Missouri’s Speaker, Dean Plocher, has recently tasked Rep. Jim Murphy, the chairman of a special committee on earnings taxes, with additional responsibilities. Specifically, Plocher has added the evaluation of property taxes to the committee’s agenda.
In August, Plocher requested Murphy to head a special committee to investigate the 1% earnings tax in Kansas City and St. Louis. The committee’s task list has been updated to include the topic of counties implementing frozen property taxes for seniors, which is permitted under Senate Bill 190 recently passed.
During an interview with The Center Square, Murphy expressed his belief that the implementation of this new system will lead to improved workflow. He also mentioned that there will likely be an increase in the number of hearings, and that he is currently in the process of scheduling separate hearings specifically focused on property taxes. While it is still early in the process, Murphy remains optimistic about the potential benefits of this new approach.
In late August, Murphy conducted the first of the three proposed hearings on the earnings tax. He intends to hold hearings in St. Louis and Kansas City and complete the committee’s work by the end of October. Murphy and Plocher share the same belief in inspecting property taxes more closely. In fact, they both agree on the necessity of taking a closer look at property taxes.
According to Murphy, the current situation is adversely affecting the elderly population, who are uncertain about their ability to sustain their homes. He strongly believes that it is not the government’s responsibility to put seniors in a position where they are forced to leave their homes. After dedicating their entire lives to supporting the government and contributing to the community, it is unfair to see them struggle to make ends meet.
Five counties in Missouri, namely Camden, Greene, Laclede, Jackson and St. Charles, have recently implemented new legislation to benefit from Senate Bill 190. This bill was passed by the General Assembly in the spring and was signed into law by Republican Governor, Mike Parson. The bill enables taxpayers to pay the previous year’s property taxes on their home if they are eligible to receive Social Security benefits and reside in counties with tax-credit authorization. Although St. Louis County failed to pass a similar measure in July, it will revisit the issue again this week.
The proposed legislation has faced strong opposition from school districts, who have been the most vocal critics. However, there are others who have also raised concerns and highlighted possible issues with the bill.
During a meeting with the St. Louis County Council in July, David Stokes, the director of municipal policy, expressed his concerns about a bill that aims to provide tax relief for senior citizens. Stokes pointed out that the proposed bill is not just a tax relief for seniors but also a tax increase for non-senior citizens. According to Stokes, this bill is problematic because it favors older homeowners and puts the burden on younger homeowners. He argued that residents who live in homes with similar values and public services should pay similar property taxes regardless of their age. Stokes also stressed that it is unfair for young couples who have recently moved into their homes to pay higher property taxes than their neighbors who have lived there for decades.
