business, or similar purpose, including all property centrally assessed by the state tax commission but shall not include floating docks, portions of which are separately owned and the remainder of which is designated for common ownership and in which no one person or business entity owns more than five individual units. All other real property not included in the property listed in subclasses (1) and (2) of section 4(b) of article X of the Missouri Constitution, as such property is defined in this section, shall be deemed to be included in the term “utility, industrial, commercial, railroad and other real property.”

The particular subclassification of your property is crucial to determining your property’s assessed value and, thus, the amount of annual real estate taxes you end up paying.  As part of reassessment, the county Assessor must determine the subclassification of your property, so that the correct percentage (e.g. 12%, 19%, 32%) may be applied to your property’s fair market value to arrive at its assessed value for tax purposes.

The content of this page does not constitute legal advice and is for informational purposes only.  You should not act upon the information presented on this website without seeking the advice of legal counsel.  Should you wish to speak to an experienced commercial and residential real estate tax appeals attorney, please feel free to contact me directly. You may also view more information concerning my legal services and background.