FIRSTREGULARSESSION
HOUSEBILLNO.1535
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEDEAN.
3064H.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
5sameaddressatanytimeduringthetaxableyear,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.Aclaimantshallnotbeallowedaproperty
19taxcreditiftheclaimantfiledavalidclaimforacreditundersection137.106intheyear
20followingtheyearforwhichthepropertytaxcreditisclaimed.Theresidencyrequirement
21shallbedeemedtohavebeenfulfilledforthepurposeofdeterminingtheeligibilityofa
22survivingspouseforapropertytaxcreditifapersonoftheageofsixty-fiveyearsorolder
23whowouldhaveotherwisemettherequirementsforapropertytaxcreditdiesbeforethelast
24dayofthecalendaryear.Theresidencyrequirementshallalsobedeemedtohavebeen
25fulfilledforthepurposeofdeterminingtheeligibilityofaclaimantwhowouldhave
26otherwisemettherequirementsforapropertytaxcreditbutwhodiesbeforethelastdayof
27thecalendaryear;
28 (2)"Disabled",theinabilitytoengageinanysubstantialgainfulactivitybyreasonof
29anymedicallydeterminablephysicalormentalimpairmentwhichcanbeexpectedtoresultin
30deathorwhichhaslastedorcanbeexpectedtolastforacontinuousperiodofnotlessthan
31twelvemonths.Aclaimantshallnotberequiredtobegainfullyemployedpriortosuch
32disabilitytoqualifyforapropertytaxcredit;
33 (3)"Grossrent",amountpaidbyaclaimanttoalandlordfortherental,atarm's
34length,ofahomesteadduringthecalendaryear,exclusiveofchargesforhealthandpersonal
35careservicesandfoodfurnishedaspartoftherentalagreement,whetherornotexpresslyset
36outintherentalagreement.Ifthedirectorofrevenuedeterminesthatthelandlordandtenant
37havenotdealtatarm'slength,andthatthegrossrentisexcessive,thenheshalldeterminethe
38grossrentbaseduponareasonableamountofrent.Grossrentshallbedeemedtobepaid
39onlyifactuallypaidpriortothedateareturnisfiled.Thedirectorofrevenuemayprescribe
40regulationsrequiringareturnofinformationbyalandlordreceivingrent,certifyingfora
41calendaryeartheamountofgrossrentreceivedfromatenantclaimingapropertytaxcredit
42andshall,byregulation,provideamethodforcertificationbytheclaimantoftheamountof
43grossrentpaidforanycalendaryearforwhichaclaimismade.Theregulationsauthorized
44bythissubdivisionmayrequirealandlordoratenantorbothtoprovidedatarelatingtohealth
45andpersonalcareservicesandtofood.Neitheralandlordnoratenantmayberequiredto
46providedatarelatingtoutilities,furniture,homefurnishingsorappliances;
47 (4)"Homestead",thedwellinginMissouriownedorrentedbytheclaimantandnotto
48exceedfiveacresoflandsurroundingitasisreasonablynecessaryforuseofthedwellingasa
49home.Itmayconsistofpartofamultidwellingormultipurposebuildingandpartoftheland
50uponwhichitisbuilt."Owned"includesavendeeinpossessionunderalandcontractand
51oneormoretenantsbytheentireties,jointtenants,ortenantsincommonandincludesa
52claimantactuallyinpossessionifhewastheimmediateformerownerofrecord,ifalineal
HB1535 2 53descendantispresentlytheownerofrecord,andiftheclaimantactuallypaysalltaxesupon
54theproperty.Itmayincludeamobilehome;
55 (5)"Income",Missouriadjustedgrossincomeasdefinedinsection143.121lesstwo
56thousanddollarsforallcalendaryearsendingonorbeforeDecember31,2025, orinthe
57caseofahomesteadownedandoccupied,fortheentireyear,bytheclaimant,lessfour
58thousanddollarsasanexemptionfortheclaimant'sspouseresidingatthesameaddress[,] for
59allcalendaryearsendingonorbeforeDecember31,2025,orforallcalendaryears
60beginningonorafterJanuary1,2026,lesstwothousandeighthundreddollars,orinthe
61caseofahomesteadownedandoccupied,fortheentireyear,bytheclaimant,lessfive
62thousandeighthundreddollars,asanexemptionfortheclaimant'sspouseresidingat
63thesameaddress;andincreased,wherenecessary,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
HB1535 3 90totalpropertytaxesaccruedasthevalueofthehomesteadisofthetotalvalue.Forpurposes
91ofthissubdivision"unit"referstotheparcelofpropertycoveredbyasingletaxstatementof
92whichthehomesteadisapart;
93 (7)"Rentconstitutingpropertytaxesaccrued",twentypercentofthegrossrentpaid
94byaclaimantandspouseinthecalendaryear.
135.025.Thepropertytaxesaccruedandrentconstitutingpropertytaxesaccruedon
2eachreturnshallbetotaled.Thistotal,uptosevenhundredfiftydollarsinrentconstituting
3propertytaxesactuallypaidorelevenhundreddollarsinactualpropertytaxpaid,shallbe
4usedindeterminingthepropertytaxcreditforallcalendaryearsendingonorbefore
5December31,2025.ForallcalendaryearsbeginningonorafterJanuary1,2026,this
6total,uptoonethousandfifty-fivedollarsinrentconstitutingpropertytaxesactually
7paidoronethousandfivehundredfiftydollarsinactualpropertytaxpaid,shallbeused
8indeterminingthepropertytaxcredit.BeginningJanuary1,2027,thepropertytax
9credittotalsunderthissectionshallbeadjustedannuallyforinflationbasedonthe
10ConsumerPriceIndexforAllUrbanConsumersfortheMidwestRegion,asdefined
11andofficiallyrecordedbytheUnitedStatesDepartmentofLabororitssuccessor. The
12directorofrevenueshallprescriberegulationsprovidingforallocationswherepartofa
13claimant'shomesteadisrentedtoanotherorusedfornondwellingpurposesorwherea
14homesteadisownedorrentedorusedasadwellingforpartofayear.
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,themaximumupperlimitshallbethesumof:
10 (a)Thirty-eightthousandtwohundreddollarsforclaimantswithafilingstatus
11ofsingle;
12 (b)Forty-twothousandtwohundreddollarsforclaimantswithafilingstatusof
13singleandwhoownedandoccupiedahomesteadfortheentireyear;
14 (c)Forty-onethousanddollarsforclaimantswithafilingstatusofmarriedfiling
15combined;and
16 (d)Forty-eightthousanddollarsforclaimantswithafilingstatusofmarried
17filingcombinedandwhoownedandoccupiedahomesteadfortheentireyear.
18
HB1535 4 19BeginningJanuary1,2027,suchamountsshallbeadjustedannuallyforinflationbased
20ontheConsumerPriceIndexforAllUrbanConsumers,asdefinedandofficially
21recordedbytheUnitedStatesDepartmentofLabororitssuccessor;
22 (2)Theterm"minimumbase"shall,foreachcalendaryearafterDecember31,1997,
23butbeforecalendaryear2008,bethesumofthirteenthousanddollars.Forallcalendaryears
24beginningonorafterJanuary1,2008,theminimumbaseshallbethesumoffourteen
25thousandthreehundreddollars.
26 2.(1)Iftheincomeonareturnisequaltoorlessthanthemaximumupperlimitfor
27thecalendaryearforwhichthereturnisfiled,thepropertytaxcreditshallbedeterminedfrom
28atableofcreditsbasedupontheamountbywhichthetotalpropertytaxdescribedinsection
29135.025exceedsthepercentofincomeinthefollowinglist:
30 Iftheincomeonthereturnis:Thepercentis:
Notovertheminimumbase31 0percentwithcreditnottoexceed
32 $1,100inactualpropertytaxor
33 rentequivalentpaidupto$750
34 Overtheminimumbasebutnot
35 overthemaximumupperlimit
1/16percentaccumulativeper
$300from0percentto4percent.
36 (2)Thedirectorofrevenueshallprescribeatablebasedupon[thepreceding
37sentences] subdivision(1)ofthissubsection. Thepropertytaxshallbeinincrementsof
38twenty-fivedollarsandtheincomeinincrementsofthreehundreddollars.Thecreditshallbe
39theamountroundedtothenearestwholedollarcomputedonthebasisofthepropertytaxand
40incomeatthemidpointsofeachincrement.Asusedinthissubsection,theterm
41"accumulative"meansanincreasebycontinuousorrepeatedapplicationofthepercenttothe
42incomeincrementateachthreehundreddollarlevel.
43 3.(1)ForallcalendaryearsbeginningonorafterJanuary1,2026,iftheincome
44onareturnisequaltoorlessthanthemaximumupperlimitforthecalendaryearfor
45whichthereturnisfiled,thepropertytaxcreditshallbedeterminedfromatableof
46creditsbasedupontheamountbywhichthetotalpropertytaxdescribedinsection
47135.025exceedsthepercentofincomeinthefollowinglist:
48 Iftheincomeonthereturnis:Thepercentis:
Notovertheminimumbase49 0percentwithcreditnotto
50 exceed$1,550inactualproperty
51 taxorrentequivalentpaidupto
52 $1,055,asadjustedforinflation.
HB1535 5 Overtheminimumbasebutnot
overthemaximumupperlimit
53 1/16percentaccumulativeper
54 $495,asadjustedforinflation,
55 from0percentto2percent.
56 (2)Thedirectorofrevenueshallprescribeatablebaseduponsubdivision(1)of
57thissubsection.Thepropertytaxshallbeinincrementsoftwenty-fivedollarsandthe
58incomeinincrementsoffourhundredninety-fivedollars,withsuchamountadjusted
59annuallyforinflationbasedontheConsumerPriceIndexforAllUrbanConsumers,as
60definedandofficiallyrecordedbytheUnitedStatesDepartmentofLabororits
61successor.Thecreditshallbetheamountroundedtothenearestwholedollarcomputed
62onthebasisofthepropertytaxandincomeatthemidpointsofeachincrement.Asused
63inthissubsection,theterm"accumulative"meansanincreasebycontinuousor
64repeatedapplicationofthepercenttotheincomeincrementateachfourhundred
65ninety-fivedollarlevel,asadjustedpursuanttothissubdivision.
66 4.Notwithstandingsubsection4ofsection32.057,thedepartmentofrevenueorany
67dulyauthorizedemployeeoragentshalldeterminewhetheranytaxpayerfilingareportor
68returnwiththedepartmentofrevenuewhohasnotappliedforthecreditallowedpursuantto
69section135.020mayqualifyforthecredit,andshallnotifyanyqualifiedclaimantofthe
70claimant'spotentialeligibility,wherethedepartmentdeterminessuchpotentialeligibility
71exists.
âś”
HB1535 6