Current state law allows Missouri counties to freeze property tax increases for homeowners who qualify for welfare, but on Wednesday the law is set to change to clarify that homeowners must be at least 62 years old to qualify.

Senator Tony Luetkemeyer (R-Parkville) said his 2023 bill inadvertently left out Missouri homeowners with retirement benefits.

“Firefighters, police officers and teachers are notable examples of people who, when they have spent their entire careers in those professions, do not receive any benefits. They receive their pension from a pension,” he told Missourinet.

His solution aims to give all seniors the opportunity to receive a property tax reduction, regardless of their source of retirement income.

“It would be hundreds of thousands of people, because it would be, you know, every person in Missouri who is not receiving Social Security benefits. Every retiree who is receiving a pension instead of Social Security benefits would now be subject to the property tax freeze under Senate Bill 190,” Luetkemeyer said.

The new law would also put an end to Missouri counties that allow a property tax freeze for seniors only if the value of their home is below a certain amount.

According to Lütkemeyer, his bill would provide a discount per household.

“So, for example, if a married couple is 62 and a woman is 60, they are still eligible for the senior citizen property tax exemption as long as one of the residents is 62 or older. And this only applies to one resident,” he said.

The program only applies to residential properties, not commercial properties.

“We wanted to make sure that the system was not abused,” said Luetkeyemer. “So, for example, if someone owns rental properties, they cannot claim a senior citizen’s allowance for the 15 apartments they own.”

He considers the bill to be pensioner-friendly.

“One of the fringe benefits we could see in Missouri in the long term from Senate Bill 190 is that a lot of seniors could decide to stay in Missouri who would otherwise move to Florida or another state with more favorable tax laws. They could decide to stay in Missouri. There could be people who decide to move to Missouri because the tax laws are more favorable there.”

Click here for more information on Senate Bill 756.

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