SB190 Creating Issues For County Collectors

A bill signed by Gov. Mike Parson in July has county collectors across Missouri questioning its implementation.

SB190 was signed into law July 6 and it authorizes counties to grant property tax credits to eligible senior citizens.

Another part of the law eliminates income tax on Social Security benefits. 

The ordinance must be implemented by a county commission. If a county commission declines, voters can initiate a ballot calling for its passage.

Crawford County Collector Pat Schwent said in an email that while neither her, Assessor Kellie Vestal or commissioners are opposed, there are variables that could lead to “multiple lawsuits” depending on how it’s interpreted. 

“The variables your county may choose to adopt could affect your county’s financial position, which includes all the political subdivisions within your county,” she said.

Schwent explained that the bill first addresses who is eligible and that the wording includes “anyone eligible for Social Security…meaning anyone 62 years or older.”

This, she said, does not address people who may have reached the age for SSI, but may not be eligible because their occupation, i.e. teacher or railroad worker. 

“This exclusion could lead to litigation based upon equal protection laws,” she said.

The bill addresses that the eligible taxpayer must occupy their homestead as the primary residence and the taxpayer may not claim more than one primary residence, but Schwent said it doesn’t address any issues relating to the change in the homestead such as adding an addition onto the dwelling after the base year has been established.

Also at issue is the bill doesn’t address if the taxpayer is living in part of the homestead but utilizing a part of the residence to operate a business, or if the taxpayer owned unimproved land when they reached the age for Social Security, but did actually have a residence on the unimproved land until later years.

If one taxpayer of record on the homestead has reached the eligible age for Social Security, but the other taxpayer has not and the person eligible passes away, the bill does not address the county having liability regarding determination to the credit already provided to the property.

Schwent also said there is a question if the bill could be violating laws with regards to identifying a class of senior citizens as a special interest group over other senior citizens.

It’s also in question if counties should be able to make financial decisions for the other political subdivisions, such as schools, fire departments, ambulance districts, etc.

Those entities could see their operating funds decrease and “substantially (change) their financial positions.”

Schwent said there are so many other variables that could lead to years of litigation for the counties.

“Currently, Crawford County is working with an attorney and we are closely monitoring some of these issues when other counties are adopting ordinances and how they are interpreting the language,” she said.

Schwent said that when she ran for her position in 2010, she promised a payment plan for residents who were delinquent in either their personal property or real estate taxes.

The payment plan was approved in September 2011. 

“We do have some senior citizens on the plans, but several are younger or businesses who participate,” she said. “We are not against helping any taxpayer regardless of age, but we must be sure whatever the directions that we take do not lead the county into limitation.”