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 BILL NO. 457
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
1449S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 135.010 and 135.030, RSMo, and to enact in lieu thereof two new sections
relating to a tax credit for certain property tax liabilities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 135.010 and 135.030, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 13 5.010 and 135.030, to read as follows:3
135.010. As used in sections 135.010 to 135.030 the 1
following words and terms mean: 2
(1) "Claimant", a person or persons 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 i ncomes 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
one hundred percent disabled as a result of such service, or 16
the claimant or spouse is disabled as defined in subdiv ision 17
(2) of this section, and such claimant or spouse provides 18 SB 457 2
proof of such disability in such form and manner, and at 19
such times, as the director of revenue may require, 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 otherw ise 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 for the purpose of determining 38
the eligibility of a claimant who would have otherwi se 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 impair ment 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
gainfully employed prior to such disability to qualify for a 48
property tax credit; 49 SB 457 3
(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 length, 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 prescribe 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 certification by 65
the claimant of the amount of gross rent paid for any 66
calendar year for whic h 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 services and to food. Neither a landlord nor 70
a tenant may be required to provide data re lating 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 acres 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 land contract and one or more tenants by 79
the entireties, joint tenants, or tenants i n common and 80
includes a claimant actually in possession if he was the 81 SB 457 4
immediate former owner of record, if a lineal descendant is 82
presently the owner of record, and if the 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, for all calendar years ending on or 90
before December 31, 2025, less four thousand dollars as an 91
exemption for the claimant's spouse residing at the same 92
address[,]; and for all calendar years beginning on or after 93
January 1, 2026, less five tho usand dollars, or in the case 94
of a homestead owned and occupied, for the entire year, by 95
the claimant, less five thousand dollars as an exemption for 96
the claimant's spouse residing at the same address; and 97
increased, where necessary, to reflect the fol lowing: 98
(a) Social Security, railroad retirement, and veterans 99
payments and benefits unless the claimant is a one hundred 100
percent service-connected, disabled veteran or a spouse of a 101
one hundred percent service -connected, disabled veteran. 102
The one hundred percent service -connected disabled veteran 103
shall not be required to list veterans payments and benefits; 104
(b) The total amount of all other public and private 105
pensions and annuities; 106
(c) Public relief, public assistance, and unemplo yment 107
benefits received in cash, other than benefits received 108
under this chapter; 109
(d) No deduction being allowed for losses not incurred 110
in a trade or business; 111 SB 457 5
(e) Interest on the obligations of the United States, 112
any state, or any of thei r subdivisions and 113
instrumentalities; 114
(6) "Property taxes accrued", property taxes paid, 115
exclusive of special assessments, penalties, interest, and 116
charges for service levied on a claimant's homestead in any 117
calendar year. Property taxes shall q ualify for the credit 118
only if actually paid prior to the date a return is filed. 119
The director of revenue shall require a tax receipt or other 120
proof of property tax payment. If a homestead is owned only 121
partially by claimant, then "property taxes accr ued" is that 122
part of property taxes levied on the homestead which was 123
actually paid by the claimant. For purposes of this 124
subdivision, property taxes are "levied" when the tax roll 125
is delivered to the director of revenue for collection. If 126
a claimant owns a homestead part of the preceding calendar 127
year and rents it or a different homestead for part of the 128
same year, "property taxes accrued" means only taxes levied 129
on the homestead both owned and occupied by the claimant, 130
multiplied by the percent age of twelve months that such 131
property was owned and occupied as the homestead of the 132
claimant during the year. When a claimant owns and occupies 133
two or more different homesteads in the same calendar year, 134
property taxes accrued shall be the sum of t axes allocable 135
to those several properties occupied by the claimant as a 136
homestead for the year. If a homestead is an integral part 137
of a larger unit such as a farm, or multipurpose or 138
multidwelling building, property taxes accrued shall be that 139
percentage of the total property taxes accrued as the value 140
of the homestead is of the total value. For purposes of 141
this subdivision "unit" refers to the parcel of property 142 SB 457 6
covered by a single tax statement of which the homestead is 143
a part; 144
(7) "Rent constituting property taxes accrued", twenty 145
percent of the gross rent paid by a claimant and spouse in 146
the calendar year. 147
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
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 tw enty-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 doll ars. For all 11
calendar years beginning on or after January 1, 2026, the 12
maximum upper limit shall be the sum of thirty -two thousand 13
five hundred dollars, and in the case of a homestead owned 14
and occupied for the entire year by the claimant, the 15
maximum upper limit shall be the sum of forty thousand 16
dollars; 17
(2) The term "minimum base" shall, for each calendar 18
year after December 31, 1997, but before calendar year 2008, 19
be the sum of thirteen thousand dollars. For all calendar 20
years beginning on or after January 1, 2008, the minimum 21
base shall be the sum of fourteen thousand three hundred 22
dollars. 23
2. (1) If the income on a return is equal to or less 24
than the maximum upper limit for the calendar year for which 25
the return is filed, th e property tax credit shall be 26
determined from a table of credits based upon the amount by 27 SB 457 7
which the total property tax described in section 135.025 28
exceeds the percent of income in the following list: 29
(2) The director of revenue shall prescribe a table 40
based upon [the preceding sentences ] subdivision (1) of this 41
subsection. The property tax shall be in increments of 42
twenty-five dollars and the income in increments of three 43
hundred dollars. The credit shall be the amount rounded to 44
the nearest whole dollar computed on the basis of the 45
property tax and income at the midpoints of each increment. 46
As used in this subsection, the term "accumulative" means an 47
increase by continuous or repeated application of the 48
percent to the income increment at each three hundred dollar 49
level. 50
3. (1) For all calendar years beginning on or after 51
January 1, 2026, if the income on a return is equal to or 52
less than the maximum upper limit for the calendar year for 53
which the return is filed, the property tax credit shall be 54
determined from a table of credits base d upon the amount by 55
which the total property tax described in section 135.025 56
exceeds the percent of income in the following list: 57
30
31
If the income on the
return is:
The percent is:
32
33
34
35
36
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
37
38
39
Over the minimum base
but not over the maximum
upper limit
1/16 percent
accumulative per $300
from 0 percent to 4
percent.
SB 457 8
(2) The director of revenue shall prescribe a table 68
based upon subdivision (1) of this subsection. The property 69
tax shall be in increments of twenty -five dollars and the 70
income in increments of four hundred ninety -five dollars. 71
The credit shall be the amount rounded to the nearest whole 72
dollar computed on the basis of the property tax and income 73
at the midpoints of each increment. As used in this 74
subsection, the term "accumulative" means an increase by 75
continuous or repeated application of the percent to the 76
income increment at each four -hundred-ninety-five-dollar 77
level. 78
4. Notwithstanding subsection 4 of section 32.057, the 79
department of revenue or any duly authorized employee or 80
agent shall determine whether any taxpayer filing a report 81
or return with the department of revenue who has not applied 82
for the credit allowed pursuant to section 135.020 may 83
qualify for the credit, and shall notify any qualified 84
claimant of the claimant's potential eligibility, where the 85
department determines such potential eligibility exists. 86
58
59
If the income on the
return is:
The percent is:
60
61
62
63
64
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.
65
66
67
Over the minimum base
but not over the maximum
upper limit
1/16 percent
accumulative per $495
from 0 percent to 2
percent.