HB 3078

                                SECOND REGULAR SESSION
                         HOUSE COMMITTEE SUBSTITUTE FOR
        HOUSE BILL NOS. 3078 & 2672
                          103RD GENERAL ASSEMBLY
6785H.03C  JOSEPH ENGLER, Chief Clerk
                                           AN ACT
To amend chapter 137, RSMo, by adding thereto two new sections relating to local property
      tax credits for certain disabled veterans.
Be it enacted by the General Assembly of the state of Missouri, as follows:
        Section A. Chapter 137, RSMo, is amended by adding thereto two new sections, to be
2 known as sections 137.1052 and 137.1054, to read as follows:
        137.1052. 1. This section shall be known and may be cited as the "Missouri
2 Disabled Veteran Homestead Tax Credit Act".
32. As used in this section, the following terms mean:
4(1) "County", any county or city not within a county in this state;
5(2) "CPI", the Consumer Price Index for All Urban Consumers, as defined and
6 officially recorded by the United States Department of Labor or its successor;
7(3) "Disability rating", the percentage of disability assigned to a disabled
8 veteran by the United States Department of Veterans Affairs, reflecting the degree to
9 which the veteran's disability impacts the veteran's ability to work and perform daily
10 activities;
11(4) "Disabled veteran", a Missouri resident who has been separated under
12 honorable conditions from active service in any branch or reserve component of the
13 Armed Forces of the United States or the National Guard of a state as defined in 32
14 U.S.C. Section 101, as amended, and has a service-connected disability and has received
15 a disability rating of one hundred percent permanent and total as certified by the United
16 States Department of Veterans Affairs;
17(5) "Eligible owner", an individual who is a disabled veteran, is the owner of
18 record of a qualified residence or has a legal or equitable interest in a qualified residence
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
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19 as evidenced by a written instrument, and is liable for the payment of real property
20 taxes on the qualified residence;
21(6) "Homestead", the residential real property that is used as a primary
22 residence and the adjacent real property as is reasonably necessary for use of the
23 residence as a home dwelling;
24(7) "Primary residence", the real property owned and occupied by an eligible
25 owner as the principal place of residence, and not to exceed five acres of land
26 surrounding it as is reasonably necessary for use of the dwelling as a home;
27(8) "Qualified amount", for any eligible owner in a given tax year, the total
28 amount of real property taxes levied and imposed on the qualified residence and shall
29 include all ad valorem taxes levied on the qualified residence by any county or other
30 political subdivision including, but not limited to, county levies, municipal levies, school
31 district levies including bonded indebtedness levies, fire protection district levies, library
32 district levies, and any other local ad valorem levy authorized by law, but shall exclude
33 the levy imposed for the state blind pension fund;
34(9) "Qualified residence", the homestead of an eligible owner that has a market
35 value not to exceed five hundred thousand dollars, but less any portion of that property
36 that is used for commercial purposes. If the property, or a portion of the property, is
37 rented out to another person for more than six months, it is presumed to be used for
38 commercial purposes. The five-hundred-thousand-dollar limit shall be increased
39 annually per calendar year for inflation by an amount equal to the percentage change in
40 the annual average of the CPI, or zero, whichever is greater. No more than one property
41 per qualified owner per tax year shall be claimed as a qualified residence under this
42 section;
43(10) "Real property tax credit", a credit against an eligible owner's liability for
44 tax on the qualified residence that is levied and imposed by the governing body of a
45 county or other political subdivision of this state with the power to levy and impose taxes
46 on real property in this state.
473. (1) As allowed by the authority granted under Article X, Section 6(a) of the
48 Constitution of Missouri, for all tax years beginning on or after January 1, 2027, a
49 county may grant an annual real property tax credit, as calculated in this subsection, for
50 the qualified residence of an eligible owner if such county adopts an order, ordinance, or
51 resolution authorizing such real property tax credit in such county.
52(2) The qualified amount of a real property tax credit provided under this
53 section shall be equal to the percentage of the tax credit as adopted by the county under
54 this section.
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55(3) A county may grant a tax credit under this section for any percentage of the
56 qualified amount that does not exceed one hundred percent of the eligible owner's
57 liability for tax on the qualified residence under this section. Such percentage shall be
58 stated in any vote taken by the governing body of the county under subsection 8 of this
59 section. Before January first of any year, the governing body of such county may, by
60 ordinance, adjust the percentage of the tax credit for the next year of general
61 reassessment.
62(4) If the total market value of the dwelling and surrounding acreage does not
63 exceed five hundred thousand dollars, ownership of additional acreage shall not
64 disqualify an owner from eligibility under the provisions of this section.
654. The real property tax credit under this section carries over to the benefit of
66 the eligible owner's surviving spouse as long as the spouse holds the legal or beneficial
67 title to the qualified residence, permanently resides therein, and does not remarry. No
68 real property tax credit shall be allowed for the tax year in which the surviving spouse
69 remarries, no longer holds legal or beneficial title, or relocates to a different primary
70 residence.
715. Real property tax credits issued under the provisions of this section shall not
72 be refundable. No real property tax credit claimed under this section shall be carried
73 forward to any subsequent tax year. The real property tax credit allowed under this
74 section shall not be transferred, assigned, sold, or otherwise conveyed, except as
75 provided under this section.
766. Real property tax credits authorized under the provisions of this section shall
77 not reduce assessed valuation and shall not be construed as an exemption from real
78 property taxes. The security for any bonded indebtedness based on assessed valuation
79 shall remain intact.
807. An eligible owner who receives a real property tax credit granted under this
81 section shall not be eligible for any other real property tax relief, the property tax
82 credits under sections 135.010 to 135.035, or any other tax credits relating to the eligible
83 owner's qualified residence under this chapter or chapter 135.
848. Participation in the program under this section is optional as follows:
85(1) Any county may, by a majority affirmative vote of the governing body of
86 such county, opt in to the provisions of this section for the next year of the general
87 reassessment, prior to January first of any year;
88(2) If the county opts in to the provisions of this section, participation in this
89 program for an eligible owner is also optional. An eligible owner electing to participate
90 in the provisions under this section may opt in by notifying the local collector's office or
91 other entity of such election to request a real property tax credit; and
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92(3) The governing body of the county may, by a majority affirmative vote, opt to
93 rescind and cease the real property tax credit program authorized under this section
94 and previously adopted by the governing body, for the next year of the general
95 reassessment, prior to January first of any year. Any rescission shall be prospective only
96 and shall not affect real property tax credits previously applied.
979. The governing body of the county may adopt reasonable procedures and
98 promulgate ordinances, rules, and regulations in order to implement and administer the
99 provisions of this section.
10010. The assessor's office, collector's office, or other entity designated by rule,
101 regulation, or ordinance shall administer the real property tax credit allowed under this
102 section in the same manner as the tax credit authorized under section 137.1050 and shall
103 be subject to similar application, verification, and renewal procedures as adopted by
104 such county, if applicable. Eligibility determinations shall be made in accordance with
105 guidelines established by this section and any additional local rules or regulations.
10611. For the purposes of calculating property tax levies under section 137.073, and
107 for all other laws prescribing the distribution or allocation of property tax revenues, the
108 total amount of real property tax credits authorized under this section shall be
109 considered tax revenue actually received by the county or other political subdivision.
11012. A real property tax credit granted under this section shall not affect the
111 process of setting the tax rate as required under Article X, Section 22 of the Constitution
112 of Missouri and section 137.073 in any prior, current, or subsequent tax year.
11313. Nothing in this section shall impair the obligation of any contract, reduce or
114 restrict the taxing authority of any political subdivision, or alter the calculation of
115 assessed valuation for the purposes of bonded indebtedness.
         137.1054. 1. This section shall be known and may be cited as the "Missouri
2 Disabled Veteran Personal Property Tax Credit Act".
32. As used in this section, the following terms mean:
4(1) "County", any county or city not within a county in this state;
5(2) "Credit percentage", the same percentage as the eligible veteran's disability
6 rating, not to exceed one hundred percent;
7(3) "Disability rating", the percentage of disability assigned to a disabled
8 veteran by the United States Department of Veterans Affairs, reflecting the degree to
9 which the veteran's disability impacts his or her ability to work and perform daily
10 activities, expressed as a whole number percentage;
11(4) "Disabled veteran", a Missouri resident who has been separated under
12 honorable conditions from active service in any branch or reserve component of the
13 Armed Forces of the United States or the National Guard of a state as defined in 32
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14 U.S.C. Section 101, as amended, and has a service-connected disability and has received
15 a disability rating of seventy percent or greater, as certified by the United States
16 Department of Veterans Affairs;
17(5) "Eligible veteran", an individual who is a disabled veteran, is a resident of
18 the county adopting an ordinance under this section, owns and maintains a qualified
19 vehicle in this state, and is liable for the payment of personal property taxes on the
20 qualified vehicle;
21(6) "Personal property tax credit", a credit against an eligible owner's liability
22 for tax on the qualified vehicle that is levied and imposed by the governing body of a
23 county or other political subdivision of this state with the power to levy and impose taxes
24 on personal property in this state;
25(7) "Qualified tax liability", the total personal property taxes levied on each
26 qualifying vehicle for the tax year, excluding any taxes levied for the blind pension fund;
27(8) "Qualified vehicle", a motor vehicle titled solely in the name of the eligible
28 veteran or jointly with the eligible veteran's spouse, licensed in Missouri as required
29 under chapter 301, and used primarily for personal, noncommercial purposes.
303. (1) For all tax years beginning on or after January 1, 2027, a county may
31 authorize a personal property tax credit for eligible veterans in an amount equal to the
32 credit percentage applied to the qualified tax liability for each qualified vehicle, up to
33 two vehicles, if such county adopts an order, ordinance, or resolution authorizing such
34 personal property tax credit.
35(2) A county that adopts and authorizes a personal property tax credit under the
36 provisions of this section may authorize:
37(a) A uniform credit percentage equal to the eligible veteran's disability rating;
38 or
39(b) A schedule of credit percentages based on disability rating tiers, provided
40 that no credit shall be granted for a disability rating below seventy percent.
414. (1) For each tax year in which a personal property tax credit is authorized
42 under this section, the county collector shall apply the credit or credits to the eligible
43 veteran's personal property tax bill after determining the total amount of his or her
44 qualified tax liability.
45(2) Personal property tax credits authorized under the provisions of this section
46 shall reduce the amount of personal property taxes the eligible veteran is required to
47 pay but shall not alter the assessed valuation of the qualified vehicle, the levy applied by
48 any taxing authority, or the tax base used by any taxing authority and shall not be
49 construed as an exemption from personal property taxes. The eligible veteran shall
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50 remain responsible for all taxes levied for the blind pension fund, which shall not be
51 subject to any credit authorized under this section.
52(3) Personal property tax credits issued under the provisions of this section shall
53 not be refundable. No personal property tax credit claimed under this section shall be
54 carried forward to any subsequent tax year. The personal property tax credit allowed
55 under this section shall not be transferred, assigned, sold, or otherwise conveyed.
565. An eligible veteran shall annually provide a copy of his or her current
57 disability rating letter from the Department of Veterans Affairs and proof of ownership
58 and registration for each qualified vehicle. A county may create a simplified renewal
59 process for eligible veterans whose disability rating is permanent and total or otherwise
60 designated as static by the United States Department of Veterans Affairs.
616. The governing body of the county may adopt reasonable procedures and
62 promulgate ordinances, rules, and regulations in order to implement and administer the
63 provisions of this section, including application deadlines, documentation requirements,
64 and renewal processes. Eligibility determinations shall be made in accordance with
65 guidelines established by this section and any additional local rules or regulations. The
66 department of revenue may provide optional guidance, but implementation shall be
67 conducted at the county level.
687. (1) For the purposes of calculating property tax rates, school district
69 operating levy determinations, county revenue reporting, constitutional rollback
70 calculations, and all other state or local revenue adjustment formulas, the total
71 amount of personal property tax credits authorized under this section shall be
72 considered tax revenue actually received by the county, political subdivision, or other
73 taxing authority.
74(2) No taxing authority shall increase its operating levy or debt service levy or
75 claim a revenue shortfall as a result of credits granted under the provisions of this
76 section.
77(3) A personal property tax credit granted under this section shall not affect the
78 process of setting the tax rate as required under Article X, Section 22 of the Constitution
79 of Missouri and section 137.073 in any prior, current, or subsequent tax year.
80(4) Nothing in this section shall impair the obligation of any contract, reduce or
81 restrict the taxing authority of any political subdivision, or alter the calculation of
82 assessed valuation for the purposes of bonded indebtedness.
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83      8. Nothing in this section shall be construed to require any county to adopt or
84 authorize the personal property tax credit provided under this section. Adoption shall
85 be solely at the discretion of the county governing body.
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