By the Missouri Budget Project
Missouri’s Circuit Breaker Property Tax Credit was intended to help older adults and those living with disabilities stay in their homes, even if their property taxes increase. Like an electrical circuit breaker, the tax credit kicks in and offsets some of the cost of property taxes for low-income households when their property tax goes over a certain proportion of their income. Although the credit serves as a lifeline for many older adults and Missourians with disabilities, as Missouri Budget Project points out in a recent report, every year more and more of the folks the credit was designed for are left out because the credit hasn’t been adjusted since 2008.
“Neither income eligibility nor the amount of the credit have changed in fifteen years,” said Amy Blouin. “Because those aren’t tied to inflation, the very Missourians the law was intended to help are losing access to the circuit breaker, leaving them struggling to pay their bills and even stay in their homes.”
For example, although property taxes increase regularly, the amount of the credit hasn’t increased since 2008. Moreover, because eligibility guidelines haven’t been adjusted for inflation during that time, fewer of the Missourians who need it can qualify.
When older adults and Missourians with disabilities do meet those outdated income guidelines, they often receive a smaller credit because their households fall higher on the income scale – with those at the upper end of eligibility receiving credits of less than $10 a year.
“Missouri lawmakers can provide real property tax relief for older Missourians, disabled veterans, and Missourians with disabilities by updating the circuit breaker,” said Amy Blouin, President and CEO of Missouri Budget Project. “Doing so would help Missourians in every part of our state continue to live independently in their own homes.”
Property values and their corresponding taxes increase faster in some parts of the state than others, but the circuit breaker helps older Missourians and those with disabilities in every single county in our state. What’s more, it’s a way legislators can help folks who need it without jeopardizing funds that localities rely on for schools, and services like road maintenance, parks, and police and fire protection for their communities.
State legislators can make a real difference in the lives of older adults and Missourians with disabilities struggling to make ends meet on fixed incomes across Missouri. Improving the circuit breaker would benefit almost 6,000 households in Northwest Missouri.*
“It’s been fifteen years, and it’s time to update the circuit breaker tax credit,” continued Blouin. “After all, the circuit breaker isn’t just a box on a tax form. It’s a connection to the homes and communities in which Missourians have built their lives.”
Editor – Missouri Budget Project provided a fact sheet showing that 30 Worth County residents took advantage of this law and got an average benefit of $442.
No comments:
Post a Comment