CLAYTON — St. Louis County seniors Tuesday night spoke in favor of a bill that would freeze their property taxes, but county revenue experts warned it would take millions of dollars away from schools, towns, fire departments and other public services.
Early last month, the Missouri Legislature approved a plan to stop property tax increases for eligible seniors. If signed into law by Gov. Mike Parson, counties would have the option to adopt the measure.
St. Louis County Councilman Mark Harder, a Republican from Ballwin, introduced a bill in May that would put the plan in place in the county. It received praise from county seniors at Tuesday’s council meeting.
Dennis Demmert, 72, of Fenton, has lived in his house for 38 years. He said his property tax bill doubled in 2021.
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“It’s harder and harder every year,” Demmert said. “And there’s no choice. What are we supposed to do?”
But the bill would greatly decrease county tax revenue, according to a memo dated May 22 from the St. Louis County Department of Revenue to the Legislature’s research division. The county is already facing a $44 million budget deficit.
If the bill had been in effect in the 2021-2022 tax year, for instance, it would have lowered revenue to county schools, fire districts, municipalities and the county government itself by more than $14 million, according to the memo prepared by county Director of Revenue Scott Lakin and Collector of Revenue Mark Devore.
If the bill had been in place for the last four years, the county would have missed out on nearly $34 million, according to the memo.
“With each year that passes, the loss would increase,” the memo states. “Older Americans are one of the fastest growing demographics in the country, translating to even greater loss of future tax revenues.”
People older than 65 make up nearly 19% of the county’s population, according to the U.S. Census Bureau. Under the Legislature’s proposal, a senior could get the tax break if they are eligible for Social Security retirement benefits, own a home and are required to make tax payments on that home.
The county estimates the bill, SB 190, would have the biggest impact on school districts, municipalities and community colleges. Nearly 70% of the county’s property tax distributions went to school districts and colleges, according to the memo. The rest mostly goes to fire protection districts and the county’s 88 municipalities. And the bill could unintentionally reduce services for seniors, the memo said.
But Councilman Dennis Hancock, a Republican from Fenton, said seniors are being forced out of their homes because of high property taxes.
“They simple don’t have the wherewithal to write an ever-increasing check for property taxes,” Hancock said.
Democratic Councilwoman Kelli Dunaway of Chesterfield expressed concern that seniors who can afford to pay their tax bills could benefit unfairly.
“It’s really important that we not subsidize millionaires,” Dunaway said.
The bill would cost the county more money in administrative expenses, the memo said. It would require more staff, mailings, customer service and calculations — plus software updates and new formatting on tax bills.
“While the intent of the law is admirable, this legislation is poorly written and provides no guidance to County Collectors about how to implement it,” the memo stated.
The bill moved to the final legislative step Tuesday. Republican Councilman Ernie Trakas of unincorporated St. Louis County requested a committee meeting to discuss the bill in detail. Harder said he was willing to do that.