SPONSOR: McGirl
COMMITTEE ACTION: Voted "Do Pass" by the Special Committee on Tax Reform by a vote of 8 to 0.
This bill amends statutes related to senior citizen property tax relief, also known as the Circuit Breaker tax credit.
This tax credit is available to any eligible senior citizen or disabled veteran for a portion of the real estate taxes or rent that the individual paid for the year. To qualify for the tax credit, the individual's income cannot exceed the maximum upper limit set by statute.
The maximum upper limit varies depending on the circumstances of the individual claiming the tax credit: whether the individual is single or filing jointly with a spouse; or whether the individual is renting or owns and occupies a homestead.
This bill increases the maximum income in the following manner, beginning January 1, 2026:
For homeowners: from $30,000, now $40,000; Unmarried homeowner can currently subtract $2,000, and married homeowners $4,000, from their adjusted gross income in establishing their income for the purpose of this tax credit. That amount will change to $5,000 under this bill;
For renters: from $27,500, now $32,500; Renters can currently subtract $2,000 from their adjusted gross income in establishing their income for the purpose of this tax credit. That amount will change to $5,000 under this bill.
The actual amount of the tax credit is determined by the individual's income in relation to the minimum base of $14,300. Currently, the tax credit cannot exceed $1,100 in actual property taxes paid for a homeowner, or $750 in rent constituting property taxes actually paid for renters. Beginning January 1, 2026, this bill changes the calculation for incomes over the minimum base.
This bill is similar to HB 1428 (2024) and HCS SS SCS SB 133 (2023).
PROPONENTS: Supporters say that this bill expands the eligibility for those who are married and filing jointly. This allows more individuals to participate in the circuit breaker tax credits. Proponents also state that property tax rates have increased, and there has been no update to the circuit breaker tax credit. The bill will provide this update.
Testifying in person for the bill were Representative McGirl; and AARP-Missouri.
OPPONENTS: There was no opposition voiced to the committee.
Written testimony has been submitted for this bill. The full written testimony and witnesses testifying online can be found under Testimony on the bill page on the House website.
Statutes affected: