Missouri
Missouri Supreme Court reviews airport property tax deduction
Summary:
- Missouri Supreme Court heard arguments on constitutionality of airport property tax valuation statute.
- Case involves valuation of Marriott hotel at Kansas City International Airport.
- Platte County assessor argues statute creates special tax advantage for airport properties.
- Missouri State Tax Commission reduced hotel’s valuation from $13.45 million to about $6.14 million.
The Missouri Supreme Court heard arguments Feb. 10 in a case challenging how a hotel at Kansas City International Airport was valued for property tax purposes and whether a state statute allowing deductions for airport property improvements is constitutional.
The dispute centers on the valuation of the Marriott Hotel located at Kansas City International Airport and whether a provision in Section 137.115.1 of state law improperly reduces the taxable value of certain airport properties.
At issue is a challenge by the Platte County assessor and the Park Hill School District to a decision by the Missouri State Tax Commission that resulted in a lower valuation for the 2016 tax year.
The assessor was represented during arguments by Stephen E. Magers, an attorney for Platte County in Platte City; Grady Hotel Investments was represented by Peter A. Corsale of McCarthy, Leonard & Kaemmerer in Town & Country.
Magers argued the statute effectively creates a special class of property that receives favorable tax treatment.
“This case concerns a truly novel item of the Missouri statutes,” he said. “It stands alone as the only statute within the entirety of the Missouri framework that gives a certain set of taxpayers a tax advantage of having real property located within an airport receive a deduction for new construction and improvements.”
The property at issue is a Marriott hotel located on land owned by Kansas City within the boundaries of Kansas City International Airport. The city leases the land to a private operator.
In 2015, Grady Hotel Investments purchased the prior operator’s interest in the property for about $8.5 million. As part of the transaction, Grady entered into an amended lease and concession agreement with the city and committed to making capital improvements to repair and renovate the property.
For the 2016 tax year, the Platte County assessor valued Grady’s interest in the hotel at approximately $13.45 million. After the county board of equalization upheld that valuation, Grady appealed to the Missouri State Tax Commission.
The commission initially set the hotel’s assessed value at zero using the “bonus value” methodology for leasehold interests, but the Missouri Court of Appeals Western District later reversed that ruling and remanded the case. On remand, the commission ultimately determined the hotel’s “true value in money” was about $6.14 million. The commission reached that figure after deducting the value of personal property included in the purchase and approximately $1.2 million in costs paid toward new construction and improvements made after 2008, as permitted under Section 137.115.1.
Magers argued that the statute operates as an unconstitutional tax break for properties located within airport boundaries.
“At its core, what the statute does is create a special kind of property that receives a reduction to its value based on new construction and improvements spent toward such possessory interests in real property,” said Magers.
He also said the provision treats airport properties differently from other commercial properties.
“A homeowner doesn’t get a reduction to their value when they get a new roof on their property,” he said. “But for property that is located within an airport boundary that undertakes new construction or improvements, there is a deduction to that value that the statute mandates.”
Corsale countered that the statute does not create a tax exemption but instead establishes a permissible method for valuing certain types of property.
“To me the answer is no. This is a method of valuation,” he said, arguing that the Missouri Constitution gives the legislature authority to determine how property is valued for tax purposes.
Judge Mary R. Russell questioned whether the deduction could potentially reduce a property’s value to zero if improvements continue over time.
“But couldn’t it be, at some point, a perpetual exemption,” she said, noting the statute allows deductions regardless of when improvement costs were incurred.
Corsale said the improvements ultimately revert to the city when the lease ends.
“What we are dealing with is a private company improving public land that eventually reverts back to the public,” he said. “At the conclusion of the lease, the public gets the benefit of whatever money they put into this property.”
St. Louis could see major downtown renovation in the coming years helped by legislation signed into Missouri law by Gov. Mike Kehoe on Monday.
Kehoe signed a large economic development bill that includes incentivizing the conversion of vacant or underused properties into new housing.
For St. Louis, that could mean changes to the AT&T tower and Railway Exchange building.
Through the legislation, cities could apply for an area to become a Missouri innovation zone and be able to use incentives distributed by the state Department of Economic Development.
Cities must include proposed district boundaries, identify vacant and underutilized properties as well as provide projections of anticipated housing and employment growth in their application. Cities may only establish one of those districts.
Additionally, the legislation allows for up to $50 million annually in tax credits toward the conversion of buildings into residential spaces.
Sen. Steve Roberts, D-St. Louis, said the legislation will ultimately lead to more people living in downtown St. Louis.
“The passage of House Bill 3231 was critical in our efforts to continue revitalizing Missouri’s main streets, central business districts, and downtowns,” Kehoe said in a statement.
The governor signed seven other bills into law Monday, including a wide-reaching health care bill that contains several policies related to reproductive health.
The nearly 200-page bill allows for Missourians on private insurance to obtain 12 months’ worth of birth control pills at once.
It also expands Medicaid coverage to doula services. It would apply to more care before, during and after a pregnancy. The state health department must also create and operate a registry of available doula services.
Additionally, the bill requires insurance companies to cover blood pressure monitors for pregnant and postpartum mothers.
The bill also requires Missouri to track and report cases of Lyme disease and alpha-gal syndrome. Alpha-gal is a tick-borne disease that creates an allergy to mammalian products like meat.
Any identifiable information on the blood test could only be shared between patient and physician.
The legislation also:
- Allows patients to begin their care through telemedicine, as opposed to a physical examination whenever possible.
- Permits the sale of ivermectin, a drug that’s grown in popularity since the COVID-19 pandemic, over the counter. It also expands the types of vaccines pharmacists can administer.
- Prevents insurance companies from capping payment for anesthesia by imposing time limits.
- Permits schools and daycares to provide epinephrine either via injection or orally to treat allergic reactions.
Additionally, Kehoe signed a bill that provides rights to “a child born alive during or after an abortion or attempted abortion.”
The legislation is called the Born Alive Abortion Survivors Protection Act. Anyone who would kill or attempt to kill a fetus born alive after an abortion attempt could be prosecuted for first-degree murder under the bill.
Those against the bill say the focus on abortion causes consequences regarding maternal care in Missouri.
Fetal viability, or the point when a fetus would be able to survive outside the womb, is generally around 24 weeks of pregnancy.
According to KFF health research, abortions at or after 21 weeks of pregnancy are uncommon, representing 1% of all abortions in the country.
Kehoe said in a statement that he was proud to sign bills that will improve health care services across the state.
“I would like to thank the members of the House and Senate for their work to protect our most vulnerable, hold insurance companies accountable, and change the landscape of healthcare access and outcomes in communities across the state,” Kehoe said.
The Missouri Lottery offers several draw games for those aiming to win big.
Here’s a look at July 12, 2026, results for each game:
Winning Pick 3 numbers from July 12 drawing
Midday: 7-1-3
Midday Wild: 0
Evening: 9-6-1
Evening Wild: 3
Check Pick 3 payouts and previous drawings here.
Winning Pick 4 numbers from July 12 drawing
Midday: 0-9-0-9
Midday Wild: 8
Evening: 2-9-7-1
Evening Wild: 4
Check Pick 4 payouts and previous drawings here.
Winning Cash Pop numbers from July 12 drawing
Early Bird: 05
Morning: 04
Matinee: 05
Prime Time: 04
Night Owl: 09
Check Cash Pop payouts and previous drawings here.
Winning Show Me Cash numbers from July 12 drawing
05-16-21-27-39
Check Show Me Cash payouts and previous drawings here.
Feeling lucky? Explore the latest lottery news & results
Are you a winner? Here’s how to claim your lottery prize
All Missouri Lottery retailers can redeem prizes up to $600. For prizes over $600, winners have the option to submit their claim by mail or in person at one of Missouri Lottery’s regional offices, by appointment only.
To claim by mail, complete a Missouri Lottery winner claim form, sign your winning ticket, and include a copy of your government-issued photo ID along with a completed IRS Form W-9. Ensure your name, address, telephone number and signature are on the back of your ticket. Claims should be mailed to:
Ticket Redemption
Missouri Lottery
P.O. Box 7777
Jefferson City, MO 65102-7777
For in-person claims, visit the Missouri Lottery Headquarters in Jefferson City or one of the regional offices in Kansas City, Springfield or St. Louis. Be sure to call ahead to verify hours and check if an appointment is required.
For additional instructions or to download the claim form, visit the Missouri Lottery prize claim page.
When are the Missouri Lottery drawings held?
- Powerball: 9:59 p.m. Monday, Wednesday and Saturday.
- Mega Millions: 10 p.m. Tuesday and Friday.
- Pick 3: 12:45 p.m. (Midday) and 8:59 p.m. (Evening) daily.
- Pick 4: 12:45 p.m. (Midday) and 8:59 p.m. (Evening) daily.
- Cash4Life: 8 p.m. daily.
- Cash Pop: 8 a.m. (Early Bird), 11 a.m. (Late Morning), 3 p.m. (Matinee), 7 p.m. (Prime Time) and 11 p.m. (Night Owl) daily.
- Show Me Cash: 8:59 p.m. daily.
- Lotto: 8:59 p.m. Wednesday and Saturday.
- Powerball Double Play: 9:59 p.m. Monday, Wednesday and Saturday.
This results page was generated automatically using information from TinBu and a template written and reviewed by a Missouri editor. You can send feedback using this form.
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