STL County to consider senior property tax freeze soon

St. Louis County would be the first in Missouri to enact the new state law if the County Council bill passes.

“I have heard from hundreds of seniors who are in serious jeopardy of losing their homes or having to decide which bills get paid and which don’t because their taxes have risen so much but their income is fixed,” said Councilman Mark Harder, a Republican from Ballwin who sponsored the county bill. “I’m glad the state gave us this option to help them out.”

Gov. Mike Parson last week signed Senate Bill 190, which allows counties to freeze property tax increases for seniors who are eligible for Social Security retirement benefits, own a home and are required to make tax payments on that home. Any Missouri county can put the new measure in place by ordinance or voter approval.

Webster Groves resident Patrick Sinclair, 72, has lived in his home since 1997 and says his property taxes have tripled since then.

“All these taxes go up on your property, but your income doesn’t go up along with it, especially after you retire,” said Sinclair, a retired building materials distributor. “Every additional increase in taxes just puts seniors in the position where they have to reduce their standard of living.”

But the council’s consideration of the plan comes as members try to find solutions for an expected $44 million budget deficit. The council has vowed to make cuts this year, find new revenue or both.

And counties that implement the new state law could lose millions of dollars in tax revenue, according to an analysis by the state Legislature’s research division. St. Louis County estimates it would have missed out on nearly $34 million in revenue over the past four years if the plan had been in place, according to a memo from county leaders. The county estimates the tax freeze could cost $125,000 a year in personnel, too.

Missouri’s law has no income limit or maximum tax break amount, meaning even ultra-wealthy seniors could benefit.

Other states have similar laws, but with limits:

• In Georgia, people older than 65 can claim a $4,000 exemption from property taxes if their income didn’t exceed $10,000 in the previous year, excluding income from retirement sources, pensions and disability.

• In certain New York taxing districts, low-income seniors can cut their property taxes in half, but a local taxing body can set a maximum income limit anywhere between $3,000 and $50,000.

• South Dakota gives senior homeowners tax breaks, but the income limit for a household with multiple members was about $20,000 in 2022.

• Florida counties and municipalities may adopt a law that allows property tax exemptions to seniors but with limitations, such as requiring a residence be valued below $250,000.

• One county in Alabama gives a property tax break with no income limits to senior homeowners, similar to Missouri’s law. Voters in Jefferson County, Alabama’s most populous county and home to Birmingham, approved a constitutional amendment in 2022 allowing eligible seniors to freeze their home’s assessed value as long as they’ve lived there for at least five years.

But such measures have had negative ripple effects, said David Stokes, a policy analyst with the Show-Me Institute, a libertarian think tank based in Missouri.

California passed a measure in 1978 that limited increases in property assessments and taxes. It caused other charges — including development fees and assessments — to go up to make up for the lost revenue, driving up costs of new construction and limiting home ownership opportunities for young families, Stokes told the County Council at a meeting in June.

And wealthy homeowners benefit from California’s measure the most, with about two-thirds of tax relief going to people with incomes above $80,000, the nonprofit newsroom CalMatters reported, citing California’s Legislative Analyst’s Office.

“I do not doubt this bill is well-intended to help senior citizens stay in their homes as they age,” Stokes said of St. Louis County’s plan, “but there are several major problems with this proposal.”

Even some seniors disagree with it: Warren Danzinger, 71, has lived in the same University City home since 1979. He can afford to pay his taxes and believes he should.

“If someone’s barely able to pay their bills, I’m OK with them getting a tax break. That’s who should be targeted,” Danzinger said. “It shouldn’t be targeted at people who can well afford to pay their taxes.”

Still, many argue the opposite. Wayne Harvey, 76, has lived in his Grantwood Village home for about 15 years. His tax bill this year went up by just under $1,000. It’s too much, Harvey said, especially because his family doesn’t have any children in the local school district, which accounts for the bulk of his tax bill.

“That’s a lot of money,” Harvey said. “I budget well. I can handle it. I just feel like I’m paying too much.”

The council will hold a committee meeting to discuss Harder’s bill at 1:30 p.m. Tuesday ahead of the regular evening meeting.

Harder, who plans to run for the 15th Missouri Senate District in west St. Louis County, said Monday he aims to bring the bill, No. 114, for a vote that night.

It would have to be signed by County Executive Sam Page to become law. If so, the freeze would go into effect next year.