Mo. Senate backs plan to end renters' tax break

JEFFERSON CITY, Mo. -- Low-income seniors and disabled Missourians who live in rented homes could lose a state tax break under legislation endorsed by the state Senate.

Senators on Wednesday gave initial approval to legislation that would repeal the tax credit for more than 100,000 renters while leaving it in place for seniors and disabled people who own their homes.

The tax credit, created in 1973, is intended to offset a portion of people's local property taxes. But a tax credit review commission appointed by Gov. Jay Nixon has recommended abolishing the tax break for renters, because it says there's not enough evidence that rental costs are influenced by the landlords' property taxes.

The Senate legislation would redirect the $57 million of savings from abolishing the tax break to state health, mental health and social services.

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Renters' tax break bill is SB350.

Online:

Senate: http://www.senate.mo.gov