Buchanan County Commission Adopts Ordinance

Authorizing Senior Citizen Homestead Property Tax Credit

ST. JOSEPH, Mo. (September 23, 2024) - The Buchanan County Commission voted unanimously to authorize the Senior Citizen Homestead Property Tax Credit pursuant to a recently enacted state law (RSMo. Section 137.1050). Senior citizens who apply and are deemed eligible will see the amount owed for most of the taxes on their primary residence “freeze” at the 2024 amount. For citizens who do not yet qualify, the amount owed will freeze in whatever year they do become eligible and apply.

The language of the State law is clear that the County can only apply the credit to future increases in real property taxes. It will not reduce the current real property tax amount owed by senior citizens or give a refund of taxes previously paid.

While the State law allows counties to offer the credit, it leaves most details and the application process up to each county. Commissioners Scott Nelson, Ron Hook, and Scott Burnham met regularly to discuss the credit. The Commission sought input from all taxing entities in the County including cities, villages, schools, libraries, and fire departments, to determine the effects of this credit on their revenue. Along with other officeholders including Assessor Dean Wilson, Collector Peggy Campbell, Recorder of Deeds Becky Dunlap, and Clerk Mary Baack-Garvey, the Commission crafted the County ordinance and is continuing to create the application process.

Eligibility requirements include being a resident of Buchanan County, being responsible for the taxes on your primary residence, and being 62 years of age or older. Applications will be available at the County Courthouse starting March 1st, 2025, and will be accepted until June 30th, 2025. No action is needed by taxpayers prior to March 1st.

Updates on the application process and further information can be found on the County’s website.

The full text of RSMo. Section 137.1050 can be found here: https://revisor.mo.gov/main/OneSection.aspx?section=137.1050

The full text of the County ordinance authorizing the credit can be found here: Senior Real Estate Property Tax Relief Program Ordinance 9-23-24.pdf

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Senior Real Estate Property Tax Relief Program 

Frequently Asked Questions and Definitions

Revised 11-15-24. Note: The answers contained below are for informational purposes only. Should this information contradict any applicable statutes, ordinances, or policies, the statutes, ordinances, and policies will prevail.

1. What is this program?

The Buchanan County Commission authorized the Property Tax Relief Program pursuant to a recently enacted state law (RSMo. Section 137.1050). Senior citizens who apply and are deemed eligible will see the amount owed for most of the taxes on their primary residence “freeze” at the 2024 amount. For citizens who do not yet qualify, the amount owed will freeze in whatever year they do become eligible and apply.

2. How do I get the credit?

Submit an application to the Buchanan County Collector’s Office.

3. When can I apply?

March 1, 2025. Applications will not be available nor accepted until that date.

4. What is the deadline for applying?

June 30, 2025, and June 30th of each year thereafter.

5. Who can get the credit?

Generally speaking, you’ll be eligible if you’re 62 years-of-age or older, live in Buchanan County, and own the home you live in.

More specifically, you can get the credit if you’re an “Eligible Taxpayer”.

6. Who is an “Eligible Taxpayer”?

• A Buchanan County, Missouri resident who:
• Is sixty-two (62) years of age or older; and
• Is an owner of record of a homestead or has a legal or equitable interest in such property as evidenced by a written instrument; and 
• Is liable for the payment of real property taxes on such homestead.

7. What is the “Eligible Credit Amount”?

The difference between an eligible taxpayer’s real property tax liability on such taxpayer’s homestead for a given tax year, minus the real property tax liability on such homestead in the eligible taxpayer’s Initial Credit Year.

8. What is the “Initial Credit Year”?

The year that a taxpayer became an eligible taxpayer, which shall be no earlier than January 1, 2024.

9. What is a “Homestead”?

Homestead.   Real property actually occupied by an eligible taxpayer as their primary residence.  An eligible taxpayer shall not claim more than one primary residence.    

10. How much money will this credit save me?

The taxes you will owe will be reduced by the Eligible Credit Amount. The credit will not reduce the taxes you owe for the year you apply, nor refund previously paid taxes.

For example: Assume 2025 is your Initial Credit Year and that your tax bill in 2025 for your homestead was $1000. It’s now 2027 and the tax bill is $1100. Your Eligible Credit Amount for your 2027 taxes would likely be about $100, subject to some exceptions. Thus, you would probably have to pay approximately $1000 in 2027 instead of $1100.

11. How do I determine my Initial Credit Year?

The Initial Credit Year is the year that a taxpayer became an Eligible Taxpayer, which shall be no earlier than January 1, 2024.

A few examples:

If you turned 62 and purchased your home BEFORE 2024 and apply for the credit in 2025, your Initial Credit Year would be 2024.

If you turned 62 BEFORE 2024 but purchased your home DURING 2024 and apply for the credit in 2025, your Initial Credit Year would be 2025.

If you purchased your home BEFORE 2024 but turned 62 DURING 2024 and apply for the credit in 2025, your Initial Credit Year would be 2025.

12. I met all the requirements before 2024, but I can’t apply until 2025. Will 2024 still be my Initial Credit Year?

Yes. As long as you apply for the credit and are approved during the 2025 application period and you would have been eligible had there been an application period in 2024.

13. Will I need to provide documents with my application?

Yes.

• Proof of Age for the Applicant (include one of the following)
  1. A copy of the applicant's driver's license
  2. A copy of a Missouri state issued ID (such as a nondriver ID)
  3. A copy of the applicant's birth certificate
  4. A copy of the applicant's passport
• Proof of residency showing the address of the Homestead being claimed (include one of the following):
  1. A copy of the applicant's driver's license
  2. A copy of the applicant's voter registration card
  3. A copy of a Missouri state issued ID (such as a nondriver ID)
  4. A bank statement or utility bill with applicant’s name and the Homestead’s address on it
  5. A copy of the most current real property tax bill for the Homestead showing the applicant’s name and the applicant’s mailing address as the Homestead 
• Proof of Ownership (include one of the following):
  1. A copy of the deed identifying the applicant as owner of the property
  2. A copy of the deed and a written instrument showing the applicant has a legal or equitable interest in the property (trust agreement, operating agreement, etc.)
  3. A copy of the most current real property tax bill for the Homestead showing the applicant’s name and the applicant’s mailing address as the Homestead

14. How will I know the status of my application?

The notification process is under development. Updates will be available on the County website.

15. Can I provide copies of the documents with my application, or must they be original?

Copies are preferred. Documents provided with your application will not be returned.

16. My home is in a trust. Could I still be eligible for the tax credit?

Yes. Since there are several different types of trusts the documents required for your application may be different. If the paperwork establishing the trust shows you have a legal or equitable interest in the property, you would need to provide that paperwork along with the deed showing trust ownership.

17. Can I claim more than one property for this credit?

No. Eligible Taxpayers shall only claim one primary residence statewide as their Homestead.  Eligible taxpayers cannot claim credits on rental properties.  If you own a duplex or a parcel of land with multiple structures that serve as dwelling units, you can only claim a credit on that portion that serves as your primary residence.

18. How will I know the amount of the tax credit I'm receiving?

Any tax credit will be noted on the annual real estate tax statement sent by the Buchanan County Collector. You will be responsible for paying the remaining amount of taxes due on the statement.

19. Once my application is approved, does that mean the amount I pay for my real estate taxes is frozen and will never go up?

No. The tax relief program does not freeze all real estate taxes or the assessed value of your home.  Reassessments will continue to happen every odd-numbered year. The amount you actually must pay will “freeze” for most of your real estate taxes at the amount it was in your Initial Credit Year, but there are several exceptions that may raise the amount you must pay:

• Changes in certain taxes which are exempt from the program, such as the State of Missouri Blind Pension Fund and voter-approved bond indebtedness levies.
• Your Homestead being annexed into a taxing jurisdiction such as a municipality or water district that was not included on your tax bill in the initial credit year.
• New construction or improvements to your Homestead that would cause an increase in valuation of the overall claimed Homestead.

20. How much land is a Homestead? Does a mobile home count?

A Homestead is the real estate property occupied by an Eligible Taxpayer as their primary residence and up to one acre.   Homestead properties with more than one acre are eligible; however, the eligible credit will be based on the residence and up to one acre of land.

Mobile homes that are assessed as personal property (homes not permanently attached to a parcel of land) are not considered real estate property for purposes of the Homestead definition.

21. Will I need to reapply for the credit each year?

Yes. You will need to reaffirm in writing each year that all information in your initial application is still correct and unchanged. Documentation will not be needed if no information has changed.

22. My real estate taxes are paid through my mortgage company. How will this credit be applied for me?

The collector's office will notify any escrow company that requests the annual tax information for parcels that they service. This tax information will include the amount of taxes due less any applied credit. As always, it is the taxpayer's responsibility to make sure the taxes are paid timely by their escrow company.

23. My primary residence is currently enrolled in the monthly installment plan. Can I continue to participate in the installment plan if I also receive an eligible credit?

Yes.

24. What if only one homeowner meets the age requirement for the tax credit?

Only one homeowner needs to meet the age requirement for the household to claim the tax credit. Please note that the tax credits cannot be transferred to another individual that does not meet the definition of an eligible taxpayer.

For example, a husband is 65 and his wife is 55. The couple’s Homestead could qualify for the Credit. If the husband later dies at age 70 and the wife is 60, the Homestead no longer qualifies for the credit since the wife is not an Eligible Taxpayer. She can apply when she does become an Eligible Tax Payer and she will have a new Initial Credit Year upon being approved.

25. What if I sell my Homestead and move into another home in Buchanan County?

The eligible credit is based on the primary residence as indicated on the application. The tax credits do not transfer to another homestead or to the new property owner. If you meet the criteria for an eligible taxpayer, you will need to complete the application process for the new homestead.