COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0109S.01I Bill No.:SB 101 Subject:Tax Credits; Taxation and Revenue - Property Type:Original Date:January 14, 2025Bill Summary:This proposal modifies the senior citizens property tax relief credit.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*
More or
Less than
($1,913,176)
More or
Less than
($3,597,787)
More or
Less than
($5,380,293)
Total Estimated Net
Effect on General
Revenue
More or
Less than
($1,913,176)
More or
Less than
($3,597,787)
More or
Less than
($5,380,293)
*Oversight reflects estimates from DOR & B&P for Section(s) 135.025 & 135.130 “Circuit
Breaker”.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☒ 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 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0109S.01I
Bill No. SB 101
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FISCAL ANALYSIS
ASSUMPTION
Sections 135.025 & 135.030 “Circuit Breaker”
Officials from the Department of Revenue (DOR) note:
Background of Current PTC Program
This proposal makes several modifications to the Senior Property tax credit (PTC). The PTC
provides two tax credits, one to homeowners and one to renters that pay property tax. In order to
qualify for the PTC program there are income eligibility requirements, and a person must:
Be over the age of 65,
Or 100% disabled,
Or a 100% disabled veteran,
Or at least 60 and the qualifying widow of someone in the previous categories.
For homeowners, the PTC provides a credit to offset the amount of actual property tax paid by
the homeowner. The credit is up to $1,100 in property tax actually paid but the credit amount
phases out as an individual’s income rises. The homeowner’s credit is for those with incomes of
less than $30,000. It should be noted, there is no limit on the number of individuals who can
receive the credit annually.
The PTC also currently provides a credit to offset the amount of property tax included in a
taxpayer’s rent payment. The tax credit for renters is up to $750 in property tax paid and to
qualify a renter must have an income less than $27,500. The amount of the credit does phase out
as income rises and there is no limit on the number of renters who can receive the credit
annually.
This proposal would become effective on August 28, 2025, and says that all modifications of the
property tax credit will be retroactively applied to all claims filed during the calendar year of
2025. DOR notes that the majority of the PTC tax returns for a tax year are received in our
office between January 1
st
and April 15th. It is unclear if this proposal would require a taxpayer
to file an amended PTC return in order to claim the higher credit amount.
DOR notes that the PTC formula phases out the amount of credit a person is eligible for as their
income rises. Therefore, people with incomes of $14,300 are eligible for the $1,100 credit (up to
the amount of property tax paid) while those with incomes at $30,000 may only receive a couple
dollars in credit. This formula is established in Section 135.030.2.
Proposed Changes L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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This proposal makes changes to the PTC credit.
First in Section 135.025 it allows the $750 credit for renters and the $1,100 credit for
homeowners to be inflation adjusted starting on January 1, 2025. DOR uses a 2% inflation factor
when calculating fiscal notes.
PTC CreditTax
Year
Fiscal
Year
RenterHomeowner
Current$750 $1,100 20252026$765 $1,122 20262027$780 $1,144 20272028$796 $1,167 20282029$812 $1,190 20292030$828 $1,214 20302031$845 $1,238 *Assumes 2% average annual
inflation. L.R. No. 0109S.01I
Bill No. SB 101
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Secondly in Section 135.030.1, starting January 1, 20245 this proposal increases the maximum
upper limit for both renters and homeowners. Renters will go from $27,500 to $35,000 and
homeowners will go from $30,000 to $38,000. Additionally, this proposal allows those
maximum upper limits to be inflation adjusted in future year. Using a 2% inflation rate will raise
the maximum limit by:
Maximum IncomeCalendar
YearRenterHomeowner
Current$27,500 $30,000 2025$35,000 $38,000 2026$35,700 $38,760 2027$36,414 $39,535 2028$37,142 $40,326 2029$37,885 $41,133 2030$38,643 $41,956 *Assumes 2% average annual
inflation.
Thirdly, this proposal does not make changes to the PTC formula in Section 135.030.2. Since
the amount of credit, a person is eligible for at the maximum upper limit is phasing to $0 then
increasing income without changing the formula does not add anymore people to the program.
Incomes over $30,000 would get $0 credit.
Increasing the Credit Impact
Using the information provided by taxpayers on their 2023 individual income tax returns DOR
was able to calculate the impact of increasing the amount of credit a person is eligible for over
the next several years.
Renter
DOR’s records indicate that 57,945 renters claimed the PTC, with a maximum possible credit of
$750. Increasing the PTC credit amount to $765 would reduce general revenue another
$781,080 in FY 2026. Increasing it to $845 in FY 2031 would result in a reduction to general
revenue of $4,947,699.
It should be noted that this impact will continue in future years, as no stop date was included in
the proposal for the inflation adjustment. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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Homeowner
DOR records indicate that 46,135 homeowners claimed the PTC, with a maximum possible
credit o $1,100. Increasing the PTC credit amount to $1,122 would reduce general revenue by
$820,914 for FY 2026 and by FY 2031 it will have a credit of $1,238 and a loss to general
revenue of $5,149,136.
It should be noted that this impact will continue in future years, as no stop date was included in
the proposal for the inflation adjustment.
Increasing the Credit Summary
Based on the above information, DOR estimates that this provision could reduce general revenue
by $1,601,993 in FY 2026 and by FY 2031, this provision could reduce general revenue by
$10,096,835 annually. The estimated impact by year.
Higher Credit AmountTax
Year
Fiscal
Year
RenterHomeownerTotal
20252026($781,080)($820,914)($1,601,993)20262027($1,562,546)($1,641,749)($3,204,295)20272028($2,395,673)($2,499,915)($4,895,588)20282029($3,229,149)($3,358,208)($6,587,358)20292030($4,062,596)($4,253,618)($8,316,214)20302031($4,947,699)($5,149,136)($10,096,835) L.R. No. 0109S.01I
Bill No. SB 101
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Homeownership Rates
Again, using the 2023 PTC claims, DOR determined the percentage of claimants that were
homeowners versus renters. For the purpose of this fiscal note, B&P will assume the potential
newly qualified (under the higher maximum income limits) individuals will follow the same
owner/renter pattern. However, it is likely that as the income limit increases, the homeownership
rate would also increase. This table shows the percentage for each major filing type.
PTC Homeowner vs. RenterFiling TypeHomeownerRenterAge 65+59.7%40.3%Widow(er)67.5%32.5%Disabled22.6%77.4%
Increasing the Maximum Income Limits Impact
Renter
Calendar Year 2025:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $27,500 and $35,000.
145 widow/widower,
40,352 65 years or older
3,790 disabled.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $765 for tax year
2025, DOR determined that no new individuals would qualify for the renter portion of the PTC.
Calendar Year 2026:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $27,500 and $35,700.
160 widow/widower,
43,673 65 years or older,
4,133 disabled L.R. No. 0109S.01I
Bill No. SB 101
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Using the homeowner/renter split discussed above DOR assumes the following could potentially
be renters.
52 widow(er),
17,610 age 65 and older,
3,197 disabled.
Using the estimated increased tax credit amount of $780 for tax year 2026, and no change to the
phase-out formula, DOR was able to that only 6 qualifying widow(er), 2,169 individuals aged 65
and older, and 391 disabled individuals would now qualify for a total increase of filers of 2,566
(76+ 2,169 + 391).
DOR was also able to determine that the average PTC credit these people would receive would
be $15. Therefore, this would result in a loss to general revenue of an additional $38,490 (2,566
x $15) in FY26 from the increase in the maximum upper income limit.
Calendar Year 2027:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $27,500 and $36,414.
173 widow/widower,
46,973 65 years or older,
4,456 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be renters.
56 widow(er),
18,941 age 65 and older,
3,447 disabled.
Using the estimated increased tax credit amount of $796 for tax year 2027, and no change to the
phase-out formula, DOR was able to that only 6 qualifying widow(er), 2,169 individuals aged 65
and older, and 391 disabled individuals would now qualify for a total increase of filers of 2,566
(6+ 2,169 + 391).
DOR was also able to determine that the average PTC credit these people would receive would
be $19. Therefore, this would result in a loss to general revenue of an additional $47,471 (2,566
x $19) in FY27 from the increase in the maximum upper income limit. L.R. No. 0109S.01I
Bill No. SB 101
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Calendar Year 2028:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $27,500 and $37,142.
186 widow/widower,
50,381 65 years or older,
4,766 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be renters.
60 widow(er),
20,315 age 65 and older,
3,687 disabled.
Using the estimated increased tax credit amount of $812 for tax year 2028, and no change to the
phase-out formula, DOR was able to that only 6 qualifying widow(er), 2,169 individuals aged 65
and older, and 391 disabled individuals would now qualify for a total increase of filers of 2,566
(7 + 2,035 + 395).
DOR was also able to determine that the average PTC credit these people would receive would
be $35. Therefore, this would result in a loss to general revenue of an additional $88,527 (2,566
x $35) in FY28 from the increase in the maximum upper income limit.
Calendar Year 2029:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $27,500 and $37,885.
203 widow/widower,
53,891 65 years or older,
5,083 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be renters.
66 widow(er),
21,730 age 65 and older,
3,932 disabled.
Using the estimated increased tax credit amount of $828 for tax year 2029, and no change to the
phase-out formula, DOR was able to that only 6 qualifying widow(er), 2,169 individuals aged 65 L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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and older, and 391 disabled individuals would now qualify for a total increase of filers of 2,566
(6+ 2,169 + 391).
DOR was also able to determine that the average PTC credit these people would receive would
be $38. Therefore, this would result in a loss to general revenue of an additional $96,653 (2,566
x $38) in FY28 from the increase in the maximum upper income limit.
Calendar Year 2030:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $27,500 and $38,643.
223 widow/widower,
57,442 65 years or older,
5,384 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be renters.
72 widow(er),
23,162 age 65 and older,
4,165 disabled.
Using the estimated increased tax credit amount of $845 for tax year 2030, and no change to the
phase-out formula, DOR was able to that only 6 qualifying widow(er), 2,169 individuals aged 65
and older, and 391 disabled individuals would now qualify for a total increase of filers of 2,566
(6 + 2,169 + 391).
DOR was also able to determine that the average PTC credit these people would receive would
be $42. Therefore, this would result in a loss to general revenue of an additional $107,131
(2,169 x $42) in FY30 from the increase in the maximum upper income limit.
Homeowner
Calendar Year 2025:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $30,000 and $38,000.
158 widow/widower,
40,933 65 years or older,
3,800 disabled L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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Using the homeowner/renter split discussed above DOR assumes the following could potentially
be homeowners.
107 widow(er),
24,428 age 65 and older,
860 disabled.
Using the estimated increased tax credit amount of $1,122 for tax year 2025, and no change to
the phase-out formula, DOR was able to that only 13 qualifying widow(er), 3,054 individuals
aged 65 and older, and 108 disabled individuals would now qualify for a total increase of filers
of 3,175 (13+ 3,054 + 108).
DOR was also able to determine that the average PTC credit these people would receive would
be $40. Therefore, this would result in a loss to general revenue of an additional $125,373
(3,174 x $40) in FY25 from the increase in the maximum upper income limit.
Calendar Year 2026:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $30,000 and $38,760.
176 widow/widower,
44,510 65 years or older,
4,126 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be homeowners.
119 widow(er),
26,562 age 65 and older,
934 disabled.
Using the estimated increased tax credit amount of $1,144 for tax year 2025, and no change to
the phase-out formula, DOR was able to that only 13 qualifying widow(er), 3,054 individuals
aged 65 and older, and 108 disabled individuals would now qualify for a total increase of filers
of 3,174 (13 + 3,054 + 108).
DOR was also able to determine that the average PTC credit these people would receive would
be $47. Therefore, this would result in a loss to general revenue of an additional $148,120
(3,174 x $47) in FY26 from the increase in the maximum upper income limit. L.R. No. 0109S.01I
Bill No. SB 101
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Calendar Year 2027:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $30,000 and $39,535.
195 widow/widower,
48,024 65 years or older,
4,457 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be homeowners.
132 widow(er),
28,659 age 65 and older,
1,009 disabled.
Using the estimated increased tax credit amount of $1,167 for tax year 2027, and no change to
the phase-out formula, DOR was able to that only 27 qualifying widow(er), 6,107 individuals
aged 65 and older, and 218 disabled individuals would now qualify for a total increase of filers
of 6,349 (27 + 6,107 + 218).
DOR was also able to determine that the average PTC credit these people would receive would
be $55. Therefore, this would result in a loss to general revenue of an additional $346,021
(6,349 x $55) in FY27 from the increase in the maximum upper income limit.
Calendar Year 2028:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $30,000 and $40,326.
208 widow/widower,
51,710 65 years or older,
4,803 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be homeowners.
140 widow(er),
30,859 age 65 and older,
1,088 disabled.
Using the estimated increased tax credit amount of $1,190 for tax year 2028, and no change to
the phase-out formula, DOR was able to that only 27 qualifying widow(er), 6,107 individuals
aged 65 and older, and 218 disabled individuals would now qualify for a total increase of filers
of 6,349 (27 + 6,107 + 218). L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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DOR was also able to determine that the average PTC credit these people would receive would
be $62. Therefore, this would result in a loss to general revenue of an additional $396,178
(6,349 x $62) in FY28 from the increase in the maximum upper income limit.
Calendar Year 2029:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $30,000 and $41,133.
224 widow/widower,
55,436 65 years or older,
5,134 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be homeowners.
151 widow(er),
33,083 age 65 and older,
1,162 disabled.
Using the estimated increased tax credit amount of $1,214 for tax year 2029, and no change to
the phase-out formula, DOR was able to that only 27 qualifying widow(er), 6,107 individuals
aged 65 and older, and 218 disabled individuals would now qualify for a total increase of filers
of 6,349 (27 + 6,107 + 218).
DOR was also able to determine that the average PTC credit these people would receive would
be $86. Therefore, this would result in a loss to general revenue of an additional $548,554
(6,349 x $86) in FY29 from the increase in the maximum upper income limit.
Calendar Year 2030:
In tax year 2023, there were the following individuals with a Missouri Adjusted Gross Income
(MAGI) between $30,000 and $41,956.
252 widow/widower,
59,141 65 years or older,
5,480 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be homeowners.
170 widow(er),
35,294 age 65 and older,
1,241 disabled.
Using the estimated increased tax credit amount of $1,238 for tax year 2029, and no change to
the phase-out formula, DOR was able to that only 27 qualifying widow(er), 6,107 individuals L.R. No. 0109S.01I
Bill No. SB 101
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aged 65 and older, and 218 disabled individuals would now qualify for a total increase of filers
of 6,349 (27 + 6,107 + 218).
DOR was also able to determine that the average PTC credit these people would receive would
be $95. Therefore, this would result in a loss to general revenue of an additional $604,213 (6,349
x $95) in FY30 from the increase in the maximum upper income limit.
Changes to the Maximum Income Summary
This will result in an impact of:
Higher Maximum Income LimitCalendar
Year
Fiscal
Year
RenterHomeownerTotal
20252026$0 ($125,373)($125,373)20262026($38,490)($148,120)($186,610)20272027($47,471)($346,021)($393,492)20282028($88,527)($396,178)($484,705)20292029($96,653)($548,554)($645,207)20302030($107,131)($604,213)($711,344) L.R. No. 0109S.01I
Bill No. SB 101
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Property Tax Credit Summary
All the changes in this proposal would result in the following impact.
Table 6: Summary of GR ImpactRenterHomeowner
Fiscal
Year
Higher
Income
Increased
Credit
Higher
Income
Increased
Credit
Total GR Loss
2026($38,490)($781,080)($273,493)($820,914)($1,913,976)2027($47,471)($1,562,546)($346,021)($1,641,749)($3,597,787)2028($88,527)($2,395,673)($396,178)($2,499,915)($5,380,293)2029($96,653)($3,229,149)($548,554)($3,358,208)($7,232,565)2030($107,131)($4,062,596)($604,213)($4,253,618)($9,027,558)2031($107,131)($4,947,699)($604,213)($5,149,136)($10,808,179)
DOR will need to change to the MO-PTC & MO-PTS form annually at a cost of $4,400. DOR
will also need to update the Departments’ website and computer programs annually for these
changes at a cost of $1,832. This will result in costs estimated at $6,232 annually.
Oversight assumes the Department of Revenue (DOR) is provided with core funding to handle a
certain amount of activity each year. Oversight assumes DOR could absorb the administrative
costs related to this proposal. If multiple bills pass which require additional staffing and duties at
substantial costs, DOR could request funding through the appropriation process. L.R. No. 0109S.01I
Bill No. SB 101
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Officials from the Office of Administration – Budget & Planning note:
Overview
Section 135.025 would adjust both the renter and owner property tax credit amounts by inflation
beginning with tax year 2025. B&P notes that tax year 2025 PTC claims will be filed beginning
January 2026. Peak PTC claims are January through April each year. Therefore, this provision
will begin affecting state revenues in FY26. For the purpose of this fiscal note, B&P will assume
a 2% average annual inflation rate. Table 1 shows the estimated credit amounts by tax year.
Table 1: PTC CreditTax
Year
Fiscal
Year
RenterHomeowner
Current$750 $1,100 20252026$765 $1,122 20262027$780 $1,144 20272028$796 $1,167 20282029$812 $1,190 20292030$828 $1,214 20302031$845 $1,238 *Assumes 2% average annual
inflation. L.R. No. 0109S.01I
Bill No. SB 101
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Section 135.030 would increase the maximum income allowed for both renters and homeowners.
The maximum renter income would increase to $35,000 and the maximum homeowner income
would increase to $38,000 beginning with calendar year 2025. Both maximum income amounts
will then be adjusted annually for inflation (beginning calendar year 2025). For the purpose of
this fiscal note, B&P will assume a 2% average annual inflation rate. Tables 2 shows the
maximum income limits by tax year
Table 2: Maximum IncomeCalendar
YearRenterHomeowner
Current$27,500 $30,000 2025$35,000 $38,000 2026$35,700 $38,760 2027$36,414 $39,535 2028$37,142 $40,326 2029$37,885 $41,133 2030$38,643 $41,956 *Assumes 2% average annual
inflation.
B&P notes that this provision would not become effective until August 28, 2025. However, the
change would be retroactively applied to all claims filed during calendar year 2025. It is unclear
if individuals would have to amend their original 2025 PTC return or if DOR would be required
to manually adjust every PTC return filed prior to August 28, 2025.
B&P notes that while this proposal would increase the maximum income threshold, it does not
make any changes to the tax credit phase-out calculation in subsection 135.030.2. That
calculation is designed to phase-out the property tax credit to $0 once the current maximum
incomes ($27,500 for renters and $30,000 for owners) have been reached. While increasing the
property tax credits will result in a slightly longer phase-out, the incomes granted credits will fall
well short of the new maximum amounts set in this proposal.
Maximum Credit
Renter
In tax year 2023, 57,945 non-homeowners claimed the PTC, with a maximum possible credit of
$750. B&P notes that the PTC phases-out as an individual’s income increases. This proposal L.R. No. 0109S.01I
Bill No. SB 101
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increases the maximum credit by inflation. For the purpose of this fiscal note, B&P will assume
a 2% average annual inflation rate.
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates
that increasing the PTC credit from $750 to $765 could reduce GR by $781,080 for FY26. By
FY31, increasing the maximum PTC credit from $750 to $845 could reduce GR by $4,947,699.
B&P notes that this estimate does not include a higher average PTC claim for the individuals
discussed under the “maximum upper limit” section. Therefore, increasing the maximum credit
could reduce TSR and GR by more than $4,947,699 by FY31. B&P notes that the annual loss
for years after FY31 will likely exceed this amount as the maximum property tax credit for
renters will continue to be adjusted annually for inflation.
Homeowner
In tax year 2023, 46,135 homeowners claimed the PTC, with a maximum possible credit of
$1,100. B&P notes that the PTC phases-out as an individual’s income increases. This proposal
increases the maximum credit by inflation. For the purpose of this fiscal note, B&P will assume
a 2% average annual inflation rate.
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates
that increasing the PTC credit from $1,100 to $1,122 could reduce GR by $820,914 for FY26.
By FY31, increasing the maximum PTC credit from $1,100 to $1,238 could reduce GR by
$5,149,136.
B&P notes that this estimate does not include a higher average PTC claim for the individuals
discussed under the “maximum upper limit” section. Therefore, increasing the maximum credit
could reduce TSR and GR by more than $5,149,136 by FY31. B&P notes that the annual loss
for years after FY31 will likely exceed this amount as the maximum property tax credit for
homeowners will continue to be adjusted annually for inflation. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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Credit Changes Summary
Based on the above information, B&P estimates that this provision could reduce GR by
$1,601,993 in FY26. By FY31, this provision could reduce GR by $10,096,835 annually. Table
3 shows the estimated impact by year.
Table 3: Higher Credit AmountTax
Year
Fiscal
Year
RenterHomeownerTotal
20252026($781,080)($820,914)($1,601,993)20262027($1,562,546)($1,641,749)($3,204,295)20272028($2,395,673)($2,499,915)($4,895,588)20282029($3,229,149)($3,358,208)($6,587,358)20292030($4,062,596)($4,253,618)($8,316,214)20302031($4,947,699)($5,149,136)($10,096,835)
Homeownership Rates
Using tax year 2023 PTC claims, the most recent year available, B&P determined the percentage
of claimants that were homeowners versus renters. Table 4 shows the percentage for each major
filing type.
Table 4: PTC Homeowner vs. RenterFiling TypeHomeownerRenterAge 65+59.7%40.3%Widow(er)67.5%32.5%Disabled22.6%77.4%
For the purpose of this fiscal note, B&P will assume the potential newly qualified (under the
higher maximum income limits) individuals will follow the same owner/renter pattern. However,
it is likely that as the income limit increases, the homeownership rate would also increase. L.R. No. 0109S.01I
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Maximum Income Limits
Renter
Calendar Year 2025:
In tax year 2023, the most recent complete year available, there were 145 individuals who filed
as qualifying widow/widower, 40,352 individuals who claimed they were 65 years or older, and
3,790 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $27,500 and $35,000.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $765 for tax year
2025, B&P determined that no new individuals would qualify for the renter portion of the PTC.
Calendar Year 2026:
In tax year 2023, the most recent complete year available, there were 160 individuals who filed
as qualifying widow/widower, 43,673 individuals who claimed they were 65 years or older, and
4,133 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $27,500 and $35,700.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 52
of the widow(er), 17,610 age 65 and older, and 3,197 disabled could potentially be renters.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $780 for tax year
2026, B&P determined that only 6 qualifying widow(er), 2,169 individuals aged 65 and older,
and 391 disabled individuals would now qualify. Therefore, B&P estimates that 2,566 additional
people could qualify for the renter PTC in calendar year 2026.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $15. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $38,490 (2,566 x $15) in FY26.
Calendar Year 2027:
In tax year 2023, the most recent complete year available, there were 173 individuals who filed
as qualifying widow/widower, 46,973 individuals who claimed they were 65 years or older, and
4,456 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $27,500 and $36,414.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 56
of the widow(er), 18,941 age 65 and older, and 3,447 disabled could potentially be renters. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $796 for tax year
2027, B&P determined that only 6 qualifying widow(er), 2,169 individuals aged 65 and older,
and 391 disabled individuals would now qualify. Therefore, B&P estimates that 2,566 additional
people could qualify for the renter PTC in calendar year 2027.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $19. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $47,471 (2,566 x $19) in FY27.
Calendar Year 2028:
In tax year 2023, the most recent complete year available, there were 186 individuals who filed
as qualifying widow/widower, 50,381 individuals who claimed they were 65 years or older, and
4,766 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $27,500 and $37,142.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 60
of the widow(er), 20,315 age 65 and older, and 3,687 disabled could potentially be renters.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $812 for tax year
2028, B&P determined that only 6 qualifying widow(er), 2,169 individuals aged 65 and older,
and 391 disabled individuals would now qualify. Therefore, B&P estimates that 2,566 additional
people could qualify for the renter PTC in calendar year 2028.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $35. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $88,527 (2,566 x $35) in FY28.
Calendar Year 2029:
In tax year 2023, the most recent complete year available, there were 203 individuals who filed
as qualifying widow/widower, 53,891 individuals who claimed they were 65 years or older, and
5,083 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $27,500 and $37,885.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 66
of the widow(er), 21,730 age 65 and older, and 3,932 disabled could potentially be renters.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $828 for tax year
2029, B&P determined that only 6 qualifying widow(er), 2,169 individuals aged 65 and older, L.R. No. 0109S.01I
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January 14, 2025
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and 391 disabled individuals would now qualify. Therefore, B&P estimates that 2,566 additional
people could qualify for the renter PTC in calendar year 2029.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $38. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $96,653 (2,566 x $38) in FY29.
Calendar Year 2030:
In tax year 2023, the most recent complete year available, there were 223 individuals who filed
as qualifying widow/widower, 57,442 individuals who claimed they were 65 years or older, and
5,384 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $27,500 and $38,643.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 72
of the widow(er), 23,162 age 65 and older, and 4,165 disabled could potentially be renters.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $845 for tax year
2030, B&P determined that only 6 qualifying widow(er), 2,169 individuals aged 65 and older,
and 391 disabled individuals would now qualify. Therefore, B&P estimates that 2,566 additional
people could qualify for the renter PTC in calendar year 2030.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $42. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $107,131 (2,566 x $42) in FY30.
Homeowner
Calendar Year 2025:
In tax year 2023, the most recent complete year available, there were 158 individuals who filed
as qualifying widow/widower, 40,933 individuals who claimed they were 65 years or older, and
3,800 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $30,000 and $38,000.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 107
of the widow(er), 24,428 age 65 and older, and 860 disabled could potentially be homeowners.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $1,122 for tax year
2025, B&P determined that only 13 qualifying widow(er), 3,054 individuals aged 65 and older,
and 108 disabled individuals would now qualify. Therefore, B&P estimates that 3,174 additional
people could qualify for the homeowner PTC in calendar year 2025. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $40. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $125,373 (3,174 x $40) in FY25.
Calendar Year 2026:
In tax year 2023, the most recent complete year available, there were 176 individuals who filed
as qualifying widow/widower, 44,510 individuals who claimed they were 65 years or older, and
4,126 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $30,000 and $38,760.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 119
of the widow(er), 26,562 age 65 and older, and 934 disabled could potentially be homeowners.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $1,144 for tax year
2026, B&P determined that only 13 qualifying widow(er), 3,054 individuals aged 65 and older,
and 108 disabled individuals would now qualify. Therefore, B&P estimates that 3,174 additional
people could qualify for the homeowner PTC in calendar year 2026.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $47. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $148,120 (3,174 x $47) in FY26.
Calendar Year 2027:
In tax year 2023, the most recent complete year available, there were 195 individuals who filed
as qualifying widow/widower, 48,024 individuals who claimed they were 65 years or older, and
4,457 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $30,000 and $39,535.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 132
of the widow(er), 28,659 age 65 and older, and 1,009 disabled could potentially be homeowners.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $1,167 for tax year
2027, B&P determined that only 27 qualifying widow(er), 6,107 individuals aged 65 and older,
and 218 disabled individuals would now qualify. Therefore, B&P estimates that 6,349 additional
people could qualify for the homeowner PTC in calendar year 2027.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $55. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $346,021 (6,349 x $55) in FY27. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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Calendar Year 2028:
In tax year 2023, the most recent complete year available, there were 208 individuals who filed
as qualifying widow/widower, 51,710 individuals who claimed they were 65 years or older, and
4,803 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $30,000 and $40,326.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 140
of the widow(er), 30,859 age 65 and older, and 1,088 disabled could potentially be homeowners.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $1,190 for tax year
2028, B&P determined that only 27 qualifying widow(er), 6,107 individuals aged 65 and older,
and 218 disabled individuals would now qualify. Therefore, B&P estimates that 6,349 additional
people could qualify for the homeowner PTC in calendar year 2028.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $62. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $396,178 (6,349 x $62) in FY28.
Calendar Year 2029:
In tax year 2023, the most recent complete year available, there were 224 individuals who filed
as qualifying widow/widower, 55,436 individuals who claimed they were 65 years or older, and
5,134 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $30,000 and $41,133.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 151
of the widow(er), 33,083 age 65 and older, and 1,162 disabled could potentially be homeowners.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $1,214 for tax year
2029, B&P determined that only 27 qualifying widow(er), 6,107 individuals aged 65 and older,
and 218 disabled individuals would now qualify. Therefore, B&P estimates that 6,349 additional
people could qualify for the homeowner PTC in calendar year 2029.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $86. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $548,554 (6,349 x $86) in FY29.
Calendar Year 2030:
In tax year 2023, the most recent complete year available, there were 252 individuals who filed
as qualifying widow/widower, 59,141 individuals who claimed they were 65 years or older, and L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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5,480 individuals who claimed they were disabled on their individual income tax forms and had
a Missouri Adjusted Gross Income (MAGI) between $30,000 and $41,956.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 170
of the widow(er), 35,294 age 65 and older, and 1,241 disabled could potentially be homeowners.
However, as noted above this proposal does not change the tax credit phase-out calculation under
subsection 135.030.2. Using the estimated increased tax credit amount of $1,238 for tax year
2030, B&P determined that only 27 qualifying widow(er), 6,107 individuals aged 65 and older,
and 218 disabled individuals would now qualify. Therefore, B&P estimates that 6,349 additional
people could qualify for the homeowner PTC in calendar year 2030.
In addition, based slower phase out from the higher tax credit amount, B&P estimates that the
average PTC credit for these individuals would be $95. Therefore, B&P estimates that increase
the maximum income limit for renters could reduce GR by $604,213 (6,349 x $95) in FY30.
Maximum Income Changes Summary
B&P estimates that increasing the maximum income limits could reduce GR by $311,983 in
FY26. B&P notes that the maximum income threshold is increased for calendar year 2025 but
will not become effective until after the start of FY26. Therefore, the FY26 impact includes both
the changes made in calendar year 2025 and 2026.
By FY30, this provision could reduce GR by $711,344 annually. Table 5 shows the estimated
impact by year.
Table 5: Higher Maximum Income LimitCalendar
Year
Fiscal
Year
RenterHomeownerTotal
20252026$0 ($125,373)($125,373)20262026($38,490)($148,120)($186,610)20272027($47,471)($346,021)($393,492)20282028($88,527)($396,178)($484,705)20292029($96,653)($548,554)($645,207)20302030($107,131)($604,213)($711,344) L.R. No. 0109S.01I
Bill No. SB 101
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Property Tax Credit Summary
B&P estimates that this proposal could reduce GR by $1,913,976 in FY26. By FY31, this
provision could reduce GR by $10,808,179. Table 6 shows the impact by fiscal year.
Table 6: Summary of GR ImpactRenterHomeowner
Fiscal
Year
Higher
Income
Increased
Credit
Higher
Income
Increased
Credit
Total GR Loss
2026($38,490)($781,080)($273,493)($820,914)($1,913,976)2027($47,471)($1,562,546)($346,021)($1,641,749)($3,597,787)2028($88,527)($2,395,673)($396,178)($2,499,915)($5,380,293)2029($96,653)($3,229,149)($548,554)($3,358,208)($7,232,565)2030($107,131)($4,062,596)($604,213)($4,253,618)($9,027,558)2031($107,131)($4,947,699)($604,213)($5,149,136)($10,808,179)
Officials from the State Tax Commission (STC) 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 STC.
Officials from the City of Kansas City assume the proposal will have no fiscal impact on their
organization.
Oversight will note the redemptions could be substantially lower or exceed the estimates
provided by B&P and DOR each year thereafter depending on the increase or decrease in
homeowners and renters applying for the tax credit, future CPI adjustments, or home versus rent
pattern behaviors in the markets.
Oversight notes that the B&P and DOR calculations are identical, therefore, Oversight will note
the B&P & DOR estimated impact in the fiscal note. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUND Cost – Property Tax Credit – Sections
135.025 & 135.030
(pages 12 & 22)
More or
Less than
($1,913,176)
More or
Less than
($3,597,787)
More or
Less than
($5,380,293)
NET EFFECT ON THE GENERAL
REVENUE FUND
More or
Less than
($1,913,176)
More or
Less than
($3,597,787)
More or
Less than
($5,380,293)
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Current law authorizes an income tax credit for certain senior citizens and disabled veterans in
amount equal to a portion of such taxpayer's property tax liabilities, not to exceed $750 in rent
constituting property taxes actually paid or $1,100 in actual property tax paid. This act annually
adjusts such maximum amounts for inflation. (Section 135.025)
Additionally, current law limits the tax credit to qualifying taxpayers with an income of $27,500
or less, or $30,000 in the case of a homestead owned and occupied by a claimant for the entire
year. This act increases such maximum income to $35,000, or $38,000 in the case of a
homestead owned and occupied by a claimant for the entire year and annually adjusts both
amounts for inflation. (Section 135.030)
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 0109S.01I
Bill No. SB 101
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January 14, 2025
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SOURCES OF INFORMATION
Department of Revenue
Office of Administration – Budget & Planning
City of Kansas City
State Tax Commission
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 14, 2025January 14, 2025