A new state audit has found “significant inadequacies” with Missouri’s Property Tax Credit Program. The report issued gives the state Department of Revenue program a “poor” rating, highlighting that the program led to incomplete claims being approved, eligible claims being denied, and incorrect amounts being awarded.
Missouri Auditor Scott Fitzpatrick also found that the program failed to retain supporting documentation in some cases, exposed the system to an increased risk of fraud, and failed to give lawmakers complete and accurate information for use in budget decisions.
“This is a program that many of our senior and disabled Missourians rely on to help offset the cost of their property tax or rent, but it’s also a program that needs to improve if it’s going to effectively allocate these credits to the individuals who are eligible for them,” said Auditor Fitzpatrick. “I’m glad to see the Department of Revenue is taking our recommendations seriously and working to make improvements in many of the areas we identified, but I also think this is a program that needs to be looked at closely by the General Assembly, and substantive changes should be considered.”
For the 2023 Fiscal Year, 77% of the claims were processed without a manual review by Department personnel.
In response, the Department of Revenue said that it will work with its vendor to ensure that property tax credits are processed accurately. The agency said it will continue to provide training and guidance to workers and complete quality assurance checks to ensure that property tax credit claims are complete and accurate. If lawmakers pass legislation requiring action, the agency said those provisions will be added to the process to comply with state laws.
The Missouri Budget Project wants the state legislature to update the tax credit during the 2025 session.
“As noted in the audit, both income eligibility for the Missouri property tax credit and the amount of the credit have not been updated since 2008,” said Amy Blouin, President and CEO of Missouri Budget Project. “That is, even as housing and property taxes have gone up, everything about the credit has stayed the same as it was 16 years ago.”
The group said as a result, fewer Missourians who need it can qualify – and those that do often receive a very small credit.
“Every year, more and more of the very folks the credit was designed for are being left out,” said Jay Hardenbrook, Advocacy Director for AARP Missouri. “Income guidelines and credit amounts have fallen behind even inflationary increases, which the legislature can and should fix.”
In a statement, the Missouri Budget Project said lawmakers can help their citizens stay in their homes by increasing both income eligibility and the amount of the credit to account for growing incomes and housing costs, and ensuring the credit is adjusted over time so it doesn’t quickly become outdated again.
Click here to view the entire audit.
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