KANSAS CITY, Mo. -- If you buy a home in Missouri in 2010, the state wants to pay your property taxes. They'll even kick in more money if you purchase an energy-efficient home or make other "green" improvements.
On Friday, the
Missouri Housing Development Commission will decide whether or not to set aside $15 million of its reserve funds for one-time property tax reimbursements for Missourians who buy a home in 2010. The proposal is being touted as a way to spur home sales by Gov. Jay Nixon and state Treasurer Clint Zweifel.
Qualifying home buyers can get up to $1,250 in property taxes reimbursed by the state. Another $500 would be available for the energy efficiency standards.
To qualify, Kansas City-area households must earn less than $98,560, according to Greg Spurgeon, the Single Family Home Ownership Administrator with MHDC.
Similar to the federal government's "Cash for Clunkers" program, the rebates will be offered on a first-come, first-serve basis until the $15 million is gone. The state expectes to write checks for 9,000 to 11,000 Missouri residents.
Affordable housing advocate Donovan Mouton, who was a housing liaison for former Kansas City Mayor Kay Barnes, said the incentive could get some people off the fence and bring additional buyers to the market. He added that the success of the program will depend on how long it takes for the funds to dry up.
“You have to question the real value if it does take all 12 months in order to get your 11,000 people coming to the table,” said Mouton.
According to a press release from Gov. Nixon's office, the funds are not part of the state's cash-strapped budget and are not required to go through the legislative appropriation process.
"The funding would come from a reserve fund held by MHDC earned through successful management of mortgage loans made to low and medium-income individuals and families," the release stated.
The idea has its critics, including the group
Missouri Campaign for Liberty, which says it is focused on fair taxation. The group said the money would be better spent paying down debt or providing affordable housing options for low-income families.
“To take that money and give it to people who might be considering buying a home in the state of Missouri who earn up to $98,650 is ridiculous,” said Angela Summers, a member of Campaign for Liberty.
If passed, Spurgeon said the details of how to receive the rebate will be available on the
commission's web site.
