| 15 | | - | Section A. Sections 135.010, 135.025, and 135.030, RSMo, 1 |
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| 16 | | - | are repealed and three new sections enacted in lieu thereof, to 2 |
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| 17 | | - | be known as sections 135.010, 135.025, and 135.030, to read as 3 |
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| 18 | | - | follows:4 |
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| 19 | | - | 135.010. As used in sections 135.010 to 135.030 the 1 |
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| 20 | | - | following words and terms mean: 2 |
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| 21 | | - | (1) "Claimant", a person or person s claiming a credit 3 |
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| 22 | | - | under sections 135.010 to 135.030. If the persons are 4 |
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| 23 | | - | eligible to file a joint federal income tax return and 5 |
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| 24 | | - | reside at the same address at any time during the taxable 6 |
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| 25 | | - | year, then the credit may only be allowed if claimed on a 7 |
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| 26 | | - | combined Missouri income tax return or a combined claim 8 |
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| 27 | | - | return reporting their combined incomes and property taxes. 9 |
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| 28 | | - | A claimant shall not be allowed a property tax credit unless 10 |
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| 29 | | - | the claimant or spouse has attained the age of sixty -five on 11 |
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| 30 | | - | or before the last day of the calendar year and the claimant 12 |
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| 31 | | - | or spouse was a resident of Missouri for the entire year, or 13 |
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| 32 | | - | the claimant or spouse is a veteran of any branch of the 14 |
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| 33 | | - | Armed Forces of the United States or this state who became 15 SCS SBs 101 & 64 2 |
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| 34 | | - | one hundred percent disabled as a result of such service, or 16 |
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| 35 | | - | the claimant or spouse is disabled as defined in subdivision 17 |
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| 36 | | - | (2) of this section, and such claimant or spouse provides 18 |
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| 37 | | - | proof of such disability in such form and manner, and at 19 |
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| 38 | | - | such times, as the director of revenue may requ ire, or if 20 |
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| 39 | | - | the claimant has reached the age of sixty on or before the 21 |
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| 40 | | - | last day of the calendar year and such claimant received 22 |
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| 41 | | - | surviving spouse Social Security benefits during the 23 |
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| 42 | | - | calendar year and the claimant provides proof, as required 24 |
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| 43 | | - | by the director of revenue, that the claimant received 25 |
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| 44 | | - | surviving spouse Social Security benefits during the 26 |
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| 45 | | - | calendar year for which the credit will be claimed. A 27 |
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| 46 | | - | claimant shall not be allowed a property tax credit if the 28 |
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| 47 | | - | claimant filed a valid claim for a credit under section 29 |
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| 48 | | - | 137.106 in the year following the year for which the 30 |
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| 49 | | - | property tax credit is claimed. The residency requirement 31 |
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| 50 | | - | shall be deemed to have been fulfilled for the purpose of 32 |
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| 51 | | - | determining the eligibility of a surviving spouse for a 33 |
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| 52 | | - | property tax credit if a person of the age of sixty -five 34 |
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| 53 | | - | years or older who would have otherwise met the requirements 35 |
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| 54 | | - | for a property tax credit dies before the last day of the 36 |
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| 55 | | - | calendar year. The residency requirement shall also be 37 |
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| 56 | | - | deemed to have been fulfilled f or the purpose of determining 38 |
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| 57 | | - | the eligibility of a claimant who would have otherwise met 39 |
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| 58 | | - | the requirements for a property tax credit but who dies 40 |
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| 59 | | - | before the last day of the calendar year; 41 |
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| 60 | | - | (2) "Disabled", the inability to engage in any 42 |
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| 61 | | - | substantial gainful activity by reason of any medically 43 |
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| 62 | | - | determinable physical or mental impairment which can be 44 |
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| 63 | | - | expected to result in death or which has lasted or can be 45 |
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| 64 | | - | expected to last for a continuous period of not less than 46 |
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| 65 | | - | twelve months. A claimant shall not be required to be 47 SCS SBs 101 & 64 3 |
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| 66 | | - | gainfully employed prior to such disability to qualify for a 48 |
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| 67 | | - | property tax credit; 49 |
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| 68 | | - | (3) "Gross rent", amount paid by a claimant to a 50 |
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| 69 | | - | landlord for the rental, at arm's length, of a homestead 51 |
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| 70 | | - | during the calendar year, exclusive of charges for health 52 |
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| 71 | | - | and personal care services and food furnished as part of the 53 |
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| 72 | | - | rental agreement, whether or not expressly set out in the 54 |
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| 73 | | - | rental agreement. If the director of revenue determines 55 |
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| 74 | | - | that the landlord and tenant have not dealt at arm's leng th, 56 |
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| 75 | | - | and that the gross rent is excessive, then he shall 57 |
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| 76 | | - | determine the gross rent based upon a reasonable amount of 58 |
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| 77 | | - | rent. Gross rent shall be deemed to be paid only if 59 |
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| 78 | | - | actually paid prior to the date a return is filed. The 60 |
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| 79 | | - | director of revenue may pre scribe regulations requiring a 61 |
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| 80 | | - | return of information by a landlord receiving rent, 62 |
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| 81 | | - | certifying for a calendar year the amount of gross rent 63 |
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| 82 | | - | received from a tenant claiming a property tax credit and 64 |
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| 83 | | - | shall, by regulation, provide a method for certificatio n by 65 |
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| 84 | | - | the claimant of the amount of gross rent paid for any 66 |
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| 85 | | - | calendar year for which a claim is made. The regulations 67 |
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| 86 | | - | authorized by this subdivision may require a landlord or a 68 |
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| 87 | | - | tenant or both to provide data relating to health and 69 |
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| 88 | | - | personal care service s and to food. Neither a landlord nor 70 |
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| 89 | | - | a tenant may be required to provide data relating to 71 |
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| 90 | | - | utilities, furniture, home furnishings or appliances; 72 |
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| 91 | | - | (4) "Homestead", the dwelling in Missouri owned or 73 |
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| 92 | | - | rented by the claimant and not to exceed five acre s of land 74 |
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| 93 | | - | surrounding it as is reasonably necessary for use of the 75 |
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| 94 | | - | dwelling as a home. It may consist of part of a 76 |
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| 95 | | - | multidwelling or multipurpose building and part of the land 77 |
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| 96 | | - | upon which it is built. "Owned" includes a vendee in 78 |
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| 97 | | - | possession under a la nd contract and one or more tenants by 79 SCS SBs 101 & 64 4 |
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| 98 | | - | the entireties, joint tenants, or tenants in common and 80 |
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| 99 | | - | includes a claimant actually in possession if he was the 81 |
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| 100 | | - | immediate former owner of record, if a lineal descendant is 82 |
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| 101 | | - | presently the owner of record, and if th e claimant actually 83 |
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| 102 | | - | pays all taxes upon the property. It may include a mobile 84 |
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| 103 | | - | home; 85 |
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| 104 | | - | (5) "Income", Missouri adjusted gross income as 86 |
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| 105 | | - | defined in section 143.121 less two thousand dollars for all 87 |
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| 106 | | - | calendar years ending on or before December 31, 2025 , or in 88 |
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| 107 | | - | the case of a homestead owned and occupied, for the entire 89 |
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| 108 | | - | year, by the claimant, less four thousand dollars as an 90 |
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| 109 | | - | exemption for the claimant's spouse residing at the same 91 |
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| 110 | | - | address[,] for all calendar years ending on or before 92 |
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| 111 | | - | December 31, 2025, or for all calendar years beginning on or 93 |
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| 112 | | - | after January 1, 2026, less two thousand eight hundred 94 |
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| 113 | | - | dollars, or in the case of a homestead owned and occupied, 95 |
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| 114 | | - | for the entire year, by the claimant, less five thousand 96 |
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| 115 | | - | eight hundred dollars, as an exemptio n for the claimant's 97 |
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| 116 | | - | spouse residing at the same address; and increased, where 98 |
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| 117 | | - | necessary, to reflect the following: 99 |
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| 118 | | - | (a) Social Security, railroad retirement, and veterans 100 |
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| 119 | | - | payments and benefits unless the claimant is a one hundred 101 |
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| 120 | | - | percent service-connected, disabled veteran or a spouse of a 102 |
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| 121 | | - | one hundred percent service -connected, disabled veteran. 103 |
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| 122 | | - | The one hundred percent service -connected disabled veteran 104 |
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| 123 | | - | shall not be required to list veterans payments and benefits; 105 |
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| 124 | | - | (b) The total amount of all other public and private 106 |
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| 125 | | - | pensions and annuities; 107 |
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| 126 | | - | (c) Public relief, public assistance, and unemployment 108 |
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| 127 | | - | benefits received in cash, other than benefits received 109 |
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| 128 | | - | under this chapter; 110 SCS SBs 101 & 64 5 |
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| 129 | | - | (d) No deduction being allowed for losses not incurred 111 |
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| 130 | | - | in a trade or business; 112 |
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| 131 | | - | (e) Interest on the obligations of the United States, 113 |
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| 132 | | - | any state, or any of their subdivisions and 114 |
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| 133 | | - | instrumentalities; 115 |
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| 134 | | - | (6) "Property taxes accrued", property taxes paid, 116 |
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| 135 | | - | exclusive of special assessments, penalties, inte rest, and 117 |
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| 136 | | - | charges for service levied on a claimant's homestead in any 118 |
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| 137 | | - | calendar year. Property taxes shall qualify for the credit 119 |
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| 138 | | - | only if actually paid prior to the date a return is filed. 120 |
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| 139 | | - | The director of revenue shall require a tax receipt or other 121 |
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| 140 | | - | proof of property tax payment. If a homestead is owned only 122 |
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| 141 | | - | partially by claimant, then "property taxes accrued" is that 123 |
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| 142 | | - | part of property taxes levied on the homestead which was 124 |
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| 143 | | - | actually paid by the claimant. For purposes of this 125 |
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| 144 | | - | subdivision, propert y taxes are "levied" when the tax roll 126 |
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| 145 | | - | is delivered to the director of revenue for collection. If 127 |
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| 146 | | - | a claimant owns a homestead part of the preceding calendar 128 |
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| 147 | | - | year and rents it or a different homestead for part of the 129 |
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| 148 | | - | same year, "property taxes accrued" means only taxes levied 130 |
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| 149 | | - | on the homestead both owned and occupied by the claimant, 131 |
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| 150 | | - | multiplied by the percentage of twelve months that such 132 |
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| 151 | | - | property was owned and occupied as the homestead of the 133 |
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| 152 | | - | claimant during the year. When a claimant owns and occup ies 134 |
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| 153 | | - | two or more different homesteads in the same calendar year, 135 |
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| 154 | | - | property taxes accrued shall be the sum of taxes allocable 136 |
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| 155 | | - | to those several properties occupied by the claimant as a 137 |
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| 156 | | - | homestead for the year. If a homestead is an integral part 138 |
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| 157 | | - | of a larger unit such as a farm, or multipurpose or 139 |
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| 158 | | - | multidwelling building, property taxes accrued shall be that 140 |
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| 159 | | - | percentage of the total property taxes accrued as the value 141 |
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| 160 | | - | of the homestead is of the total value. For purposes of 142 SCS SBs 101 & 64 6 |
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| 161 | | - | this subdivision "unit" refers t o the parcel of property 143 |
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| 162 | | - | covered by a single tax statement of which the homestead is 144 |
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| 163 | | - | a part; 145 |
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| 164 | | - | (7) "Rent constituting property taxes accrued", twenty 146 |
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| 165 | | - | percent of the gross rent paid by a claimant and spouse in 147 |
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| 166 | | - | the calendar year. 148 |
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| 14 | + | Section A. Sections 135.025 and 135.030, RSMo, are 1 |
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| 15 | + | repealed and two new sections enacted in lieu thereof, to be 2 |
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| 16 | + | known as sections 135.025 and 135.030, to read as follows:3 |
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| 194 | | - | but ending on or before December 31, 2025, the maximum upper 6 |
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| 195 | | - | limit shall be the sum of twenty -seven thousand five hundred 7 |
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| 196 | | - | dollars. In the case of a homestead owned and occupied for 8 |
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| 197 | | - | the entire year by the claimant, for all calendar years 9 |
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| 198 | | - | ending on or before December 31, 2025, the maximum upper 10 |
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| 199 | | - | limit shall be the sum of thirty thousand dollars . For all 11 |
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| 200 | | - | calendar years beginning on or after January 1, 2026, the 12 |
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| 201 | | - | maximum upper limit shall be the sum of: 13 |
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| 202 | | - | (a) Thirty-eight thousand two hundred dollars f or 14 |
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| 203 | | - | claimants with a filing status of single; 15 |
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| 204 | | - | (b) Forty-two thousand two hundred dollars for 16 |
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| 205 | | - | claimants with a filing status of single and who owned and 17 |
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| 206 | | - | occupied a homestead for the entire year; 18 |
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| 207 | | - | (c) Forty-one thousand dollars for claimants wit h a 19 |
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| 208 | | - | filing status of married filing combined; and 20 |
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| 209 | | - | (d) Forty-eight thousand dollars for claimants with a 21 |
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| 210 | | - | filing status of married filing combined and who owned and 22 |
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| 211 | | - | occupied a homestead for the entire year. 23 |
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| 212 | | - | Beginning January 1, 2027, such amounts sh all be adjusted 24 |
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| 213 | | - | annually for inflation based on the Consumer Price Index for 25 |
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| 214 | | - | All Urban Consumers, as defined and officially recorded by 26 |
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| 215 | | - | the United States Department of Labor or its successor ; 27 |
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| 216 | | - | (2) The term "minimum base" shall, for each calendar 28 |
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| 217 | | - | year after December 31, 1997, but before calendar year 2008, 29 |
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| 218 | | - | be the sum of thirteen thousand dollars. For all calendar 30 |
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| 219 | | - | years beginning on or after January 1, 2008, the minimum 31 |
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| 220 | | - | base shall be the sum of fourteen thousand three hundred 32 |
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| 221 | | - | dollars. 33 |
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| 222 | | - | 2. (1) If the income on a return is equal to or less 34 |
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| 223 | | - | than the maximum upper limit for the calendar year for which 35 SCS SBs 101 & 64 8 |
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| 224 | | - | the return is filed, the property tax credit shall be 36 |
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| 225 | | - | determined from a table of credits based upon the amount by 37 |
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| 226 | | - | which the total property ta x described in section 135.025 38 |
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| 227 | | - | exceeds the percent of income in the following list: 39 |
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| 228 | | - | (2) The director of revenue shall prescribe a table 50 |
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| 229 | | - | based upon [the preceding sentences ] subdivision (1) of this 51 |
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| 230 | | - | subsection. The property tax shall be in increments of 52 |
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| 231 | | - | twenty-five dollars and the income in increments of three 53 |
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| 232 | | - | hundred dollars. The credit shall be the amount rounded to 54 |
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| 233 | | - | the nearest whole dollar computed on the basis of the 55 |
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| 234 | | - | property tax and income at the midpoints of each increment. 56 |
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| 235 | | - | As used in this subsection, the term "accumulative" means an 57 |
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| 236 | | - | increase by continuous or repeated application of the 58 |
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| 237 | | - | percent to the income increment at each three hundred dollar 59 |
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| 238 | | - | level. 60 |
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| 239 | | - | 3. (1) For all calendar years beginning on or after 61 |
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| 240 | | - | January 1, 2026, if the income on a return is equal to or 62 |
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| 241 | | - | less than the maximum upper limit for t he calendar year for 63 |
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| 242 | | - | which the return is filed, the property tax credit shall be 64 |
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| 243 | | - | determined from a table of credits based upon the amount by 65 |
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| 244 | | - | which the total property tax described in section 135.025 66 |
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| 245 | | - | exceeds the percent of income in the following list: 67 |
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| 37 | + | but before calendar year 2025, the maximum upper limit shall 6 |
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| 38 | + | be the sum of twenty-seven thousand five hundred dollars. 7 |
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| 39 | + | For all calendar years beginning on or after January 1, 8 |
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| 40 | + | 2025, the maximum upper limit shall be the sum of thirty - 9 |
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| 41 | + | five thousand dollars, with such amount adjusted annually 10 |
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| 42 | + | for inflation based on the Consumer Price Index for All 11 |
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| 43 | + | Urban Consumers, as defined and officially recorded by the 12 |
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| 44 | + | United States Department of Labor or its successor. In the 13 |
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| 45 | + | case of a homestead owned and occupied for the entire year 14 |
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| 46 | + | by the claimant, the maximum upper limit shal l be the sum of 15 |
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| 47 | + | [thirty] thirty-eight thousand dollars, with such amount 16 |
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| 48 | + | adjusted annually for inflation based on the Consumer Price 17 |
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| 49 | + | Index for All Urban Consumers, as defined and officially 18 |
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| 50 | + | recorded by the United States Department of Labor or its 19 |
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| 51 | + | successor; 20 |
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| 52 | + | (2) The term "minimum base" shall, for each calendar 21 |
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| 53 | + | year after December 31, 1997, but before calendar year 2008, 22 |
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| 54 | + | be the sum of thirteen thousand dollars. For all calendar 23 |
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| 55 | + | years beginning on or after January 1, 2008, the minimum 24 |
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| 56 | + | base shall be the sum of fourteen thousand three hundred 25 |
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| 57 | + | dollars. 26 |
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| 58 | + | 2. If the income on a return is equal to or less than 27 |
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| 59 | + | the maximum upper limit for the calendar year for which the 28 |
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| 60 | + | return is filed, the property tax credit shall be determined 29 |
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| 61 | + | from a table of credits based upon the amount by which the 30 |
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| 62 | + | total property tax described in section 135.025 exceeds the 31 |
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| 63 | + | percent of income in the following list: 32 |
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| 64 | + | 33 |
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| 65 | + | 34 |
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| 66 | + | If the income on the return |
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| 67 | + | is: |
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| 68 | + | The percent is: SB 101 3 |
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| 69 | + | The director of revenue shall prescribe a table based upon 44 |
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| 70 | + | the preceding sentences. The property tax shall be in 45 |
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| 71 | + | increments of twenty -five dollars and the income in 46 |
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| 72 | + | increments of three hundred dollars. The credit shall be 47 |
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| 73 | + | the amount rounded to the nearest whole dollar computed on 48 |
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| 74 | + | the basis of the property tax and income at the midpoints of 49 |
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| 75 | + | each increment. As used in this subsection, the term 50 |
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| 76 | + | "accumulative" means an increase by con tinuous or repeated 51 |
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| 77 | + | application of the percent to the income increment at each 52 |
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| 78 | + | three hundred dollar level. 53 |
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| 79 | + | 3. Notwithstanding subsection 4 of section 32.057, the 54 |
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| 80 | + | department of revenue or any duly authorized employee or 55 |
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| 81 | + | agent shall determine wheth er any taxpayer filing a report 56 |
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| 82 | + | or return with the department of revenue who has not applied 57 |
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| 83 | + | for the credit allowed pursuant to section 135.020 may 58 |
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| 84 | + | qualify for the credit, and shall notify any qualified 59 |
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| 85 | + | claimant of the claimant's potential eligibility, where the 60 |
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| 86 | + | department determines such potential eligibility exists. 61 |
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| 87 | + | |
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| 88 | + | 35 |
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| 89 | + | 36 |
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| 90 | + | 37 |
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| 91 | + | 38 |
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| 92 | + | 39 |
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