Bills target property tax breaks for seniors

JEFFERSON CITY, Mo. -- State lawmakers have prefiled at least seven bills for the next legislative session that would shield senior citizens from higher taxes caused by increases in the assessed values of their homes.

The concept is an old one that has made little headway in the General Assembly. However, with many Missourians angry over the latest round of property reassessments, which in some cases substantially increased tax bills, the issue is garnering new interest.

Republican state Reps. Jason Crowell of Cape Girardeau and Rod Jetton of Marble Hill have signed on to one such bill. The measure would freeze assessed values on homes owned by people 65 or older who have lived in the home for at least five years.

State Rep. Charles Portwood, R-Ballwin, is the author and lead sponsor of the legislation.

Crowell said older taxpayers need relief from rising property taxes.

"We have people in Cape Girardeau who are being taxed out of their homes," Crowell said. "I think we can alleviate that."

Unlike similar measures, Portwood's bill would provide relief for all homeowners through a provision to place a cap on increases during a two-year reassessment period at 5 percent or the consumer price index, whichever is less.

"We are not a cheap property-tax state anymore," Jetton said. "And when you are on a fixed income like senior citizens, putting a freeze on is a good idea. Property taxes in this state have gotten out of hand."

The state would reimburse local taxing jurisdictions such as school districts for revenue lost under the bill. The estimated cost of the measure isn't yet available.

Although the state is enduring budget cuts, the bill wouldn't have any immediate impact on state finances because it wouldn't take effect until Jan. 1, 2003.

Constitutional issues

Although the state Constitution authorizes the Legislature to enact property-tax exemptions for homesteads, the measure could raise other constitutional issues because it provides a tax break to only one class of homeowner. While admitting that argument could be made, Crowell and Jetton both said they doubted it would stand up in court.

Except for being limited to breaks for the elderly, four of the other bills are virtually identical to Portwood's measure.

Of the remaining two, one sponsored by state Sen. Anita Yeckel, R-St. Louis, would make the freeze a local option requiring voter approval.

The other would limit the break to an elderly single person with an annual income of $17,000 or less and married couples making $23,000 or less. State Rep. Dan Ward, D-Bonne Terre, is that measure's sponsor.

In addition to legislation seeking breaks for the elderly, another dozen prefiled bills seek changes to other aspects of how property is assessed and taxed, including capping increases in assessed value for all homeowners and banning so-called "drive-by" inspections in which an assessor confirms a house's value without getting out of his car.