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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NOS. 2306, 2276 & 2089
103RD GENERAL ASSEMBL Y
4430H.02C JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 137, RSMo, by adding thereto one new section relating to property tax
exemptions for certain veterans.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 137, RSMo, is amended by adding thereto one new section, to be
2 known as section 137.109, to read as follows:
137.109. 1. This section shall be known and may be cited as the "Missouri
2 Disabled V eterans Homestead Exemption".
3 2. As used in this section, the following terms mean:
4 (1) "Commission", the state tax commission;
5 (2) "Disability rating", the per centage of disability assigned to a disabled
6 veteran by the United States Department of V eterans Affairs, re flecting the degr ee to
7 which the veteran's disability impacts his or her ability to work and perform daily
8 activities;
9 (3) "Disabled veteran", a Missouri r esident who has served on active duty or
10 state active duty as a member of the Armed For ces of the United States, a member of the
11 Missouri National Guard, or a member of the United States Reserve For ces and who has
12 r eceived an honorable discharge; has a service-connected disability and has received a
13 disability rating as certified by the United States Department of V eterans Affairs; and is
14 an owner of record and liable for the payment of pro perty taxes on the qualified
15 r esidence for which the exemption allowed under this section is claimed;
16 (4) "Homestead", the r eal pr operty located within the state of Missouri that is
17 actually owned and occupied by an individual as his or her primary res idence and not to
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 exceed five acres of land surrou nding it as is r easonably necessary for use of the
19 dwelling as a home;
20 (5) "Qualified res idence", real pr operty used as a homestead by a disabled
21 veteran or surviving spouse, but less any portion of such prop erty that is used for
22 commer cial purposes. If the pr operty , or a portion of the prop erty , is rent ed out to
23 another person for mor e than six months it is presum ed to be used for commer cial
24 purposes. No mor e than one pr operty per claimant per tax year shall be claimed as a
25 qualified res idence under this section.
26 3. In addition to all other exemptions authorized under Article X, Section 6 of
27 the Constitution of Missouri or otherwise authorized by law , and as authorized under
28 Article X, Section 6(a) of the Constitution of Missouri, for all tax years beginning on or
29 after January 1, 2027, an annual exemption is granted fro m the fair market value for
30 the purposes of calculating the assessed value and tax liability of a disabled veteran's
31 qualified res idence, limited to the amounts set forth as follows:
32 (1) For disabled veterans with a disability rating of fifty per cent or mor e but less
33 than seventy percen t, the annual exemption up to the first one hundred fifty thousand
34 dollars of fair market value;
35 (2) For disabled veterans with a disability rating of seventy per cent or mor e but
36 less than one hundred per cent, the annual exemption up to the first two hundred fifty
37 thousand dollars of fair market value; and
38 (3) For disabled veterans with a disability rating of one hundred per cent, the
39 annual exemption up to the first five hundr ed thousand dollars of fair market value.
40 4. The exemption under this section carries over to the benefit of the disabled
41 veteran's surviving spouse as long as the spouse holds the legal or beneficial title to the
42 qualified res idence and permanently res ides ther ein. The exemption for a surviving
43 spouse shall rem ain pr oportional to the disabled veteran's disability rating as of the time
44 of the veteran's passing.
45 5. If an exemption is granted under this section and the person awarded the
46 exemption subsequently becomes a res ident of a facility licensed under chapter 198, a
47 Missouri veterans' home as defined under section 42.002, or a facility operated by the
48 United States Department of V eterans Affairs, the exemption shall continue:
49 (1) If the re sidence continues to be occupied by the disabled veteran's spouse; or
50 (2) If the res idence rem ains unoccupied but is still owned by the disabled veteran
51 who qualifies for the exemption.
52 6. The exemption and determination of eligibility under this section applies for
53 tax years beginning on or after January 1, 2027. The claim for an exemption shall not
54 be transferr ed or assigned, except as pr ovided for under this section.
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55 7. In order to verify eligibility for the exemption allowed under this section, no
56 later than April first of each tax year for which an exemption is claimed, a disabled
57 veteran or surviving spouse shall:
58 (1) Submit an application on a form prov ided by the county or city not within a
59 county to the local assessor's or collector's office or other entity as dir ected by local rule
60 or ordinance;
61 (2) Include documentation that verifies proof of the disability rating, including
62 official documentation fr om the United States Department of V eterans Affairs;
63 (3) Include pro of of ownership and occupation of the qualified re sidence; and
64 (4) Any additional forms, documents, or other items requi red by the local
65 authority for verification of eligibility for a disabled veteran or , if applicable, additional
66 items to verify an individual's eligibility and status as a surviving spouse.
67 8. The collector's office, assessor's office, or other entity designated by rule or
68 ordinance shall rev iew applications and determine eligibility of the res idential pr operty
69 based on the criteria set forth under this section and by the application, visual
70 inspection, questionnaire, or other reas onable methods. The determination shall be
71 made in accordance with guidelines established by the commission and any additional
72 local rules or reg ulations.
73 9. The governing body of the county or city not within a county may adopt
74 r easonable proced ures and pr omulgate ordinances, rules, and reg ulations in order to
75 implement and administer the pr ovisions of this section and comply with any additional
76 r equir ements or reg ulations promulg ated by the commission.
77 10. The exemption granted under this section shall not affect the pr ocess of
78 setting the tax rate as req uired under Article X, Section 22 of the Constitution of
79 Missouri and section 137.073 in any prior , curr ent, or subsequent tax year .
80 1 1. The commission may pr omulgate all necessary rules and regul ations for the
81 administration of this section. Any rule or portion of a rule, as that term is defined in
82 section 536.010, that is crea ted under the authority delegated in this section shall
83 become effective only if it complies with and is subject to all of the provi sions of chapter
84 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
85 and if any of the powers vested with the general assembly pursuant to chapter 536 to
86 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
87 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
88 adopted after August 28, 2026, shall be invalid and void.
89 12. No rule pr omulgated by the commission shall in any way adversely impact,
90 interrupt, or interfer e with the performance of the r equir ed statutory duties of any
91 county elected official including, but not limited to, the county collector , when
HCS HBs 2306, 2276 & 2089 3
92 performing such duties as deemed necessary for the purposes of this section and the
93 distribution of all other re al and personal pro perty taxes.
94 13. This section shall not be subject to the pr ovisions of the Missouri sunset act
95 under sections 23.250 to 23.298.
✔
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