District Commissioner Dagmar Wood advocated this week for the Platte County Commission to make moves to implement Missouri Senate Bill 190, which was signed into law by Gov. Mike Parson last month.
Under the new bill, sponsored by Parkville Sen. Tony Luetkemeyer, Missouri seniors would no longer see tax increases on their primary residences. The legislation also exempts Social Security benefits from state income taxes. Missouri is one of only 11 states that currently tax Social Security benefits.
Luetkemeyer’s legislation provides a tax credit to seniors to offset increased tax liability for residential property imposed once the taxpayer is eligible for Social Security benefits.
“Seniors living on fixed income are especially vulnerable to the negative impact of inflation and rising taxes,” Luetkemeyer said of the legislation earlier this year. “This legislation targets two tax burdens, protecting seniors from sky-rocketing property taxes, while also eliminating state income taxes on Social Security benefits.”
This act authorizes a county to grant a property tax credit to eligible taxpayers residing in such county, provided such county has adopted an ordinance authorizing such credit, or a petition in support of such credit is delivered to the governing body of the county and is subsequently submitted to and approved by the voters, as described in the act.
Eligible taxpayers are defined as residents who are eligible for Social Security retirement benefits; are the owner of record of or have a legal or equitable interest in a homestead; and are liable for the payment of real property taxes on such homestead.
Wood spoke about the new law at the Monday, Aug. 7 Platte County Commission administrative session, just moments after a Platte City taxpayer asked if and when the county would act to adopt the tax credit.
She announced the formation of a work group made up of county officials to draft an application process, investigate and recommend possible software upgrades needed and potentially recommend hiring additional personnel that would be required to administer this tax credit and get the word out to seniors.
She also said the program should next be expanded, at the state level, to include retired teachers, railroad workers and federal employees who do not contribute to social Security but may have other retirement plans, in addition to non-working widows and widowers.
“This real property tax credit for seniors is especially welcomed since their largest line item on their annual tax bills is from school districts, who’ve not had a part in educating their now-adult children for decades,” Wood said. “While it’s still too early to tell how many seniors would apply, and therefore its impacts on levying districts, with Platte County being the fastest-growing county in Missouri, new construction may more than make up for any revenue reduction from senior citizens.”