Read the full stored bill text
SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NOS. 3078 & 2672
103RD GENERAL ASSEMBL Y
6785H.03C JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 137, RSMo, by adding thereto two new sections relating to local property
tax credits 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 two new sections, to be
2 known as sections 137.1052 and 137.1054, to read as follows:
137.1052. 1. This 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) "CPI", the Consumer Price Index for All Urban Consumers, as defined and
6 officially r ecorded by the United States Department of Labor or its successor;
7 (3) "Disability rating", the per centage of disability assigned to a disabled
8 veteran by the United States Department of V eterans Affairs, re flecting the degr ee to
9 which the veteran's disability impacts the veteran's ability to work and perform daily
10 activities;
11 (4) "Disabled veteran", a Missouri re sident who has been separated under
12 honorable conditions fr om active service in any branch or res erve component of the
13 Armed For ces of the United States or the National Guard of a state as defined in 32
14 U.S.C. Section 101, as amended, and has a service-connected disability and has receiv ed
15 a disability rating of one hundred per cent permanent and total as certified by the United
16 States Department of V eterans Affairs;
17 (5) "Eligible owner", an individual who is a disabled veteran, is the owner of
18 r ecord of a qualified res idence or has a legal or equitable inter est in a qualified res idence
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.
19 as evidenced by a written instrument, and is liable for the payment of real pr operty
20 taxes on the qualified r esidence;
21 (6) "Homestead", the resi dential real prop erty that is used as a primary
22 r esidence and the adjacent rea l prop erty as is re asonably necessary for use of the
23 r esidence as a home dwelling;
24 (7) "Primary r esidence", the real prop erty owned and occupied by an eligible
25 owner as the principal place of r esidence, and not to exceed five acr es of land
26 surr ounding it as is reas onably necessary for use of the dwelling as a home;
27 (8) "Qualified amount", for any eligible owner in a given tax year , the total
28 amount of rea l prop erty taxes levied and imposed on the qualified res idence and shall
29 include all ad valor em taxes levied on the qualified r esidence by any county or other
30 political subdivision including, but not limited to, county levies, municipal levies, school
31 district levies including bonded indebtedness levies, fir e pr otection district levies, library
32 district levies, and any other local ad valor em levy authorized by law , but shall exclude
33 the levy imposed for the state blind pension fund;
34 (9) "Qualified re sidence", the homestead of an eligible owner that has a market
35 value not to exceed five hundr ed thousand dollars, but less any portion of that pr operty
36 that is used for commer cial purposes. If the pr operty , or a portion of the pro perty , is
37 r ented out to another person for mor e than six months, it is presum ed to be used for
38 commer cial purposes. The five-hundr ed-thousand-dollar limit shall be incr eased
39 annually per calendar year for inflation by an amount equal to the per centage change in
40 the annual average of the CPI, or zer o, whichever is gr eater . No mor e than one pr operty
41 per qualified owner per tax year shall be claimed as a qualified resi dence under this
42 section;
43 (10) "Real pr operty tax cred it", a cr edit against an eligible owner's liability for
44 tax on the qualified res idence that is levied and imposed by the governing body of a
45 county or other political subdivision of this state with the power to levy and impose taxes
46 on r eal prop erty in this state.
47 3. (1) As allowed by the authority granted under Article X, Section 6(a) of the
48 Constitution of Missouri, for all tax years beginning on or after January 1, 2027, a
49 county may grant an annual real pr operty tax cre dit, as calculated in this subsection, for
50 the qualified res idence of an eligible owner if such county adopts an order , ordinance, or
51 r esolution authorizing such re al pr operty tax cred it in such county .
52 (2) The qualified amount of a real pr operty tax cr edit pr ovided under this
53 section shall be equal to the percen tage of the tax cr edit as adopted by the county under
54 this section.
HCS HBs 3078 & 2672 2
55 (3) A county may grant a tax cr edit under this section for any per centage of the
56 qualified amount that does not exceed one hundr ed percent of the eligible owner's
57 liability for tax on the qualified res idence under this section. Such perce ntage shall be
58 stated in any vote taken by the governing body of the county under subsection 8 of this
59 section. Befor e January first of any year , the governing body of such county may , by
60 ordinance, adjust the per centage of the tax cr edit for the next year of general
61 r eassessment.
62 (4) If the total market value of the dwelling and surroun ding acrea ge does not
63 exceed five hundr ed thousand dollars, ownership of additional acreage shall not
64 disqualify an owner fr om eligibility under the pr ovisions of this section.
65 4. The real prop erty tax cred it under this section carries over to the benefit of
66 the eligible owner's surviving spouse as long as the spouse holds the legal or beneficial
67 title to the qualified r esidence, permanently res ides ther ein, and does not rem arry . No
68 r eal pr operty tax cr edit shall be allowed for the tax year in which the surviving spouse
69 r emarries, no longer holds legal or beneficial title, or r elocates to a differ ent primary
70 r esidence.
71 5. Real prop erty tax cr edits issued under the pro visions of this section shall not
72 be ref undable. No real pr operty tax cred it claimed under this section shall be carried
73 forward to any subsequent tax year . The r eal pr operty tax cr edit allowed under this
74 section shall not be transferred , assigned, sold, or otherwise conveyed, except as
75 pr ovided under this section.
76 6. Real prop erty tax credits authorized under the pro visions of this section shall
77 not red uce assessed valuation and shall not be construed as an exemption fr om r eal
78 pr operty taxes. The security for any bonded indebtedness based on assessed valuation
79 shall r emain intact.
80 7. An eligible owner who receiv es a rea l pr operty tax credit granted under this
81 section shall not be eligible for any other r eal pro perty tax r elief, the pr operty tax
82 cr edits under sections 135.010 to 135.035, or any other tax cr edits r elating to the eligible
83 owner's qualified res idence under this chapter or chapter 135.
84 8. Participation in the pro gram under this section is optional as follows:
85 (1) Any county may , by a majority affirmative vote of the governing body of
86 such county , opt in to the pr ovisions of this section for the next year of the general
87 r eassessment, prior to January first of any year;
88 (2) If the county opts in to the pr ovisions of this section, participation in this
89 pr ogram for an eligible owner is also optional. An eligible owner electing to participate
90 in the provi sions under this section may opt in by notifying the local collector's office or
91 other entity of such election to r equest a r eal prop erty tax cre dit; and
HCS HBs 3078 & 2672 3
92 (3) The governing body of the county may , by a majority affirmative vote, opt to
93 r escind and cease the re al prope rty tax cr edit pr ogram authorized under this section
94 and pr eviously adopted by the governing body , for the next year of the general
95 r eassessment, prior to January first of any year . Any re scission shall be pr ospective only
96 and shall not affect r eal pr operty tax cred its pr eviously applied.
97 9. The governing body of the county may adopt reas onable pr ocedur es and
98 pr omulgate ordinances, rules, and r egulations in order to implement and administer the
99 pr ovisions of this section.
100 10. The assessor's office, collector's office, or other entity designated by rule,
101 r egulation, or ordinance shall administer the real pr operty tax cred it allowed under this
102 section in the same manner as the tax cr edit authorized under section 137.1050 and shall
103 be subject to similar application, verification, and r enewal proced ures as adopted by
104 such county , if applicable. Eligibility determinations shall be made in accordance with
105 guidelines established by this section and any additional local rules or reg ulations.
106 1 1. For the purposes of calculating pro perty tax levies under section 137.073, and
107 for all other laws pr escribing the distribution or allocation of pro perty tax revenu es, the
108 total amount of real pr operty tax cred its authorized under this section shall be
109 consider ed tax revenu e actually r eceived by the county or other political subdivision.
110 12. A real pro perty tax cr edit granted under this section shall not affect the
111 pr ocess of setting the tax rate as r equir ed under Article X, Section 22 of the Constitution
112 of Missouri and section 137.073 in any prior , curr ent, or subsequent tax year .
113 13. Nothing in this section shall impair the obligation of any contract, reduce or
114 r estrict the taxing authority of any political subdivision, or alter the calculation of
115 assessed valuation for the purposes of bonded indebtedness.
137.1054. 1. This section shall be known and may be cited as the "Missouri
2 Disabled V eteran Personal Pr operty 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) "Cr edit percen tage", the same percen tage as the eligible veteran's disability
6 rating, not to exceed one hundred per cent;
7 (3) "Disability rating", the per centage of disability assigned to a disabled
8 veteran by the United States Department of V eterans Affairs, re flecting the degr ee to
9 which the veteran's disability impacts his or her ability to work and perform daily
10 activities, expre ssed as a whole number perce ntage;
11 (4) "Disabled veteran", a Missouri re sident who has been separated under
12 honorable conditions fr om active service in any branch or res erve component of the
13 Armed For ces of the United States or the National Guard of a state as defined in 32
HCS HBs 3078 & 2672 4
14 U.S.C. Section 101, as amended, and has a service-connected disability and has receiv ed
15 a disability rating of seventy perc ent or great er , as certified by the United States
16 Department of V eterans Affairs;
17 (5) "Eligible veteran", an individual who is a disabled veteran, is a res ident of
18 the county adopting an ordinance under this section, owns and maintains a qualified
19 vehicle in this state, and is liable for the payment of personal pro perty taxes on the
20 qualified vehicle;
21 (6) "Personal pr operty tax cr edit", a cred it against an eligible owner's liability
22 for tax on the qualified vehicle that is levied and imposed by the governing body of a
23 county or other political subdivision of this state with the power to levy and impose taxes
24 on personal prop erty in this state;
25 (7) "Qualified tax liability", the total personal prop erty taxes levied on each
26 qualifying vehicle for the tax year , excluding any taxes levied for the blind pension fund;
27 (8) "Qualified vehicle", a motor vehicle titled solely in the name of the eligible
28 veteran or jointly with the eligible veteran's spouse, licensed in Missouri as r equir ed
29 under chapter 301, and used primarily for personal, noncommerc ial purposes.
30 3. (1) For all tax years beginning on or after January 1, 2027, a county may
31 authorize a personal prop erty tax credit for eligible veterans in an amount equal to the
32 cr edit per centage applied to the qualified tax liability for each qualified vehicle, up to
33 two vehicles, if such county adopts an order , ordinance, or re solution authorizing such
34 personal prop erty tax cr edit.
35 (2) A county that adopts and authorizes a personal pro perty tax credit under the
36 pr ovisions of this section may authorize:
37 (a) A uniform cr edit percen tage equal to the eligible veteran's disability rating;
38 or
39 (b) A schedule of cre dit per centages based on disability rating tiers, pr ovided
40 that no cr edit shall be granted for a disability rating below seventy per cent.
41 4. (1) For each tax year in which a personal prop erty tax cred it is authorized
42 under this section, the county collector shall apply the cre dit or credi ts to the eligible
43 veteran's personal prop erty tax bill after determining the total amount of his or her
44 qualified tax liability .
45 (2) Personal pro perty tax credi ts authorized under the pr ovisions of this section
46 shall r educe the amount of personal prop erty taxes the eligible veteran is r equir ed to
47 pay but shall not alter the assessed valuation of the qualified vehicle, the levy applied by
48 any taxing authority , or the tax base used by any taxing authority and shall not be
49 construed as an exemption fr om personal pr operty taxes. The eligible veteran shall
HCS HBs 3078 & 2672 5
50 r emain res ponsible for all taxes levied for the blind pension fund, which shall not be
51 subject to any cr edit authorized under this section.
52 (3) Personal pro perty tax cred its issued under the pr ovisions of this section shall
53 not be refu ndable. No personal pro perty tax cr edit claimed under this section shall be
54 carried forward to any subsequent tax year . The personal pro perty tax credi t allowed
55 under this section shall not be transferr ed, assigned, sold, or otherwise conveyed.
56 5. An eligible veteran shall annually pro vide a copy of his or her curren t
57 disability rating letter fro m the Department of V eterans Affairs and pr oof of ownership
58 and regist ration for each qualified vehicle. A county may creat e a simplified rene wal
59 pr ocess for eligible veterans whose disability rating is permanent and total or otherwise
60 designated as static by the United States Department of V eterans Affairs.
61 6. The governing body of the county may adopt reas onable pr ocedur es and
62 pr omulgate ordinances, rules, and r egulations in order to implement and administer the
63 pr ovisions of this section, including application deadlines, documentation r equir ements,
64 and r enewal pro cesses. Eligibility determinations shall be made in accordance with
65 guidelines established by this section and any additional local rules or r egulations. The
66 department of re venue may provi de optional guidance, but implementation shall be
67 conducted at the county level.
68 7. (1) For the purposes of calculating prop erty tax rates, school district
69 operating levy determinations, county reven ue rep orting, constitutional r ollback
70 calculations, and all other state or local r evenue adjustment formulas, the total
71 amount of personal prop erty tax credi ts authorized under this section shall be
72 consider ed tax rev enue actually r eceived by the county , political subdivision, or other
73 taxing authority .
74 (2) No taxing authority shall increa se its operating levy or debt service levy or
75 claim a reven ue shortfall as a r esult of cred its granted under the pro visions of this
76 section.
77 (3) A personal pr operty tax cr edit granted under this section shall not affect the
78 pr ocess of setting the tax rate as r equir ed under Article X, Section 22 of the Constitution
79 of Missouri and section 137.073 in any prior , curr ent, or subsequent tax year .
80 (4) Nothing in this section shall impair the obligation of any contract, redu ce or
81 r estrict the taxing authority of any political subdivision, or alter the calculation of
82 assessed valuation for the purposes of bonded indebtedness.
HCS HBs 3078 & 2672 6
83 8. Nothing in this section shall be construed to r equir e any county to adopt or
84 authorize the personal prop erty tax cred it provi ded under this section. Adoption shall
85 be solely at the discret ion of the county governing body .
✔
HCS HBs 3078 & 2672 7