State offers property tax payment for 2010 homebuyers

State leaders are proposing property tax reductions for income-eligible Missourians who purchase new or existing homes in 2010, according to an announcement Tuesday by Gov. Jay Nixon and State Treasurer Clint Zweifel.

If the proposal is approved by the Missouri Housing Development Commission at its Dec. 18 meeting, Missouri households making less than $98,000 annually would have their property taxes paid up to $1,250 if they enter into a contract after Jan. 1. Homebuyers would be eligible for an additional $500 if they purchase an energy-efficient home or make efficiency improvements.

Efficiency improvements eligible for the tax break include high-performance windows, house wraps, programmable thermostat controls, water-efficient fixtures, energy-efficient water heaters, lighting and appliances, adding insulation or conducting energy audits.

The money for the plan would come from a $15 million MHDC reserve fund built up through management of mortgage loans for low- and moderate-income homeowners.

The proposal is a result of Nixon’s August decision to form the Home Building and Residential Energy Efficiency Advisory Panel, created to study how the state can help increase homeownership and building, as well as increasing access to energy-saving measures.

"Because this is so vital to our state’s economic growth, we want to do everything feasible to encourage people to buy homes and make it easier for homeowners to save money and energy resources by installing energy-efficient features in their homes," Nixon said in a news release.