By: Miles G. Michaud
In recent years, the integration of technology into government operations has become increasingly prevalent. Municipalities across the United States have embraced software solutions to streamline processes and enhance efficiency. However, reliance on technology has not been without its challenges, as demonstrated by the ongoing legal battle between Jackson County, Missouri, Tyler Technologies, and Jackson County taxpayers. The lawsuit, filed in 2020, centers around the implementation of a new software system by Tyler Technologies, a leading provider of software and technology services for the public sector. Jackson County had contracted Tyler Technologies to implement a new software system to manage its property assessments, tax collection, and other related functions.
In January of 2021, Jackson County awarded Tyler Technologies an eighteen million-dollar ($18M) contract to provide its residents with appraisal, assessment, and data managements services. Specifically, the County chose to contract with Tyler’s CLT Appraisal Services to conduct a comprehensive reappraisal for all properties. The decision was driven by Tyler’s reliability and successful track record in similar large jurisdictions such as Plano, Texas. The country praised that this solution, “will enable the county to efficiently manage every aspect of the property appraisal process, optimize daily operations, analyze assessment data, and ensure the generation of fair, equitable, and defensible property valuations.” However, since then, the services have been nothing but a nightmare for Jackson county residents.
During the summer of 2023, Jackson County taxpayers began to receive shockingly high tax bills as part of the County’s biannual property assessment. Among them was a mobile homeowner who was particularly impacted by the assessment results. Shockingly, the value of her home appreciated by over four hundred (400%) percent, leading to a weighty increase in her tax bill of hundreds of dollars per month. The taxpayers have claimed that increases are the result of the County’s contract with the Texas based real estate technology company, Tyler Technologies.
Many taxpayers in the County received their inflated bills after the deadline to appeal; so, they were without any immediate remedies other than paying the bill. In fact, many taxpayers did not receive any notice of their property tax increase at all. The taxpayers have largely charged Jackson County with an “unlawful increase in assessed property values.” Specifically, that Jackson County failed to provide the taxpayers with adequate notice of the increased assessment by law. Missouri’s tax code states the following: “If an assessor increases the valuation of any tangible personal property . . . . [H]e or she shall forthwith notify the record owner on or before June fifteenth of the previous assessed value and such increase inperson.
NOTICE TO TAXPAYER: IF YOUR ASSESSED VALUE HAS INCREASED, IT MAY INCREASE YOUR REAL PROPERTY TAXES WHICH ARE DUE DECEMBER THIRTY-FIRST. IF YOU DO NOT AGREE THAT THE VALUE OF YOUR PROPERTY HAS INCREASED, YOU MUST CHALLENGE THE VALUE ON OR BEFORE ______ (INSERT DATE BY WHICH APPEAL MUST BE FILED) BY CONTACTING YOUR COUNTY ASSESSOR.”
Instead, the County later decided to distribute a generalized letter, which was not compliant with the obligations of the statute. The letter failed to outline the recipients’ right to an appeal via physical inspection. Plus, it did not include the percentage increase of the home’s value. Not only did Jackson County fail to distribute over one-hundred fifty thousand (150,000) notification letters to its residents, but those that were received included an inaccurate representation of the taxpayer’srights.
Despite uproar from Jackson County taxpayer’s, the Missouri Supreme Court dismissed the action. The court dismissed the case because the taxpayers “failed to exhaust all available administrative remedies before filing suit . . . .” However, a few days prior, the state’s attorney general filed suit against the County alleging that Jackson officials failed to follow the law in assessing property taxes. The lawsuit was filed around the same time as the release of preliminary findings from the Missouri State Auditor of the County’s assessment process, which found “deficiencies” and “non-compliance.” The state Auditor’s report, anticipated for release later this year, holds significant implications for residents of Jackson. Amidst growing anticipation, the community is eagerly awaiting to see if they will be receiving refunds and moving away from the new Tyler technologies assessment software. This report is likely to provide clarity and potentially address long-standing concerns, impacting the financial well-being and trust in the local government.
Student Bio: Miles is a second-year law student at Suffolk University Law School. He is a staff writer on the Journal of High Technology Law and member of the Real Estate/Trust & Estates Association. Miles received a Bachelor of Arts from Bates College in Lewiston, Maine.
Disclaimer: The views expressed in this blog are the views of the author alone and do not represent the views of JHTL or Suffolk University Law School.
