SB756: What Does It Mean To Our Seniors?

Senior citizens who filed last year for property tax relief through SB190 thought that should have preempted them from the Doniphan R-I 85-cent “Proposition Teach” increase passed in 2023.

They are now realizing that wasn’t the case.

The fact is, although SB190 (and SB756, which modified it) have been more or less championed as placing a “freeze” on property taxes for seniors, the bill does not exempt them from any new levies or increases that will be passed. Not last year, and not moving forward.

So, how does it work, who is eligible, and how does one apply?

The first question to be answered is who is eligible.

In simplest terms, the bill applies to people age 62 and older who own a home in Missouri, which is their primary residence, and they pay property taxes on that home.

The language of SB190 was confusing, but that question was answered by SB756, and is the basis for ordinance #01-25, which was passed earlier this month by the Ripley County Commission.

The ordinance defines the eligible taxpayer as “A Missouri resident who is eligible for social security retirement benefits, is an owner of record of a homestead or has a legal or equitable interest in such property as evidenced by a written instrument and is liable for the payment of real property taxes on such homestead (in Ripley County).

What happens next for seniors who apply for the benefit?

The amount of property taxes a person has to pay is based upon the assessed value of the home.

That is where the “freeze” comes into play.

The intent of the bill is to freeze property assessed values for seniors, a population which is the most vulnerable at tax time, existing on fixed social security benefits that don’t keep pace with rising costs.

The state average social security benefit is $1,498 a month; however, that figure is likely high for Ripley County seniors.

The bill was meant to provide tax relief to older citizens who have reached retirement age, to rescue them from a situation where they might lose their home because they could not afford to pay the property tax.

That has been a harsh reality for many older Missourians, particularly in larger cities where property values have been soaring.

For instance, a senior might own a home that assessed at $30,000 when he or she purchased it, but by today’s estimations it now assesses at $1 million.

Therefore, as property values go up, so do property taxes.

SB756 should freeze the tax rate by fixing the assessed valuation of the home.

However, seniors need to know that a major home improvement, such as adding on a room, will cause their property to be reassessed, which will effectively “reset” their assessed valuation.

That reassessment will change the “eligible credit amount,” which according to the ordinance 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.”

Barring any new taxes or changes to the homestead, the same tax credit will be applied each tax year.

Applications can be picked up at the Ripley County Collector’s office.

The applicant will provide property information such as the physical location of the property, a parcel identification number, whether the property includes a homestead (the applicant’s primary residence: only one can be claimed), the date the residence was built, when the property became the applicant’s primary residence, and the names of the occupants of said property.

Applicants will fill out the date they turned 62 years old, the year they became responsible for paying taxes on the property and whether their taxes are current.

Proof of residency will be required. Acceptable documentation includes a utility bill, voter registration card, bank statement, a copy of a government check or paycheck, personal property tax receipt, homeowner’s insurance policy, driver’s license renewal post card, motor vehicle renewal post card, or an official document from another state or local government agency issued within the previous 30 days.

Applicants should apply before June 30, and they will need to show a copy of their deed as proof of ownership, and a copy of the most recent property tax bill.

The application will need to be notarized.