With the increase in the maximum upper limit, there would be 447,000 people 65 or over who are eligible to file a property tax credit return. With the increase in the maximum upper limit, it is estimated that a total of 98,000 people will file for the property tax credit. If these individuals file an income tax return with the Department, DOR will have to notify them of their potential eligibility. All other programming changes to the income tax system would be completed with existing staff and resources. This leaves 94,000 households that may be eligible to file a return for the tax credit but do not.
Oversight assumes a two percent annual growth.
Oversight assumes FTE and related expenses would be needed in DOR to process the additional workload. Oversight has ranged revenue losses and administrative expenses relating to this portion of the proposal. The estimate is based on State of Missouri Individual Income Tax data, data from the Tax Expenditure Report, and population projections from the State Demographer. This proposal would result in a decrease in Total State Revenues. No direct fiscal impact to small businesses would be expected as a result of this proposal.