FIRSTREGULARSESSION
HOUSEBILLNO.1430
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEBOYKIN.
2790H.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
11statewhobecameonehundredpercentdisabledasaresultofsuchserviceorwhobecame
12onehundredpercentdisablednotasaresultofsuchservicebutisreceivingDepartment
13ofVeteransAffairsbenefitsunderAidandAttendanceofHouseboundstatusforthe
14nonserviceconnecteddisability, ortheclaimantorspouseisdisabledasdefinedin
15subdivision(2)ofthissection,andsuchclaimantorspouseprovidesproofofsuchdisability
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16insuchformandmanner,andatsuchtimes,asthedirectorofrevenuemayrequire,orifthe
17claimanthasreachedtheageofsixtyonorbeforethelastdayofthecalendaryearandsuch
18claimantreceivedsurvivingspouseSocialSecuritybenefitsduringthecalendaryearandthe
19claimantprovidesproof,asrequiredbythedirectorofrevenue,thattheclaimantreceived
20survivingspouseSocialSecuritybenefitsduringthecalendaryearforwhichthecreditwillbe
21claimed.[Aclaimantshallnotbeallowedapropertytaxcreditiftheclaimantfiledavalid
22claimforacreditundersection137.106intheyearfollowingtheyearforwhichtheproperty
23taxcreditisclaimed.] Theresidencyrequirementshallbedeemedtohavebeenfulfilledfor
24thepurposeofdeterminingtheeligibilityofasurvivingspouseforapropertytaxcreditifa
25personoftheageofsixty-fiveyearsorolderwhowouldhaveotherwisemettherequirements
26forapropertytaxcreditdiesbeforethelastdayofthecalendaryear.Theresidency
27requirementshallalsobedeemedtohavebeenfulfilledforthepurposeofdeterminingthe
28eligibilityofaclaimantwhowouldhaveotherwisemettherequirementsforapropertytax
29creditbutwhodiesbeforethelastdayofthecalendaryear;
30 (2)"Disabled",theinabilitytoengageinanysubstantialgainfulactivitybyreasonof
31anymedicallydeterminablephysicalormentalimpairmentwhichcanbeexpectedtoresultin
32deathorwhichhaslastedorcanbeexpectedtolastforacontinuousperiodofnotlessthan
33twelvemonths.Aclaimantshallnotberequiredtobegainfullyemployedpriortosuch
34disabilitytoqualifyforapropertytaxcredit;
35 (3)"Grossrent",amountpaidbyaclaimanttoalandlordfortherental,atarm's
36length,ofahomesteadduringthecalendaryear,exclusiveofchargesforhealthandpersonal
37careservicesandfoodfurnishedaspartoftherentalagreement,whetherornotexpresslyset
38outintherentalagreement.Ifthedirectorofrevenuedeterminesthatthelandlordandtenant
39havenotdealtatarm'slength,andthatthegrossrentisexcessive,thenheshalldeterminethe
40grossrentbaseduponareasonableamountofrent.Grossrentshallbedeemedtobepaid
41onlyifactuallypaidpriortothedateareturnisfiled.Thedirectorofrevenuemayprescribe
42regulationsrequiringareturnofinformationbyalandlordreceivingrent,certifyingfora
43calendaryeartheamountofgrossrentreceivedfromatenantclaimingapropertytaxcredit
44andshall,byregulation,provideamethodforcertificationbytheclaimantoftheamountof
45grossrentpaidforanycalendaryearforwhichaclaimismade.Theregulationsauthorized
46bythissubdivisionmayrequirealandlordoratenantorbothtoprovidedatarelatingtohealth
47andpersonalcareservicesandtofood.Neitheralandlordnoratenantmayberequiredto
48providedatarelatingtoutilities,furniture,homefurnishingsorappliances;
49 (4)"Homestead",thedwellinginMissouriownedorrentedbytheclaimantandnotto
50exceedfiveacresoflandsurroundingitasisreasonablynecessaryforuseofthedwellingasa
51home.Itmayconsistofpartofamultidwellingormultipurposebuildingandpartoftheland
52uponwhichitisbuilt."Owned"includesavendeeinpossessionunderalandcontractand
HB1430 2 53oneormoretenantsbytheentireties,jointtenants,ortenantsincommonandincludesa
54claimantactuallyinpossessionifhewastheimmediateformerownerofrecord,ifalineal
55descendantispresentlytheownerofrecord,andiftheclaimantactuallypaysalltaxesupon
56theproperty.Itmayincludeamobilehome;
57 (5)"Income",Missouriadjustedgrossincomeasdefinedinsection143.121lesstwo
58thousanddollars,orinthecaseofahomesteadownedandoccupied,fortheentireyear,bythe
59claimant,lessfourthousanddollarsasanexemptionfortheclaimant'sspouseresidingatthe
60sameaddress[,] forallcalendaryearsendingonorbeforeDecember31,2025,andforall
61calendaryearsbeginningonorafterJanuary1,2026,lesstwentythousanddollarsasan
62exemptionfortheclaimant'sspouseresidingatthesameaddress;andincreased,where
63necessary,toreflectthefollowing:
64 (a)SocialSecurity,railroadretirement,andveteranspaymentsandbenefitsunlessthe
65claimantisaonehundredpercentservice-connected,disabledveteranoraspouseofaone
66hundredpercentservice-connected,disabledveteran.Theonehundredpercentservice-
67connecteddisabledveteranshallnotberequiredtolistveteranspaymentsandbenefits;
68 (b)Thetotalamountofallotherpublicandprivatepensionsandannuities;
69 (c)Publicrelief,publicassistance,andunemploymentbenefitsreceivedincash,other
70thanbenefitsreceivedunderthischapter;
71 (d)Nodeductionbeingallowedforlossesnotincurredinatradeorbusiness;
72 (e)InterestontheobligationsoftheUnitedStates,anystate,oranyoftheir
73subdivisionsandinstrumentalities;
74 (6)"Propertytaxesaccrued",propertytaxespaid,exclusiveofspecialassessments,
75penalties,interest,andchargesforserviceleviedonaclaimant'shomesteadinanycalendar
76year.Propertytaxesshallqualifyforthecreditonlyifactuallypaidpriortothedateareturn
77isfiled.Thedirectorofrevenueshallrequireataxreceiptorotherproofofpropertytax
78payment.Ifahomesteadisownedonlypartiallybyclaimant,then"propertytaxesaccrued"is
79thatpartofpropertytaxesleviedonthehomesteadwhichwasactuallypaidbytheclaimant.
80Forpurposesofthissubdivision,propertytaxesare"levied"whenthetaxrollisdeliveredto
81thedirectorofrevenueforcollection.Ifaclaimantownsahomesteadpartofthepreceding
82calendaryearandrentsitoradifferenthomesteadforpartofthesameyear,"propertytaxes
83accrued"meansonlytaxesleviedonthehomesteadbothownedandoccupiedbythe
84claimant,multipliedbythepercentageoftwelvemonthsthatsuchpropertywasownedand
85occupiedasthehomesteadoftheclaimantduringtheyear.Whenaclaimantownsand
86occupiestwoormoredifferenthomesteadsinthesamecalendaryear,propertytaxesaccrued
87shallbethesumoftaxesallocabletothoseseveralpropertiesoccupiedbytheclaimantasa
88homesteadfortheyear.Ifahomesteadisanintegralpartofalargerunitsuchasafarm,or
89multipurposeormultidwellingbuilding,propertytaxesaccruedshallbethatpercentageofthe
HB1430 3 90totalpropertytaxesaccruedasthevalueofthehomesteadisofthetotalvalue.Forpurposes
91ofthissubdivision"unit"referstotheparcelofpropertycoveredbyasingletaxstatementof
92whichthehomesteadisapart;
93 (7)"Rentconstitutingpropertytaxesaccrued",twentypercentofthegrossrentpaid
94byaclaimantandspouseinthecalendaryear.
135.025.1.Thepropertytaxesaccruedandrentconstitutingpropertytaxesaccrued
2oneachreturnshallbetotaled.Thistotal,uptosevenhundredfiftydollarsinrent
3constitutingpropertytaxesactuallypaidorelevenhundreddollarsinactualpropertytaxpaid,
4shallbeusedindeterminingthepropertytaxcreditforallcalendaryearsendingonor
5beforeDecember31,2025.ForallcalendaryearsbeginningonorafterJanuary1,2026,
6thetotalamountofpropertytaxesaccruedorrentconstitutingpropertytaxesaccrued
7thatexceedstheclaimant'sincomebyfourpercentorgreater,shallbeusedin
8determiningtheamountofthepropertytaxcredit,uptoonethousandfivehundred
9dollarsinrentconstitutingpropertytaxesactuallypaidoractualpropertytaxpaid.
10 2.ForallcalendaryearsbeginningonorafterJanuary1,2026,inthecaseofa
11claimantwhoisaveteranofanybranchoftheArmedForcesoftheUnitedStatesorthis
12statewhoisonehundredpercentdisabledasestablishedundertherequirementsof
13section135.010,thereshallbenolimitonthetotalofrentconstitutingpropertytaxes
14actuallypaidoractualpropertytaxpaid,andsuchdisabledveteranmayreceivea
15propertytaxcreditforthefullamountofsuchtotal,includinganyamountinexcessof
16theonethousandfivehundreddollarlimit.
17 3.BeginningJanuary1,2027,themaximumpropertytaxcredittotalsunderthis
18sectionshallbeincreasedannuallyforinflationbasedonthepercentageincreasein
19inflationascalculatedannuallyfortheincometaxbrackets,asprovidedundersection
20143.011.Thedirectorofrevenueshallprescriberegulationsprovidingforallocationswhere
21partofaclaimant'shomesteadisrentedtoanotherorusedfornondwellingpurposesorwhere
22ahomesteadisownedorrentedorusedasadwellingforpartofayear.
135.030.1.Asusedinthissection:
2 (1)Theterm"maximumupperlimit"shall,foreachcalendaryearafterDecember31,
31997,butbeforecalendaryear2008,bethesumoftwenty-fivethousanddollars.Forall
4calendaryearsbeginningonorafterJanuary1,2008,butendingonorbeforeDecember31,
52025,themaximumupperlimitshallbethesumoftwenty-seventhousandfivehundred
6dollars.Inthecaseofahomesteadownedandoccupiedfortheentireyearbytheclaimant,
7forallcalendaryearsendingonorbeforeDecember31,2025,themaximumupperlimit
8shallbethesumofthirtythousanddollars. Forallcalendaryearsbeginningonorafter
9January1,2026,themaximumupperlimitshallbethesumoffiftythousanddollars,
10andinthecaseofaclaimantwhoisaveteranofanybranchoftheArmedForcesofthe
HB1430 4 11UnitedStatesorthisstatewhoisonehundredpercentdisabledasestablishedunderthe
12requirementsofsection135.010,thereshallbenomaximumupperlimit.Beginning
13January1,2027,themaximumupperlimitshallbeincreasedannuallyforinflation
14basedonthepercentageincreaseininflationascalculatedannuallyforstateincometax
15brackets,asprovidedundersection143.011;
16 (2)Theterm"minimumbase"shall,foreachcalendaryearafterDecember31,1997,
17butbeforecalendaryear2008,bethesumofthirteenthousanddollars.Forallcalendaryears
18beginningonorafterJanuary1,2008,butendingonorbeforeDecember31,2025,the
19minimumbaseshallbethesumoffourteenthousandthreehundreddollars.Forallcalendar
20yearsbeginningonorafterJanuary1,2026,theminimumbaseshallbethesameasthe
21maximumupperlimit.
22 2.(1)Iftheincomeonareturnisequaltoorlessthanthemaximumupperlimitfor
23thecalendaryearforwhichthereturnisfiled,thepropertytaxcreditshallbedeterminedfrom
24atableofcreditsbasedupontheamountbywhichthetotalpropertytaxdescribedinsection
25135.025exceedsthepercentofincomeinthefollowinglist:
26 Iftheincomeonthereturnis:Thepercentis:
Notovertheminimumbase27 Forallcalendaryearsendingon
28 orbeforeDecember31,2025,0
29 percentwithcreditnottoexceed
30 $1,100inactualpropertytaxor
31 rentequivalentpaidupto$750
32 andforallcalendaryears
33 beginningonorafterJanuary1,
34 2026,0percentwithcreditnotto
35 exceed$1,500inexcessof4%of
36 income,inactualpropertytaxor
37 rentequivalentpaid,asadjusted
38 undersection135.025,unless
39 otherwiseprovidedunder
40 section135.025.
Overtheminimumbasebutnot
overthemaximumupperlimit
41 Forallcalendaryearsendingon
42 orbeforeDecember31,2025,1/
43 16percentaccumulativeper$300
44 from0percentto4percentand
45 forallcalendaryearsbeginning
46 onorafterJanuary1,2026,the
HB1430 5 47 minimumbaseandmaximum
48 upperlimitshallbethesame
49 amount.
50 (2)Thedirectorofrevenueshallprescribeatablebasedupon[thepreceding
51sentences] subdivision(1)ofthissubsection. Thepropertytaxshallbeinincrementsof
52twenty-fivedollarsandtheincomeinincrementsofthreehundreddollars.Thecreditshallbe
53theamountroundedtothenearestwholedollarcomputedonthebasisofthepropertytaxand
54incomeatthemidpointsofeachincrement.Asusedinthissubsection,theterm
55"accumulative"meansanincreasebycontinuousorrepeatedapplicationofthepercenttothe
56incomeincrementateachthreehundreddollarlevel.Forallcalendaryearsbeginningon
57orafterJanuary1,2026,theminimumbaseandmaximumupperlimitshallbethesame
58amountandtheprovisionsunderthissubdivisionforreducingthetaxcreditshallnot
59apply.
60 3.Notwithstandingsubsection4ofsection32.057,thedepartmentofrevenueorany
61dulyauthorizedemployeeoragentshalldeterminewhetheranytaxpayerfilingareportor
62returnwiththedepartmentofrevenuewhohasnotappliedforthecreditallowedpursuantto
63section135.020mayqualifyforthecredit,andshallnotifyanyqualifiedclaimantofthe
64claimant'spotentialeligibility,wherethedepartmentdeterminessuchpotentialeligibility
65exists.
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HB1430 6