How are the Real Estate Classifications Determined?
Missouri statutes define the three subclasses of real estate: Subclass 1Residential property is 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 facilities used primarily for transient housing. Subclass 2Agricultural and Horticultural property is that which is actively used for those purposes. The value of this land is established by its productivity, based on soil productivity guidelines by the State Tax Commission. It is not based on market value; however, when the highest and best use of land is considered to be agricultural, and it is not actively farmed, it is assessed according to market value and not by productivity guidelines. Subclass 3Utility, industrial, commercial and railroad property, and any other real estate that does not fit either of the other two classes.
