HOUSE BILL NO. 2276 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE JOBE.
5820H.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 two hundred fifty thousand dollars that is the primary residence of a veteran 9 with a disability. When a veteran rents out property, or a portion of the property, to 10 another person for more than six months, it is presumed to be used for commercial 11 purposes; 12 (4) "Surviving spouse", the living spouse of a qualified deceased veteran. A 13 qualified deceased veteran is a deceased veteran who: 14 (a) Obtained an exemption under this section prior to his or her death; 15 (b) Was killed in the line of duty at any time prior to the expiration of the 16 application period in effect for the exemption for the tax year in which the exemption is 17 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 2276 2
18 (c) Did not obtain an exemption under this section before death but who would 19 have qualified for the exemption under this section in the tax year for which the 20 exemption is sought if he or she had survived, and whose spouse has been a resident of 21 Missouri from the time of the veteran's death through the tax year for which the 22 exemption is sought; or 23 (d) Died and whose death was determined to be service-connected but who 24 would not otherwise qualify under paragraphs (a), (b), or (c) of this subdivision, if the 25 spouse: 26 a. Is certified by the United States Department of Veterans Affairs as a recipient 27 of dependency and indemnity compensation under federal law at any time prior to the 28 expiration of the application period in effect for the exemption for the tax year for which 29 the exemption is sought; and 30 b. Remains eligible for that dependency and indemnity compensation as of 31 January first of the tax year for which the exemption is sought; 32 (5) "Veteran with a disability" or "veteran with a service-connected disability", 33 a Missouri resident who has served as a member of the Armed Forces of the United 34 States on active duty or state active duty, a member of a state National Guard, or a 35 member of the United States Reserve Forces and who has received an honorable 36 discharge and who: 37 (a) Has a service-connected disability as certified by the United States 38 Department of Veterans Affairs; 39 (b) Is liable for paying property taxes on a qualified residence; and 40 (c) Is an owner of record of the qualified residence that is occupied as his or her 41 principal residence and for which he or she is liable for the payment of property taxes. 42 3. In addition to all other exemptions authorized under Article X, Section 6 of 43 the Constitution of Missouri or otherwise authorized by law, and as authorized under 44 Article X, Section 6(a) of the Constitution of Missouri, for all tax years beginning on or 45 after January 1, 2027, an annual exemption is granted for property that is used as a 46 qualified residence by a veteran with a disability, limited to the amounts set forth as 47 follows: 48 (1) For veterans with a service-connected disability of fifty percent or more but 49 less than seventy percent, as certified by the United States Department of Veterans 50 Affairs, the annual exemption is two thousand five hundred dollars; 51 (2) For veterans with a service-connected disability of seventy percent or more 52 but less than one hundred percent, as certified by the United States Department of 53 Veterans Affairs, the annual exemption is five thousand dollars; HB 2276 3
54 (3) For veterans with a service-connected disability of one hundred percent, as 55 certified by the United States Department of Veterans Affairs, the annual exemption is 56 equal to one hundred percent of the tax assessed on the qualified residence; and 57 (4) For a taxpayer who is the surviving spouse of a veteran whose death was 58 determined to be service-connected and who is certified by the United States 59 Department of Veterans Affairs as a recipient of dependency and indemnity 60 compensation under federal law, the annual exemption is equal to one hundred 61 percent of the tax assessed on the qualified residence. 62 4. If an exemption is granted under this section and the person awarded the 63 exemption subsequently becomes a resident of a facility licensed under chapter 198, a 64 Missouri veterans' home as defined under section 42.002, or a facility operated by the 65 United States Department of Veterans Affairs, the exemption shall continue: 66 (1) If the residence continues to be occupied by the qualifying person's spouse; 67 or 68 (2) If the residence remains unoccupied but is still owned by the person who 69 qualified for the exemption. 70 5. The exemption under this section carries over to the benefit of the veteran's 71 surviving spouse as long as the spouse holds the legal or beneficial title to the qualified 72 residence, permanently resides therein, and does not remarry. If the surviving spouse 73 sells the property, an exemption not to exceed the amount granted from the most recent 74 ad valorem tax roll may be transferred to his or her new residence as long as it is used as 75 his or her primary residence and he or she does not remarry. No exemption shall be 76 allowed for the tax year in which the surviving spouse remarries. 77 6. The exemption and determination of eligibility under this section applies for 78 tax years beginning on or after January 1, 2027. The claim for an exemption shall not 79 be transferred or assigned, except as provided for under this section. 80 7. (1) Except as otherwise provided in this subsection, each taxpayer who has 81 been granted an exemption under this section shall reapply on an annual basis. A 82 taxpayer shall apply for the exemption by filing an application during the application 83 period in effect for the county of his or her residence. The assessor or chief county 84 assessment officer may determine the eligibility of residential property to receive the 85 exemption provided by this section by application, visual inspection, questionnaire, or 86 other reasonable methods. The determination shall be made in accordance with 87 guidelines established by the commission. If a veteran has a combined service- 88 connected disability rating of one hundred percent and is deemed to be permanently 89 and totally disabled, as certified by the United States Department of Veterans Affairs, 90 the taxpayer who has been granted an exemption under this section shall no longer be HB 2276 4
91 required to reapply for the exemption on an annual basis, and the exemption shall be in 92 effect for as long as the exemption would otherwise be permitted under this section. 93 (2) If the person qualifying for the exemption does not occupy the qualified 94 residence as of January first of the tax year, the exemption granted under this section 95 shall be prorated on a monthly basis. The prorated exemption shall apply beginning 96 with the first complete month in which the person occupies the qualified residence. 97 8. The exemption granted under this section shall not affect the process of setting 98 the tax rate as required under Article X, Section 22 of the Constitution of Missouri and 99 section 137.073 in any prior, current, or subsequent tax year. 100 9. The commission may promulgate all necessary rules and regulations for the 101 administration of this section. Any rule or portion of a rule, as that term is defined in 102 section 536.010, that is created under the authority delegated in this section shall 103 become effective only if it complies with and is subject to all of the provisions of chapter 104 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 105 and if any of the powers vested with the general assembly pursuant to chapter 536 to 106 review, to delay the effective date, or to disapprove and annul a rule are subsequently 107 held unconstitutional, then the grant of rulemaking authority and any rule proposed or 108 adopted after August 28, 2026, shall be invalid and void. 109 10. No rule promulgated by the commission shall in any way adversely impact, 110 interrupt, or interfere with the performance of the required statutory duties of any 111 county elected official when performing such duties as deemed necessary for the 112 purposes of this section and the distribution of all other real and personal property 113 taxes. 114 11. Under section 23.253 of the Missouri sunset act: 115 (1) The provisions of this section shall sunset six years after the effective date of 116 this section unless reauthorized by an act of the general assembly; and 117 (2) This section shall terminate on January first of the calendar year 118 immediately following the calendar year in which the provisions of this section are 119 sunset. ✔
Statutes affected: