Current Missouri law (Senate Bill 190) has allowed senior citizens 62 years of age or older to apply for freezes of their owner-occupied residence taxes to provide relief in the face of escalating property taxes. Senate Bill 756, effective as of August 18, 2024, has modified the law to provide eligible taxpayers the ability to freeze residential taxes at age 62 and older with or without social security and without a household income limit requirement.
If you are 62 years or older and own your primary residence (known as a homestead) in Benton County, you may qualify. It is important to note that you can only claim one homestead in Missouri, meaning if you own multiple properties, you can only get this tax relief on your main home.
Collector David Brodersen, Assessor Jim Hansen, and Commissioner Steve Daleske have been meeting regularly to finalize the details of the program since the passage of Senate Bill 756. They also met with representatives of local taxing districts to discuss the impact on their revenue and spent time with Benton County Enterprise working on this article. The Collector’s Office will be primarily responsible for administrating the program.
Here’s how it works: When you apply for the program, the year you first qualify becomes your “initial credit year.” For example, if you are 62 in 2024 and apply in February 2025, the amount of real estate tax you paid in 2024 will become the amount you continue to pay going forward. There are a few exceptions, but for most people, this will mean more stable and predictable taxes.
Additionally, if your taxes happen to go down below the amount of your initial credit year, the lower amount will become your new baseline. Seniors must reapply every year to maintain the tax freeze, so it’s important to stay on top of the paperwork.
This tax freeze only applies to your home and up to one acre of land. Any detached buildings, such as garages or sheds, are not covered under the program.
Before Senate Bill 756 was enacted, people collecting social security were eligible to apply for a tax freeze, but not those who had retirement pensions such as teachers, federal and fire department personnel. Now, that restriction has been lifted.
A few other facts to note about the tax freeze are:
-The taxpayer must be a U.S. citizen.
-The taxpayer shall not owe delinquent taxes, interest, or penalties to the county.
-The Assessor will re-evaluate resident property every year.
To get started, you’ll need to fill out an application and submit it to the Benton County Collector’s Office. Applications may be submitted starting in January and must be submitted by May 31 of each year. Be sure to keep an eye on deadlines and any required documentation to make sure you are all set for the year ahead.
When you receive your 2024 tax statement, there will be a flyer that you can send back with your payment, indicating your interest in the program. After notifying the county office that you are interested, you will then receive an application with your tax receipt. The Collector will also be releasing an educational video about the program on Facebook.
This program aims to provide peace of mind for seniors, ensuring that they can stay in their homes without worrying about rising property taxes. If you or someone you know is eligible, its worth taking a closer look at this opportunity.
Commissioner Daleske cautioned that freezing of residential taxes can cause an impact on the taxing districts. Senate Bill 756 does not provide state funds to offset any county revenue losses with the implementation of this bill. He said that he is not against seniors getting a break. However, since schools, nursing homes, libraries and other entities which depend on taxes will probably find their funding reduced because of this legislation, the matter may end up in court.
For more information, visit the Benton County Collector’s Office or call (660) 438-7721.
