- Eligibility: Missouri residents who are 62 years or older, own their home, and are liable for real property taxes.
- Credit Amount: The credit equals the difference between the current tax liability and the tax liability during the taxpayer’s initial credit year.
- Local Adoption: Counties can adopt the credit through an ordinance or a voter-approved referendum. The Homestead Property Tax Credit operates under a simple premise: protect senior homeowners from rising property tax liabilities. For eligible seniors, the credit stabilizes the tax amount payable to the figure from their initial credit year, shielding them from subsequent increases. This means if the property tax rises after a senior’s initial credit year, the tax burden will not.
For implementation, each county has the option to either pass a local ordinance or bring the matter before voters with a referendum. If approved via referendum, the ballot will pose a straightforward question about exempting seniors from increases in property tax liabilities due on their primary residences.
How Does the Homestead Act Work?
The Homestead Act plays a crucial role by defining the ‘homestead’ as the primary residence of the taxpayer, where the tax credit is applied. Here’s how it works:
- Tax Stabilization: Once a homeowner qualifies, any increase in property tax assessments will not affect their payable amount, unless there’s new construction or improvements on the property.
- Adjustments for New Improvements: If an eligible taxpayer makes improvements to their home, the tax liability will adjust accordingly for that year but will stabilize again for subsequent years.
- Impact of Annexation: If a home is annexed into a new taxing jurisdiction where previously no real property tax was owed, the initial credit year’s tax liability will adjust to reflect the new obligations.
Helpful links to counties that have implemented the program already:
- City of St Louis (program applications are closed until March 2025)
- St Louis County (program is waiting on staffing and setup but you can sign up for email status notifications)
- St Charles County (program applications are closed for 2024 tax bills)
This initiative not only offers financial relief but also promotes stability and predictability for seniors in managing their most significant investment—their home. As counties begin implementing these changes, it’s essential for residents to stay informed about how these adjustments could benefit them personally. For additional insights on navigating property tax changes or purchasing a new home, consider reaching out to our experts at MORE, REALTORS®. Our seasoned team is committed to providing tailored advice that protects and enhances your real estate investments.
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The consent order which, according to a press release issued by Opendoor about the FTC complaint, they have agreed to, prohibits Opendoor from misrepresenting:
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Continue reading “Most Consumers Who Sold to Opendoor Lost Money According to FTC Complaint“
