County collectors from across the state are concerned about how a proposed 5-percent real estate tax credit for Missouri property owners who are Social Security eligible will be implemented and how it will affect local taxing entities.

Senate Bill 190, passed by legislators during the recently complete spring session, has “not yet gone through the Governor’s Office bill review,” according to Stephanie Whitaker, deputy communications director for Gov. Mike Parson. “All legislation goes through a thorough bill review process before Governor Mike Parson makes a decision. The Governor has until mid-July to take action on SB 190.”

Shawn Schlottach, Gasconade County’s collector of revenue, on Thursday described the bill which awaits the governor’s approval — or veto — as “kind of rammed through” which was “very ill-written” during a discussion with county commissioners meeting at Owensville City Hall.

Schlottach shared with commissioners a list of concerns circulating between elected collectors across Missouri. The handout she shared noted SB 190 is “a well-meaning piece of legislation, designed to give a tax break to senior citizens,” but “will create a practical nightmare for collectors.”

The handout include a list of 38 bullet-pointed concerns and questions on how, if it is signed into law, collectors will move forward. “It’s very difficult to prepare a fiscal note when the parameters of SB 190 are not clear,” the handout noted.

A provision of the proposed law calls for county commissions across Missouri to approve an ordinance authorizing such credit, or a petition in support of the credit.

“It won’t go into effect unless it’s approved by county commissions.” But, she added, “Voters can petition if it’s not adopted by commissions.”

It’s the commission’s decision, she said, if it goes to a ballot question.

“Local decisions will affect income for political (subdivisions),” Schlottach told Commissioners. She said county collectors across the state would be trying to “implement it without it being unconstitutional” but, adding quickly,
“there will be lawsuits.”

Schlottach told Commission members it would be “impossible to make it work how it’s written.”

And, it would likely cost the county another $85,000 in salary for a full-time employee to implement the tax credit locally along with the necessary programming upgrades to their computer system. Costs to upgrade computer systems was estimated at $40,000, said Schlottach.

Among concerns shared by Missouri’s elected county collectors is applying tax credits after the county issues a tax bill.

“You can’t do it after it’s been charged,” Schlottach told Commissioners explaining that the bill as presented allows for tax credits being issued after the tax bill was issued.

The handout concluded with Schlottach’s thoughts.

“Are we trying to figure out and fix an unconstitutional mess,” she wrote. “I didn’t hear anything about this bill until it was ready for the Governor. Surprisingly those who pushed this bill through weren’t interested in asking any questions nor concerned about any costs to try to implement this mess. It will cost ALL taxpayers more to implement this than the benefits to be received. May those who pushed this through figure out how to pay for it. Another unfunded mess of a mandate!”

She added her office would likely need to hire an extra full-time employee with full benefits at approximately $45,000.

“Not sure if the Assessor or Clerk will need extra help,” she wrote. “ There will be an increase in office material costs, plus close to 40K + in software programming.  Along with the sure possibility of lawsuits.”

A summary of SB 190 states:

“This act authorizes a county to grant a property tax credit to eligible taxpayers residing in such county, provided such county has adopted an ordinance authorizing such credit, or a petition in support of such credit is delivered to the governing body of the county and is subsequently submitted to and approved by the voters, as described in the act.

“The amount of the property tax credit shall be equal to the difference between the real property tax liability on the homestead in a given year minus the real property tax liability on such homestead in the year in which the taxpayer became an eligible taxpayer.

“A credit granted pursuant to this act shall be applied when calculating the eligible taxpayer’s property tax liability for the tax year. The amount of the credit shall be noted on the statement of tax due sent to the eligible taxpayer by the county collector.”