EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
SENATE BILLS NOS. 101 & 64
103RD GENERAL ASSEMBLY
0109S.02C KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 135.010, 135.025, and 135.030, RSMo, and to enact in lieu thereof three new
sections relating to a tax credit for the property tax liabilities of certain vulnerable
persons.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 135.010, 135.025, and 135.030, RSMo, 1
are repealed and three new sections enacted in lieu thereof, to 2
be known as sections 135.010, 135.025, and 135.030, to read as 3
follows:4
135.010. As used in sections 135.010 to 135.030 the 1
following words and terms mean: 2
(1) "Claimant", a person or person s claiming a credit 3
under sections 135.010 to 135.030. If the persons are 4
eligible to file a joint federal income tax return and 5
reside at the same address at any time during the taxable 6
year, then the credit may only be allowed if claimed on a 7
combined Missouri income tax return or a combined claim 8
return reporting their combined incomes and property taxes. 9
A claimant shall not be allowed a property tax credit unless 10
the claimant or spouse has attained the age of sixty -five on 11
or before the last day of the calendar year and the claimant 12
or spouse was a resident of Missouri for the entire year, or 13
the claimant or spouse is a veteran of any branch of the 14
Armed Forces of the United States or this state who became 15 SCS SBs 101 & 64 2
one hundred percent disabled as a result of such service, or 16
the claimant or spouse is disabled as defined in subdivision 17
(2) of this section, and such claimant or spouse provides 18
proof of such disability in such form and manner, and at 19
such times, as the director of revenue may requ ire, or if 20
the claimant has reached the age of sixty on or before the 21
last day of the calendar year and such claimant received 22
surviving spouse Social Security benefits during the 23
calendar year and the claimant provides proof, as required 24
by the director of revenue, that the claimant received 25
surviving spouse Social Security benefits during the 26
calendar year for which the credit will be claimed. A 27
claimant shall not be allowed a property tax credit if the 28
claimant filed a valid claim for a credit under section 29
137.106 in the year following the year for which the 30
property tax credit is claimed. The residency requirement 31
shall be deemed to have been fulfilled for the purpose of 32
determining the eligibility of a surviving spouse for a 33
property tax credit if a person of the age of sixty -five 34
years or older who would have otherwise met the requirements 35
for a property tax credit dies before the last day of the 36
calendar year. The residency requirement shall also be 37
deemed to have been fulfilled f or the purpose of determining 38
the eligibility of a claimant who would have otherwise met 39
the requirements for a property tax credit but who dies 40
before the last day of the calendar year; 41
(2) "Disabled", the inability to engage in any 42
substantial gainful activity by reason of any medically 43
determinable physical or mental impairment which can be 44
expected to result in death or which has lasted or can be 45
expected to last for a continuous period of not less than 46
twelve months. A claimant shall not be required to be 47 SCS SBs 101 & 64 3
gainfully employed prior to such disability to qualify for a 48
property tax credit; 49
(3) "Gross rent", amount paid by a claimant to a 50
landlord for the rental, at arm's length, of a homestead 51
during the calendar year, exclusive of charges for health 52
and personal care services and food furnished as part of the 53
rental agreement, whether or not expressly set out in the 54
rental agreement. If the director of revenue determines 55
that the landlord and tenant have not dealt at arm's leng th, 56
and that the gross rent is excessive, then he shall 57
determine the gross rent based upon a reasonable amount of 58
rent. Gross rent shall be deemed to be paid only if 59
actually paid prior to the date a return is filed. The 60
director of revenue may pre scribe regulations requiring a 61
return of information by a landlord receiving rent, 62
certifying for a calendar year the amount of gross rent 63
received from a tenant claiming a property tax credit and 64
shall, by regulation, provide a method for certificatio n by 65
the claimant of the amount of gross rent paid for any 66
calendar year for which a claim is made. The regulations 67
authorized by this subdivision may require a landlord or a 68
tenant or both to provide data relating to health and 69
personal care service s and to food. Neither a landlord nor 70
a tenant may be required to provide data relating to 71
utilities, furniture, home furnishings or appliances; 72
(4) "Homestead", the dwelling in Missouri owned or 73
rented by the claimant and not to exceed five acre s of land 74
surrounding it as is reasonably necessary for use of the 75
dwelling as a home. It may consist of part of a 76
multidwelling or multipurpose building and part of the land 77
upon which it is built. "Owned" includes a vendee in 78
possession under a la nd contract and one or more tenants by 79 SCS SBs 101 & 64 4
the entireties, joint tenants, or tenants in common and 80
includes a claimant actually in possession if he was the 81
immediate former owner of record, if a lineal descendant is 82
presently the owner of record, and if th e claimant actually 83
pays all taxes upon the property. It may include a mobile 84
home; 85
(5) "Income", Missouri adjusted gross income as 86
defined in section 143.121 less two thousand dollars for all 87
calendar years ending on or before December 31, 2025 , or in 88
the case of a homestead owned and occupied, for the entire 89
year, by the claimant, less four thousand dollars as an 90
exemption for the claimant's spouse residing at the same 91
address[,] for all calendar years ending on or before 92
December 31, 2025, or for all calendar years beginning on or 93
after January 1, 2026, less two thousand eight hundred 94
dollars, or in the case of a homestead owned and occupied, 95
for the entire year, by the claimant, less five thousand 96
eight hundred dollars, as an exemptio n for the claimant's 97
spouse residing at the same address; and increased, where 98
necessary, to reflect the following: 99
(a) Social Security, railroad retirement, and veterans 100
payments and benefits unless the claimant is a one hundred 101
percent service-connected, disabled veteran or a spouse of a 102
one hundred percent service -connected, disabled veteran. 103
The one hundred percent service -connected disabled veteran 104
shall not be required to list veterans payments and benefits; 105
(b) The total amount of all other public and private 106
pensions and annuities; 107
(c) Public relief, public assistance, and unemployment 108
benefits received in cash, other than benefits received 109
under this chapter; 110 SCS SBs 101 & 64 5
(d) No deduction being allowed for losses not incurred 111
in a trade or business; 112
(e) Interest on the obligations of the United States, 113
any state, or any of their subdivisions and 114
instrumentalities; 115
(6) "Property taxes accrued", property taxes paid, 116
exclusive of special assessments, penalties, inte rest, and 117
charges for service levied on a claimant's homestead in any 118
calendar year. Property taxes shall qualify for the credit 119
only if actually paid prior to the date a return is filed. 120
The director of revenue shall require a tax receipt or other 121
proof of property tax payment. If a homestead is owned only 122
partially by claimant, then "property taxes accrued" is that 123
part of property taxes levied on the homestead which was 124
actually paid by the claimant. For purposes of this 125
subdivision, propert y taxes are "levied" when the tax roll 126
is delivered to the director of revenue for collection. If 127
a claimant owns a homestead part of the preceding calendar 128
year and rents it or a different homestead for part of the 129
same year, "property taxes accrued" means only taxes levied 130
on the homestead both owned and occupied by the claimant, 131
multiplied by the percentage of twelve months that such 132
property was owned and occupied as the homestead of the 133
claimant during the year. When a claimant owns and occup ies 134
two or more different homesteads in the same calendar year, 135
property taxes accrued shall be the sum of taxes allocable 136
to those several properties occupied by the claimant as a 137
homestead for the year. If a homestead is an integral part 138
of a larger unit such as a farm, or multipurpose or 139
multidwelling building, property taxes accrued shall be that 140
percentage of the total property taxes accrued as the value 141
of the homestead is of the total value. For purposes of 142 SCS SBs 101 & 64 6
this subdivision "unit" refers t o the parcel of property 143
covered by a single tax statement of which the homestead is 144
a part; 145
(7) "Rent constituting property taxes accrued", twenty 146
percent of the gross rent paid by a claimant and spouse in 147
the calendar year. 148
135.025. The property taxes accrued and rent 1
constituting property taxes accrued on each return shall be 2
totaled. This total, up to seven hundred fifty dollars in 3
rent constituting property taxes actually paid or eleven 4
hundred dollars in actual prope rty tax paid, shall be used 5
in determining the property tax credit for all calendar 6
years ending on or before December 31, 2025. For all 7
calendar years beginning on or after January 1, 2026, this 8
total, up to one thousand fifty -five dollars in rent 9
constituting property taxes actually paid or one thousand 10
five hundred fifty dollars in actual property tax paid, 11
shall be used in determining the property tax credit. 12
Beginning January 1, 2027, the property tax credit totals 13
under this section shall b e adjusted annually for inflation 14
based on the Consumer Price Index for All Urban Consumers 15
for the Midwest Region, as defined and officially recorded 16
by the United States Department of Labor or its successor . 17
The director of revenue shall prescribe r egulations 18
providing for allocations where part of a claimant's 19
homestead is rented to another or used for nondwelling 20
purposes or where a homestead is owned or rented or used as 21
a dwelling for part of a year. 22
135.030. 1. As used in this section: 1
(1) The term "maximum upper limit" shall, for each 2
calendar year after December 31, 1997, but before calendar 3
year 2008, be the sum of twenty -five thousand dollars. For 4 SCS SBs 101 & 64 7
all calendar years beginning on or after January 1, 2008, 5
but ending on or before December 31, 2025, the maximum upper 6
limit shall be the sum of twenty -seven thousand five hundred 7
dollars. In the case of a homestead owned and occupied for 8
the entire year by the claimant, for all calendar years 9
ending on or before December 31, 2025, the maximum upper 10
limit shall be the sum of thirty thousand dollars . For all 11
calendar years beginning on or after January 1, 2026, the 12
maximum upper limit shall be the sum of: 13
(a) Thirty-eight thousand two hundred dollars f or 14
claimants with a filing status of single; 15
(b) Forty-two thousand two hundred dollars for 16
claimants with a filing status of single and who owned and 17
occupied a homestead for the entire year; 18
(c) Forty-one thousand dollars for claimants wit h a 19
filing status of married filing combined; and 20
(d) Forty-eight thousand dollars for claimants with a 21
filing status of married filing combined and who owned and 22
occupied a homestead for the entire year. 23
Beginning January 1, 2027, such amounts sh all be adjusted 24
annually for inflation based on the Consumer Price Index for 25
All Urban Consumers, as defined and officially recorded by 26
the United States Department of Labor or its successor ; 27
(2) The term "minimum base" shall, for each calendar 28
year after December 31, 1997, but before calendar year 2008, 29
be the sum of thirteen thousand dollars. For all calendar 30
years beginning on or after January 1, 2008, the minimum 31
base shall be the sum of fourteen thousand three hundred 32
dollars. 33
2. (1) If the income on a return is equal to or less 34
than the maximum upper limit for the calendar year for which 35 SCS SBs 101 & 64 8
the return is filed, the property tax credit shall be 36
determined from a table of credits based upon the amount by 37
which the total property ta x described in section 135.025 38
exceeds the percent of income in the following list: 39
(2) The director of revenue shall prescribe a table 50
based upon [the preceding sentences ] subdivision (1) of this 51
subsection. The property tax shall be in increments of 52
twenty-five dollars and the income in increments of three 53
hundred dollars. The credit shall be the amount rounded to 54
the nearest whole dollar computed on the basis of the 55
property tax and income at the midpoints of each increment. 56
As used in this subsection, the term "accumulative" means an 57
increase by continuous or repeated application of the 58
percent to the income increment at each three hundred dollar 59
level. 60
3. (1) For all calendar years beginning on or after 61
January 1, 2026, if the income on a return is equal to or 62
less than the maximum upper limit for t he calendar year for 63
which the return is filed, the property tax credit shall be 64
determined from a table of credits based upon the amount by 65
which the total property tax described in section 135.025 66
exceeds the percent of income in the following list: 67
40
41
If the income on the
return is:
The percent is:
42
43
44
45
46
Not over the minimum base 0 percent with credit not
to exceed $1,100 in
actual property tax or
rent equivalent paid up
to $750
47
48
49
Over the minimum base but
not over the maximum
upper limit
1/16 percent accumulative
per $300 from 0 percent
to 4 percent.
SCS SBs 101 & 64 9
(2) The director of revenue shall prescribe a table 80
based upon subdivision (1) of this subsection. The property 81
tax shall be in increme nts of twenty-five dollars and the 82
income in increments of four hundred ninety -five dollars, 83
with such amount adjusted annually for inflation based on 84
the Consumer Price Index for All Urban Consumers, as defined 85
and officially recorded by the United St ates Department of 86
Labor or its successor. The credit shall be the amount 87
rounded to the nearest whole dollar computed on the basis of 88
the property tax and income at the midpoints of each 89
increment. As used in this subsection, the term 90
"accumulative" means an increase by continuous or repeated 91
application of the percent to the income increment at each 92
four hundred ninety-five dollar level, as adjusted pursuant 93
to this subdivision. 94
4. Notwithstanding subsection 4 of section 32.057, the 95
department of revenue or any duly authorized employee or 96
agent shall determine whether any taxpayer filing a report 97
or return with the department of revenue who has not applied 98
for the credit allowed pursuant to section 135.020 may 99
qualify for the credit, a nd shall notify any qualified 100
68
69
If the income on the
return is:
The percent is:
70
71
72
73
74
75
Not over the minimum base 0 percent with credit not
to exceed $1,550 in
actual property tax or
rent equivalent paid up
to $1,055, as adjusted
for inflation.
76
77
78
79
Over the minimum base but
not over the maximum
upper limit
1/16 percent accumulative
per $495, as adjusted for
inflation, from 0 percent
to 2 percent.
SCS SBs 101 & 64 10
claimant of the claimant's potential eligibility, where the 101
department determines such potential eligibility exists. 102