JEFFERSON CITY — A plan to stop property tax increases for Missouri seniors won final passage Monday in the Legislature on a big bipartisan vote.
Senate Bill 190, which also exempts Social Security income from the state income tax, now moves to Gov. Mike Parson for consideration.
The plan, approved 154-2, allows counties to decide whether to grant the property tax credit. It can be allowed through an ordinance or a public referendum.
If a county approves the credit, seniors who are Missouri residents and who are liable for property tax and own a home, and who are eligible for Social Security benefits, would be eligible for the tax credit.
Taxpayers would only be able to claim one primary residence for the credit.
The plan would allow all Missourians to deduct 100% of their Social Security benefits, beginning in 2024, removing limits that are currently in place. (Under existing state law, Social Security benefits are fully deductible for Missouri residents with an adjusted gross income of less than $85,000 when filing single or $100,000 if filing married and jointly.)
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“This is something a long time coming,†said House Speaker Dean Plocher, R-Des Peres, in a rare speech from the House floor. He said Missouri is one of 11 states to tax Social Security benefits.
“Our seniors need that safety to know that when they’re paying into the system, they should be able to get it on the back end and enjoy a secure retirement,†Plocher said.
Plocher, who is considering a run for lieutenant governor, had sought a larger, $1.1 billion corporate tax cut to help bolster his record in the Legislature.
But, the Senate last week signaled that was not going to be voted on in the upper chamber.
Rep. Richard Brown, D-Kansas City, said he hears from constituents all the time about the tax on Social Security benefits.
“This will be a significant help,†Brown said.
Rep. Doug Clemens, D-St. Ann, said he loved the Social Security exemption, but asked if there was a way for the state to make up lost revenue.
The Social Security exemption could cost state coffers $319 million, according to a nonpartisan fiscal analysis.
“I’d be happy to look at that in the future,†said Rep. Ben Baker, R-Neosho.
Only Democratic Reps. Ashley Bland Manlove of Kansas City and Barbara Phifer of Kirkwood voted against the tax break.
A nonpartisan fiscal analysis said the effect of the property tax freeze would vary by county.
While 1 in 10 homeowners in ºüÀêÊÓƵ were older than 65, more than 4 in 10 homeowners in Morgan County were older than 65, according to the analysis.
If approved, the county would calculate the credit for eligible seniors, which would be noted on tax bills sent by the county collector.
Both the property tax credit and the Social Security break would be in effect for the 2024 tax year.
The legislation is .