HOUSE BILL NO. 2089 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE CROSSLEY.
5353H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 137, RSMo, by adding thereto one new section relating to property tax exemptions for certain 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 one new section, to be 2 known as section 137.109, to read as follows: 137.109. 1. This section shall be known and may be cited as the "Missouri 2 Disabled Veterans Homestead Exemption". 3 2. As used in this section, the following terms mean: 4 (1) "Commission", the state tax commission; 5 (2) "Homestead", the same meaning given to such term under section 135.010; 6 (3) "Qualified residence", real property used as a homestead, less any portion of 7 that property that is used for commercial purposes, with an equalized assessed value of 8 less than $250,000 that is the primary residence of a veteran with a disability. When a 9 veteran rents out property, or a portion of the property, to another person for more than 10 six months, it is presumed to be used for commercial purposes; 11 (4) "Surviving spouse", the living spouse of a qualified deceased veteran. A 12 qualified deceased veteran is a deceased veteran who: 13 (a) Obtained an exemption under this section prior to his or her death; 14 (b) Was killed in the line of duty at any time prior to the expiration of the 15 application period in effect for the exemption for the tax year in which the exemption is 16 sought;
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. HB 2089 2
17 (c) Did not obtain an exemption under this section before death but would have 18 qualified for the exemption under this section in the tax year for which the exemption is 19 sought if he or she had survived, and whose spouse has been a resident of Missouri from 20 the time of the veteran's death through the tax year for which the exemption is sought; 21 or 22 (d) Died and whose death was determined to be service-connected but who 23 would not otherwise qualify under paragraphs (a), (b), or (c) of this subdivision, if the 24 spouse: 25 a. Is certified by the United States Department of Veterans Affairs as a recipient 26 of dependency and indemnity compensation under federal law at any time prior to the 27 expiration of the application period in effect for the exemption for the tax year for which 28 the exemption is sought; and 29 b. Remains eligible for that dependency and indemnity compensation as of 30 January first of the tax year for which the exemption is sought; 31 (5) "Veteran with a disability" or "veteran with a service-connected disability", 32 a Missouri resident who has served as a member of the Armed Forces of the United 33 States on active duty or state active duty, a member of the Missouri National Guard, or 34 a member of the United States Reserve Forces and who has received an honorable 35 discharge and who: 36 (a) Has a service-connected disability as certified by the United States 37 Department of Veterans Affairs; 38 (b) Is liable for paying property taxes on a qualified residence; and 39 (c) Is an owner of record of the qualified residence that is occupied as his or her 40 principal residence and for which he or she is liable for the payment of property taxes. 41 3. In addition to all other exemptions authorized under Article X, Section 6 of 42 the Constitution of Missouri or otherwise authorized by law, and as authorized under 43 Article X, Section 6(a) of the Constitution of Missouri, for all tax years beginning on or 44 after January 1, 2027, an annual exemption is granted for property that is used as a 45 qualified residence by a veteran with a disability, limited to the amounts set forth as 46 follows: 47 (1) For veterans with a service-connected disability of thirty percent or more but 48 less than fifty percent, as certified by the United States Department of Veterans Affairs, 49 the annual exemption is two thousand five hundred dollars; 50 (2) For veterans with a service-connected disability of fifty percent or more but 51 less than seventy percent, as certified by the United States Department of Veterans 52 Affairs, the annual exemption is five thousand dollars; HB 2089 3
53 (3) For veterans with a service-connected disability of seventy percent or more, 54 as certified by the United States Department of Veterans Affairs, the annual exemption 55 is equal to one hundred percent of the tax assessed on the qualified residence; and 56 (4) For a taxpayer who is the surviving spouse of a veteran whose death was 57 determined to be service-connected and who is certified by the United States 58 Department of Veterans Affairs as a recipient of dependency and indemnity 59 compensation under federal law, the annual exemption is equal to one hundred 60 percent of the tax assessed on the qualified residence. 61 4. If an exemption is granted under this section and the person awarded the 62 exemption subsequently becomes a resident of a facility licensed under chapter 198, a 63 Missouri veterans' home as defined under section 42.002, or a facility operated by the 64 United States Department of Veterans Affairs, the exemption shall continue: 65 (1) If the residence continues to be occupied by the qualifying person's spouse; 66 or 67 (2) If the residence remains unoccupied but is still owned by the person who 68 qualified for the exemption. 69 5. The exemption under this section carries over to the benefit of the veteran's 70 surviving spouse as long as the spouse holds the legal or beneficial title to the qualified 71 residence, permanently resides therein, and does not remarry. If the surviving spouse 72 sells the property, an exemption not to exceed the amount granted from the most recent 73 ad valorem tax roll may be transferred to his or her new residence as long as it is used as 74 his or her primary residence and he or she does not remarry. No exemption shall be 75 allowed for the tax year in which the surviving spouse remarries. 76 6. The exemption and determination of eligibility under this section applies for 77 tax years beginning on or after January 1, 2027. The claim for an exemption shall not 78 be transferred or assigned, except as provided for under this section. 79 7. (1) Except as otherwise provided in this subsection, each taxpayer who has 80 been granted an exemption under this section shall reapply on an annual basis. A 81 taxpayer shall apply for the exemption by filing an application during the application 82 period in effect for the county of his or her residence. The assessor or chief county 83 assessment officer may determine the eligibility of residential property to receive the 84 exemption provided by this section by application, visual inspection, questionnaire, or 85 other reasonable methods. The determination shall be made in accordance with 86 guidelines established by the commission. If a veteran has a combined service- 87 connected disability rating of one hundred percent and is deemed to be permanently 88 and totally disabled, as certified by the United States Department of Veterans Affairs, 89 the taxpayer who has been granted an exemption under this section shall no longer be HB 2089 4
90 required to reapply for the exemption on an annual basis, and the exemption shall be in 91 effect for as long as the exemption would otherwise be permitted under this section. 92 (2) If the person qualifying for the exemption does not occupy the qualified 93 residence as of January first of the tax year, the exemption granted under this section 94 shall be prorated on a monthly basis. The prorated exemption shall apply beginning 95 with the first complete month in which the person occupies the qualified residence. 96 8. The exemption granted under this section shall not affect the process of setting 97 the tax rate as required under Article X, Section 22 of the Constitution of Missouri and 98 section 137.073 in any prior, current, or subsequent tax year. 99 9. The commission may promulgate all necessary rules and regulations for the 100 administration of this section. Any rule or portion of a rule, as that term is defined in 101 section 536.010, that is created under the authority delegated in this section shall 102 become effective only if it complies with and is subject to all of the provisions of chapter 103 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 104 and if any of the powers vested with the general assembly pursuant to chapter 536 to 105 review, to delay the effective date, or to disapprove and annul a rule are subsequently 106 held unconstitutional, then the grant of rulemaking authority and any rule proposed or 107 adopted after August 28, 2026, shall be invalid and void. 108 10. No rule promulgated by the commission shall in any way adversely impact, 109 interrupt, or interfere with the performance of the required statutory duties of any 110 elected county official when performing such duties as deemed necessary for the 111 purposes of this section and the distribution of all other real and personal property 112 taxes. 113 11. Under section 23.253 of the Missouri sunset act: 114 (1) The provisions of this section shall sunset six years after the effective date of 115 this section unless reauthorized by an act of the general assembly; and 116 (2) This section shall terminate on January first of the calendar year 117 immediately following the calendar year in which the provisions of this section are 118 sunset. ✔
Statutes affected: