139.031. Payment of current taxes under protest--action, when commenced, how tried--refunds, how made, may be used as credit for next year's taxes--interest, when allowed--collector to invest prot - Missouri Statutes

Payment of current taxes under protest--action, when commenced, howtried--refunds, how made, may be used as credit for next year'staxes--interest, when allowed--collector to invest protestedtaxes, disbursal to taxing authorities, when.

139.031. 1. Any taxpayer may protest all or any part of any currenttaxes assessed against the taxpayer, except taxes collected by the directorof revenue of Missouri. Any such taxpayer desiring to pay any currenttaxes under protest shall, at the time of paying such taxes, file with thecollector a written statement setting forth the grounds on which theprotest is based. The statement shall include the true value in moneyclaimed by the taxpayer if disputed.

2. For all tax years beginning on or after January 1, 2009, anytaxpayer desiring to protest any current taxes shall make full payment ofthe current tax bill and file with the collector a written statementsetting forth the grounds on which the protest is based.

3. Upon receiving payment of current taxes under protest pursuant tosubsection 1 of this section or upon receiving from the state taxcommission or the circuit court notice of an appeal from the state taxcommission or the circuit court pursuant to section 138.430, RSMo, thecollector shall disburse to the proper official all portions of taxes notprotested or not disputed by the taxpayer and shall impound in a separatefund all portions of such taxes which are protested or in dispute. Everytaxpayer protesting the payment of current taxes under subsection 1 or 2 ofthis section shall, within ninety days after filing his protest, commencean action against the collector by filing a petition for the recovery ofthe amount protested in the circuit court of the county in which thecollector maintains his office. If any taxpayer so protesting his taxesunder subsection 1 or 2 of this section shall fail to commence an action inthe circuit court for the recovery of the taxes protested within the timeprescribed in this subsection, such protest shall become null and void andof no effect, and the collector shall then disburse to the proper officialthe taxes impounded, and any interest earned thereon, as provided above inthis subsection.

4. No action against the collector shall be commenced by any taxpayerwho has, effective for the current tax year, filed with the state taxcommission or the circuit court a timely and proper appeal of theassessment of the taxpayer's property. The portion of taxes in disputefrom an appeal of an assessment shall be impounded in a separate fund andthe commission in its decision and order issued pursuant to chapter 138,RSMo, or the circuit court in its judgment may order all or any part ofsuch taxes refunded to the taxpayer, or may authorize the collector torelease and disburse all or any part of such taxes.

5. Trial of the action for recovery of taxes protested undersubsection 1 or 2 of this section in the circuit court shall be in themanner prescribed for nonjury civil proceedings, and, after determinationof the issues, the court shall make such orders as may be just andequitable to refund to the taxpayer all or any part of the current taxespaid under protest, together with any interest earned thereon, or toauthorize the collector to release and disburse all or any part of theimpounded taxes, and any interest earned thereon, to the appropriateofficials of the taxing authorities. Either party to the proceedings mayappeal the determination of the circuit court.

6. All the county collectors of taxes, and the collector of taxes inany city not within a county, shall, upon written application of ataxpayer, refund or credit against the taxpayer's tax liability in thefollowing taxable year and subsequent consecutive taxable years until thetaxpayer has received credit in full for any real or personal property taxmistakenly or erroneously levied against the taxpayer and collected inwhole or in part by the collector. Such application shall be filed withinthree years after the tax is mistakenly or erroneously paid. The governingbody, or other appropriate body or official of the county or city notwithin a county, shall make available to the collector funds necessary tomake refunds under this subsection by issuing warrants upon the fund towhich the mistaken or erroneous payment has been credited, or otherwise.

7. No taxpayer shall receive any interest on any money paid in by thetaxpayer erroneously.

8. All protested taxes impounded under protest under subsection 1 or2 of this section and all disputed taxes impounded under notice as requiredby section 138.430, RSMo, shall be invested by the collector in the samemanner as assets specified in section 30.260, RSMo, for investment of statemoneys. A taxpayer who is entitled to a refund of protested or disputedtaxes shall also receive the interest earned on the investment thereof. Ifthe collector is ordered to release and disburse all or part of the taxespaid under protest or dispute to the proper official, such taxes shall bedisbursed along with the proportional amount of interest earned on theinvestment of the taxes due the particular taxing authority.

9. On or before March first next following the delinquent date oftaxes paid under protest or disputed, the county collector shall notify anytaxing authority of the taxes paid under protest and disputed taxes whichwould be received by such taxing authority if the funds were not thesubject of a protest or dispute. Any taxing authority may apply to thecircuit court of the county or city not within a county in which acollector has impounded protested or disputed taxes under this section and,upon a satisfactory showing that such taxing authority would receive suchimpounded tax funds if they were not the subject of a protest or disputeand that such taxing authority has the financial ability and legal capacityto repay such impounded tax funds in the event a decision ordering a refundto the taxpayer is subsequently made, the circuit court shall order,pendente lite, the disbursal of all or any part of such impounded tax fundsto such taxing authority. The circuit court issuing an order under thissubsection shall retain jurisdiction of such matter for furtherproceedings, if any, to compel restitution of such tax funds to thetaxpayer. In the event that any protested or disputed tax funds refundedto a taxpayer were disbursed to a taxing authority under this subsectioninstead of being held and invested by the collector under subsection 8 ofthis section, such taxing authority shall pay the taxpayer entitled to therefund of such protested or disputed taxes the same amount of interest, asdetermined by the circuit court having jurisdiction in the matter, suchprotested or disputed taxes would have earned if they had been held andinvested by the collector.

10. No appeal filed from the circuit court's or state taxcommission's determination pertaining to the amount of refund shall stayany order of refund, but the decision filed by any court of last reviewmodifying that determination shall be binding on the parties, and thedecision rendered shall be complied with by the party affected by anymodification within ninety days of the date of such decision. No taxpayershall receive any interest on any additional award of refund, and thecollector shall not receive any interest on any ordered return of refund inwhole or in part.

(L. 1969 p. 249 §§ 1 to 5, A.L. 1971 S.B. 166, A.L. 1983 S.B. 63, et al., A.L. 1986 S.B. 707, A.L. 1987 H.B. 909, A.L. 1989 H.B. 728, A.L. 1998 H.B. 1837, A.L. 2003 H.B. 60, A.L. 2004 S.B. 1012, A.L. 2008 S.B. 711)

(2003) Clerical mistake by taxpayer concerning valuation does not result in mistakenly or erroneously paid taxes. Missouri American Water Co. v. Collector of St. Charles County, 103 S.W.3d 266 (Mo.App.E.D.).