Politics and property taxes

Editor's note: Cape Girardeau voters will select a new state representative in a special election Tuesday. This is the last installment in a series to familiarize voters with the three candidates' stands on some of the important issues that the winner will face during the legislative session, which is already underway.

By Rudi Keller ~ Southeast Missourian

A rebellion over property taxes that began in St. Louis County could mean a bigger income tax break for lower-income senior citizens and tighter controls over the ability of local governments to profit from reassessment.

Property reassessment, never a popular issue with lawmakers, is taking center stage in Jefferson City following a year in which average property values increased by 10 percent or more in 10 counties. Because those values are averages, and assessments on farmland changed little, the actual boost in the average value of homes was much greater.

That means higher tax bills for many, including senior citizens who have lived in their homes for decades.

In response, Senate President Pro Tem Mike Gibbons, R-Kirkwood, wants to block what he calls "backdoor" tax increases. He also wants to increase the value of the tax credit lower-income seniors and the disabled receive for their property taxes, known as the "circuit breaker" credit.

In the race for the 158th District Missouri House seat, all three candidates -- Republican Mary Kasten, Democrat Mike Keefe and Libertarian Steve Kinder -- support increasing the maximum circuit breaker credit and expanding the income range. Kinder would go one step further by eliminating any income cap for receiving the credit.

Their views differ, however, when it comes to tightening controls over local governments flexibility with tax rates. Kasten said she leans toward leaving local issues in the hands of local boards and voters. Keefe said he's inclined to put stricter rules in place but needs to know the impact on taxing entities such as school districts. And Kinder said he wants restrictions that require lower tax rates after reassessment and to put any increase in tax rates on the ballot.

Missouri already has a system in place to force tax rates down when assessments rise faster than inflation. But some jurisdictions don't impose the legal maximum tax rate, leaving a gap between what is known as the "tax rate ceiling" and the actual levy.

In Cape Girardeau County, 27 taxing jurisdictions have 39 separate property tax rates for various functions. Of those rates, 32 tax rate ceilings were adjusted downward after the 2007 reassessment sent the average property value up 6.8 percent countywide. Another four tax rates are school district debt service levies that must be set at the amount needed to make debt payments.

But in five of the jurisdictions where the tax rate ceiling was decreased in 2007, the taxing entity wasn't charging the full amount the year before. One jurisdiction, the North Cape County Fire Protection District, left rates unchanged from 2006. The other four -- Gordonville, Oak Ridge, Delta and the Fruitland Fire Protection District -- raised rates by action of their governing boards.

Those actions were wrong, Gibbons said. "Anybody who is below their tax rate ceiling will have a mandate to lower rates after reassessment. They will be able to retain what they had the previous year plus the inflation rate. But I don't think it is right to raise taxes on people in a backdoor way."

But for the jurisdictions that increased taxes, the extra revenue means extra services. Sheila Gross, mayor of Gordonville, said the extra $1,891 her community will receive through higher assessments and raising tax rates by 0.82 cents per $100 assessed valuation means a few more fixed potholes or a new digital radio for the town cop.

"I could go on and on about what we could use it for," she said.

And in the Fruitland Fire District, which protects one of the fastest-growing regions of the county, the extra $21,687 that could be gained from higher assessments and a 1-cent increase per $100 assessed valuation means new breathing equipment and the ability to start saving for a new fire station, board member Marty Schuessler said.

"Twenty thousand dollars is one year's payment for a firetruck," Schuessler said. "It is one year's payment for insurance. If you want to build a new fire station, it costs $500,0000."

Both Schuessler and Gross see Gibbons' proposal as interference with local decisions.

And state Sen. Jason Crowell, R-Cape Girardeau, said he's heard little about local property tax rates. "By no means do I think outstate is driving the debate on this. It is St. Louis County."

Kasten said she's reluctant to take away local control over tax rates. "I always believed that government is best nearest to the people being governed," she said. "Usually people can be voted out on a local level."

Keefe said the legislature needs to make sure taxes are fairly adjusted and levied, but that he's concerned about the effect on school districts, which typically levy the heaviest property taxes. "We need to look at what impact it is having on the services being provided and what impact is it having on the people we are collecting it from."

Kinder agrees wholeheartedly with Gibbons. Tax increases are for voters to decide, he said. "Regardless of ceilings, the voice of the people should determine it."

The circuit-breaker credit for seniors and disabled currently allows a tax credit of up to $750 for property tax payments for people with a taxable income of up to $25,000. Those who live in rental properties also are eligible for the tax break.

Gibbons' proposal would increase the maximum credit to $1,100 and raise the income ceiling for receiving the credit to $27,500. Both changes, he said, would reflect inflation since the last time the limits were changed.

Kasten, Keefe and Kinder all pledged to support the increased break for seniors.

rkeller@semissourian.com

335-6611, extension 126