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Gladstone reviews poverty tax exemption guidelines

By R. R. Branstrom 3 min read

GLADSTONE -- The Gladstone City Commission reviewed poverty tax exemption guidelines at its meeting Monday night. The guidelines outline the instances in which households that are "unable to contribute to the public charges" due to financial hardship are eligible for full or partial exemptions from property taxes. While it was an option to adopt a resolution to extend exemptions up to three years for those who receive income solely from public assistance without requiring them to fill out applications or appear before the Board of Review, the commission ultimately decided that annual review was best.

Exemptions are determined based on income -- including wages, public assistance, alimony, interest, Social Security, retirement, disability pensions and more -- and assets. If the income at the residence in question falls at or below the previous year's Federal Poverty Income Guidelines, exemption from 100% of the property tax may be granted. If income falls over the poverty level by between one and 25%, 75% of the tax is to be relieved. With an income of 26 to 50% over the poverty level, 50% of taxes may be relieved. If income is 51 to 75% above the poverty level, a 25% reduction of taxes may be allowed.

For reference, the 2024 Federal Poverty Guideline for a single person lists an annual income of $15,060; for a family of four, the benchmark sits at $31,200.

Guidelines also state that "the value of all additional assets shall not exceed three times the annual household of the applicant."

Gladstone City Assessor Janice Frizzell reported that in 2023, the Board of Review granted five exemptions for a total of $106,842 in taxable value. Frizzell said that four of them were 100% exempt, while one paid a percentage.

Frizzell advised continuing the annual application process rather than adopting a three-year extension, which could only be applied to households whose income came entirely from public assistance. She noted that even in that scenario, audits would still need to be completed every year, and it was useful to have collective minds on the assessment rather than completing audits herself.

"Having it at the Board of Review, when I have the whole board there, they're very good at discussing things, asking questions that maybe I'm not thinking of," said Frizzell.

Also in support of the annual review, Commissioner Judy Akkala pointed out, "A lot can happen in a three-year period."

Frizzell agreed that situations can and do change, briefly relaying a story of an elderly woman who had been applying for and receiving the exemption every year. When the woman was finally able to say, "I don't think I need it this year," Frizzell said it was nice to be able to have that communication and see that things had turned around for the better.

It so happened that at the same meeting, the terms for the members of the aforementioned Board of Review were up for reappointment. All four individuals -- Howard Haulotte, Jason Lippens, John Noreus and Jody Pontius -- were reappointed for additional two-year terms, which will expire in January 2026.

With a federal election upcoming, City Clerk Kim Berry noted that absent voter ballot applications for the Feb. 27 presidential primary are available at city hall.

Monday's meeting also included the approval of a monthly dispersement of funds for the ongoing improvements to the city's wastewater treatment plant. This draw was for $476,514. Aspects of the project have been delayed due to supply issues, but work at the facility continues.

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