COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0109S.02C Bill No.:SCS for SB Nos. 101 & 64Subject:Tax Credits; Taxation and Revenue - Property Type:Original Date:March 4, 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
($72,061,901)
More or
Less than
($77,895,120)
More or
Less than
($84,243,356)
Total Estimated Net
Effect on General
Revenue
More or
Less than
($72,061,901)
More or
Less than
($77,895,120)
More or
Less than
($84,243,356)
*Oversight reflects estimates from DOR & B&P for Section(s) 135.010, 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.02C
Bill No. SCS for SB Nos. 101 & 64
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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.02C
Bill No. SCS for SB Nos. 101 & 64
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FISCAL ANALYSIS
ASSUMPTION
Sections 135.010, 135.025 & 135.030 “Circuit Breaker”
Officials from the Department of Revenue (DOR) note:
Background of Current PTC Program
This proposal attempts to make 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 says that most of the modifications of the property tax credit will begin on January
1, 2026. DOR notes that the majority of the PTC tax returns are received in their office between
January and April of each year. DOR assume that the changes made by this proposal would fully
impact FY 2026.
Proposed Changes
This proposal would increase the income allowance for PTC claimants by $800 for renters who
are married (filing combined) and $1,800 for homeowners who are married (filing combined)
starting with calendar year 2026.
This proposal would increase the maximum PTC credit amount for renters and homeowners.
Renters would increase from $750 to $1,055 and homeowners would increase from $1,100 to L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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$1,550 starting with calendar year 2026. Additionally, this proposal allows this credit amount to
be adjusted annually by the CPI. For fiscal note purposes, DOR uses a 2% inflation factor
annually.
PTC CreditCalendar
YearRenterHomeowner
Current$750 $1,100 2026$1,055 $1,550 2027$1,076 $1,581 2028$1,098 $1,613 2029$1,120 $1,645 2030$1,142 $1,678 *Assumes 2% average annual
inflation.
This proposal also increases the maximum income limits allowed to qualify for the PTC.
However, it limits the PTC to those with a filing status of “single” or “married filing combined”.
Therefore, those who check the “married filing separate” box and those that do not check a box
will no longer be eligible for the PTC credit.
Maximum Income by Filing Status
Filing StatusOwn/Rent
2026 Max
Income
Rent$38,200
Single
Own$42,200 Rent$41,000
Married Filing
Combined
Own$48,000 Married Filing
Separate
No longer qualifies
OtherNo longer qualifies L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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In tax year 2023, there were 1,280 individuals who filed a PTC claim with a filing status other
than single or married filing combined. They claimed $798,801 and therefore, this would result
in a savings to general revenue of these filers no longer being eligible for the PTC credit.
In addition to increasing the PTC maximum income limit, this proposal starting January 1, 2027,
will allow the maximum limit to be increased annually by the CPI. For fiscal note purposes,
DOR uses a 2% inflation factor. Therefore, DOR can expect the incomes to increase as follows:
Maximum IncomeRenterHomeowner
Calendar
Year
SingleMarriedSingleMarried Current$27,500 $30,000 2026$38,200 $42,200 $41,000 $48,000 2027$38,964 $43,044 $41,820 $48,960 2028$39,743 $43,905 $42,656 $49,939 2029$40,538 $44,783 $43,509 $50,938 2030$41,349 $45,679 $44,379 $51,957 *Assumes 2% average annual inflation.
DOR notes that the PTC credit is calculated using a formula that takes into account that as an
individual’s income rises the amount of the credit, they are eligible for decreases. Currently for
every $300 increase in income the tax credit amount given decreases $25.
This proposal increases the phase-out increments used when running the calculation. It increases
the income limit from $300 to $495 and then allows it to be inflation adjusted in future fiscal
years. DOR uses a 2% inflation factor for fiscal note purposes.
This proposal also changes the formula to cap the tax credit reduction to 2%. Currently the
credit is reduced by 1/16% for each $300 increment for a maximum reduction of 4%. This
would change the $300 to $495 and change the 4% to 2%. Under current law, the reduction cap
is not met however, this proposal would limit both the renters and homeowners. After 32
reductions the maximum tax credit allowed would remain constant. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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PTC Phase-Out IncrementsCalendar
Year
Income
Increment
Phase-
Out Cap
Current$300 4%2026$495 2%2027$505 2%2028$515 2%2029$525 2%2030$536 2%*Assumes 2% average annual
inflation.
Impact of Maximum Credit and Slower Credit Phase-Out (Formula Changes)
Increasing the maximum credit and making changes to how the formula calculates the amount of
credit each person gets will impact the current filers of the program. If no additional people were
allowed in the program, this is the impact to the current filers from the changes in this proposal.
Single Renters
In tax year 2023, there were 28,534 single renters who claimed the PTC with a maximum credit
of $750. With this proposal increasing the amount of the credit from $750 to $1,055 and
increasing the phase-out income limit from $300 to $495 and changing the cap reduction to 2%
DOR can expect an increase in the amount of credits paid out over the next several years.
Single-Renters (Change in PTC formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$750$3004%$02026$1,055$4952%($6,886,188)2027$1,076$5052%($7,329,438)2028$1,098$5152%($7,794,365)2029$1,120$5252%($8,258,759)2030$1,142$5362%($8,721,689) L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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DOR notes that because the credit cap and income increments keep being inflated in future years,
this will continue to have an increasing impact on general revenue. Additionally, these changes
are about the formula only and do not include the changes made to the maximum upper limit.
Married Filing Combined Renters
In tax year 2023, there were 1,207 married filing combined renters claiming the PTC with a
maximum credit of $750. With this proposal increasing the amount of the credit from $750 to
$1,055 and increasing the phase-out limit from $300 to $495 and changing the cap reduction to
2% DOR can expect an increase in the amount of credits paid out over the next several years.
Married Filing Combined - Renters (Change in Formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$750$3004%$02026$1,055$4952%($282,043)2027$1,076$5052%($299,482)2028$1,098$5152%($317,878)2029$1,120$5252%($336,175)2030$1,142$5362%($354,367)
DOR notes that because the credit cap and income increments keep being inflated in future years,
this will continue to have an increasing impact on general revenue. Additionally, these changes
are about the formula only and do not include the changes made to the maximum upper limit.
Single Homeowners
In tax year 2023, there were 28,778 single homeowners who claimed the PTC with a maximum
credit of $1,100. With this proposal increasing the amount of the credit from $1,100 to $1,550
and increasing the phase-out income limit from $300 to $495 and changing the cap reduction to
2% DOR can expect an increase in the amount of credits paid out over the next several years.
Single-Homeowners (Change in PTC formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$1,100$3004%$02026$1,550$4952%($8,160,188) L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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2027$1,581$5052%($8,642,843)2028$1,613$5152%($9,142,232)2029$1,645$5252%($9,642,369)2030$1,678$5362%($10,153,312)
DOR notes that because the credit cap and income increments keep being inflated in future years,
this will continue to have an increasing impact on general revenue. Additionally, these changes
are about the formula only and do not include the changes made to the maximum upper limit.
Married Filing Combined Homeowners
In tax year 2023, there were 5,682 married filing combined homeowners who claimed the PTC
with a maximum credit of $1,100. With this proposal increasing the amount of the credit from
$1,100 to $1,550 and increasing the phase-out income limit from $300 to $495 and changing the
cap reduction to 2% DOR can expect an increase in the amount of credits paid out over the next
several years.
Married Filing Combined-Homeowners (Change in PTC formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$1,100$3004%$02026$1,550$4952%($1,630,249)2027$1,581$5052%($1,727,696)2028$1,613$5152%($1,828,470)2029$1,645$5252%($1,929,242)2030$1,678$5362%($2,032,715)
DOR notes that because the credit cap and income increments keep being inflated in future years,
this will continue to have an increasing impact on general revenue. Additionally, these changes
are about the formula only and do not include the changes made to the maximum upper limit. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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Credit and Formula Changes Summary
The changes to the amount of the credit allowed and the formula would result in the following
impact to general revenue:
Higher Credit and Slower Phase-Out
RenterHomeowner
Tax
Year
SingleMarriedSingleMarried
Total
2026($6,886,188)($282,043)($8,160,188)($1,630,249)($16,958,668)2027($7,329,438)($299,482)($8,642,843)($1,727,696)($17,999,459)2028($7,794,365)($317,878)($9,142,232)($1,828,470)($19,082,945)2029($8,258,759)($336,175)($9,642,369)($1,929,242)($20,166,545)2030($8,721,689)($354,367)($10,153,312)($2,032,715)($21,262,083)
Impact from Change in Maximum Upper Limit
Increasing the maximum upper limit will allow additional people to qualify for the credit that
currently do not qualify. Using the individual income tax system, DOR is able to determine the
number of additional people that would qualify with an income fitting the new limits in the
proposal. Adding these new people into the program will result in the following impact.
Since DOR does not know how many of these additional people are homeowners and renters,
DOR pulled the tax year 2023 PTC claims and found the current percentage of homeowners and
renters.
PTC Homeowner vs. RenterFiling TypeHomeownerRenterAge 65+59.7%40.3%Widow(er)67.5%32.5%Disabled22.6%77.4%
While DOR notes as incomes rise, there is a likely hood more people will own their home rather
than rent, it is unclear how would DOR could calculate that. For the simplicity of the fiscal note, L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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DOR will use this same split for the new people being added under this proposal as the current
split.
Single Renters
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $38,200 who filed as a single filer.
218 widow/widower,
29,700 65 years or older,
1,504 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
71 widow(er),
11,976 age 65 and older,
1,163 disabled.
13,210 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $458. Therefore, this could result in an
increased loss to general revenue of $6,044,175 ($458 credit * 13,210 new filers) in FY 2026.
2027
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $38,964 who filed as a single filer.
236 widow/widower,
31,685 65 years or older,
1,603 disabled L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
77 widow(er),
12,776 age 65 and older,
1,240 disabled.
14,093 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $472. Therefore, this could result in an
increased loss to general revenue of $6,648,693 ($472 credit * 14,093 new filers) in FY 2027.
2028
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $39,743 who filed as a single filer.
254 widow/widower,
33,670 65 years or older,
1,701 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
82 widow(er),
13,577 age 65 and older,
1,316 disabled.
14,975 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $493. Therefore, this could result in an
increased loss to general revenue of $7,377,059 ($493 credit * 14,975 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $40,538 who filed as a single filer.
264 widow/widower,
35,814 65 years or older,
1,788 disabled L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
86 widow(er),
14,441 age 65 and older,
1,383 disabled.
15,910 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $514. Therefore, this could result in an
increased loss to general revenue of $8,175,292 ($514 credit * 15,910 new filers) in FY 2029.
2030
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $41,349 who filed as a single filer.
286 widow/widower,
37,910 65 years or older,
1,892 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
93 widow(er),
15,286 age 65 and older,
1,464 disabled.
16,843 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $528. Therefore, this could result in an
increased loss to general revenue of $8,898,095 ($528 credit * 16,843 new filers) in FY 2030.
DOR notes that the annual loss will continue past FY 2030 due to the inflation rate continuing
into the future. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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Married Filing Combined Renters
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $41,000 who filed as a married filing combined
filer.
32,070 65 years or older,
4,598 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
12,932 age 65 and older,
3,557 disabled.
16,489 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $455. Therefore, this could result in an
increased loss to general revenue of $7,506,159 ($455 credit * 16,489 new filers) in FY 2026.
2027
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $41,820 who filed as a married filing combined
filer.
33,738 65 years or older,
4,852 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
13,604 age 65 and older,
3,753 disabled.
17,357 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $469. Therefore, this could result in an
increased loss to general revenue of $8,141,053 ($469 credit * 17,357 new filers) in FY 2027. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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2028
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $42,656 who filed as a married filing combined
filer.
35,360 65 years or older,
5,115 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
14,258 age 65 and older,
3,957 disabled.
18,215 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $490. Therefore, this could result in an
increased loss to general revenue of $8,917,813 ($490 credit * 18,215 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $43,509 who filed as a married filing combined
filer.
37,115 65 years or older,
5,356 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
14,966 age 65 and older,
4,143 disabled.
19,109 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $510. Therefore, this could result in an
increased loss to general revenue of $9,748,672 ($510 credit * 19,109 new filers) in FY 2029. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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2030
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $44,379 who filed as a married filing combined
filer.
38,886 65 years or older,
5,576 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the renters.
15,680 age 65 and older,
4,313 disabled.
19,993 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $526. Therefore, this could result in an
increased loss to general revenue of $10,517,651 ($526 credit * 19,993 new filers) in FY 2030.
Single Homeowners
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $42,200 who filed as a single filer.
263 widow/widower
32,775 65 years or older,
1,591 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
178 widow/widower
19,559 age 65 and older,
360 disabled.
20,097 total new filers L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $940. Therefore, this could result in an
increased loss to general revenue of $18,891,180 ($940 credit * 20,097 new filers) in FY 2026.
2027
Using the most current year data, there are the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $43,044 who filed as a single filer.
284 widow/widower
34,960 65 years or older,
1,668 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
192 widow/widower
20,863 age 65 and older,
378 disabled.
21,433 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $964. Therefore, this could result in an
increased loss to general revenue of $20,661,412 ($964 credit * 21,433 new filers) in FY 2027.
2028
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $43,905 who filed as a single filer.
300 widow/widower
37,083 65 years or older,
1,748 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
203 widow/widower
22,130 age 65 and older,
396 disabled.
22,729 total new filers L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $990. Therefore, this could result in an
increased loss to general revenue of $22,501,710 ($990 credit * 22,729 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $44,783 who filed as a single filer.
321 widow/widower
39,278 65 years or older,
1,828 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
217 widow/widower
23,440 age 65 and older,
414 disabled.
24,071 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $1,017. Therefore, this could result in an
increased loss to general revenue of $24,481,067 ($1,017 credit * 24,071 new filers) in FY 2029.
2030
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $45,679 who filed as a single filer.
338 widow/widower
41,497 65 years or older,
1,915 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
228 widow/widower
24,764 age 65 and older,
434 disabled.
25,426 total new filers L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $1,043. Therefore, this could result in an
increased loss to general revenue of $26,520,195 ($1,043 credit * 25,426 new filers) in FY 2030.
Married Filing Combined Homeowners
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $48,000 who filed as a married filing combined
filer.
39,688 65 years or older,
5,622 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
23,685 age 65 and older,
1,273 disabled.
24,958 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $940. Therefore, this could result in an
increased loss to general revenue of $23,460,520 ($940 credit * 24,958 new filers) in FY 2026.
2027
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $48,960 who filed as a married filing combined
filer.
41,641 65 years or older,
5,899 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
24,850 age 65 and older,
1,336 disabled.
26,186 total new filers L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 19 of 42
March 4, 2025
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In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $964. Therefore, this could result in an
increased loss to general revenue of $25,243,304 ($964 credit * 26,186 new filers) in FY 2027.
2028
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $49,939 who filed as a married filing combined
filer.
43,629 65 years or older,
6,181 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
26,037 age 65 and older,
1,400 disabled.
27,437 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $990. Therefore, this could result in an
increased loss to general revenue of $27,162,630 ($990 credit * 27,437 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $50,938 who filed as a married filing combined
filer.
45,627 65 years or older,
6,476 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
27,229 age 65 and older,
1,466 disabled.
28,695 total new filers L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
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March 4, 2025
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In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $1,017. Therefore, this could result in an
increased loss to general revenue of $29,174,924 ($1,017 credit * 28,695 new filers) in FY 2029.
2030
Using the most current year data, there were the following individuals with a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $51,957 who filed as a married filing combined
filer.
47,730 65 years or older,
6,775 disabled
Using the homeowner/renter split discussed above DOR assumes the following could potentially
be the homeowners.
28,484 age 65 and older,
1,534 disabled.
30,018 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the
average PTC credit for these additional people may be $1,043. Therefore, this could result in an
increased loss to general revenue of $31,301,270 ($1,043 credit * 30,018 new filers) in FY 2030.
DOR notes that the annual loss will continue to increase given the inflation factor language. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 21 of 42
March 4, 2025
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Maximum Upper Limit Summary
Adding the additional people to the PTC program will result in the following impact:
Higher Maximum Income Limit
RenterHomeowner
Tax
Year
SingleMarriedSingleMarried
Total
2026($6,044,175)($7,506,159)($18,891,180)($23,460,520)($55,902,034)2027($6,648,693)($8,141,053)($20,661,412)($25,243,304)($60,694,462)2028($7,377,059)($8,917,813)($22,501,710)($27,162,630)($65,959,212)2029($8,175,292)($9,748,672)($24,481,067)($29,174,924)($71,579,955)2030($8,898,095)($10,517,651)($26,520,195)($31,301,270)($77,237,211)
Total Bill Summary
All the changes in this proposal will result in the following impact.
Table 8: Summary of GR ImpactRenterHomeowner
Fiscal
Year
No
Longer
Qualify
Higher
Income
Increased
Credit
Higher
Income
Increased
Credit
Total GR
Loss
2026$798,801 ($13,550,334)($7,168,231)($42,351,700)($9,790,437)($72,061,901)2027$798,801 ($14,789,746)($7,628,920)($45,904,716)($10,370,539)($77,895,120)2028$798,801 ($16,294,872)($8,112,243)($49,664,340)($10,970,702)($84,243,356)2029$798,801 ($17,923,964)($8,594,934)($53,655,991)($11,571,611)($90,947,699)2030$798,801 ($19,415,746)($9,076,056)($57,821,465)($12,186,027)($97,700,493)
This will require website changes, form changes ($2,200) and changes to DOR’s individual
income tax computer systems ($7,327). These changes will need to occur each year and
estimated to cost $9,527 annually. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 22 of 42
March 4, 2025
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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.
Officials from the Office of Administration – Budget & Planning note:
This proposal would make multiple changes to the property tax credit (PTC).
Section 135.010 would increase the income allowance for PTC claimants by $800 for renters
who are married (filing combined) and $1,800 for homeowners who are married (filing
combined) starting with calendar year 2026. B&P notes that because this provision is effective
for calendar year 2026, it will begin affecting state revenues in FY26 as annual PTC claims are
filed beginning in January. B&P further notes that the peak PTC claims are January through
April each year.
Section 135.025 would increase the maximum PTC credit amount. Section 135.030.1 would
increase the maximum income limits allowed to qualify for the PTC. Section 135.030.2 would
increase the phase-out increments, used when calculating the PTC credit based on an individual’s
income. B&P notes that because these provisions are effective for calendar year 2026, they will
begin affecting state revenues in FY26 as annual PTC claims are filed beginning in January.
B&P further notes that the peak PTC claims are January through April each year. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 23 of 42
March 4, 2025
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Section 135.025 would increase the renter credit from $750 (current law) to $1,055 and the
homeowner credit from $1,100 (current law) to $1,555 starting with calendar year 2026.
Beginning calendar year 2027, the tax credit amounts shall be adjusted annually by CPI-U for the
Midwest Region. For the purpose of this fiscal note, B&P will assume a 2% average annual
inflation rate. Table 1 shows the estimated credit amount over time.
Table 1: PTC CreditCalendar
YearRenterHomeowner
Current$750 $1,100 2026$1,055 $1,550 2027$1,076 $1,581 2028$1,098 $1,613 2029$1,120 $1,645 2030$1,142 $1,678 *Assumes 2% average annual
inflation.
Section 135.030.1 would increase the maximum upper income allowed to claim the PTC,
depending on a taxpayer’s filing status. Beginning calendar year 2026 the maximum limits shall
be:
Table 2: Maximum Income by Filing Status
Filing StatusOwn/Rent
2026 Max
Income
Own$42,200
Single
Rent$38,200 Own$48,000
Married Filing
Combined
Rent$41,000 Married Filing SeparateNo longer qualifiesOtherNo longer qualifies L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 24 of 42
March 4, 2025
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B&P notes that the language in this proposal sets new maximum income levels explicitly for
taxpayers with either a single or married filing combined status. Therefore, this language
excludes all other filing status types, such as married filing separate or individuals that do not
indicate a filing status.
In tax year 2023, there were 1,280 individual who filed the PTC with a filing status other than
single or married filing combined, for total credit claims of $798,801. Therefore, this provision
will increase GR by $798,801 starting with FY26.
Beginning January 1, 2027, the maximum income limits shall be adjusted annually for inflation
using CPI-U. For the purpose of this fiscal note, B&P will assume a 2% average annual inflation
rate. Tables 3 shows the maximum income limits by tax year.
Table 3: Maximum IncomeRenterHomeowner
Calendar
Year
SingleMarriedSingleMarried Current$27,500 $30,000 2026$38,200 $42,200 $41,000 $48,000 2027$38,964 $43,044 $41,820 $48,960 2028$39,743 $43,905 $42,656 $49,939 2029$40,538 $44,783 $43,509 $50,938 2030$41,349 $45,679 $44,379 $51,957 *Assumes 2% average annual inflation.
Section 135.025.2 would increase the phase-out income increments from $300 (current law) to
$495 beginning with calendar year 2026. The income increment amounts shall the be adjusted
annually for inflation using CPI-U. B&P notes that this proposal does not state when such
inflation adjustments shall occur. For the purpose of this fiscal note, B&P assumes that the
adjustments will occur at the same time as other inflation adjustments contained within this
proposal. B&P will assume a 2% average annual inflation rate.
Section 135.030.3 caps the reduction in the tax credit to 2%. B&P notes that under current law,
the tax credit is reduced by (1/16)% for each $300 increase in a taxpayer’s income, with a
maximum reduction of 4.0%. This proposal would change the reduction calculation to (1/16%)
for every $495 (adjusted for inflation) increase in a taxpayer’s income, with a maximum
reduction of 2.0%. B&P further notes that under current law, the reduction cap is never met with
the existing income limits; however, the 2% reduction limit would be binding for both renters L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 25 of 42
March 4, 2025
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and homeowners. Therefore, after 32 reductions the minimum tax credit, based on property tax
paid, will remain a constant amount.
Table 4: PTC Phase-Out IncrementsCalendar
Year
Income
Increment
Phase-Out
Cap
Current$300 4%2026$495 2%2027$505 2%2028$515 2%2029$525 2%2030$536 2%*Assumes 2% average annual inflation.
Maximum Credit and Slower Credit Phase-Out
Single – Renter
In tax year 2023, 28,534 single renters 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
slows and limits the income phase-out.
2026
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 $1,055, increasing the phase-out limit from $300 to
$495, and capping the credit value reduction at 2% could reduce GR by $6,886,188 beginning
FY26.
2027
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 $1,076, increasing the phase-out limit from $300 to
$505, and capping the credit value reduction at 2% could reduce GR by $7,329,438 beginning
FY27.
2028
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 $1,098, increasing the phase-out limit from $300 to L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 26 of 42
March 4, 2025
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$515, and capping the credit value reduction at 2% could reduce GR by $7,794,365 beginning
FY28.
2029
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 $1,120, increasing the phase-out limit from $300 to
$525, and capping the credit value reduction at 2% could reduce GR by $8,258,759 beginning
FY29.
2030
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 $1,142, increasing the phase-out limit from $300 to
$536, and capping the credit value reduction at 2% could reduce GR by $8,721,689 beginning
FY30.
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 GR by more than the estimates discussed above.
Married, Filing Combined – Renter
In tax year 2023, 1,207 married, filing combined, renters 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 slows and limits the income phase-out.
2026
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 $1,055, increasing the phase-out limit from $300 to
$495, and capping the credit value reduction at 2% could reduce GR by $282,043 beginning
FY26.
2027
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 $1,076, increasing the phase-out limit from $300 to
$505, and capping the credit value reduction at 2% could reduce GR by $299,482 beginning
FY27.
2028
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 $1,098, increasing the phase-out limit from $300 to L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 27 of 42
March 4, 2025
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$515, and capping the credit value reduction at 2% could reduce GR by $317,878 beginning
FY28.
2029
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 $1,120, increasing the phase-out limit from $300 to
$525, and capping the credit value reduction at 2% could reduce GR by $336,175 beginning
FY29.
2030
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 $1,142, increasing the phase-out limit from $300 to
$536, and capping the credit value reduction at 2% could reduce GR by $354,367 beginning
FY30.
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 GR by more than the estimates discussed above.
Single – Homeowner
In tax year 2023, 28,778 single 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 slows and limits the income phase-out.
2026
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 $1,550, increasing the phase-out limit from $300 to
$495, and capping the credit value reduction at 2% could reduce GR by $8,160,188 beginning
FY26.
2027
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 $1,581, increasing the phase-out limit from $300 to
$505, and capping the credit value reduction at 2% could reduce GR by $8,642,843 beginning
FY27.
2028
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 $1,613, increasing the phase-out limit from $300 to L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 28 of 42
March 4, 2025
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$515, and capping the credit value reduction at 2% could reduce GR by $9,142,232 beginning
FY28.
2029
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 $1,645, increasing the phase-out limit from $300 to
$525, and capping the credit value reduction at 2% could reduce GR by $9,642,369 beginning
FY29.
2030
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 $1,678, increasing the phase-out limit from $300 to
$536, and capping the credit value reduction at 2% could reduce GR by $10,153,312 beginning
FY30.
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 GR by more than the estimates discussed above.
Married, Filing Combined – Homeowner
In tax year 2023, 5,682 married, filing combined, 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 slows and limits the income phase-out.
2026
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 $1,550, increasing the phase-out limit from $300 to
$495, and capping the credit value reduction at 2% could reduce GR by $1,630,249 beginning
FY26.
2027
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 $1,581, increasing the phase-out limit from $300 to
$505, and capping the credit value reduction at 2% could reduce GR by $1,727,696 beginning
FY27.
2028
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 $1,613, increasing the phase-out limit from $300 to L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 29 of 42
March 4, 2025
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$515, and capping the credit value reduction at 2% could reduce GR by $1,828,470 beginning
FY28.
2029
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 $1,645, increasing the phase-out limit from $300 to
$525, and capping the credit value reduction at 2% could reduce GR by $1,929,242 beginning
FY29.
2030
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 $1,678, increasing the phase-out limit from $300 to
$536, and capping the credit value reduction at 2% could reduce GR by $2,032,715 beginning
FY30.
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 GR by more than the estimates discussed above.
Credit Changes Summary
Based on the above information, B&P estimates that this provision could reduce GR by more
than $16,958,668 ($7,168,231 renters + $9,790,437 homeowners) beginning FY26. By FY30,
this provision could reduce GR by more than $21,262,083 ($9,076,056 renters + $12,186,027
homeowners). Table 5 shows the estimated impact by filing and owning status.
Table 5: Higher Credit and Slower Phase-OutRenterHomeowner
Calendar
Year
Fiscal
Year
SingleMarriedSingleMarried
Total
20262026($6,886,188)($282,043)($8,160,188)($1,630,249)($16,958,668)20272027($7,329,438)($299,482)($8,642,843)($1,727,696)($17,999,459)20282028($7,794,365)($317,878)($9,142,232)($1,828,470)($19,082,945)20292029($8,258,759)($336,175)($9,642,369)($1,929,242)($20,166,545)20302030($8,721,689)($354,367)($10,153,312)($2,032,715)($21,262,083) L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 30 of 42
March 4, 2025
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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 6 shows the percentage for each major
filing type.
Table 6: 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.
Maximum Income Limits
Single – Renter
2026
In tax year 2023, the most recent complete year available, there were 218 individuals who filed
as qualifying widow/widower, 29,700 individuals who claimed they were 65 years or older, and
1,504 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $38,200.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 71
of the widow(er), 11,976 age 65 and older, and 1,163 disabled could potentially be renters.
Therefore, B&P estimates that 13,210 additional people could qualify for the renter PTC in
calendar year 2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $458. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce GR by $6,044,175
(13,210 x $458) in FY26. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 31 of 42
March 4, 2025
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2027
In tax year 2023, the most recent complete year available, there were 236 individuals who filed
as qualifying widow/widower, 31,685 individuals who claimed they were 65 years or older, and
1,603 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $38,964.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 77
of the widow(er), 12,776 age 65 and older, and 1,240 disabled could potentially be renters.
Therefore, B&P estimates that 14,093 additional people could qualify for the renter PTC in
calendar year 2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $472. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$6,648,693 (14,093 x $472) in FY27.
2028
In tax year 2023, the most recent complete year available, there were 254 individuals who filed
as qualifying widow/widower, 33,670 individuals who claimed they were 65 years or older, and
1,701 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $39,743.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 82
of the widow(er), 13,577 age 65 and older, and 1,316 disabled could potentially be renters.
Therefore, B&P estimates that 14,975 additional people could qualify for the renter PTC in
calendar year 2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $493. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$7,377,059 (14,975 x $493) in FY28.
2029
In tax year 2023, the most recent complete year available, there were 264 individuals who filed
as qualifying widow/widower, 35,814 individuals who claimed they were 65 years or older, and L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 32 of 42
March 4, 2025
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1,788 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $40,538.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 86
of the widow(er), 14,441 age 65 and older, and 1,383 disabled could potentially be renters.
Therefore, B&P estimates that 15,910 additional people could qualify for the renter PTC in
calendar year 2029.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $514. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$8,175,292 (15,910 x $514) in FY29.
2030
In tax year 2023, the most recent complete year available, there were 286 individuals who filed
as qualifying widow/widower, 37,910 individuals who claimed they were 65 years or older, and
1,892 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $41,349.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 93
of the widow(er), 15,286 age 65 and older, and 1,464 disabled could potentially be renters.
Therefore, B&P estimates that 16,843 additional people could qualify for the renter PTC in
calendar year 2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above,
B&P estimates that the average PTC credit for these individuals may be $528. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$8,898,095 (16,843 x $528) in FY30.
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the
maximum income for renters will continue to be adjusted annually for inflation.
Married, Filing Combined – Renter
2026
In tax year 2023, the most recent complete year available, there were 32,070 individuals who
claimed they were 65 years or older and 4,598 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $41,000. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 33 of 42
March 4, 2025
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Using the homeowner/renter split discussed above, B&P assumes that of those individuals –
12,932 age 65 and older and 3,557 disabled could potentially be renters. Therefore, B&P
estimates that 16,489 additional people could qualify for the renter PTC in calendar year 2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $455. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce GR by $7,506,159
(16,489 x $455) in FY26.
2027
In tax year 2023, the most recent complete year available, there were 33,738 individuals who
claimed they were 65 years or older and 4,852 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $41,820.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals –
13,604 age 65 and older and 3,753 disabled could potentially be renters. Therefore, B&P
estimates that 17,357 additional people could qualify for the renter PTC in calendar year 2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $469. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$8,141,053 (17,357 x $469) in FY27.
2028
In tax year 2023, the most recent complete year available, there were 35,360 individuals who
claimed they were 65 years or older and 5,115 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $42,656.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals –
14,258 age 65 and older and 3,957 disabled could potentially be renters. Therefore, B&P
estimates that 18,215 additional people could qualify for the renter PTC in calendar year 2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $490. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$8,917,813 (18,215 x $490) in FY28. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 34 of 42
March 4, 2025
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2029
In tax year 2023, the most recent complete year available, there were 37,115 individuals who
claimed they were 65 years or older and 5,356 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $43,509.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals –
14,966 age 65 and older and 4,143 disabled could potentially be renters. Therefore, B&P
estimates that 19,109 additional people could qualify for the renter PTC in calendar year 2029.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $510. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$9,748,672 (19,109 x $510) in FY29.
2030
In tax year 2023, the most recent complete year available, there were 38,886 individuals who
claimed they were 65 years or older and 5,576 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $27,500 and $44,379.
Using the homeowner/renter split discussed above, B&P assumes that of those individuals –
15,680 age 65 and older and 4,313 disabled could potentially be renters. Therefore, B&P
estimates that 19,993 additional people could qualify for the renter PTC in calendar year 2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above,
B&P estimates that the average PTC credit for these individuals may be $526. Therefore, B&P
estimates that increase the maximum income limit for renters could reduce TSR and GR by
$10,517,651 (19,993 x $526) in FY30.
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the
maximum income for renters will continue to be adjusted annually for inflation.
Single – Homeowner
2026
In tax year 2023, the most recent complete year available, there were 263 individuals who filed
as qualifying widow/widower, 32,775 individuals who claimed they were 65 years or older, and L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 35 of 42
March 4, 2025
BB:LR:OD
1,591 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $42,200.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
- 178 of the widow(er), 19,559 age 65 and older, and 360 disabled could potentially be
homeowners. Therefore, B&P estimates that 20,097 additional people could qualify for the
homeowner PTC in calendar year 2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $940. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce GR by
$18,891,180 (20,097 x $940) in FY26.
2027
In tax year 2023, the most recent complete year available, there were 284 individuals who filed
as qualifying widow/widower, 34,960 individuals who claimed they were 65 years or older, and
1,668 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $43,044.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
- 192 of the widow(er), 20,863 age 65 and older, and 378 disabled could potentially be
homeowners. Therefore, B&P estimates that 21,433 additional people could qualify for the
homeowner PTC in calendar year 2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $964. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$20,661,412 (21,433 x $964) in FY27.
2028
In tax year 2023, the most recent complete year available, there were 300 individuals who filed
as qualifying widow/widower, 37,083 individuals who claimed they were 65 years or older, and
1,748 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $43,905.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
- 203 of the widow(er), 22,130 age 65 and older, and 396 disabled could potentially be
homeowners. Therefore, B&P estimates that 22,729 additional people could qualify for the
homeowner PTC in calendar year 2028. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 36 of 42
March 4, 2025
BB:LR:OD
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $990. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$22,501,710 (22,729 x $990) in FY28.
2029
In tax year 2023, the most recent complete year available, there were 321 individuals who filed
as qualifying widow/widower, 39,278 individuals who claimed they were 65 years or older, and
1,828 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $44,783.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
- 217 of the widow(er), 23,440 age 65 and older, and 414 disabled could potentially be
homeowners. Therefore, B&P estimates that 24,071 additional people could qualify for the
homeowner PTC in calendar year 2029.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $1,017. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$24,481,067 (24,017 x $1,017) in FY29.
2030
In tax year 2023, the most recent complete year available, there were 338 individuals who filed
as qualifying widow/widower, 41,497 individuals who claimed they were 65 years or older, and
1,915 individuals who claimed they were disabled on their individual income tax forms, filed as
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $45,679.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
– 228 of the widow(er), 24,764 age 65 and older, and 434 disabled could potentially be
homeowners. Therefore, B&P estimates that 25,426 additional people could qualify for the
homeowner PTC in calendar year 2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above,
B&P estimates that the average PTC credit for these individuals may be $1,043. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$26,520,195 (25,426 x $1,043) in FY30. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 37 of 42
March 4, 2025
BB:LR:OD
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the
maximum income for homeowners will continue to be adjusted annually for inflation.
Married, Filing Combined – Homeowner
2026
In tax year 2023, the most recent complete year available, there were 39,688 individuals who
claimed they were 65 years or older and 5,622 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $48,000.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
– 23,685 age 65 and older and 1,273 disabled could potentially be homeowners. Therefore, B&P
estimates that 24,958 additional people could qualify for the homeowner PTC in calendar year
2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $940. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce GR by
$23,460,520 (24,958 x $940) in FY26.
2027
In tax year 2023, the most recent complete year available, there were 41,641 individuals who
claimed they were 65 years or older and 5,899 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $48,960.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
– 24,850 age 65 and older and 1,336 disabled could potentially be homeowners. Therefore, B&P
estimates that 26,186 additional people could qualify for the homeowner PTC in calendar year
2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $964. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$25,243,304 (26,186 x $964) in FY27. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 38 of 42
March 4, 2025
BB:LR:OD
2028
In tax year 2023, the most recent complete year available, there were 43,629 individuals who
claimed they were 65 years or older and 6,181 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $49,939.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
– 26,037 age 65 and older and 1,400 disabled could potentially be homeowners. Therefore, B&P
estimates that 27,437 additional people could qualify for the homeowner PTC in calendar year
2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $990. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$27,162,630 (27,437 x $990) in FY28.
2029
In tax year 2023, the most recent complete year available, there were 45,627 individuals who
claimed they were 65 years or older and 6,476 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $50,938.
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
– 27,229 age 65 and older and 1,466 disabled could potentially be homeowners. Therefore, B&P
estimates that 28,695 additional people could qualify for the homeowner PTC in calendar year
2029.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P
estimates that the average PTC credit for these individuals may be $1,017. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$29,174,924 (28,695 x $1,017) in FY29.
2030
In tax year 2023, the most recent complete year available, there were 47,730 individuals who
claimed they were 65 years or older and 6,775 individuals who claimed they were disabled on
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted
Gross Income (MAGI) between $30,000 and $51,957. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 39 of 42
March 4, 2025
BB:LR:OD
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals
– 28,484 age 65 and older and 1,534 disabled could potentially be homeowners. Therefore, B&P
estimates that 30,018 additional people could qualify for the homeowner PTC in calendar year
2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above,
B&P estimates that the average PTC credit for these individuals may be $1,043. Therefore, B&P
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by
$31,301,270 (30,018 x $1,043) in FY30.
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the
maximum income for homeowners will continue to be adjusted annually for inflation.
Maximum Income Changes Summary
B&P estimates that increasing the maximum income limits could reduce GR by $55,902,034
($13,550,334 renters + $42,351,700 homeowners) in FY26. By FY30, this provision could
reduce GR by $77,237,211 ($19,415,746 renters + $57,821,465 homeowners) annually. Table 7
shows the estimated impact by filing/owning status.
Table 7: Higher Maximum Income LimitRenterHomeowner
Calendar
Year
Fiscal
Year
SingleMarriedSingleMarried
Total
20262026($6,044,175)($7,506,159)($18,891,180)($23,460,520)($55,902,034)20272027($6,648,693)($8,141,053)($20,661,412)($25,243,304)($60,694,462)20282028($7,377,059)($8,917,813)($22,501,710)($27,162,630)($65,959,212)20292029($8,175,292)($9,748,672)($24,481,067)($29,174,924)($71,579,955)20302030($8,898,095)($10,517,651)($26,520,195)($31,301,270)($77,237,211)
L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 40 of 42
March 4, 2025
BB:LR:OD
Bill Summary
B&P estimates that this proposal could reduce GR by $72,061,901 in FY26. By FY30, this
provision could reduce GR by $97,700,493. Table 8 shows the impact by fiscal year.
Table 8: Summary of GR ImpactRenterHomeowner
Fiscal
Year
No
Longer
Qualify
Higher
Income
Increased
Credit
Higher
Income
Increased
Credit
Total GR
Loss
2026$798,801 ($13,550,334)($7,168,231)($42,351,700)($9,790,437)($72,061,901)2027$798,801 ($14,789,746)($7,628,920)($45,904,716)($10,370,539)($77,895,120)2028$798,801 ($16,294,872)($8,112,243)($49,664,340)($10,970,702)($84,243,356)2029$798,801 ($17,923,964)($8,594,934)($53,655,991)($11,571,611)($90,947,699)2030$798,801 ($19,415,746)($9,076,056)($57,821,465)($12,186,027)($97,700,493)
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.
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.
Officials from the City of Kansas City (CKC) assume this proposal will have an impact on the
City budget.
Oversight notes that this proposal will only impact state revenues, therefore, Oversight will
reflect zero impact to the local political subdivisions in the fiscal note. L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 41 of 42
March 4, 2025
BB:LR:OD
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUND Cost – Property Tax Credit – Sections
135.010, 135.025 & 135.030
(pages 4 & 39)
More or
Less than
($72,061,901)
More or
Less than
($77,895,120)
More or
Less than
($84,243,356)
NET EFFECT ON THE GENERAL
REVENUE FUND
More or
Less than
($72,061,901)
More or
Less than
($77,895,120)
More or
Less than
($84,243,356)
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, with the amount of the credit
dependent on the taxpayer's income and property tax liability. This act modifies the definition of
"income" to increase the amount deducted from Missouri adjusted gross income from $2,000 to
$2,800, or, for claimants who owned and occupied the residence for the entire year, such amount
is increased from $4,000 to $5,800. (Section 135.010)
The maximum allowable credit under current law is limited to $750 in rent constituting property
taxes actually paid or $1,100 in actual property tax paid. This act increases such amounts to
$1,055 and $1,550, respectively, and 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 $38,200 for claimants with a filing status of
single, $42,200 for claimants with a filing status of single and who owned and occupied a
homestead for the entire year, $41,000 for claimants with a filing status of married filing L.R. No. 0109S.02C
Bill No. SCS for SB Nos. 101 & 64
Page 42 of 42
March 4, 2025
BB:LR:OD
combined, and $48,000 for claimants with a filing status of married filing combined and who
owned and occupied a homestead for the entire year, and annually adjusts such 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.
SOURCES OF INFORMATION
Department of Revenue
Office of Administration – Budget & Planning
State Tax Commission
City of Kansas City
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 4, 2025March 4, 2025