Missouri Senate votes to end Tax Break for renters - WGEM.com: Quincy News, Weather, Sports, and Radio

Missouri Senate votes to end Tax Break for renters

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HANNIBAL, Mo. (WGEM) -

A 30 year old tax break for low-income Seniors and Disabled people could be coming to an end in Missouri.  That will leave thousands of residents on fixed incomes with less money in their pockets.

Low income seniors and the disabled who rent or own homes have been able to get an income tax credit on property taxes that can be as much as $750.  The state senate has passed legislation to eliminate that tax break for renters and that could be a huge hit for thousands of Missourians.

Patricia Holman received $600 from the income tax credit this year but knowing it might end troubles her.

"It's a concern to me because not only for myself but I know people in a similar situation and that's a great lifeline for a lot of people," she said.  

Holman said without the tax credit, she's left in a difficult position.  That's because she doesn't live in subsidized housing, so she doesn't get a break on her rent. 

"This is private renting that I'm living in and my rent is not based on income and I think that's kind of hard," Holman said. 

Holman isn't the only one in Hannibal who would be affected by the loss of this tax credit for property taxes. Northeast Independent Living Services Housing Commissioner Gene Suddarth said he sees hundreds come in for assistance, and it doesn't stop there. 

"Probably in the Hannibal area alone, well over three or four thousand people that have this credit done," Suddarth said.  

He said more than half of those people are renters, but NECAC official Brent Engel says losing the tax credit for renters isn't all bad because the $57 million being cut will be redirected to existing health, mental health, and social services. 

"But in the end, it will be less of a burden on this end and it will be greater savings on the other end when money is put back into the program for seniors and the disabled," Engel said. 

The legislation that would end this break is now on its way to the Missouri House, but while the House has yet to vote, it has already passed a budget plan assuming the tax break would be eliminated.

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