COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3794S.01I Bill No.:SJR 58 Subject:Taxation and Revenue - Property; Veterans; Constitutional Amendments Type:Original Date:February 26, 2024Bill Summary:This proposal exempts certain disabled veterans from property taxes.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027
General Revenue
$0 or (More than
$8,000,000)*
$0 or
Unknown, could
exceed
$646,411**
$0 or
Unknown, could
exceed
$501,465**
Total Estimated Net
Effect on General
Revenue
$0 or (More than
$8,000,000)*
$0 or
Unknown, could
exceed
$646,411**
$0 or
Unknown, could
exceed
$501,465**
*The potential fiscal impact of “(More than $8,000,000)” would be realized only if a special
election were called by the Governor to submit this joint resolution to voters. All other impacts
to state funds would be realized only if the joint resolution is approved by voters.
**Oversight notes the potential savings to the General Revenue Fund is from reduced Senior
Property tax credits issued if qualifying veterans no longer pay property tax.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027
Blind Pension Fund
(0621) $0
$0 or (Unknown,
could exceed
$109,519)
$0 or (Unknown,
could exceed
$109,519)
Total Estimated Net
Effect on Other State
Funds $0
$0 or (Unknown,
could exceed
$109,519)
$0 or (Unknown,
could exceed
$109,519)
Numbers within parentheses: () indicate costs or losses. L.R. No. 3794S.01I
Bill No. SJR 58
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February 26, 2024
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027General Revenue 0 FTE0 or Up to 6 FTE0 or Up to 6 FTETotal Estimated Net
Effect on FTE0 FTE0 or Up to 6 FTE0 or Up to 6 FTE
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027
Local Government**
$0*
$0 or (Unknown,
could exceed
$23,837,865)
$0 or (Unknown,
could exceed
$23,838,623)
*Potential costs and state reimbursements net to zero in FY 2025 if a special election is called.
**Oversight notes this impact could be substantially reduced if taxing authorities are able to
increase the levy to other taxpayers to make up for the loss of property tax revenue of disabled
veterans resulting from this proposal. L.R. No. 3794S.01I
Bill No. SJR 58
Page 3 of
February 26, 2024
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration - Budget and Planning (B&P) note this proposal
would go to public vote in November 2024. For the purpose of this fiscal note, B&P assumes
that the tax exemption would begin January 1, 2025, if voter approved.
This proposal would exempt, upon voter approval, veterans with 100% disability rating from the
Department of Veterans Affairs (VA) from real property taxation on their homestead. In
addition, this proposal would no longer require former prisoners of war (POWs) to have a total
service-connected disability. Current law only exempts former POWs with total service-
connected disabilities from real property tax on their homestead.
General Revenue
During tax year 2022, there were 2,222 veterans that claimed the PTC as a disabled veteran, for
total PTC claims of $1,538,919. Under this proposal, some of these veterans would no longer be
subject to real personal property taxes and thus would no longer claim the PTC beginning with
tax year 2025. B&P notes that some veterans aged 65 and older may have elected to claim the
PTC as a senior rather than as a disabled veteran, and would no longer claim the PTC under this
proposal. Therefore, B&P estimates that this proposal could increase GR by up to $1,538,919
annually beginning in FY26.
Blind Pension Trust Fund
Based on previous data from the Missouri Veterans Commission and current data published by
the U.S. Census Bureau, B&P estimates that there were 15,376 veterans with a 100% service-
connected disability rating from the VA during 2022, the most recent complete year available.
Additionally, based on data from the U.S. Census bureau, the average median housing value in
Missouri was $199,400 and the average median real estate taxes paid was $1,812 in 2022. B&P
notes however, that based on Section 137.115, RSMo, the assessed value for real property is
19% of the market value. Therefore, based on a market value of $199,400, B&P estimates that
the assessed value would be $37,886.
B&P notes that the Blind Pension Trust Fund has a property tax levy of $0.03 per $100
valuation. Based on the U.S. Census Bureau data, B&P estimates that the Blind Pension Trust
Fund receives a median of $11.37 per real property within Missouri ($37,886 median assessed
value x 0.0003 Blind Pension levy). Therefore, B&P estimates that this proposal could reduce
funding to the Blind Pension Trust fund by up to $174,761 ($11.37 x 15,376 veterans). L.R. No. 3794S.01I
Bill No. SJR 58
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February 26, 2024
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Median Value$199,400
Assessed %
x
19%
Assessed Value$37,886
Blind Pension Trust Fund levy
x
(0.03/100)
Median Blind Pension Tax$11.37
Qualifying veterans
x
15,376
Loss to Blind Pension Trust
Fund($174,761)
Local Property Tax Collections
Based on data from the U.S. Census bureau, the average median housing value in Missouri was
$199,400 and the average median real estate taxes paid was $1,812 in 2022. Using this data,
B&P estimates that the median property tax levy in Missouri is $0.91 per $100 market value.
Subtracting the $0.03 per $100 valuation levy for the Blind Pension Trust Fund, B&P estimates
that the median local real property tax levy is $0.90 per $100 market value. Therefore, B&P
estimates that this provision will reduce local real property tax revenues by up to $27,686,551
($199,400 median home value x $0.903/$100 x 15,376 veterans).
Median Home Value$199,400Median Local Real Property Tax
Levy
x
(0.903/100)
Median Local Real Property Tax $1,800.63
Qualifying veterans
x
15,376
Local Real Estate Taxes Lost($27,686,551)
Summary
B&P estimates that this proposal may increase GR by an amount up to $1,538,919 annually
beginning in FY26. In addition, this proposal could reduce funding to the Blind Pension Trust
Fund by up to $174,761 annually beginning in FY26. This proposal may also reduce local tax
collections by up to $27,686,551 annually beginning in FY26.
Officials from the Department of Revenue (DOR) note if approved by voters at the November
2024, general election or at a special election called for this purpose, this proposal would allow
for an exemption of real property tax for military disabled veterans. If this is not adopted by the
voters, there will be no fiscal impact. If adopted, it is assumed that based on the certification
date of this proposal, it would become effective January 1, 2025. L.R. No. 3794S.01I
Bill No. SJR 58
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February 26, 2024
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This proposal defines the eligible disabled veteran as a person with a 100% disability rate as
established by the United States Department of Veterans Affairs. Per the U.S. Census Bureau’s
2022 ACS 5-year report there are 33,805 disabled veterans in Missouri with a rating of 70% or
higher. The Department reached out to the Missouri Veterans Commission who was not able to
provide more recent information on disabled veterans than 2019. Given their past information
about 45% of the reported veterans are 100% disabled (15,212).
The Senior Property Tax Credit program allows certain qualified disabled veterans to apply for
the credit. Per DOR’s record DOR notes that 2,222 disable veterans apply for the credit. For
fiscal note purposes, DOR will assume the 15,212 are the only veterans who may qualify for this
exemption.
The Department is unable to determine the actual number of veterans that would own their own
property. For fiscal notes purposes, DOR will assume all of these veterans own their own
dwelling. According to the U.S. Census Bureau the average amount of property tax paid in
Missouri for 2022 was $1,812. The Department notes that some veterans may have a property
tax amount that is lower than this amount. This would exempt from state and local real property
tax of $27,564,144 ($1,812 per person x 15,212 veterans).
The Missouri Blind Pension fund receives $.03 for each $100 valuation of taxable property in the
state of Missouri. The Department is unable to determine the actual valuation of the taxable
property owned by Missouri veterans, as there are no publications specifying assessed value of
property owned by Missouri veterans. The Department estimates that the Missouri Blind
Pension Fund could decrease by a minimum to substantial amount.
Additionally, DOR notes that if a military disabled veteran is exempt from paying real property
tax, they would no longer be eligible to claim the Senior Property Tax Credit. Currently a person
can claim the Senior Property Tax Credit if:
A. They are 65 years or older
B. 100% Disabled Veteran as a result of military service
C. 100% Disabled or
D. 60 years of age or older and receiving surviving spouse benefits
In TY 2021 – 2,342 taxpayers checked the disabled veteran box on the PTC form. They claimed
$1,635,371 in property tax credits.
In TY 2022 – 2,222 taxpayers checked the disabled veteran box on the PTC form. The claimed
$1,538,919.
Two-year average claimed by disabled veterans is $1,587,145. L.R. No. 3794S.01I
Bill No. SJR 58
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February 26, 2024
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DOR notes that if a disabled veteran is also over the age of 65 years of age, they may have just
checked the 65+ box instead of the Veterans box so the amount that could be exempt could be
higher.
DOR assumes this would result in a savings to General Revenue that Could Exceed $1,587,145
annually from military veterans no longer owing real property tax and being ineligible for the
property tax credit.
Given the election for this proposal is November 2024 (FY 2024) and the bill starts with property
taxes on January 1, 2025; this proposal will have an impact starting in FY 2026 due to the filing
deadline for the taxes being 12/31/2025 (FY 2026).
FY 2024 $0
FY 2025 $0
FY 2026 $1,587,145 savings to GR and an Unknown loss to Blind Pension fund
This proposal will not have an administrative fiscal impact on the Department.
Officials from the State Tax Commission have reviewed this proposal and determined an
unknown fiscal impact. The U.S. Census Survey (2018) states the number of veterans in
Missouri is 479,828 of which over 80,000 have service related disabilities. The Agency does not
possess the specific data to determine the number of qualifying, eligible individuals or the real
property held by said individuals under the proposed criteria which states: “all real property used
as a homestead as defined by law of any citizen of this state who is a military veteran and who
has a [total] one hundred percent disability.”
Officials from Office of the Secretary of State (SOS) assume, each year, a number of joint
resolutions that would refer to a vote of the people a constitutional amendment and bills that
would refer to a vote of the people the statutory issue in the legislation may be considered by the
General Assembly.
Unless a special election is called for the purpose, Joint Resolutions proposing a constitutional
amendment are submitted to a vote of the people at the next general election. Article XII section
2(b) of the Missouri Constitution authorizes the governor to order a special election for
constitutional amendments referred to the people. If a special election is called to submit a Joint
Resolution to a vote of the people, section 115.063.2 RSMo requires the state to pay the costs.
The cost of the special election has been estimated to be $8 million based on the cost of the 2022
primary and general election reimbursements.
The Secretary of State’s office is required to pay for publishing in local newspapers the full text
of each statewide ballot measure as directed by Article XII, Section 2(b) of the Missouri
Constitution and Section 116.230-116.290, RSMo. Funding for this item is adjusted each year
depending upon the election cycle. A new decision item is requested in odd numbered fiscal
years and the amount requested is dependent upon the estimated number of ballot measures that L.R. No. 3794S.01I
Bill No. SJR 58
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February 26, 2024
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will be approved by the General Assembly and the initiative petitions certified for the ballot. In
FY 2014, the General Assembly changed the appropriation so that it was no longer an estimated
appropriation.
For the FY25 petitions cycle, the SOS estimates publication costs at $60,000 per page. This
amount is subject to change based on number of petitions received, length of those petitions and
rates charged by newspaper publishers.
The Secretary of State’s office will continue to assume, for the purposes of this fiscal note, that it
should have the full appropriation authority it needs to meet the publishing requirements.
Because these requirements are mandatory, the SOS reserves the right to request funding to meet
the cost of the publishing requirements if the Governor and the General Assembly again change
the amount or continue to not designate it as an estimated appropriation.
Oversight has reflected, in this fiscal note, the state potentially reimbursing local political
subdivisions the cost of having this joint resolution voted on during a special election in fiscal
year 2025. This reflects the decision made by the Joint Committee on Legislative Research that
the cost of the elections should be shown in the fiscal note. The next scheduled statewide general
election is in November 2024 (FY 2025). It is assumed the subject within this proposal could be
on this ballot; however, it could also be on a special election called for by the Governor (a
different date). Therefore, Oversight will reflect a potential election cost reimbursement to local
political subdivisions in FY 2025.
In response to a similar themed proposal this year (HB 1419), officials from the Department of
Public Safety - Missouri Veteran’s Commission (MVC) assumed the department would be
required to hire additional VSOs to meet demand related to filing for Service Connected
Disabilities (SCD), and filing SCD increases due to the added incentives in this bill and the
increased publicity should the bill pass.
Oversight does not have any information to the contrary. Oversight will reflect the FTE cost as
$0 (no increase in SCD filings) Up To 6 FTE to the Missouri Veteran’s Commission.
However, Oversight notes the first tax year in which taxpayers would qualify for the
new/expanded exemption(s) is Tax Year 2025. Oversight notes this proposal will have an impact
starting in FY 2026 due to the filing deadline for property taxes being 12/31/2025 (FY 2026).
Therefore, Oversight will report the MVC’s administrative cost(s) beginning in Fiscal Year 2026
assuming MVC can hire and train such FTE(s) within the first six (6) months of Fiscal Year
2026.
Oversight notes, per information on the State Tax Commission’s website, an applicant must
meet the following requirements to qualify for the property tax exemption as it exists in current
law:
L.R. No. 3794S.01I
Bill No. SJR 58
Page 8 of
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KLP:LR:OD
one hundred percent disabled as a result of his or her military service; and
Oversight notes the phrase “total service connected disability” exists in current law and for
purposes of this fiscal note assumes it has the same meaning as noted above by the State Tax
Commission.
Based on information provided by B&P, Oversight notes there were 15,376 veterans with a total
(100%) service-connected disability in Missouri as of December 2022.
Based on estimates from the Housing Assistance CouncilOversight notes the homeownership
rate for veterans is 78.1% with a median house value of $160,000. Assuming a similar
homeownership rate for veterans with a total (100%) service-connected disability, Oversight
assumes approximately 12,009 veterans may qualify for the property tax exemption (15,376 *
.781).
Oversight notes property tax levies differ based on the location of the property and the varying
taxing entities. Based on information from the State Tax Commissions website, Oversight
estimated the effective local residential property tax rate at 6.53% (using the total residential
assessed value, $81,710,151,058, divided by the total residential property revenue,
$5,339,603,541).
Using the median value of $160,000 and a tax levy of 6.53 per $100 of assessed value,
Oversight estimates a loss of revenue of $1,985 per veteran ((($160,000 *.19 = $30,400 in
assessed value) / 100 = $304) * 6.53). Oversight estimates the total revenue loss to local political
subdivisions at $23,837,865 (12,009 home-owning veterans * $1,985 revenue loss per veteran).
Because tax rates vary by location, Oversight assumes the loss to local political subdivisions
could exceed $23,837,865.
Oversight notes the Blind Pension Fund (0621) is calculated as an annual tax of three cents on
each one hundred dollars valuation of taxable property ((Total Assessed Value/100)*.03).
Oversight estimates a reduction in residential real property tax revenue to the Blind Pension
Fund at $9.12 per veteran ($160,000 *.19 = $30,400 in assessed value / 100 = $304 * .03) for an
estimated total of $109,519 (12,009 * $9.12).
Oversight assumes that if adopted, it is assumed that based on the certification date of this
proposal, it would become effective January 1, 2025.
Oversight notes this proposal is contingent on a voter approved amendment to the Constitution.
Oversight will show the impact as either $0 (Constitutional amendment is not approved by voters
AND/OR the local political subdivisions may be able to increase the levy to all other taxpayers
to replace the lost property tax revenues from disabled veterans) or could exceed the figures L.R. No. 3794S.01I
Bill No. SJR 58
Page 9 of
February 26, 2024
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estimated above to the Blind Pension Fund and local political subdivisions beginning in FY
2026.
Oversight assumes this could reduce claims for the Property Tax Credit for individuals
qualifying for the exemption. Oversight will show the savings to General Revenue provided by
the Department of Revenue.
Officials from the Lincoln County Assessor assume this proposal could cause tax burden shift
to those that don’t qualify for the exemption - any lost revenues may make taxing entities to raise
their tax levies to recoup losses.
Officials from the County Employees’ Retirement Fund have reviewed SJR 58 (3794S.01I).
SJR 58 may result in an unknown fiscal impact to the County Employees’ Retirement Fund.
Officials from the City of Kansas City assume this proposed legislation has a negative fiscal
impact of an indeterminate amount.
Officials from the Department of Social Services assume the proposal will have no fiscal
impact on their organization.
Oversight notes the above local political subdivisions stated this proposal would have a negative
fiscal impact on their respective cities of an indeterminate amount. Oversight notes contingent on
voter approval, this exemption may decrease property tax revenue to local political subdivisions.
Oversight notes this impact could be substantially reduced if taxing authorities are able to
increase the levy to other taxpayers to make up for the loss of property tax revenue of disabled
veterans resulting from this proposal.
Oversight received a limited number of responses from local political subdivisions related to the
fiscal impact of this proposal. Oversight has presented this fiscal note on the best current
information available. Upon the receipt of additional responses, Oversight will review to
determine if an updated fiscal note should be prepared and seek the necessary approval to
publish a new fiscal note.
Officials from the Newton County Health Department, Phelps County Sheriff, Kansas City
Police Dept, and the St. Louis County Police Dept each assume the proposal will have no fiscal
impact on their respective organizations.
Officials from the Office of the State Auditor assume the proposal will have no fiscal impact on
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for this agency.
The Joint Committee on Public Employee Retirement (JCPER) has reviewed the bill. The
bill has no direct fiscal impact to the Joint Committee on Public Employee Retirement. The L.R. No. 3794S.01I
Bill No. SJR 58
Page 10 of 12
February 26, 2024
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JCPER’s review of this legislation indicates it will not affect retirement plan benefits as defined
in Section 105.660(9).
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other local political subdivisions were requested to respond to this proposed legislation
but did not. A listing of political subdivisions included in the Missouri Legislative Information
System (MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUEPotential Revenue Gain – DOR –
Veterans no longer claiming the Senior
Property Tax Credit if approved by
voters $0
$0 or
Unknown,
could exceed
$1,587,145
$0 or
Unknown,
could exceed
$1,587,145
Transfer Out - SOS - reimbursement of
local election authority election costs if
a special election is called by the
Governor
$0 or (More
than
$8,000,000)$0$0
Potential Costs - MVC p. (8)$0 or Up to…$0 or Up to… Personnel Service$0($518,700)($634,889) Fringe Benefits$0($351,238)($426,311) Expense & Equipment$0($70,796)($24,480)Total Costs -$0($940,734)($1,085,680)FTE Change0 FTE6 FTE6 FTE
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 or (More
than
$8,000,000)
$0 or
Unknown,
could exceed
$646,411
$0 or
Unknown,
could exceed
$501,465
Estimated Net FTE Change on General
Revenue0 FTE
0 or Up to 6
FTE
0 or Up to 6
FTE
BLIND PENSION FUNDPotential Revenue Loss - no real
property tax collected from veterans
with a total service-connected disability
if approved by voters$0
$0 or
(Unknown,
could exceed
$109,519)
$0 or
(Unknown,
could exceed
$109,519) L.R. No. 3794S.01I
Bill No. SJR 58
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February 26, 2024
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027
ESTIMATED NET EFFECT ON
BLIND PENSION FUND$0
$0 or
(Unknown,
could exceed
$109,519)
$0 or
(Unknown,
could exceed
$109,519)
FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027LOCAL POLITICAL
SUBDIVISIONS
Costs – to implement and monitor if
approved by voters
$0$0 or
(Unknown)
$0 or
(Unknown)
Potential Revenue Loss - no real
property tax collected from veterans
with a total service-connected
disability* if approved by voters$0
$0 or
(Unknown,
could exceed
$23,837,865)
$0 or
(Unknown,
could exceed
$23,837,865)
Transfer In - Local Election
Authorities - reimbursement of election
costs by the State for a special election
$0 or More
than
$8,000,000$0$0
Costs - Local Election Authorities -
cost of a special election if called for by
the Governor
$0 or (More
than
$8,000,000)$0$0
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0
$0 or
(Unknown,
could exceed
$23,837,865)
$0 or
(Unknown,
could exceed
$23,837,865)
*Oversight notes this impact could be substantially reduced if taxing authorities are able to
increase the levy to other taxpayers to make up for the loss of property tax revenue of disabled
veterans resulting from this proposal. L.R. No. 3794S.01I
Bill No. SJR 58
Page 12 of 12
February 26, 2024
KLP:LR:OD
FISCAL IMPACT – Small Business
Oversight assumes there could be an impact to small businesses owned by veterans with a total
service-connected disability. Conversely, taxing jurisdictions may be able to increase the levy to
all other property owners to make up for the lost revenue.
FISCAL DESCRIPTION
This constitutional amendment, if approved by the voters, expands the current exemption from
real property taxes for former prisoners of war with a total service-connected disability to all
disabled veterans, as defined in the amendment.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Department of Revenue
Department of Social Services
Office of the Secretary of State
City of Kansas City
Lincoln County Assessor
Newton County Health Department
Phelps County Sheriff
Kansas City Police Dept
St. Louis County Police Dept
Office of the State Auditor
Joint Committee on Public Employee Retirement (JCPER)
County Employees’ Retirement Fund
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 26, 2024February 26, 2024