FIRSTREGULARSESSION
HOUSEBILLNO.1196
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEJACOBS.
2344H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections135.010,135.025,and135.030,RSMo,andtoenactinlieuthereofthree
newsectionsrelatingtoataxcreditforthepropertytaxliabilitiesofcertainvulnerable
persons.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections135.010,135.025,and135.030,RSMo,arerepealedandthree
2newsectionsenactedinlieuthereof,tobeknownassections135.010,135.025,and135.030,
3toreadasfollows:
135.010.Asusedinsections135.010to135.030thefollowingwordsandterms
2mean:
3 (1)"Claimant",apersonorpersonsclaimingacreditundersections135.010to
4135.030.Ifthepersonsareeligibletofileajointfederalincometaxreturnandresideatthe
5sameaddressatanytimeduringthe[taxable] taxyear,thenthecreditmayonlybeallowedif
6claimedonacombinedMissouriincometaxreturnoracombinedclaimreturnreportingtheir
7combinedincomesandpropertytaxes.Aclaimantshallnotbeallowedapropertytaxcredit
8unlesstheclaimantorspousehasattainedtheageofsixty-fiveonorbeforethelastdayofthe
9calendaryearandtheclaimantorspousewasaresidentofMissourifortheentireyear,orthe
10claimantorspouseisaveteranofanybranchoftheArmedForcesoftheUnitedStatesorthis
11statewhobecameonehundredpercentdisabledasaresultofsuchservice,ortheclaimantor
12spouseisdisabledasdefinedinsubdivision(2)ofthissection,andsuchclaimantorspouse
13providesproofofsuchdisabilityinsuchformandmanner,andatsuchtimes,asthedirector
14ofrevenuemayrequire,oriftheclaimanthasreachedtheageofsixtyonorbeforethelast
15dayofthecalendaryearandsuchclaimantreceivedsurvivingspouseSocialSecuritybenefits
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16duringthecalendaryearandtheclaimantprovidesproof,asrequiredbythedirectorof
17revenue,thattheclaimantreceivedsurvivingspouseSocialSecuritybenefitsduringthe
18calendaryearforwhichthecreditwillbeclaimed.[Aclaimantshallnotbealloweda
19propertytaxcreditiftheclaimantfiledavalidclaimforacreditundersection137.106inthe
20yearfollowingtheyearforwhichthepropertytaxcreditisclaimed.] Theresidency
21requirementshallbedeemedtohavebeenfulfilledforthepurposeofdeterminingthe
22eligibilityofasurvivingspouseforapropertytaxcreditifapersonoftheageofsixty-five
23yearsorolderwhowouldhaveotherwisemettherequirementsforapropertytaxcreditdies
24beforethelastdayofthecalendaryear.Theresidencyrequirementshallalsobedeemedto
25havebeenfulfilledforthepurposeofdeterminingtheeligibilityofaclaimantwhowould
26haveotherwisemettherequirementsforapropertytaxcreditbutwhodiesbeforethelastday
27ofthecalendaryear. ForallcalendaryearsbeginningonorafterJanuary1,2026,a
28claimantorspousewhoisthirtyyearsofageorolderonorbeforethelastdayofthe
29calendaryearandotherwisemeetstherequirementsforapropertytaxcreditunderthe
30provisionsofsections135.010to135.030butforhisorherageshallbeallowedtoclaim
31apropertytaxcredit;
32 (2)"Disabled",theinabilitytoengageinanysubstantialgainfulactivitybyreasonof
33anymedicallydeterminablephysicalormentalimpairmentwhichcanbeexpectedtoresultin
34deathorwhichhaslastedorcanbeexpectedtolastforacontinuousperiodofnotlessthan
35twelvemonths.Aclaimantshallnotberequiredtobegainfullyemployedpriortosuch
36disabilitytoqualifyforapropertytaxcredit;
37 (3)"Grossrent",amountpaidbyaclaimanttoalandlordfortherental,atarm's
38length,ofahomesteadduringthecalendaryear,exclusiveofchargesforhealthandpersonal
39careservicesandfoodfurnishedaspartoftherentalagreement,whetherornotexpresslyset
40outintherentalagreement.Ifthedirectorofrevenuedeterminesthatthelandlordandtenant
41havenotdealtatarm'slength,andthatthegrossrentisexcessive,thenheshalldeterminethe
42grossrentbaseduponareasonableamountofrent.Grossrentshallbedeemedtobepaid
43onlyifactuallypaidpriortothedateareturnisfiled.Thedirectorofrevenuemayprescribe
44regulationsrequiringareturnofinformationbyalandlordreceivingrent,certifyingfora
45calendaryeartheamountofgrossrentreceivedfromatenantclaimingapropertytaxcredit
46andshall,byregulation,provideamethodforcertificationbytheclaimantoftheamountof
47grossrentpaidforanycalendaryearforwhichaclaimismade.Theregulationsauthorized
48bythissubdivisionmayrequirealandlordoratenantorbothtoprovidedatarelatingtohealth
49andpersonalcareservicesandtofood.Neitheralandlordnoratenantmayberequiredto
50providedatarelatingtoutilities,furniture,homefurnishingsorappliances;
51 (4)"Homestead",thedwellinginMissouriownedorrentedbytheclaimantandnotto
52exceedfiveacresoflandsurroundingitasisreasonablynecessaryforuseofthedwellingasa
HB1196 2 53home.Itmayconsistofpartofamultidwellingormultipurposebuildingandpartoftheland
54uponwhichitisbuilt."Owned"includesavendeeinpossessionunderalandcontractand
55oneormoretenantsbytheentireties,jointtenants,ortenantsincommonandincludesa
56claimantactuallyinpossessionifhewastheimmediateformerownerofrecord,ifalineal
57descendantispresentlytheownerofrecord,andiftheclaimantactuallypaysalltaxesupon
58theproperty.Itmayincludeamobilehome;
59 (5)"Income",Missouriadjustedgrossincomeasdefinedinsection143.121lesstwo
60thousanddollars,orinthecaseofahomesteadownedandoccupied,fortheentireyear,bythe
61claimant,lessfourthousanddollarsasanexemptionfortheclaimant'sspouseresidingatthe
62sameaddress[,] forallcalendaryearsendingonorbeforeDecember31,2025,andforall
63calendaryearsbeginningonorafterJanuary1,2026,lesstwothousandeighthundred
64dollars,orinthecaseofahomesteadownedandoccupied,fortheentireyear,bythe
65claimant,lessfivethousandeighthundreddollarsasanexemptionfortheclaimant's
66spouseresidingatthesameaddress;andincreased,wherenecessary,toreflectthe
67following:
68 (a)SocialSecurity,railroadretirement,andveteranspaymentsandbenefitsunlessthe
69claimantisaonehundredpercentservice-connected,disabledveteranoraspouseofaone
70hundredpercentservice-connected,disabledveteran.Theonehundredpercentservice-
71connecteddisabledveteranshallnotberequiredtolistveteranspaymentsandbenefits;
72 (b)Thetotalamountofallotherpublicandprivatepensionsandannuities;
73 (c)Publicrelief,publicassistance,andunemploymentbenefitsreceivedincash,other
74thanbenefitsreceivedunderthischapter;
75 (d)Nodeductionbeingallowedforlossesnotincurredinatradeorbusiness;
76 (e)InterestontheobligationsoftheUnitedStates,anystate,oranyoftheir
77subdivisionsandinstrumentalities;
78 (6)"Propertytaxesaccrued",propertytaxespaid,exclusiveofspecialassessments,
79penalties,interest,andchargesforserviceleviedonaclaimant'shomesteadinanycalendar
80year.Propertytaxesshallqualifyforthecreditonlyifactuallypaidpriortothedateareturn
81isfiled.Thedirectorofrevenueshallrequireataxreceiptorotherproofofpropertytax
82payment.Ifahomesteadisownedonlypartiallybyclaimant,then"propertytaxesaccrued"is
83thatpartofpropertytaxesleviedonthehomesteadwhichwasactuallypaidbytheclaimant.
84Forpurposesofthissubdivision,propertytaxesare"levied"whenthetaxrollisdeliveredto
85thedirectorofrevenueforcollection.Ifaclaimantownsahomesteadpartofthepreceding
86calendaryearandrentsitoradifferenthomesteadforpartofthesameyear,"propertytaxes
87accrued"meansonlytaxesleviedonthehomesteadbothownedandoccupiedbythe
88claimant,multipliedbythepercentageoftwelvemonthsthatsuchpropertywasownedand
89occupiedasthehomesteadoftheclaimantduringtheyear.Whenaclaimantownsand
HB1196 3 90occupiestwoormoredifferenthomesteadsinthesamecalendaryear,propertytaxesaccrued
91shallbethesumoftaxesallocabletothoseseveralpropertiesoccupiedbytheclaimantasa
92homesteadfortheyear.Ifahomesteadisanintegralpartofalargerunitsuchasafarm,or
93multipurposeormultidwellingbuilding,propertytaxesaccruedshallbethatpercentageofthe
94totalpropertytaxesaccruedasthevalueofthehomesteadisofthetotalvalue.Forpurposes
95ofthissubdivision"unit"referstotheparcelofpropertycoveredbyasingletaxstatementof
96whichthehomesteadisapart;
97 (7)"Rentconstitutingpropertytaxesaccrued",twentypercentofthegrossrentpaid
98byaclaimantandspouseinthecalendaryear.
135.025.Thepropertytaxesaccruedandrentconstitutingpropertytaxesaccruedon
2eachreturnshallbetotaled.Thistotal,uptosevenhundredfiftydollarsinrentconstituting
3propertytaxesactuallypaidorelevenhundreddollarsinactualpropertytaxpaid,shallbe
4usedindeterminingthepropertytaxcreditforallcalendaryearsendingonorbefore
5December31,2025.ForallcalendaryearsbeginningonorafterJanuary1,2026,this
6total,uptoonethousandfifty-fivedollarsinrentconstitutingpropertytaxesactually
7paidoronethousandfivehundredfiftydollarsinactualpropertytaxpaid,shallbeused
8indeterminingthepropertytaxcredit.BeginningJanuary1,2027,themaximum
9propertytaxcredittotalsunderthissectionshallbeincreasedannuallyforinflation
10basedonthepercentageincreaseininflationascalculatedannuallyfortheincometax
11brackets,asprovidedundersection143.011.Thedirectorofrevenueshallprescribe
12regulationsprovidingforallocationswherepartofaclaimant'shomesteadisrentedtoanother
13orusedfornondwellingpurposesorwhereahomesteadisownedorrentedorusedasa
14dwellingforpartofayear.
135.030.1.Asusedinthissection:
2 (1)Theterm"maximumupperlimit"shall,foreachcalendaryearafterDecember31,
31997,butbeforecalendaryear2008,bethesumoftwenty-fivethousanddollars.Forall
4calendaryearsbeginningonorafterJanuary1,2008,butbeforecalendaryear2026,the
5maximumupperlimitshallbethesumoftwenty-seventhousandfivehundreddollars.Inthe
6caseofahomesteadownedandoccupiedfortheentireyearbytheclaimant,forallcalendar
7yearsendingonorbeforeDecember31,2025,themaximumupperlimitshallbethesumof
8thirtythousanddollars. ForallcalendaryearsbeginningonorafterJanuary1,2026,the
9maximumupperlimitshallbethesumofthirty-eightthousandtwohundreddollars,
10and,inthecaseofahomesteadownedandoccupiedfortheentireyearbytheclaim,the
11maximumupperlimitshallbethesumofforty-twothousandtwohundreddollars.
12BeginningJanuary1,2027,themaximumupperlimitsshallbeincreasedannuallyfor
13inflationbasedonthepercentageincreaseininflationascalculatedannuallyforstate
14incometaxbrackets,asprovidedundersection143.011;
HB1196 4 15 (2)Theterm"minimumbase"shall,foreachcalendaryearafterDecember31,1997,
16butbeforecalendaryear2008,bethesumofthirteenthousanddollars.Forallcalendaryears
17beginningonorafterJanuary1,2008,theminimumbaseshallbethesumoffourteen
18thousandthreehundreddollars.
19 2.(1)Iftheincomeonareturnisequaltoorlessthanthemaximumupperlimitfor
20thecalendaryearforwhichthereturnisfiled,thepropertytaxcreditshallbedeterminedfrom
21atableofcreditsbasedupontheamountbywhichthetotalpropertytaxdescribedinsection
22135.025exceedsthepercentofincomeinthefollowinglist:
23 Iftheincomeonthereturnis:Thepercentis:
Notovertheminimumbase24 Forallcalendaryearsendingon
25 orbeforeDecember31,2025,0
26 percentwithcreditnottoexceed
27 $1,100inactualpropertytaxor
28 rentequivalentpaidupto$750
29 andforallcalendaryears
30 beginningonorafterJanuary1,
31 2026,0percentwithcreditnotto
32 exceed$1,550inactualproperty
33 taxorrentequivalentpaidupto
34 $1,055,asadjustedundersection
35 135.025.
36 Overtheminimumbasebutnot
37 overthemaximumupperlimit
1/16percentaccumulativeper
$300from0percentto4percent.
38 (2)Thedirectorofrevenueshallprescribeatablebasedupon[thepreceding
39sentences] subdivision(1)ofthissubsection. Thepropertytaxshallbeinincrementsof
40twenty-fivedollarsandtheincomeinincrementsofthreehundreddollars.Thecreditshallbe
41theamountroundedtothenearestwholedollarcomputedonthebasisofthepropertytaxand
42incomeatthemidpointsofeachincrement.Asusedinthissubsection,theterm
43"accumulative"meansanincreasebycontinuousorrepeatedapplicationofthepercenttothe
44incomeincrementateachthreehundreddollarlevel.
45 3.Notwithstandingsubsection4ofsection32.057,thedepartmentofrevenueorany
46dulyauthorizedemployeeoragentshalldeterminewhetheranytaxpayerfilingareportor
47returnwiththedepartmentofrevenuewhohasnotappliedforthecreditallowedpursuantto
48section135.020mayqualifyforthecredit,andshallnotifyanyqualifiedclaimantofthe
HB1196 5 49claimant'spotentialeligibility,wherethedepartmentdeterminessuchpotentialeligibility
50exists.
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HB1196 6