The Boone County Commission is changing its senior real estate tax relief program. The program will no longer require eligible taxpayers to renew yearly to receive the tax credits that offset the growth in property taxes.
The commission said this change will increase efficiency for both the collectors office and the credit recipients.
The real estate tax relief program issues tax credits to Boone County taxpayers over the age of 62, in more than 9,800 households.
If their property taxes increase, the credits cover the difference, and they pay the same rate as the year prior.
Boone County Commissioner Kip Kendrick said before the change, the government would reach out to each recipient individually, reminding them to re-register.
“So, a process improvement from a processing standpoint for staff time, but then also, one less barrier for seniors to be able to continue participation in the program," Kendrick said.
Last year, Boone County issued more than $2.2 million dollars in credits. Kendrick said $1.5 million of those funds would have gone to Columbia Public Schools, $86,000 to Columbia city government, $38,000 to Boone County government and $15,000 to roads and bridges.
University of Missouri economics professor Peter Meuser said the gap in property tax collection will increase over time as tax rates continue to grow with inflation.
“There comes a point when you reach a steady state, because the number of people who can be eligible for the program can't go up indefinitely,” Meuser said.
Meuser said the county may see a reduction in new applicants after the “baby boomer” generation fully ages into the program, because the next generations are less populous.
More information about the program is available at showmeboone.com.
