Boone County residents to vote Tuesday on possible property tax break for seniors

COLUMBIA, Mo. (KMIZ)

On Tuesday, voters in Boone County will be able to vote on whether the Boone County Commission can give seniors a property tax break.

According to the U.S. Census Bureau, almost 14% of Boone County residents are 65 or older. While the proposition would aid senior citizens, entities that rely on taxes for funding are wondering how it could affect their operations.

Gale Blomenkamp with the Boone County Fire Protection District said the exact financial impact is still unclear, but any removal of tax dollars is going to impact tax-supported organizations.

"Any time that there's a tax cut for the citizens--which is a good thing in my opinion--that also impacts the supporting agencies that are providing services to them," Blomenkamp said. "So, there's got to be some sort of balance."

If this proposition is passed, Boone County Presiding Commissioner Kip Kendrick said the county will begin working publicly on a policy to address both parties.

"The intent of the Commission is to make sure that a policy that is written goes to the seniors who need it the most, while also being mindful of the impact on taxing jurisdictions," Kendrick said.

He said stipulations could include only being applied to properties with a value of $300,000 or less according to their assessment file, and creating an end date to determine if tweaks are needed.

Kendrick said Proposition One is on the ballot in response to Missouri Senate Bill 190, which passed last year. That bill allows counties to grant a property tax credit to eligible taxpayers in its county. As of right now, he said 11 counties in the state have adopted the measure.

"We placed this question on the ballot in order to really get a broader conversation started about it," Kendrick said. "It's a pretty big tax policy issue, and we didn't feel comfortable making that decision in a vacuum."

Columbia Public Schools Spokesperson Michelle Baumstark said CPS believes the county is trying to be proactive by planning to set provisions, but said any limitation on these property taxes will have an effect on district revenue.

"As currently written, and with no local limitations or rules set through a local ballot measure, Columbia Public Schools, for example, estimates that the tax freeze could cost anywhere between 10% and 20% of district revenue, which potentially could amount to $3 million to $6 million," Baumstark wrote in an email.

She said the exact financial impact won't be known until there is exact information on the proposition.

However, Rep. Cheri Toalson Reisch (R-Hallsville) said the county needs to help it senior citizens, claiming districts wouldn't lose any money since the freeze would apply to future tax increases.

"I know of people in this county that need the help just keeping their own home," Toalson Reisch said. "These exaggerated figures that these school districts have come out with are just that."

Hallsville School District Spokesperson Kari Yeagy said despite this, the tax freeze would still hurt public schools.

"Schools, like businesses and residents, face escalating fuel, utility and supply costs," Yeagy said in an email. "While seniors in our county--particularly those with limited means--would benefit from relief, Missouri's public schools suffer from severe underfunding."

The executive director of the Daniel Boone Regional Library, Margaret Conroy, said in an email the library expects to lose over $100,000 of its $14.8 million annual budget if this proposition passes, but won't know for sure until it's implemented.

"Over 90% of the library's funding comes from property tax, so any reduction in tax revenue would have an adverse effect on our annual operating budget and thus our services," Conroy said.

The official language on the ballot states, "Shall the County of Boone exempt senior citizens from certain increases in the property tax liability due on such senior citizens' primary residence?"

All parties agree there needs to be clarification on the issue, and Toalson Reisch is gathering signatures for an initiative petition to be put on the ballot in November to do just that. She said her petition would take out "certain" to include the word "all."

"I fear they will only freeze county portions and not others," Toalson Reisch said.

Kendrick said no taxing jurisdictions are going to be exempt, and they chose to use the word "certain" because discussions are still being had about the bill at the state level.

"We felt it was important to add the words "certain increases in property tax liability" within the question in order for us to be able to capture some of the movement that we were going to see in Jefferson City," Kendrick said.

Meanwhile, the Missouri House of Representatives this week passed a bill that clarifies who would be eligible for the senior citizen tax breaks. A news release says requirements would include being 62 or older, owning a homestead, maintaining liability for property taxes and having no delinquent taxes owed to the county.

That bill now heads to the Senate.