AState Senate Bill enacted in August 2023 is finally getting its time under the spotlight in Barry County.
SB 190, and the August 2024 revision called Senate Bill 756, created a new property tax credit for seniors 62 and older, allowing those who are eligible, to apply and are approved to essentially have their real estate property tax levies frozen at the time of approval.
On the surface, the Republican-sponsored bill seems like it may give a significant boost to seniors possibly struggling with living on Social Security alone and the impact of inflation. However, the overall impact is virtually impossible to gauge.
Elected officials in the Barry County Courthouse have been fielding calls on SB 190 since its passage, many of them asking to enact the credit. In the interest of democracy, the County Commission has placed the issue on the April 8 ballot, putting the question to the people and preparing for the outcome.
I’ve covered numerous bond issues and tax hike proposals over the years, including sales tax and property tax, but never have I covered an issue that would lessen a taxpayer’s burden. The biggest problem with this proposal, however, is the utter uncertainty of the consequences of enacting the credit.
For one, there are more than 27,000 real estate parcels in the county, and no way for officials to determine how many would qualify for the credit. Even more difficult to gauge is how many of those who do qualify would sign up. Will it be 100, 500, 1,000 or more? Obviously, more people applying will result in a greater impact, but there are no numbers, no real estimations to be had.
The best we can do is to compare some yearby- year tax receipts and see where that takes us. For example, my personal real estate tax in 2022 was $711.12.
As a hypothetical, let’s say that was my initial credit year and I received the tax credit in 2023 and 2024. My 2023 bill was $727.32, a difference of $16.20. However, once I exclude the difference in the exempt state and school district levies, my savings in 2023 from the credit would be a mere $4.25.
Continuing to 2024, my bill was $727.47, equating to a savings of $3.80.
Therefore, in two years, I would have saved a grand total of $8.05. Is that worth it? And, what will be the impact on other non-exempt jurisdictions?
We can guesstimate that, too. The library system, for example, was $33.99 in 2022 and $34.74 in 2023 and 2024. That is a 75-cent difference and $1.50 of that $8.05 saved over those two years.
Hypothetically, if my statement is average for the county, and 1,000 people with similar statements save 75 cents, that’s $750 less dollars the library system would have in its coffers. That may not seem like a lot in the grand scheme of their budget, but after two years and $1,500 or five years and $3,750, it can add up.
This may have an even greater effect on smaller entities like road districts. If a significant number of taxpayers within one of our 25 road districts qualify and apply for the credit, what would the impact be on that district’s ability to carry out its duties with a lesser budget? Would any of our 14 fire districts suffer the same fate?
If such losses were to occur, and the cost of equipment and operations continues to go up, those districts would likely ask voters for a levy increase. And, if they do, would voters with the credit exempt from paying a higher levy be allowed to vote in favor of a hike, essentially forcing their neighbors to pay it?
While we’re talking about money, if passed, the county — despite being fully funded by sales taxes and not imposing a property tax — would be out the cash to administer the program.
Along with the $10,000 already being spent to hold an election, officials estimate $20,000 to $30,000 for the software upgrade, and one official said he’s heard it may cost as much as $70,000.
Cost aside, I commend the County Commission for putting the measure on the ballot. The people have asked — 1-5 calls daily spread between county offices — and it’s fair government to put it to a vote.
That said, all three commissioners, the county collector, county assessor and county clerk are all on record as being against the proposal, and I agree.
April elections generally have a low turnout, especially following a presidential election. Voters eligible for the credit and taking to the polls on April 8 should think long and hard about how much a few dollars a year will truly help them versus negatively affect the tax-funded services.
Many seniors with limited incomes need help. Siphoning funds from libraries, hospitals, fire departments and road districts, in my opinion, is not the answer.
Another solution is needed.
Kyle Troutman has served as editor of the Cassville Democrat since 2014 and owner/publisher since 2023. He was named William E. James/Missouri Outstanding Young Journalist for daily newspapers in 2017, and he is a two-time ISWNE Golden Dozen award winner. He may be reached at 417-847 2610 or ktroutman@cassville- democrat.com.
