Missouri counties would credit eligible seniors for home tax increases

Counties authorized to impose property taxes would grant eligible taxpayers a credit for increases in their home property taxes. The taxpayer must live in Missouri, be at least 65 on January 1 of the tax year, own the home or have a documented legal or financial interest in it, and owe its property taxes. The home must be the taxpayer's primary residence, and a person may claim only one home. A taxpayer must have household Missouri adjusted gross income of $75,000 or less, or receive qualifying Social Security or veterans' benefits. The credit equals the difference between the home's property tax liability for the year and its liability in the starting year. For taxpayers who already qualify when a county authorizes the credit, that year is the starting year. For others, it is the year they meet all eligibility rules.

The starting-year tax amount would be adjusted for certain changes to the home or its taxing area. The adjustments apply to an eligible taxpayer's primary home when the taxpayer makes new construction or improvements, or when the home is annexed into a taxing area that did not tax it in the starting year. If a later year's tax liability is lower than the starting-year amount, that year becomes the starting year for later calculations. This reset does not apply when the lower amount is due only to a property tax levy reduction under section 321.554. The adjusted amount applies to the starting-year liability used to calculate the credit. A qualifying lower tax bill in a later year makes that year the starting year for subsequent years.

The state would repay local governments each year for revenue lost because of the credits. Repayment would go to political subdivisions that lose revenue because of the credits. Repayment would depend on an appropriation, meaning lawmakers must set aside money for it. Repayment would be annual and subject to an appropriation.