(The Center Square) – A Republican representative and democratic senator both filed bills to assist older Missouri taxpayers and those with disability with property tax relief.
Rep. Mark Matthiesen, R-O’Fallon, and Sen. Tracy McCreery, D-St. Louis, both filed their legislation on the first day to file bills for the 2024 legislative session. The Missouri Budget Project, a nonprofit public policy organization, praised both attempts to update a tax law created in 1973 and unchanged since 2008.
“The proposals are critical to thousands of Missourians across the state,” Amy Blouin, president and chief executive officer of the Missouri Budget Project, said in a statement. “These bills would offer meaningful property tax relief to older adults and Missourians with disabilities without hurting schools, libraries, fire departments, senior centers, or other services that rely on local property taxes.”
Blouin’s organization estimates a revised property tax credit would benefit 291,700 Missourians living in 186,800 households.
As property taxes increased throughout the state due to higher home values, some older taxpayers can be forced from their homes and communities. For those with disabilities, rising costs can make accessible housing unaffordable.
The Missouri Property Tax Credit is commonly known as a “circuit breaker.” Similar to an electric circuit, it’s switches on when a property tax bill exceeds a percentage of a person’s income. Renters get relief determined by household income and rent.
Currently, the maximum credit is $1,100 for homeowners and $750 for renters. Only those with incomes below $14,300 qualify for the maximum credit. The average credit was $580 in 2022, according to the Missouri Budget Project.
Both bills increase the maximum tax credit from $750 for renters to $1,055 and from $1,100 for homeowners to $1,550.
“Over the last several years, the cost of housing has grown exponentially, while our only program to help people with disabilities and low-income senior citizens afford to stay in their homes has remained outdated,” Matthiesen, who introduced House Bill 1670, said in a statement to the Missouri Budget Project. “This legislation will provide vitally necessary assistance to those who need it most.”
McCreery’s legislation, Senate Bill 822, and Matthiesen’s bill would increase the amount deducted from Missouri adjusted gross income from $2,000 to $2,800, or for those who owned and occupied a residence for the entire tax year, an increase from $4,000 to $5,800.
“This bill if passed will promote property tax affordability and truly make a difference in the lives of many older adults and people living with disabilities,” McCreery said in a statement. “Missouri’s Circuit Breaker is a lifeline that desperately needs to be updated.”
Similar legislation was introduced during the 2023 legislative session.