FIRSTREGULARSESSION
HOUSEBILLNO.671
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEANDERSON.
1463H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter137,RSMo,byaddingtheretoonenewsectionrelatingtotheMissouri
homesteadpreservationact.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter137,RSMo,isamendedbyaddingtheretoonenewsection,tobe
2knownassection137.107,toreadasfollows:
137.107.1.Thissectionshallbeknownandmaybecitedasthe"Missouri
2HomesteadPreservationAct".
3 2.Asusedinthissection,thefollowingtermsmean:
4 (1)"Department",thedepartmentofrevenue;
5 (2)"Director",thedirectorofrevenue;
6 (3)"Disabled",thesamedefinitionasinsection135.010;
7 (4)"Eligibleowner":
8 (a)Anyindividualownerofpropertywho:
9 a.Issixty-fiveyearsofageorolderasofJanuaryfirstofthetaxyearinwhich
10theindividualisclaimingthecreditauthorizedinthissectionorwhoisdisabled;and
11 b.Hadanincomeoflessthanorequaltothemaximumupperlimitintheyear
12priortocompletinganapplicationasprovidedinthissection;
13 (b)Inthecaseofamarriedcoupleowningpropertyeitherjointlyorastenants
14bytheentirety,orinthecaseofamarriedcouplewhenonlyonespouseownsthe
15property,suchcoupleshallbeconsideredaneligibleownerifbothspouseshavereached
16sixty-fiveyearsofage,ifonespouseisdisabled,orifonespouseissixty-fiveyearsofage
17orolderandtheotherspouseissixtyyearsofageorolder,andthecombinedincomeof
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18thecoupleintheyearpriortocompletinganapplicationasprovidedinthissectiondid
19notexceedthemaximumupperlimit;
20 (c)Inthecaseofjointownershipbyunmarriedpersonsorownershipbytenancy
21incommonbytwoormoreunmarriedpersons,suchownersshallbeconsideredan
22eligibleownerifeachpersonwithanownershipinterestindividuallysatisfiesthe
23eligibilityrequirementsforanindividualeligibleownerasprovidedinthissubdivision
24andthecombinedincomeofallindividualswithaninterestinthepropertyislessthan
25orequaltothemaximumupperlimitintheyearimmediatelypriortocompletingan
26applicationasprovidedinthissection.Ifanyindividualwithanownershipinterestin
27thepropertyfailstosatisfytheeligibilityrequirementsofanindividualeligibleowneror
28ifthecombinedincomeofallindividualswithinterestinthepropertyexceedsthe
29maximumupperlimit,noindividualwithanownershipinterestinsuchpropertyshall
30bedeemedaneligibleowner,regardlessofwhetheranysuchindividualcouldotherwise
31meettheeligibilityrequirements;or
32 (d)Inthecaseofpropertyheldintrust,theeligibleownerandrecipientofthe
33taxcreditshallbethetrustitself;providedthat,thepreviousownerofthehomesteador
34thepreviousowner'sspouse:
35 a.Isthesettlorofthetrustwithrespecttothehomestead;
36 b.Currentlyresidesinsuchhomestead;and
37 c.Wouldhavesatisfiedtheage,ownership,andmaximumupperlimit
38requirementsforincomeasdefinedinthissubdivisionbutforthetransferofsuch
39property;
40 (5)"Homestead",thesamedefinitionasinsection135.010,exceptasotherwise
41providedinthissection;
42 (6)"Homesteadexemptionlimit",apercentageincrease,roundedtothenearest
43hundredthofapercent,thatisequaltothepercentageincreaseintaxliability,not
44includingimprovements,ofahomesteadfromonetaxyeartothenext,thatexceedsa
45certainpercentagesetinsubdivision(7)ofsubsection4ofthissection.Thehomestead
46exemptionlimitshallbebasedontheincreaseintaxliabilityfromtwoyearspriortothe
47applicationtotheyearimmediatelypriortotheapplication;
48 (7)"Income",federaladjustedgrossincome;exceptthat,inthecaseof
49ownershipofthehomesteadbyatrust,theincomeofthesettlorapplicantshallbe
50imputedtotheincomeofthetrustforpurposesofdeterminingeligibilitywithrespectto
51themaximumupperlimit;
52 (8)"Maximumupperlimit",theincomesumofseventythousanddollarsforthe
532005calendaryear,increasedeachsuccessivecalendaryearbytheincrementalincrease
HB671 2 54inthegeneralpricelevel,asdefinedinArticleX,Section17oftheConstitutionof
55Missouri.
56 3.(1)Forpurposesofthissection,noindividualshallbeaneligibleownerif
57suchindividualhasnotpaidsuchindividual'spropertytaxliability,ifany,infullbythe
58paymentduedateinanyofthethreemostrecentpriortaxyears;exceptthat,alate
59paymentofapropertytaxliabilityinanypriortaxyearshallnotdisqualifyapotential
60eligibleownerifsuchindividualpaidinfullthetaxliabilityandanyandallpenalties,
61additions,andinterestthataroseasaresultofsuchlatepayment.Noindividualshallbe
62aneligibleownerifsuchpersonfiledavalidclaimforthepropertytaxreliefcredit
63undersections135.010to135.035.
64 (2)Forpurposesofthissection,nopropertyshallbeconsideredahomesteadif
65suchpropertyhasbeenimprovedsinceitsmostrecentannualassessmentbymorethan
66twoandone-halfpercentofitspreviouslyassessedvalue,exceptwhenaneligibleowner
67ofthepropertyhasmadesuchimprovementstoaccommodateadisabledperson.
68 4.(1)AsprovidedinArticleX,Section6(a)oftheConstitutionofMissouri,ifin
69themostrecentpriortaxyearthepropertytaxliabilityonanyparcelofrealpropertyin
70subclass(1)ofclass1,asdescribedinArticleX,Section4(b)oftheConstitutionof
71Missouri,increasedbymorethanthehomesteadexemptionlimit,withoutregardfor
72anypriorcreditreceivedduetotheprovisionsofthissection,anyeligibleownerofthe
73propertyshallreceiveahomesteadexemptioncredittobeappliedtowardthecurrent
74taxyearpropertytaxliabilitytooffsettheprioryearincreaseintaxliabilitythat
75exceedsthehomesteadexemptionlimit,exceptaseligibilityforthecreditislimitedby
76theprovisionsofthissection.Theamountofthecreditshallbelistedseparatelyoneach
77taxpayer'staxbillforthecurrenttaxyearoronadocumentenclosedwiththe
78taxpayer'sbill.Thehomesteadexemptioncreditshallnotaffecttheprocessofsetting
79thetaxrateasrequiredunderArticleX,Section22oftheConstitutionofMissouriand
80section137.073inanyprior,current,orsubsequenttaxyear.
81 (2)Anypotentialeligibleownermayapplyforthehomesteadexemptioncredit
82bycompletinganapplication.ApplicationsshallbecompletednoearlierthanApril
83firstandnolaterthanOctoberfifteenthofanytaxyearinorderforthetaxpayertobe
84eligibleforthehomesteadexemptioncreditinthetaxyearnextfollowingthecalendar
85yearinwhichthehomesteadexemptioncreditapplicationiscompleted.Theapplication
86shallbeonformsprovidedbythedepartment.Formsshallbemadeavailableonthe
87department'swebsiteandatallpermanentbranchofficesandallfull-time,temporary,
88andfeeofficesmaintainedbythedepartmentofrevenue.
89 (3)Onsuchapplications,theapplicantshallattestunderpenaltyofperjury:
90 (a)Totheapplicant'sage;
HB671 3 91 (b)Thattheapplicant'sprioryearincomewaslessthanthemaximumupper
92limit;
93 (c)Totheaddressofthehomesteadproperty;and
94 (d)Thatanyimprovementsmadetothehomestead,notmadetoaccommodatea
95disabledperson,didnottotalmorethantwoandone-halfpercentoftheassessedvalue
96ofthehomesteadforthemostrecentpriortaxyear.
97 (4)Theapplicantshallincludewiththeapplicationcopiesofreceiptsindicating
98paymentofpropertytaxbytheapplicantforthehomesteadpropertyforthethreemost
99recentpriortaxyears.
100 (5)Eachapplicantshallsubmittheapplicationtothedepartmentnolaterthan
101Octoberfifteenthofeachyearforthetaxpayertobeeligibleforthehomestead
102exemptioncreditinthetaxyearnextfollowingthecalendaryearinwhichthe
103applicationwassubmitted.
104 (6)Uponreceiptoftheapplications,thedepartmentshallcalculatethetax
105liability,verifycompliancewiththemaximumincomelimit,verifytheagesofthe
106applicants,andmakeadjustmentstosuchnumbersasnecessaryontheapplications.
107Thedepartmentshalldisallowanyapplicationiftheapplicantalsohasfiledavalid
108applicationforthepropertytaxcreditauthorizedundersections135.010to135.035.
109Onceadjustedtaxliability,age,andincomeareverified,thedirectorshalldetermine
110eligibilityforthecreditandprovidealistofallverifiedeligibleownerstothecounty
111assessors,orcountyclerksincountieswithatownshipformofgovernment,nolater
112thanDecemberfifteenthofeachyear.NolaterthanthefollowingJanuaryfifteenth,the
113countyassessorsshallprovidealisttothedepartmentofanyverifiedeligibleowners
114whomadeimprovementsnotforaccommodationofadisabilitytothehomesteadand
115thedollaramountoftheassessedvalueofsuchimprovements.Ifthedollaramountof
116theassessedvalueofsuchimprovementstotalsmorethantwoandone-halfpercentof
117theassessedvaluefromthemostrecentpriortaxyear,sucheligibleownersshallbe
118disqualifiedfromreceivingthecreditinthecurrenttaxyear.
119 (7)Thedirectorshallcalculatethelevelofappropriationnecessarytosetthe
120homesteadexemptionlimitattwoandone-halfpercentforthehomesteadsofallverified
121eligibleownersandprovidesuchcalculationtothespeakerofthehouseof
122representatives,thepresidentprotemporeofthesenate,andthedirectoroftheoffice
123ofbudgetandplanningintheofficeofadministrationnolaterthanJanuarythirty-first
124ofeachyear.
125 (8)If,inanygivenyear,thegeneralassemblymakesanappropriationforthe
126fundingofthehomesteadexemptioncreditthatissignedbythegovernor,thedirector
127shalldeterminetheapportionmentpercentagebyequallyapportioningthe
HB671 4 128appropriationamongalleligibleapplicantsonapercentagebasis.Ifnoappropriationis
129madebythegeneralassemblyduringanytaxyearornofundsareactuallydistributed
130asprovidedinanyappropriationtherefor,nohomesteadpreservationcreditshallapply
131insuchyear.
132 (9)Afterdeterminingtheapportionmentpercentage,thedirectorshallcalculate
133thecredittobeassociatedwitheachverifiedeligibleowner'shomestead,ifany.The
134directorshallsendalistofthoseeligibleownerswhoaretoreceivethehomestead
135exemptioncredit,includingtheamountofeachcredit,thecertifiedparcelnumberofthe
136homestead,andtheaddressofthehomesteadproperty,tothecountycollectors,or
137countyclerksincountieswithatownshipformofgovernment,nolaterthanAugust
138thirty-first.Undersuchcalculation,thedirectorshallinstructthestatetreasurerto
139distributetheappropriationtothecountycollector'sfundofeachcountywhere
140recipientsofthehomesteadexemptioncreditarelocatedinsuchamountsaswould
141exactlyoffseteachhomesteadexemptioncreditbeingissued.Innocaseshallapolitical
142subdivisionreceive,asaresultofappropriations,moremoneysthanitwouldhave
143receivedabsenttheprovisionsofthissection.Atthedirectionofthecountycollector,or
144treasurerexofficiocollectorincountieswithatownshipformofgovernment,fundsmay
145bedepositedinthecountycollector'sfundormaybesentbymailtothecollectorofa
146county,ortreasurerexofficiocollectorincountieswithatownshipformofgovernment,
147nolaterthanOctoberfirstinanyyearinwhichahomesteadexemptioncreditis
148appropriatedasaresultofthissectionandsuchfundsshallbedistributedasmoneysin
149suchfundsarecommonlydistributedfromotherpropertytaxrevenuesbythecounty
150collector,ortreasurerexofficiocollectorofthecountyincountieswithatownshipform
151ofgovernment,insuchamountsaswouldexactlyoffseteachhomesteadexemption
152creditbeingissued.
153 (10)Intheeventthataneligibleownerdiesortransfersownershipofthe
154propertyafterthehomesteadexemptionlimithasbeensetinanygivenyear,butpriorto
155Januaryfirstoftheyearinwhichthecreditwouldotherwisebeapplied,sucheligible
156owner'screditshallbevoidandanycorrespondingmoneysshalllapsetothestatetobe
157creditedtothegeneralrevenuefund.Intheeventthatthecountycollector,orthe
158treasurerexofficiocollectorofthecountyincountieswithatownshipformof
159government,determinespriortoissuingthecreditthattheindividualisnotaneligible
160ownerbecausetheindividualdidnotpaysuchindividual'spropertytaxliabilityinfull
161forthemostrecentpriorthreeyears,thecreditshallbevoidandanycorresponding
162moneysshalllapsetothestatetobecreditedtothegeneralrevenuefund.
163 (11)ThissubsectionshallapplyinallyearsbeginningafterDecember31,2023.
HB671 5 164 5.(1)Thedepartmentshallpromulgaterulesforimplementationand
165administrationofthissection.Anyruleorportionofarule,asthattermisdefinedin
166section536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
167becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter
168536and,ifapplicable,section536.028.Thissectionandchapter536arenonseverable
169andifanyofthepowersvestedwiththegeneralassemblypursuanttochapter536to
170review,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
171heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
172adoptedafterAugust28,2023,shallbeinvalidandvoid.
173 (2)Anyrulepromulgatedbythedepartmentshallinnowayimpact,affect,
174interrupt,orinterferewiththeperformanceoftherequiredstatutorydutiesofany
175countyelectedofficialincluding,butnotlimitedto,thecountycollector,when
176performingsuchdutiesasdeemednecessaryforthedistributionofanyhomestead
177appropriationandthedistributionofallotherrealandpersonalpropertytaxes.
178 6.Undersection23.253oftheMissourisunsetact:
179 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
180automaticallysunsetsixyearsaftertheeffectivedateofthissectionunlessreauthorized
181byanactofthegeneralassembly;
182 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
183shallautomaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationof
184thissection;and
185 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
186immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
187sectionissunset.Theterminationoftheprogramasdescribedinthissubsectionshall
188notbeconstruedtoprecludeanyqualifiedtaxpayerwhoclaimsanybenefitunderany
189programthatissunsetunderthissubsectionfromclaimingsuchbenefitforallallowable
190activitiesrelatedtosuchclaimthatwerecompletedbeforetheprogramwassunset,orto
191eliminateanyresponsibilityofthedepartmenttoverifythecontinuedeligibilityof
192qualifiedindividualsreceivingtaxcreditsandtoenforceotherrequirementsoflawthat
193appliedbeforetheprogramwassunset.
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HB671 6