State housing commission passes homebuyer tax relief

A program proposed to the Missouri Housing Development Commission to give property tax relief to eligible Missouri homebuyers in 2010 passed its final hurdle when it was approved by the commission last week.

Under the proposal, eligible Missouri families entering into a contract to purchase a new or existing Missouri home after Jan. 1 would have their property taxes paid for the year, up to $1,250. Families also would be eligible for an additional $500 in tax relief if they purchase energy-efficient homes or make improvements to increase their homes' energy efficiency.

The initiative is expected to provide tax breaks for 9,000 to 11,000 families, who must make less than $100,000 a year to be eligible.

"This program will help thousands of Missouri families realize the dream of homeownership by relieving their property tax burden for one year and encourage fiscally sound, resource-saving practices," Gov. Jay Nixon said in a news release. "By offering this tax relief, working Missourians will be able to pump more money into our economy, and I applaud the MHDC for taking this important step today."

The program was part of a $35 million package approved by the MHDC. Also in the program was funding for down-payment and closing-cost assistance for the First Time Homebuyer Program; gap financing for construction of rental property; and specific requirements for anti-fraud and accountability protection for the programs.[[In-content Ad]]