Based on this bill, many of the major counties in Missouri have enacted their own legislation to support the senior tax freeze.
e.g., Consider a senior aged 68 years, with their home appraised at $200,000 in 2023. Let's assume they became eligible for social security benefits in 2023. Residential properties are assessed at 19% of their market value. So the assessed value of this home is $200,000 * 0.19 = $38,000. Assuming a 6.4% tax rate for this property, the total property tax liability for 2023 will be ~$2,400. Their property tax will now be frozen at $2,400 going forward, even if their property value keeps raising. Say, in the next assessment the property gets appraised at $220,000. The assessed value of this home will then be $220,000 * 0.19 = $43,800. Considering tax rate remains at 6.4%, the total tax liability will be $2,800. But, the difference $400 ($2,800 - $2,400) is the tax credit.
The tax credit will be noted on the statement of account of tax due sent to the eligible taxpayer by the Jackson County Collector of Revenue.
Applications for credit should be made before April 30th each year. If a taxpayer reaches eligibility after April 30th, then they can apply for the credit the following year.
Homeowners in St. Louis county, older than 67 years (Seniors) will be eligible for a property tax break on their primary residence i.e. their homestead. St. Louis county legislature passed a bill on 10/18/2023 that authorizes the county to grant a property tax credit to eligible taxpayers based on certain conditions. The bill puts a freeze on the amount of taxes seniors owe. It wouldn't change the way properties are valued. They will continue to get same assessment notices.
Senior homeowners will be eligible for a credit amount which is the difference between an eligible taxpayer’s real property tax liability on such taxpayer’s homestead for a given tax year, minus the real property tax liability on such homestead in the year that the taxpayer became an eligible taxpayer.
While the freeze is much desirable, it remains to be seen whether seniors will find it convenient to apply for the tax break, every year.
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