November 28, 2014

Senate votes to kill renters’ tax credits (AUDIO)

The state senate has voted to take away the tax credit that goes to low income Missourians who rent their homes.

Opponents  say the end of the circuit breaker tax credit for renters takes away money that offsets the property taxes built into their rents and, for some, takes away the only financial cushion they realize each year–money they can use for grandchildren’s gifts, or a new microwave. 

But sponsor Tom Dempsey says they can also use the money at a casino;. 

Other opponents suggest the timing is bad because bills lowering the big-bucks tax credit programs are, as one senator put it, “on the fast track to nowhere” in the House.  Senator John Lamping of St. Louis is one of two Republicans to vote “no” because he fears low-income renters will be the only losers in tax credit reform this year.  

Dempsey says Missouri will still lead the nation in tax credits for low-income housing construction if that bill is passed this year, and many of those projects benefit the people who will lose their renter’s tax credits under this bill.

This bill joins the other tax credit reform bills waiting House action.