The proposed changes to Missouri’s senior property tax credit program, also known as the circuit breaker, aim to address concerns raised by rising property tax values and inflation.
The program, which helps low-income seniors, elderly, and disabled individuals with property tax or rent relief, has become less effective over time.
A report from State Auditor Scott Fitzpatrick, which gave the program a poor rating, highlights that the program is not providing enough relief, especially as property taxes have increased 34% since 2008, while inflation and the cost of living have strained fixed incomes.
With fewer people qualifying for the program, the state distributed $50 million less in tax credits last year compared to 16 years ago.
Under the new proposal, the income cap for married homeowners would rise from $34,000 to $48,000, and the maximum tax credit would increase from $1,100 to $1,500.
The changes have received support from organizations like AARP, with Jay Hardenbrook emphasizing that older Missourians are concerned about losing their homes due to unaffordable property taxes, especially in areas with significant tax increases, like St. Louis County and Jackson County.
Though there was no opposition at the Senate Committee hearing, the bill is still undergoing review, with a new version expected in the coming weeks.