Senior citizen tax credit approved in Howell Co.

The Senior Citizen Tax Credit was approved by the Howell County Commission last week. The commission, along with County Collector Janet Crow and County Assessor Daniel Franks, have been working on getting Ordinance 2024-R5 passed through since 2023. 

 

The Missouri Legislature passed Senate Bill 190 in 2023 to create the tax credit. This bill was full of issues, one of which tied eligibility to Social Security retirement benefits, thus excluding government-employed teachers, railroad workers, and others who don't pay into the system. This was fixed by Senate Bill 756, which went into effect on August 28, 2024. This bill changed the definition of “eligible taxpayer” to a taxpayer who is 62 years of age or older. With this latest change, county commissions could get back to work putting the bill into effect on the local level. 

 

The application for the tax credit is being accepted now through April 30 annually and will need to be applied for yearly. Eligible applicants will be able to claim one parcel of property that includes only their residence, or “homestead”. Applicants will need to bring proof of Missouri residency, such as a voter registration card, driver's license, passport, or military ID, as well as proof of ownership of the property or “deed”, and a copy of the most recent full year paid property tax receipt for the parcel.

 

The eligible credit amount is defined in the ordinance as 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 eligible taxpayer's initial credit year. 

 

The tax credit application, once approved, will “lock-in” property taxes on the homestead for the year applied. The taxpayer will have to apply yearly to keep this value. Otherwise, the property tax base will reset to the current valuation of that year. Franks has told Howell County News this, “is not a freeze”. “This will not be a huge credit now. Down the road, it will add up over time,” said Crow. 

 

Crow has a “Senior Tax Credit Information” sheet available at her office that answers many questions people may have. Here, it states that new construction on the homestead will change the base credit year, and the tax credit amount will be listed on the real estate tax statement. The Collector's office is asking the public to remember that this is new for everyone, and there will be bugs to work out the first year or so, further asking for their patience.