JEFFERSON CITY — The Missouri Senate is poised to give its stamp of approval to a series of updates to a law signed last year allowing counties to stop real property tax increases for certain seniors.
Current law, approved last year, authorizes the freeze for homeowner taxpayers eligible for Social Security benefits. But opponents questioned whether the language of the law excluded certain seniors, such as Missouri teachers who participate in a state pension plan instead of Social Security.
The plan by Sen. Tony Luetkemeyer, R-Parkville, approved Monday night, clarifies that eligible homeowner taxpayers must be 62 or older to receive the benefit.
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The proposed change also would require taxpayers to pay all delinquent taxes, interest and penalties to the county to be eligible for the relief.
Republicans voted down a Democratic-backed amendment that would explicitly allow counties and the city of St. Louis to means test when determining who is eligible for the credit.
The amendment by Sen. Doug Beck, D-south St. Louis County, would have allowed counties to set certain income or home value limits for the tax relief.
St. Louis and St. Louis County have both approved home value limits despite there being no explicit authorization for the limits in the state law.
The city capped the appraised value of a home eligible for the credit at $500,000; the county’s cap is $550,000.
“I’m not against cutting taxes,” said Senate Minority Leader John Rizzo, D-Independence. “I just wish that these things were targeted to give relief to people that really need them.”
Instead of giving localities more authority, language included in Luetkemeyer’s measure would forbid any county procedure to limit “the definition or scope of ‘eligible credit amount’ or ‘eligible taxpayer’ as defined” in state law.
“People who are seniors — many of whom are on fixed incomes — whether they have a nicer home or not-so-nice home, to me, is particularly not relevant,” Luetkemeyer said. “I believe that this should be broad-based tax relief.”
The law says county collectors are to report the property tax credit amount on statements of taxes due sent to taxpayers.
Another addition to last year’s law seeks to close a loophole enabling someone to purchase a low-value property, lock in a low property tax, and then dramatically increase the property’s value through major improvements to the property.
And, if a new taxing jurisdiction annexes a property owned by someone receiving the benefit, the person’s tax liability would also be increased to reflect the new taxes owed.
Luetkemeyer’s bill needs another vote before advancing to the House for consideration.
The legislation is Senate Bill 756.
A rundown of what property tax is and how it’s handled in the state of Missouri. Edited by Jenna Jones.
