Missouri 2025 Regular Session

Missouri Senate Bill SB457 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3	3	and is intended to be omitted in the law.
4	4	FIRST REGULAR SESSION
5	5	SENATE BILL NO. 457
6	6	103RD GENERAL ASSEMBLY
7	7	INTRODUCED BY SENATOR HENDERSON.
8	8	1449S.01I KRISTINA MARTIN, Secretary
9	9	AN ACT
10	10	To repeal sections 135.010 and 135.030, RSMo, and to enact in lieu thereof two new sections
11	11	relating to a tax credit for certain property tax liabilities.
12	12
13	13	Be it enacted by the General Assembly of the State of Missouri, as follows:
14	14	Section A. Sections 135.010 and 135.030, RSMo, are 1
15	15	repealed and two new sections enacted in lieu thereof, to be 2
16	16	known as sections 13 5.010 and 135.030, to read as follows:3
17	17	135.010. As used in sections 135.010 to 135.030 the 1
18	18	following words and terms mean: 2
19	19	(1) "Claimant", a person or persons claiming a credit 3
20	20	under sections 135.010 to 135.030. If the persons are 4
21	21	eligible to file a joint federal income tax return and 5
22	22	reside at the same address at any time during the taxable 6
23	23	year, then the credit may only be allowed if claimed on a 7
24	24	combined Missouri income tax return or a combined claim 8
25	25	return reporting their combined i ncomes and property taxes. 9
26	26	A claimant shall not be allowed a property tax credit unless 10
27	27	the claimant or spouse has attained the age of sixty -five on 11
28	28	or before the last day of the calendar year and the claimant 12
29	29	or spouse was a resident of Missouri for the entire year, or 13
30	30	the claimant or spouse is a veteran of any branch of the 14
31	31	Armed Forces of the United States or this state who became 15
32	32	one hundred percent disabled as a result of such service, or 16
33	33	the claimant or spouse is disabled as defined in subdiv ision 17
34	34	(2) of this section, and such claimant or spouse provides 18 SB 457 2
35	35	proof of such disability in such form and manner, and at 19
36	36	such times, as the director of revenue may require, or if 20
37	37	the claimant has reached the age of sixty on or before the 21
38	38	last day of the calendar year and such claimant received 22
39	39	surviving spouse Social Security benefits during the 23
40	40	calendar year and the claimant provides proof, as required 24
41	41	by the director of revenue, that the claimant received 25
42	42	surviving spouse Social Security benefits during the 26
43	43	calendar year for which the credit will be claimed. [A 27
44	44	claimant shall not be allowed a property tax credit if the 28
45	45	claimant filed a valid claim for a credit under section 29
46	46	137.106 in the year following the year for which the 30
47	47	property tax credit is claimed.] The residency requirement 31
48	48	shall be deemed to have been fulfilled for the purpose of 32
49	49	determining the eligibility of a surviving spouse for a 33
50	50	property tax credit if a person of the age of sixty -five 34
51	51	years or older who would have otherw ise met the requirements 35
52	52	for a property tax credit dies before the last day of the 36
53	53	calendar year. The residency requirement shall also be 37
54	54	deemed to have been fulfilled for the purpose of determining 38
55	55	the eligibility of a claimant who would have otherwi se met 39
56	56	the requirements for a property tax credit but who dies 40
57	57	before the last day of the calendar year; 41
58	58	(2) "Disabled", the inability to engage in any 42
59	59	substantial gainful activity by reason of any medically 43
60	60	determinable physical or mental impair ment which can be 44
61	61	expected to result in death or which has lasted or can be 45
62	62	expected to last for a continuous period of not less than 46
63	63	twelve months. A claimant shall not be required to be 47
64	64	gainfully employed prior to such disability to qualify for a 48
65	65	property tax credit; 49 SB 457 3
66	66	(3) "Gross rent", amount paid by a claimant to a 50
67	67	landlord for the rental, at arm's length, of a homestead 51
68	68	during the calendar year, exclusive of charges for health 52
69	69	and personal care services and food furnished as part of the 53
70	70	rental agreement, whether or not expressly set out in the 54
71	71	rental agreement. If the director of revenue determines 55
72	72	that the landlord and tenant have not dealt at arm's length, 56
73	73	and that the gross rent is excessive, then he shall 57
74	74	determine the gross rent based upon a reasonable amount of 58
75	75	rent. Gross rent shall be deemed to be paid only if 59
76	76	actually paid prior to the date a return is filed. The 60
77	77	director of revenue may prescribe regulations requiring a 61
78	78	return of information by a landlord receiving rent, 62
79	79	certifying for a calendar year the amount of gross rent 63
80	80	received from a tenant claiming a property tax credit and 64
81	81	shall, by regulation, provide a method for certification by 65
82	82	the claimant of the amount of gross rent paid for any 66
83	83	calendar year for whic h a claim is made. The regulations 67
84	84	authorized by this subdivision may require a landlord or a 68
85	85	tenant or both to provide data relating to health and 69
86	86	personal care services and to food. Neither a landlord nor 70
87	87	a tenant may be required to provide data re lating to 71
88	88	utilities, furniture, home furnishings or appliances; 72
89	89	(4) "Homestead", the dwelling in Missouri owned or 73
90	90	rented by the claimant and not to exceed five acres of land 74
91	91	surrounding it as is reasonably necessary for use of the 75
92	92	dwelling as a home. It may consist of part of a 76
93	93	multidwelling or multipurpose building and part of the land 77
94	94	upon which it is built. "Owned" includes a vendee in 78
95	95	possession under a land contract and one or more tenants by 79
96	96	the entireties, joint tenants, or tenants i n common and 80
97	97	includes a claimant actually in possession if he was the 81 SB 457 4
98	98	immediate former owner of record, if a lineal descendant is 82
99	99	presently the owner of record, and if the claimant actually 83
100	100	pays all taxes upon the property. It may include a mobile 84
101	101	home; 85
102	102	(5) "Income", Missouri adjusted gross income as 86
103	103	defined in section 143.121 less two thousand dollars for all 87
104	104	calendar years ending on or before December 31, 2025 , or in 88
105	105	the case of a homestead owned and occupied, for the entire 89
106	106	year, by the claimant, for all calendar years ending on or 90
107	107	before December 31, 2025, less four thousand dollars as an 91
108	108	exemption for the claimant's spouse residing at the same 92
109	109	address[,]; and for all calendar years beginning on or after 93
110	110	January 1, 2026, less five tho usand dollars, or in the case 94
111	111	of a homestead owned and occupied, for the entire year, by 95
112	112	the claimant, less five thousand dollars as an exemption for 96
113	113	the claimant's spouse residing at the same address; and 97
114	114	increased, where necessary, to reflect the fol lowing: 98
115	115	(a) Social Security, railroad retirement, and veterans 99
116	116	payments and benefits unless the claimant is a one hundred 100
117	117	percent service-connected, disabled veteran or a spouse of a 101
118	118	one hundred percent service -connected, disabled veteran. 102
119	119	The one hundred percent service -connected disabled veteran 103
120	120	shall not be required to list veterans payments and benefits; 104
121	121	(b) The total amount of all other public and private 105
122	122	pensions and annuities; 106
123	123	(c) Public relief, public assistance, and unemplo yment 107
124	124	benefits received in cash, other than benefits received 108
125	125	under this chapter; 109
126	126	(d) No deduction being allowed for losses not incurred 110
127	127	in a trade or business; 111 SB 457 5
128	128	(e) Interest on the obligations of the United States, 112
129	129	any state, or any of thei r subdivisions and 113
130	130	instrumentalities; 114
131	131	(6) "Property taxes accrued", property taxes paid, 115
132	132	exclusive of special assessments, penalties, interest, and 116
133	133	charges for service levied on a claimant's homestead in any 117
134	134	calendar year. Property taxes shall q ualify for the credit 118
135	135	only if actually paid prior to the date a return is filed. 119
136	136	The director of revenue shall require a tax receipt or other 120
137	137	proof of property tax payment. If a homestead is owned only 121
138	138	partially by claimant, then "property taxes accr ued" is that 122
139	139	part of property taxes levied on the homestead which was 123
140	140	actually paid by the claimant. For purposes of this 124
141	141	subdivision, property taxes are "levied" when the tax roll 125
142	142	is delivered to the director of revenue for collection. If 126
143	143	a claimant owns a homestead part of the preceding calendar 127
144	144	year and rents it or a different homestead for part of the 128
145	145	same year, "property taxes accrued" means only taxes levied 129
146	146	on the homestead both owned and occupied by the claimant, 130
147	147	multiplied by the percent age of twelve months that such 131
148	148	property was owned and occupied as the homestead of the 132
149	149	claimant during the year. When a claimant owns and occupies 133
150	150	two or more different homesteads in the same calendar year, 134
151	151	property taxes accrued shall be the sum of t axes allocable 135
152	152	to those several properties occupied by the claimant as a 136
153	153	homestead for the year. If a homestead is an integral part 137
154	154	of a larger unit such as a farm, or multipurpose or 138
155	155	multidwelling building, property taxes accrued shall be that 139
156	156	percentage of the total property taxes accrued as the value 140
157	157	of the homestead is of the total value. For purposes of 141
158	158	this subdivision "unit" refers to the parcel of property 142 SB 457 6
159	159	covered by a single tax statement of which the homestead is 143
160	160	a part; 144
161	161	(7) "Rent constituting property taxes accrued", twenty 145
162	162	percent of the gross rent paid by a claimant and spouse in 146
163	163	the calendar year. 147
164	164	135.030. 1. As used in this section: 1
165	165	(1) The term "maximum upper limit" shall, for each 2
166	166	calendar year after December 31, 1997, but before calendar 3
167	167	year 2008, be the sum of twenty -five thousand dollars. For 4
168	168	all calendar years beginning on or after January 1, 2008, 5
169	169	but ending on or before December 31, 2025, the maximum upper 6
170	170	limit shall be the sum of tw enty-seven thousand five hundred 7
171	171	dollars. In the case of a homestead owned and occupied for 8
172	172	the entire year by the claimant, for all calendar years 9
173	173	ending on or before December 31, 2025, the maximum upper 10
174	174	limit shall be the sum of thirty thousand doll ars. For all 11
175	175	calendar years beginning on or after January 1, 2026, the 12
176	176	maximum upper limit shall be the sum of thirty -two thousand 13
177	177	five hundred dollars, and in the case of a homestead owned 14
178	178	and occupied for the entire year by the claimant, the 15
179	179	maximum upper limit shall be the sum of forty thousand 16
180	180	dollars; 17
181	181	(2) The term "minimum base" shall, for each calendar 18
182	182	year after December 31, 1997, but before calendar year 2008, 19
183	183	be the sum of thirteen thousand dollars. For all calendar 20
184	184	years beginning on or after January 1, 2008, the minimum 21
185	185	base shall be the sum of fourteen thousand three hundred 22
186	186	dollars. 23
187	187	2. (1) If the income on a return is equal to or less 24
188	188	than the maximum upper limit for the calendar year for which 25
189	189	the return is filed, th e property tax credit shall be 26
190	190	determined from a table of credits based upon the amount by 27 SB 457 7
191	191	which the total property tax described in section 135.025 28
192	192	exceeds the percent of income in the following list: 29
193	193	(2) The director of revenue shall prescribe a table 40
194	194	based upon [the preceding sentences ] subdivision (1) of this 41
195	195	subsection. The property tax shall be in increments of 42
196	196	twenty-five dollars and the income in increments of three 43
197	197	hundred dollars. The credit shall be the amount rounded to 44
198	198	the nearest whole dollar computed on the basis of the 45
199	199	property tax and income at the midpoints of each increment. 46
200	200	As used in this subsection, the term "accumulative" means an 47
201	201	increase by continuous or repeated application of the 48
202	202	percent to the income increment at each three hundred dollar 49
203	203	level. 50
204	204	3. (1) For all calendar years beginning on or after 51
205	205	January 1, 2026, if the income on a return is equal to or 52
206	206	less than the maximum upper limit for the calendar year for 53
207	207	which the return is filed, the property tax credit shall be 54
208	208	determined from a table of credits base d upon the amount by 55
209	209	which the total property tax described in section 135.025 56
210	210	exceeds the percent of income in the following list: 57
211	211	30
212	212	31
213	213	If the income on the
214	214	return is:
215	215	The percent is:
216	216	32
217	217	33
218	218	34
219	219	35
220	220	36
221	221	Not over the minimum
222	222	base
223	223	0 percent with credit
224	224	not to exceed $1,100 in
225	225	actual property tax or
226	226	rent equivalent paid up
227	227	to $750
228	228
229	229	37
230	230	38
231	231	39
232	232	Over the minimum base
233	233	but not over the maximum
234	234	upper limit
235	235	1/16 percent
236	236	accumulative per $300
237	237	from 0 percent to 4
238	238	percent.
239	239	SB 457 8
240	240	(2) The director of revenue shall prescribe a table 68
241	241	based upon subdivision (1) of this subsection. The property 69
242	242	tax shall be in increments of twenty -five dollars and the 70
243	243	income in increments of four hundred ninety -five dollars. 71
244	244	The credit shall be the amount rounded to the nearest whole 72
245	245	dollar computed on the basis of the property tax and income 73
246	246	at the midpoints of each increment. As used in this 74
247	247	subsection, the term "accumulative" means an increase by 75
248	248	continuous or repeated application of the percent to the 76
249	249	income increment at each four -hundred-ninety-five-dollar 77
250	250	level. 78
251	251	4. Notwithstanding subsection 4 of section 32.057, the 79
252	252	department of revenue or any duly authorized employee or 80
253	253	agent shall determine whether any taxpayer filing a report 81
254	254	or return with the department of revenue who has not applied 82
255	255	for the credit allowed pursuant to section 135.020 may 83
256	256	qualify for the credit, and shall notify any qualified 84
257	257	claimant of the claimant's potential eligibility, where the 85
258	258	department determines such potential eligibility exists. 86
259	259	
260	260	58
261	261	59
262	262	If the income on the
263	263	return is:
264	264	The percent is:
265	265	60
266	266	61
267	267	62
268	268	63
269	269	64
270	270	Not over the minimum
271	271	base
272	272	0 percent with credit
273	273	not to exceed $1,100 in
274	274	actual property tax or
275	275	rent equivalent paid up
276	276	to $750.
277	277
278	278	65
279	279	66
280	280	67
281	281	Over the minimum base
282	282	but not over the maximum
283	283	upper limit
284	284	1/16 percent
285	285	accumulative per $495
286	286	from 0 percent to 2
287	287	percent.
288	288