Mixed Opinions

Seniors praise Boone County’s property tax freeze, but taxing entities are concerned.

During lunchtime in late August at the Columbia Senior Activity Center, seniors had positive things to say about the Boone County property tax relief program. Voters in April approved the initiative, which freezes the property tax rate for Boone County homeowners aged 62 and older who apply. By the end of August, there had been more than 4,000 applications, with the deadline on September 30. 

Voters overwhelmingly supported the measure with a 68 percent majority — 13,950 voted in favor and 6,452 voted against it. A state law enacted in 2023 and tweaked this year allows counties to adopt the senior property tax freeze, but they’re not required to.  

“I just hope it works,” said Stan Wise, noting that he and his wife, Marilyn, have applied for the benefit. “I don’t like the idea you have to reapply every year. That’s silly.” 

Assessor’s Office Preps For Activity 

Reapplying each year is a requirement, and there will be an application period each year for seniors applying for the first time. Marilyn Wise said the employees in the Boone County Assessor’s office were helpful with the application process. 

“They were ready,” she said, adding that a staff member said the office expected a lot of interest in the property tax freeze. Stan Wise said he would be upset if the senior property tax freeze resulted in higher property taxes for others. 

“We’re still going to be paying what we have been paying,” he said. Marilyn added, “It’s good for the seniors. That’s what we voted for.” The Wises live in north Columbia. 

Gary and Patricia Jackson, both 75, said they hadn’t applied yet, but planned to before the deadline. And count Paul Ryan, 78, as a fan. 

“I like it,” Ryan said. “I think especially for people who don’t have children in school, the school taxes are eating up a lot.” He was asked about the potential effect on taxing entities. “I’m sure it’s going to,” Ryan said. “But when you’re on a fixed income you need a break, too.” 

Seniors Lead in Household Wealth 

While seniors seem to like the property tax freeze, taxing entities have expressed some concern about the financial impact on their budgets.  

The tax break is going to the segment of the population the Federal Reserve says has the most household wealth. According to Fed figures in 2023, household ages 55 to 64 had an average net worth of $1.56 million, while those ages 65 to 74 had an average net worth of nearly $1.8 million. For those ages 75 and over, the average net worth was $1.6 million. But because there is no cap on the value of a home for determining tax freeze qualification, Boone County Presiding Commissioner Kip Kendrick said, a senior could own a $2 million home and get a property tax freeze. He said the financial impact on taxing entities can’t be accurately estimated until the county knows how many seniors apply, and the values of their homes. 

“So another part of this factor is not just the pool of applicants and the value of their homes, but a big driver of this will clearly be the reassessments done by the assessor’s office as well,” Kendrick explained. “The reassessments will ultimately determine when that credit begins to show up on the tax receipts tax base.” The next reassessment occurs in 2025.  

The impact on taxing entities will increase over time, he said. 

“That will build the impact on the taxing jurisdictions … There statutorily has to be a reassessment; whether there’s an increase or not will determine whether or not there is a credit that begins to show on those tax bills,” Kendrick said. As reassessments continue to occur, the credit could continue to grow on those parcels or primary residence, so it could take up to ten years to see what the larger impact may be, he said. 

Kendrick also tips his cap to the assessor’s office staff for adding the senior tax relief process to their other duties. 

“They have done an incredible job,” he said. 

Last year, Kendrick requested taxing districts to provide their best estimates of the financial impact of a county property tax freeze for seniors. 

Boone County Fire Protection District 

The fire district is 100 percent reliant on property taxes for its budget, yet Assistant Chief Gale Blomenkamp said there will be no immediate impact. 

“We’re not stressing on this,” Blomenkamp said in an interview. “We will keep providing the services we provide.” In future years, after reassessment, there may be more impact, he said, adding, “There’s always opportunities to generate funding for the fire district in different ways. 

Southern Boone County Fire Protection District 

Terry Hilgedick, Southern Boone County Fire Protection District board president, had a more dire estimate. 

“We feel the law would have a meaningful impact, if it is implemented, to our abilite to provide emergency services in an era of increasing costs,” he wrote. “But we have no way to quantify the impact.” 

Columbia Public Schools 

A 10 percent decline in property tax revenue would result in a $3 million loss to the district, wrote Heather McArthur, CPS chief financial officer. She said that’s the amount needed to pay fifty teachers. If revenues decreased by 20 percent, the impact would be double. 

“Any limitation on increases to the assessed valuation of property that can be included for calculating property taxes will have a significant impact on district revenue, ”McArthur wrote. With the program instituted, the district will be able to collect data to assess the impact, CPS spokeswoman Michelle Baumstark wrote in an Aug. 29 email. 

At a school board candidate forum by retired teachers in March, Columbia Board of Education candidate Jeanne Snodgrass worried that her answer about the issue would cause the retired teachers to hate her. She said the tax freeze would shift the property tax burden onto others. Snodgrass was re-elected despite her opposition to the tax freeze. 

Southern Boone School District 

The school district in Ashland estimates it would experience an 8.5 percent revenue reduction from the freeze, wrote Superintendent Tim Roth. That $640,887 would pay the wages and benefits of ten teachers, or about 5 percet of its faculty. The state law “presents a simplistic approach that will cause unnecessary funding challenges to our public entities and should be reconsidered prior to implementation,” Roth wrote in a September 26, 2023, email response to Kendrick. 

Hallsville School District 

The property tax freeze may cost the district $238,006, or 6 percent of property tax revenue, wrote Superintendent John Downs on Aug. 28, 2023, before he retired. That’s the wages and benefits for four teachers, he said. 

Harrisburg School District 

In his district, around 30 percent of homes are owned by those 62 or older, wrote Superintendent Steve Combs. The senior property tax freeze could result in a $783,129 loss to the district. 

“Everyone is in a difficult position, but this is not the solution,” Combs wrote months before the election. 

Sturgeon School District 

Presuming 20 percent of residential property would be impacted, there would be a reduction of $71,751 in the Sturgeon School District’s finances wrote Superintendent Dustin Fanning last year. That would pay for one and a half new teachers, he said. Fanning referred to the state law by its bill number, Senate Bill 190. “SB 190 provides no accommodation for the future of Boone County,” Fanning added. “Boone County students are our future and will be negatively impacted by the enactment of
SB 190.” 

Daniel Boone Regional Library 

The cost to the Daniel Boone Regional Library would be an estimated $101,100 annually, wrote Chief Financial Officer Jim Smith. 

Boone County Family Resources  

The agency estimates a five-year revenue loss of $39,000, or $7,900 annually, wrote Executive Director Laura Cravens. That amount represents ninety hours of physical, occupational, or speech therapy, or seventy-eight hours of behavior intervention specialist services or crisis housing assistance for fifteen people. 

“The tax freeze would shift the cost of disability services away from senior homeowners, including those with high incomes onto people with developmental disabilities and their families, Cravens wrote, adding, “I believe SB 190 would be detrimental to the citizens of Boone County.”