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SECOND REGULAR SESSION
HOUSE BILL NO. 2588
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE JONES (12).
5906H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 137, RSMo, by adding thereto one new section relating to a local real
property tax credit for certain disabled 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 137.1053, to read as follows:
137.1053. 1. The section shall be known and may be cited as the "Missouri
2 Disabled V eteran Homestead T ax Cred it Act".
3 2. As used in this section, the following terms mean:
4 (1) "County", any county or city not within a county in this state;
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 re sident who has been separated under
10 honorable conditions fr om active service in any branch or res erve component of the
11 Armed For ces of the United States or the National Guard of a state as defined in 32
12 U.S.C. Section 101, as amended, and has a service-connected disability and has receiv ed
13 a disability rating of one hundred per cent permanent and total as certified by the United
14 States Department of V eterans Affairs;
15 (4) "Eligible owner", an individual who is a disabled veteran, is the owner of
16 r ecord of the qualified resi dence or has a legal or equitable interes t in a qualified
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.
17 r esidence as evidenced by a written instrument, and is liable for the payment of r eal
18 pr operty taxes on the qualified resi dence;
19 (5) "Homestead", the resi dential real prop erty that is used as a primary
20 r esidence and the adjacent rea l prop erty as is re asonably necessary for use of the
21 r esidence as a home dwelling;
22 (6) "Primary r esidence", the real prop erty owned and occupied by an eligible
23 owner as the principal place of r esidence, and not to exceed five acr es of land
24 surr ounding it as is reas onably necessary for use of the dwelling as a home;
25 (7) "Qualified amount", for any eligible owner in a given tax year , the total
26 amount of rea l prop erty taxes levied and imposed on the qualified res idence and shall
27 include all ad valor em taxes levied on the qualified r esidence by any county or other
28 political subdivision including, but not limited to, county levies, municipal levies, school
29 district levies including bonded indebtedness levies, fir e pr otection district levies, library
30 district levies, and any other local ad valor em levy authorized by law , but shall exclude
31 the levy imposed for the state blind pension fund;
32 (8) "Qualified re sidence", the homestead of an eligible owner that has a market
33 value not to exceed five hundr ed thousand dollars, but less any portion of that pr operty
34 that is used for commer cial purposes. If the pr operty , or a portion of the pro perty , is
35 r ented out to another person for mor e than six months, it is presum ed to be used for
36 commer cial purposes. No mor e than one pr operty per qualified owner per tax year
37 shall be claimed as a qualified res idence under this section;
38 (9) "Real pro perty tax cr edit", a cred it against an eligible owner's liability for
39 tax on the qualified res idence that is levied and imposed by the governing body of a
40 county or other political subdivision of this state with the power to levy and impose taxes
41 on r eal prop erty in this state.
42 3. (1) As allowed by the authority granted under Article X, Section 6(a) of the
43 Constitution of Missouri, for all tax years beginning on or after January 1, 2027, a
44 county may grant an annual real pr operty tax cre dit, as calculated in this subsection, for
45 the qualified res idence of an eligible owner if such county adopts an order , ordinance, or
46 r esolution authorizing such re al pr operty tax cred it in such county .
47 (2) The amount of a real pr operty tax credit pr ovided under this section shall be
48 equal to the qualified amount of real pro perty taxes levied and imposed on the eligible
49 owner's qualified res idence for such tax year , excluding the levy for the state blind
50 pension fund.
51 (3) If the total market value of the dwelling and surroun ding acrea ge does not
52 exceed five hundr ed thousand dollars, ownership of additional acreage shall not
53 disqualify an owner fr om eligibility under the pr ovisions of this section.
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54 4. The real prop erty tax cred it under this section carries over to the benefit of
55 the eligible owner's surviving spouse as long as the spouse holds the legal or beneficial
56 title to the qualified r esidence, permanently res ides ther ein, and does not rem arry . No
57 r eal pr operty tax cr edit shall be allowed for the tax year in which the surviving spouse
58 r emarries, no longer holds legal or beneficial title, or r elocates to a differ ent primary
59 r esidence.
60 5. Real prop erty tax cr edits issued under the pro visions of this section shall not
61 be ref undable. No real pr operty tax cred it claimed under this section shall be carried
62 forward to any subsequent tax year . The r eal pr operty tax cr edit allowed under this
63 section shall not be transferred , assigned, sold, or otherwise conveyed, except as
64 pr ovided under this section.
65 6. Real prop erty tax credits authorized under the pro visions of this section shall
66 not red uce assessed valuation and shall not be construed as an exemption fr om r eal
67 pr operty taxes. The security for any bonded indebtedness based on assessed valuation
68 shall r emain intact.
69 7. An eligible owner who receiv es a rea l pr operty tax credit granted under this
70 section shall not be eligible for any other r eal pro perty tax r elief, the pr operty tax
71 cr edits under sections 135.010 to 135.035, or any other tax cr edits r elating to the eligible
72 owner's qualified res idence under this chapter or chapter 135.
73 8. Participation in the pro gram under this section is optional as follows:
74 (1) Any county may , by a majority affirmative vote of the governing body of
75 such county , opt in to the pr ovisions of this section for the next year of the general
76 r eassessment, prior to January first of any year;
77 (2) If the county opts in to the pr ovisions of this section, participation in this
78 pr ogram for an eligible owner is also optional. An eligible owner electing to participate
79 in the provi sions under this section may opt in by notifying the local collector's office or
80 other entity of such election to r equest a r eal prop erty tax cre dit; and
81 (3) The governing body of the county may , by a majority affirmative vote, opt to
82 r escind and cease the re al prope rty tax cr edit pr ogram authorized under this section
83 and pr eviously adopted by the governing body , for the next year of the general
84 r eassessment, prior to January first of any year . Any re scission shall be pr ospective only
85 and shall affect real pr operty tax credits pr eviously applied.
86 9. The governing body of the county may adopt reas onable pr ocedur es and
87 pr omulgate ordinances, rules, and r egulations in order to implement and administer the
88 pr ovisions of this section.
89 10. The assessor's office, collector's office, or other entity designated by rule,
90 r egulation, or ordinance shall administer the real pr operty tax cred it allowed under this
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91 section in the same manner as the tax cr edit authorized under section 137.1050 and shall
92 be subject to similar application, verification, and r enewal proced ures as adopted by
93 such county , if applicable. Eligibility determinations shall be made in accordance with
94 guidelines established by this section and any additional local rules or reg ulations.
95 1 1. For the purposes of calculating pro perty tax levies under section 137.073, and
96 for all other laws pr escribing the distribution or allocation of pro perty tax revenu es, the
97 total amount of real pr operty tax cred its authorized under this section shall be
98 consider ed tax revenu e actually r eceived by the county or other political subdivision.
99 12. A real pro perty tax cr edit granted under this section shall not affect the
100 pr ocess of setting the tax rate as r equir ed under Article X, Section 22 of the Constitution
101 of Missouri and section 137.073 in any prior , curr ent, or subsequent tax year .
102 13. Nothing in this section shall impair the obligation of any contract, reduce or
103 r estrict the taxing authority of any political subdivision, or alter the calculation of
104 assessed valuation for the purposes of bonded indebtedness.
✔
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