HOUSE BILL NO. 2306 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE OEHLERKING.
4430H.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) "Disability rating", the percentage of disability assigned to a disabled 6 veteran by the United States Department of Veterans Affairs, reflecting the degree to 7 which the veteran's disability impacts his or her ability to work and perform daily 8 activities; 9 (3) "Disabled veteran", a Missouri resident who has served on active duty or 10 state active duty as a member of the Armed Forces of the United States, a member of the 11 Missouri National Guard, or a member of the United States Reserve Forces and who has 12 received an honorable discharge; has a service-connected disability and has received a 13 disability rating of at least thirty percent as certified by the United States Department of 14 Veterans Affairs; and is an owner of record and liable for the payment of property taxes 15 on the qualified residence for which the exemption allowed under this section is claimed; 16 (4) "Homestead", the real property located within the state of Missouri that is 17 actually owned and occupied by an individual as his or her primary residence and not to
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 2306 2
18 exceed five acres of land surrounding it as is reasonably necessary for use of the 19 dwelling as a home; 20 (5) "Qualified residence", real property used as a homestead by a disabled 21 veteran or surviving spouse, but less any portion of such property that is used for 22 commercial purposes. If the property, or a portion of the property, is rented out to 23 another person for more than six months it is presumed to be used for commercial 24 purposes. No more than one property per claimant per tax year shall be claimed as a 25 qualified residence under this section. 26 3. In addition to all other exemptions authorized under Article X, Section 6 of 27 the Constitution of Missouri or otherwise authorized by law, and as authorized under 28 Article X, Section 6(a) of the Constitution of Missouri, for all tax years beginning on or 29 after January 1, 2027, an annual exemption is granted from the assessed value of a 30 disabled veteran's qualified residence, limited to the amounts set forth as follows: 31 (1) For disabled veterans with a disability rating of thirty percent or more but 32 less than fifty percent, the annual exemption up to the first ten thousand dollars of 33 assessed value; 34 (2) For disabled veterans with a disability rating of fifty percent or more but less 35 than seventy percent, the annual exemption up to the first fifty thousand dollars of 36 assessed value; 37 (3) For disabled veterans with a disability rating of seventy percent or more but 38 less than ninety percent, the annual exemption up to the first one hundred fifty thousand 39 dollars of assessed value; 40 (4) For disabled veterans with a disability rating of ninety percent or more but 41 less than one hundred percent, the annual exemption up to the first two hundred fifty 42 thousand dollars of assessed value; and 43 (5) For disabled veterans with a disability rating of one hundred percent, the 44 annual exemption up to the first five hundred thousand dollars of assessed value. 45 4. The exemption under this section carries over to the benefit of the disabled 46 veteran's surviving spouse as long as the spouse holds the legal or beneficial title to the 47 qualified residence, permanently resides therein, and does not remarry. No exemption 48 shall be allowed for the tax year in which the surviving spouse remarries. The 49 exemption for a surviving spouse shall remain proportional to the disabled veteran's 50 disability rating as of the time of the veteran's passing. 51 5. If an exemption is granted under this section and the person awarded the 52 exemption subsequently becomes a resident of a facility licensed under chapter 198, a 53 Missouri veterans' home as defined under section 42.002, or a facility operated by the 54 United States Department of Veterans Affairs, the exemption shall continue: HB 2306 3
55 (1) If the residence continues to be occupied by the disabled veteran's spouse; or 56 (2) If the residence remains unoccupied but is still owned by the disabled veteran 57 who qualifies for the exemption. 58 6. The exemption and determination of eligibility under this section applies for 59 tax years beginning on or after January 1, 2027. The claim for an exemption shall not 60 be transferred or assigned, except as provided for under this section. 61 7. In order to verify eligibility for the exemption allowed under this section, no 62 later than April first of each tax year for which an exemption is claimed, a disabled 63 veteran or surviving spouse shall: 64 (1) Submit an application on a form provided by the county or city not within a 65 county to the local assessor's or collector's office or other entity as directed by local rule 66 or ordinance; 67 (2) Include documentation that verifies proof of the disability rating, including 68 official documentation from the United States Department of Veterans Affairs; 69 (3) Include proof of ownership and occupation of the qualified residence; and 70 (4) Any additional forms, documents, or other items required by the local 71 authority for verification of eligibility for a disabled veteran or, if applicable, additional 72 items to verify an individual's eligibility and status as a surviving spouse. 73 8. The collector's office, assessor's office, or other entity designated by rule or 74 ordinance shall review applications and determine eligibility of the residential property 75 based on the criteria set forth under this section and by the application, visual 76 inspection, questionnaire, or other reasonable methods. The determination shall be 77 made in accordance with guidelines established by the commission and any additional 78 local rules or regulations. 79 9. The governing body of the county or city not within a county may adopt 80 reasonable procedures and promulgate ordinances, rules, and regulations in order to 81 implement and administer the provisions of this section and comply with any additional 82 requirements or regulations promulgated by the commission. 83 10. The exemption granted under this section shall not affect the process of 84 setting the tax rate as required under Article X, Section 22 of the Constitution of 85 Missouri and section 137.073 in any prior, current, or subsequent tax year. 86 11. The commission may promulgate all necessary rules and regulations for the 87 administration of this section. Any rule or portion of a rule, as that term is defined in 88 section 536.010, that is created under the authority delegated in this section shall 89 become effective only if it complies with and is subject to all of the provisions of chapter 90 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 91 and if any of the powers vested with the general assembly pursuant to chapter 536 to HB 2306 4
92 review, to delay the effective date, or to disapprove and annul a rule are subsequently 93 held unconstitutional, then the grant of rulemaking authority and any rule proposed or 94 adopted after August 28, 2026, shall be invalid and void. 95 12. No rule promulgated by the commission shall in any way adversely impact, 96 interrupt, or interfere with the performance of the required statutory duties of any 97 county elected official including, but not limited to, the county collector, when 98 performing such duties as deemed necessary for the purposes of this section and the 99 distribution of all other real and personal property taxes. 100 13. This section shall not be subject to the provisions of the Missouri sunset act 101 under sections 23.250 to 23.298. ✔
Statutes affected: