If you own rental properties that are amenable to tenants that are disabled or senior citizens, then make sure they know that in some states your property taxes make it possible for them to receive a property tax credit even though they do not own the home.
In Missouri, there is currently an outcry because a number of low-income disabled people and senior citizens who live in public housing – where the landlord (some level of government) does not pay property taxes – have learned that this year they will no longer be receiving this tax credit, a sum of 750 dollars for renters in the past, because the owner of their housing does not pay property taxes.This seems reasonable on some levels. After all, if the issue is a tax credit that is funded by property taxes and the property in question is not taxed, then where is the money coming from? However, since they have been handing it out previously according to a number of disgruntled filers and their financial consultants, this change — or new level of enforcement — is an unwelcome surprise.
The state government declares that this is not a change from previous practice, but it appears that historically the government was happy to pay out these credits with less discretion than is now being used. Naturally, there is a great deal of outcry, and in the process a lot of people who were not applying or receiving this tax credit are now aware of it and interested in taking advantage of it if possible.
Personal opinions about this particular program aside, this is definitely something worth investigating if you own or manage rental properties to see if any of your tenants or potential tenants qualify. You’re going to pay the property taxes anyway – and the government is going to continue to issue tax credits on properties where the taxes are paid – so you might as well have the option of using that benefit to promote living in your rental properties over other options if this program or a similar one exists in your area.
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If you have any information or insight on this program or the rental market, your comments are welcomed below.