Johnson County voters to decide on Homestead Real Estate Tax Credit Question

Editor's note: The Star-Journal previously reported on HB3 and the ballot question's  ramifications at  https://warrensburgstarjournal.com/stories/johnson-county-districts-commission-share-ramifications-posed-by-senate-bill-3,77861?

Johnson County voters will soon decide whether to approve a Homestead Real Estate Tax Credit authorized by Senate Bill 3 (2025) and codified in 137.1055, RSMo. The measure, if approved, would limit the amount property taxes can increase on eligible primary residences (homesteads) while protecting local services and ensuring the credit applies only where intended.

The ballot question, which will appear on the April 7, 2026 General Municipal Election ballot, reads:

“Shall the County of Johnson exempt eligible taxpayers from certain tax increases on eligible taxpayers’ primary residence above the liability incurred during the initial credit year?”

□ YES
□ NO

A YES vote would authorize the credit, while a NO vote would not authorize the credit. Under the program, the real property tax liability on an eligible taxpayer’s homestead would not increase above the amount paid in the “initial credit year”. The credit applies only to a taxpayer’s primary residence—the home they actually live in. It does not apply to rental properties, agricultural land, commercial property, personal property, or second homes.  If approved, the County anticipates the tax credit would be implemented no later than tax year 2027. 

The credit will:

• Apply only to a taxpayer’s primary residence
• Provide an annual credit equal to the difference between the current year’s tax liability and the initial credit year amount (subject to certain limitations).
• Require an application so only eligible taxpayers receive the benefit on their primary residence.
• Allow taxpayers to continue receiving a tax bill that clearly reflects any credit.

The credit will not:

• Eliminate property taxes or freeze them permanently.
• Apply to new construction, improvements, or added value on the property.
• Cover increases from new voter-approved levies, voter-approved increases in existing levies, annexation into new taxing jurisdictions, the State Blind Pension Fund, or bonded indebtedness.
• Benefit non-residential or non-homestead properties.
• Automatically enroll anyone — participation is voluntary and requires an approved application each year.

If approved, the credit could reduce revenue for school districts, cities, fire districts, ambulance districts, the county, and other taxing entities that rely on property taxes. Those districts may need to adjust budgets to maintain services.

Voters should be aware that there are ongoing lawsuits challenging the constitutionality of SB 3 which may affect the validity, implementation or applicability of the Homestead Tax Credit statement – regardless of whether voters approve the ballot question.  If the courts find the relevant provisions unconstitutional, the credit may not take effect or may take effect and later be declared unlawful.  If the courts uphold SB 3, then the vote on the ballot question will determine whether the Homestead Tax Credit will apply in the county.

The program is separate from the existing Senior Property Tax Credit under SB 190. Eligible seniors may qualify for both programs, but they will not receive a tax credit under both programs.

For questions, contact the County Commission at the following telephone number: 660-747-2112 or visit the county website at www.jococourthouse.com for a list of frequently asked questions.

Release courtesy of Johnson County.