Collector braces for SB 190 affect on operations

New tax-relief law for older residents subject to approval by county voters

By Buck Collier, Special Correspondent
Posted 7/19/23

HERMANN — Just how will a state law aimed at granting older residents tax relief affect property tax dollars already received by county and city governments, school and library districts and …

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Collector braces for SB 190 affect on operations

New tax-relief law for older residents subject to approval by county voters

Posted

HERMANN — Just how will a state law aimed at granting older residents tax relief affect property tax dollars already received by county and city governments, school and library districts and other publicly funded agencies?

And will the County Commission put the issue before voters?

Local government officials were hoping to learn more about the implications of Senate Bill 190, which was signed into law in recent days with no fanfare by Gov. Mike Parson. The Republican chief executive had been lobbied hard by local government officials to veto the legislation aimed at providing a measure of tax relief to older residents. That relief would come in the form of freezing the rates used to calculate property taxes owed by the senior citizens. There also is a provision in the law making it retroactive — that’s what has local government officials concerned — to possibly several years ago.

That apparently would mean that property taxes paid in past years would have to be recalculated and refunds made for what would have become overpayment of taxes. That would be a major make-work project for the staffs of county collectors’ offices throughout the state in clawing back some of the property tax dollars that had been dispersed to the various taxing entities within a county. Gasconade County Collector Shawn Schlottach has said it would be a major hardship on the offices of collectors across the state.

She was on hand for Thursday morning’s session of the County Commission, which has had little information about the legislation that was adopted with little attention during this year’s session of the Missouri General Assembly. SB 190 was one of several measures regarding local taxes but was not watched as closely as some of the other proposals. Indeed, upon learning that it had been approved, and finding out the bill’s implications, local government officials went in to defense mode mounting an argument against it.

But Parson remained non-committal about acting on the bill in talks with local government representatives in the days leading up to the signing. SB 190 was among a batch of bills included in the final round of signing by the governor.

“We know basically nothing at this time,” Schlottach told the Commission as last week’s session. “There’s no clear language” about exactly how the law will affect her office or the entities that receive property taxes. Or, she said, for that matter it’s unclear which property tax recipients would be losing some of their dollars.

“Who do you take that money from?” Schlottach asked rhetorically.

She and others were hoping to hear answers to those questions and others yesterday during a webinar held by the Missouri Association of Counties (MAC). The Jefferson City-based organization is the primary lobbying arm of county government.

As understood at this point, the law can be implemented in one of two ways:

• Adoption of an ordinance by a county’s government body; or,

• Through adoption by voters in a countywide vote.

County commissions in First-Class counties, such as Franklin County, have ordinance-making authority and could put the law in place by decree. Commissions in Third-Class counties do not have ordinance-making authority, therefore the only option available to make use of the law would be through a countywide vote.

In addition to what they might learn through the webinar, Southern District Associate Commissioner Jerry Lairmore, R-Owensville, suggested officials turn to their outside legal advisor, Ivan Schraeder, an expert in the workings of county governments.

“Maybe we should ask Ivan,” Lairmore said. “Maybe we can find something out.”

Schlottach said to put the law in place as it appears to be designed, the expense would be great.

“To implement this (law) is going to cost way more than the benefits,” the collector said.

Presiding Commissioner Tim Schulte, R-Hermann, said it “sounds like it’s all over the place.”

County Assessor Paul Schulte offered possibly the most accurate assessment of the situation surrounding the law: “It’s going to end up in a legal battle.”