Calls for Elimination of Unfair Marriage Penalty and Expansion of Property Tax CreditInstead of Giving Wealthy Developers Million-Dollar Tax Credits, Nixon Proposes Property Tax Relief for 65,000 Missouri Seniors
HAZELWOOD, Mo. - Attorney General Jay Nixon today outlined his plan to provide property tax relief to more than 65,000 Missouri seniors and families struggling to keep their homes by eliminating an unfair marriage penalty and expanding the Missouri Property Tax Credit Program (also known as the Circuit Breaker.) Rep. Clint Zweifel (D-St. Louis County), who will introduce a similar bill during the upcoming legislative session, joined Attorney General Nixon for today's announcement at the Prairie Commons Library Branch in Hazelwood.
"Property taxes are skyrocketing across our state, and thousands of Missourians, particularly seniors, are struggling to make payments and keep their homes," Attorney General Nixon said. "To make matters worse, the current system actually penalizes seniors for being married. I want to eliminate this unfair marriage penalty and expand the property tax credit to help Missouri seniors stay in their homes."
The Attorney General's plan stands in sharp contrast to the tax policies passed and implemented under Gov. Matt Blunt's administration, such as massive tax credits given to a St. Louis property developer last year, Rep. Zweifel said.
"Last fall, Governor Blunt called a special session to pass an economic development bill, but instead of giving property tax relief to regular Missourians, he handed out $95 million in tax credits to one wealthy developer," Rep. Zweifel said. "Those are the wrong priorities. The wealthy developers have had their Governor in Matt Blunt. Now it's time for regular Missourians to have a Governor who stands up for their needs. I'm proud to stand with Jay Nixon and fight for Missouri seniors to get the property tax relief they deserve."
The Attorney General has proposed to (1) eliminate the unfair property tax marriage penalty currently in the Property Tax Credit Program, which penalizes Missouri seniors for being married; (2) increase the number of individuals qualifying for the maximum property tax benefit so thousands of additional Missouri families get property tax relief to help them stay in their homes; and (3) increase the maximum tax credit benefit from $750 to $1,000.
1. Eliminate Property Tax Marriage Penalty: Attorney General Nixon proposes eliminating the marriage penalty that currently exists in Missouri's property tax formula.
Under current law, a single taxpayer qualifies for the Property Tax Credit Program, or Circuit Breaker, at an annual income of up to $27,500. However, married couples are eligible for the tax credit for a joint income of up to $29,500. Thus, there is only a spousal exemption of $2,000, which is blatantly unfair. Household income data show that the gap hurts median-income, married seniors most, according to the Office of Social & Economic Data Analysis (OSEDA) at the University of Missouri. Median income for seniors in a one-person household is $15,800, but this figure rises to $40,500 - well beyond the current eligible income - for senior households with two or more persons, according to the OSEDA.
The Attorney General proposes ending the marriage penalty by extending the spousal exemption from $2,000 to $20,000 so that more seniors and hardworking Missouri families qualify for property tax relief. Nixon believes Missouri's tax code should reflect Missouri's values by rewarding marriage instead of penalizing it.
2. Extend the Property Tax Credit to More Seniors and Hardworking Missourians: Attorney General Nixon believes that more seniors and hardworking Missourians deserve property tax relief.
Under his plan, the maximum salary a single taxpayer could earn and qualify for the tax credit would increase from the $27,500 under current law to $32,000. After the elimination of the marriage penalty, as described above, a married couple would be able to earn up to $52,000 and qualify for the tax relief under Nixon's plan.
3. Increase the benefit for all seniors: The top benefit would be increased from $750 to $1000--providing all qualifying seniors an increased benefit.
Taken together, Attorney General Nixon's proposals will provide property tax relief for 65,000 additional seniors and hardworking Missourians by rewarding marriage instead of penalizing it, according to the OSEDA. Implementation would cost an estimated $43 to $51 million, according to estimates from the Institute of Tax and Economic Policy at the University Missouri. |
