COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0887S.01I Bill No.:SB 205 Subject:Tax Credits Type:Original Date:February 10, 2025Bill Summary:This proposal authorizes a tax credit for providing housing to victims of
domestic violence.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue
Fund* $0
Could exceed
($332,101)
Could exceed
($320,327)
Total Estimated Net
Effect on General
Revenue $0
Could exceed
($332,101)
Could exceed
($320,327)
*Oversight will reflect a cost for new subsection 135.550.9 & 10 allowing for two new tax
credits with no maximum annual cap. Additionally, the fiscal note reflects DOR's 1 FTE.
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. 0887S.01I
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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 2028General Revenue
Fund – DOR 0 FTE1 FTE1 FTE
Total Estimated Net
Effect on FTE0 FTE1 FTE1 FTE
☒ 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. 0887S.01I
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue (DOR) note:
The Domestic Violence Tax Credit program began in 1997 and currently allows a taxpayer to
claim a tax credit against the taxpayer's state tax liability, in an amount equal to seventy percent
(70%) of the amount such taxpayer contributed to a shelter for victims of domestic violence. No
taxpayer is allowed to claim more than $50,000 and must make a minimum donation of $100.
As of July 1, 2022, there is no cap on the program.
For informational purposes, DOR is providing the amount of credits issued and redeemed over
the last several years.
YearAuthorizedIssued
FY 2024$5,068,067.22$5,068,067.22FY 2023$5,349,747.46$5,349,747.76FY 2022$1,995,009.75$1,995,009.75FY 2021$1,814,930.07$1,814,930.07FY 2020$1,858,165.23$1,858,165.23FY 2019 $752,800.86 $752,800.86FY 2018$1,881,995.47$1,881,995.47FY 2017$1,611,058.21$1,611,058.21FY 2016$1,892,974.11$1,892,974.11FY 2015$1,426,180.09$1,426,180.09FY 2014$1,256,761.49$1,256,761.49FY 2013$1,075,861.66$1,075,861.66FY 2012$1,088,440.04$1,088,440.04TOTALS$27,071,991.66$27,071,991.96
This proposal appears to make no changes to the original shelters for victims of domestic
violence tax credit. However, this proposal appears to add two additional domestic violence tax
credits under this section of statute.
The first new credit allows a taxpayer to claim a $1,000 credit if they convert abandoned
property into an operational shelter for victims of domestic violence. This new credit does not
have an annual cap. The Department assumes it could exceed $250,000 annually. L.R. No. 0887S.01I
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The second new credit allows a taxpayer a $500 credit if the taxpayer has rented residential real
estate to a victim of domestic violence. This new credit does not have an annual cap. The
Department assumes it could exceed $250,000 annually.
These two new tax credits begin on January 1, 2026, and therefore, the first returns with these
credits will be claimed starting January 1, 2027 (FY 2027).
Fiscal YearLoss to General Revenue2025$02026$02027+(Could exceed $250,000)
This proposal creates a new tax credit that would require a new line being added to the Form
MO-TC ($2,200), updates to their website and changes to the individual income tax computer
system ($1,832). These changes are estimated to cost $4,032. DOR’s existing tax credit staff is
no longer able to take on any additional tax credits without additional resources. Due to the
intensive knowledge of credits that is needed DOR is not able to use temporary staff to help with
processing these returns. This proposal would require at least 1 FTE Associate Customer
Service Rep at a salary of $37,020.
Oversight notes the DOR estimates the impact exceeding $250,000 annually beginning FY 2027
and thereafter. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect DOR’s estimated impact in the fiscal note.
Oversight notes the DOR assumes the need for 1 FTE Associate Customer Service
Representative at $37,020 annually, effective FY 2027 (as taxpayers file their 2026 taxes).
Oversight notes the DOR assumes the need for one-time cost for necessary form and computer
changes at $4,032.
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 (B&P) note:
This proposal creates tax credits for developing or renting housing for victims of domestic
violence beginning tax year 2026. This proposal would allow for a $1,000 tax credit for a
taxpayer who converts an abandoned property into an operational shelter, and a $500 credit for a
taxpayer who has rented residential real estate to a victim of domestic violence. This credit is not
refundable, sellable, transferable, but can be carried forward for one year. B&P is unable to L.R. No. 0887S.01I
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estimate the number of shelters or leasing agreements that would meet the criteria of these
credits. Therefore, this proposal could lower general and total state revenues by an unknown
amount beginning in FY 2027. This proposal may have an unknown, negative, impact on TSR.
This proposal may impact the calculation under Article X, Section 18(e)
Oversight notes that in order to receive a certificate, the qualified entity must annually submit an
Agency Eligibility Verification application and supporting documentation to the Department of
Social Services to determine qualification status for the next state fiscal year.
Oversight notes that on average there were approximately 2,000 certifications issued between
FY 2020-2022.
Oversight notes that in order to receive the $1,000 tax credit an entity must convert an
abandoned property into an operational shelter for victims of domestic violence in the tax year
for which the credit is sought. Additionally, to receive $500 a taxpayer must allow for rent of
residential real estate to a victim of domestic violence in the tax year for which the credit is
sought.
Oversight notes, per the Missouri State Highway Patrol Criminal Justice Information Services,
there were 40,422 victims of domestic violence in Missouri in 2023.
Oversight notes that according to the https://www.domesticshelters.org/help/mo there are about
64 locations throughout the Missouri designated as housing for victims of domestic violence as
follows:
Transitional individual housing 20 locations
Transitional family housing 19 locations
Permanent individual housing 13 locations
Permanent family housing 12 locations
Total 64 location
Oversight assumes the utilization of conversion of an abandoned property tax credit ($1,000)
will be lower than the rent of residential real estate. If only 20% of the above given properties
(12 out of 64 locations, according to above presented research) were converted from abandoned
structures, it would provide utilization of $12,000 (12 converted houses x $1,000). However,
Oversight is unsure of the real number of houses or rental property that will be converted in the
future. Therefore, Oversight will show a unknown utilization of the tax credit under Section
135.550.9 effective FY 2027. (taxpayer filing his or her return for 2026).
Oversight notes DOR assumes the cost could exceed $100,000 under subsection 135.550.10,
rent of residential real estate to victims. Therefore, Oversight will reflect a cost for this
subsection in the fiscal note, effective FY 2027 (taxpayer filing his or her returns for 2026). L.R. No. 0887S.01I
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Officials from the Department of Social Services (DSS) andthe Oversight Division both state
the proposal will have no fiscal impact on their organization.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUERevenue Loss – Section 135.550 9.
Conversion of abandoned structure $0($Unknown)($Unknown)
Revenue Loss – Section 135.550 10.
Rental of real-estate $0
Could exceed
($250,000)
Could exceed
($250,000)
Costs – Section 135.550 9&10 Personnel Service$0($37,760)($38,516) Fringe Benefits$0($30,926)($31,229) Expense & Equipment$0($13,415)($582)Total Costs – DOR 1 FTE$0($82,101)($70,327)FTE Change0 FTE1 FTE1 FTE ESTIMATED NET EFFECT ON
GENERAL REVENUE$0
Could exceed
($332,101)
Could exceed
($320,327)
Estimated Net FTE Change on General
Revenue0 FTE1 FTE1 FTE L.R. No. 0887S.01I
Bill No. SB 205
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FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
A direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Current law allows a taxpayer to claim a tax credit for contributions made to shelters for victims
of domestic violence or to rape crisis centers. For all tax years beginning on or after January 1,
2026, this act modifies such tax credit to also allow a taxpayer to claim a $1,000 tax credit if the
taxpayer has converted abandoned property into an operational shelter for victims of domestic
violence, and a $500 tax credit if the taxpayer has rented residential real estate to a victim of
domestic violence.
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
Department of Social Services
Joint Committee on Administrative Rules
Office of the Secretary of State
Oversight Division
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 10, 2025February 10, 2025