ST. LOUIS (KMOX) - A recent audit of Missouri’s Property Tax Credit revealed some flaws with the program.
According to the Missouri Department of Revenue (DOR), who oversees the program, eligible renters can get up to $750 and homeowners can get up to $1,100.
The tax credit helps certain elderly, disabled, or low-income residents by covering part of their yearly property taxes or rent but hasn't been updated in over a decade.
The Missouri State Auditor's Office found the Department of Revenue's system for deciding who qualifies for the tax credit is flawed. Sometimes unqualified claimants received the credit, while qualified claimants were denied. The program's software reportedly automatically processed claims, often missing information needed to check if someone was eligible.
For example, claims lacking proof of income or rent payments were approved, which led to incorrect amounts being given to some claimants.
The audit additionally found the income limits for qualifying and the maximum credit amounts haven’t increased since 2008. Without adjustments for inflation, the audit claims fewer people can qualify, and those who do qualify get less help than before.
KMOX spoke with Traci Gleason of the Missouri Budget Project who mirrored the audit's findings. Gleason says since the eligibility and credit amount hasn't been updated in 16 years, "fewer and fewer people are eligible and the credit get's smaller and smaller." The audit suggested that updating these limits for inflation could make the program fairer and more effective.
Missouri's Department of Revenue also has not notified eligible taxpayers directly about the credit, as required by law. Instead, it has relied on general announcements, which many eligible people may not see, especially older Missourians who don’t use social media. This lack of direct contact may mean many eligible people are missing out on the credit.
Important documents were also reportedly missing from some claim records, which state law says the Department of Revenue must keep, including Social Security payment verification, business income or loss, property taxes paid, rent paid, and property assessments.
Additionally, the DOR reported inaccurate data on the amount of credit given to the Missouri General Assembly, meaning lawmakers might not have a clear picture of the program’s true cost, which could wrongly influence budget decisions.
Gleason says the program is currently critical for around 120,000 households throughout Missouri. She adds incorporating the state auditor's recommendations, especially adjusting the credits and claimant eligibility for inflation, would expand the program to help around 186,000 households.