ST. LOUIS — A plan to give senior homeowners a break on their property taxes without breaking the bank is moving forward at the Board of Aldermen.
Alderwoman Anne Schweitzer, of Boulevard Heights, filed a bill this week to implement a new state law enabling tax freezes with two notable caveats: In a nod to concerns about providing a tax break for millionaires, the break would only apply to homes with an appraised value of $500,000 or less, at least initially.Â
And the discount would also be limited to the city’s cut of property tax revenue — roughly a fifth of the total levy — leaving unscathed city public schools, libraries and other entities funded by property taxes.
People are also reading…
If the bill is approved, the freeze would generally be available to homeowners ages 62 and older, who are eligible for Social Security, to use on their primary residence, where they live the majority of the year.
They would still pay taxes on their home’s current value, but they would be exempt from paying taxes on value increases.
The bill, which is backed by Mayor Tishaura O. Jones, takes a more limited approach than other area governments in implementing the new state law passed amid a run of years when home values, and thus property tax bills, have skyrocketed. The St. Charles County Council voted last month to freeze taxes regardless of a person’s income or home value for all taxing entities in the county, despite some concern that such a move may not be legal. And the ºüÀêÊÓƵ County Council approved a plan Tuesday that capped eligible home values at $550,000, but extended the freeze to schools and other taxing districts.
Schweitzer on Wednesday cast her bill, estimated to cost the city no more than $500,000 per year, as a compromise between a number of important interests.
“This is an attempt to help eligible seniors in the city with their tax bills, while not robbing the schools, the library and other taxing districts,†she said. “The overall impact on the city’s budget will be manageable, and I hope it provides some relief for senior households with fixed incomes.â€
Dennis Ganahl, executive director of MO Tax Relief Now, which advocated for the state law, scoffed at the effort. The city, he said, is telling its seniors to move to St. Charles.
“This is a charade,†he said. “It’s nothing.â€
Residents could also pass a plan themselves, through a ballot measure. They would need to gather signatures of at least 5% of the number of people who voted in the 2020 gubernatorial election, and then get a majority of the vote on Election Day.
“That, in the end, might be the best way to do it,†Ganahl said.