Margaret, a 72-year-old retired teacher living on a fixed income in St. Louis County, Missouri, is concerned that rising property values will cause her property taxes to increase beyond what she can afford. Her real estate agent mentions a Missouri program that may help limit her property tax burden. Which program is the agent most likely referring to?
Correct Answer
B) The Missouri Property Tax Credit (circuit breaker), which provides a credit for qualifying senior citizens and disabled individuals
Missouri offers the Property Tax Credit, commonly called the 'circuit breaker,' which provides a credit against income taxes for qualifying senior citizens (age 65 or older) and disabled individuals whose income falls below certain thresholds. The credit is designed to limit the property tax burden on fixed-income seniors when property values and taxes rise. This is the program the agent is referring to in this scenario.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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