By Jack Underwood, Editor
The senior citizen tax exemption made possible by Senate Bills 190 and 756 is one step closer to passage here in Warren County. The Warren County Commission, along with County Tax Collector Julie Schaumberg and County Tax Assessor Katie Smith, have been working hard to craft the legislation necessary to pass the ordinance here in Warren County.
On Aug. 13, commissioners met with Schaumberg and Smith, as well as City Attorney Hannah Dunakey and other citizens, to go over their draft ordinance and make any changes county officials or citizens felt were appropriate before state legislation takes effect on Aug. 28.
The law, first passed in July 2023 as SB 190 and updated in July of this year as SB 756, allows seniors over the age of 62 to apply for a property tax freeze to prevent the value of their home from increasing in subsequent revaluation years.
Under current regulations, to qualify, citizens must be at least 62 years old, own a home in Warren County that they use as their primary residence, and be responsible for taxes on that home.
The draft regulation also includes a provision that the first credit year of an eligible taxpayer must not be before 1 January 2024 in order to prevent taxpayers from receiving refunds for tax debts from the previous year.
“That’s the point of the January 1, 2024 date, so that everyone understands that you can’t say, ‘Well, I turned 62 in 2020,'” Dunakey said.
She also explained that once the regulation comes into force, successful applicants will have the value of their home frozen in the year they turn 62 or in the year they apply if they are older.
Several other counties in the state have already passed ordinances making the program available and have encountered problems along the way. That was one reason Warren County was so slow to move forward with its own ordinance.
“We don’t want to have the problem that some counties have passed an ordinance. For example, I believe in St. Charles County, 42 percent of applications were denied,” said Presiding Commissioner Joe Gildehaus.
The county’s draft ordinance, compiled by Dunakey, is a compilation of ordinances from other counties and includes key language from legislation passed in Boone and Greene counties earlier this year.
Dunakey said the tax freeze does not apply to all taxes and will not include state taxes or bond debt. If bonds are issued in Warren County that include a tax increase, the assessment of properties for those taxes will not be frozen.
County Tax Collector Julie Schaumberg also stated at the meeting that she wanted to limit the description of the property whose value will be frozen to a house and the surrounding five acres. She said this was to limit the freeze to residential properties.
Gildehaus was quick to point out that property owners with more than five acres should classify a portion of their land as agricultural land rather than residential land, as this would attract a lower tax rate.
There are a few ways a taxpayer’s value can still increase under the law if new construction or improvements are made to the home or if their property is annexed by another taxing authority. Schaumburg and Smith specifically pointed out that their value would only increase by the value of the new addition and the entire property would not be reassessed. Dunakey said increases related to an annexing municipality would only be applied to that city’s tax bill.
Currently, the county plans to make applications available sometime in March of next year, with the annual application deadline being June 30. Those who do not renew their tax freeze each year will see an increase in value, although there has been some discussion about how to curb these errors.
Schaumburg also stressed that there is a list of documents she needs to confirm a taxpayer’s eligibility when they first apply for a tax freeze. These include the property deed and a valid ID confirming that the taxpayer is at least 62 years old.
Bev Ehlen, who attended the meeting, asked why they had to provide the documentation if it was not required to pay their taxes.
“That’s because no one is going to lie to the government to pay more money, but no one is going to lie to the government to get money,” Dunakey said.
One senior at the meeting questioned whether medical improvements, such as an ADA-compliant ramp, would be included in these increases. Dunakey said the ordinance would need to be further developed as such problems become more apparent.
“We will end up seeing many different exceptions. These will have to be decided on a case-by-case basis,” Dunakey said.
Gildehaus said commissioners plan to issue the ordinance before the law takes effect on Aug. 28. Schaumberg said she isn’t sure when she will have the application ready, saying only that it will be ready by March, when the application period opens.
