Missouri’s Property Tax Credit Program has been given a “poor” rating after “significant inadequacies” were found in a recent state audit. The program led to incomplete claims being approved, eligible claims being denied, and incorrect amounts being awarded.
State Auditor Scott Fitzpatrick told Missourinet there should be the expectation that millions of taxpayer dollars are spent responsibly.
“You know if there’s one thing, I think the department should focus on moving forward on this program, it should be ensuring that before they are making payments on these claims, that the people that are receiving the payments have proven their eligibility because it’s not fair to taxpayers,” he said.
Fitzpatrick questioned the effectiveness of the tax credit given the credit amount, and the income threshold eligibility have been the same since 2008.
“But since that time, when we look back at, you know, household income increases since that time, over 40% is the increase in median household income, since that time,” said Fitzpatrick.
The total cost of the program has gone down significantly, Fitzpatrick says, meaning that fewer people are qualifying for it. He recommends that state lawmakers increase the income threshold, the credit amount, or get rid of the program altogether.
The Missouri Department of Revenue has acknowledged that it will be working to implement recommendations after receiving the rating, but Fitzpatrick said that the agency is not doing enough.
“The department really could be doing more targeted efforts through senior centers or things like that to try to make sure that they’re giving the information about the people who are potentially eligible to those people instead of just blasting it out to the entire world and hoping that the right people see it,” he said.
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.
The program helps Missouri’s disabled and senior citizens offset the cost of their property tax or rent.
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