Are property taxes frozen for seniors in Missouri?

Missouri recently adopted a tax freeze for seniors. [Senate Bill 190](https://www.senate.mo.gov/23info/pdf-bill/tat/SB190.pdf) was enacted in the summer of 2023, that authorizes a county to grant a property tax credit to eligible taxpayers based on certain conditions. The onus lies with each county whether to grant the tax credit. It wouldn't change the way properties are valued. They will continue to get same assessment notices. Here is what the bill says: > Any county authorized to impose a property tax may grant a property tax credit to eligible taxpayers residing in such > county in an amount equal to the taxpayer's eligible credit amount, provided that: > (1) Such county adopts an ordinance authorizing such credit; or > (2) (a) A petition in support of a referendum on such a credit is signed by at least five percent of the registered > voters of such county voting in the last gubernatorial election and the petition is delivered to the > governing body of the county, which shall subsequently hold a referendum on such credit. > (3) A county granting an exemption pursuant to this section shall apply such exemption when calculating the eligible > taxpayer's property tax liability for the tax year. The amount of the credit shall be noted on the statement > of account of tax due sent to the eligible taxpayer by the county collector.

Based on this bill, many of the major counties in Missouri have enacted their own legislation to support the senior tax freeze.

Are property taxes frozen for seniors in Jackson County, Missouri?

Senior homeowners in Jackson County, Missouri, may be eligible for a tax freeze beginning 2024. The county legislature passed ordinance 5787 that implements sections of Senate Bill 190.

Eligibility criteria:

• The homestead for which tax credit is being claimed must be in Jackson County, Missouri.
• Should be eligible for social security retirement benefits.
• Should be the owner on record of the homestead. If they are not the complete owner, they should have legal and equitable interest in the homestead.
• Appraised market value should be less than $550,000.

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.

Will St Louis County freeze property taxes for seniors?

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.

• If a senior owns more than one house, then only the primary residence (homestead) qualifies for the tax credit.
• Senior homeowners will have to apply for the tax break by submitting a form to the county Collector of Revenue annually.
• Homes valued over $550,000 are not eligible, though it remains to be seen if the cap is legally tenable, since the statute passed by the state didn't have a cap.
• The bill includes a sunset clause, requiring the council to reconsider the plan after five years.
• The bill takes effect from 2024 tax year.

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.