HOUSE BILL NO. 3526 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE RUSH.
7051H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 137.1050, RSMo, and to enact in lieu thereof one new section relating to local homestead property tax credits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 137.1050, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 137.1050, to read as follows: 137.1050. 1. For the purposes of this section, the following terms shall mean: 2 (1) "Eligible credit amount", the difference between an eligible taxpayer's real 3 property tax liability on such taxpayer's homestead for a given tax year, minus the real 4 property tax liability on such homestead in the eligible taxpayer's initial credit year; 5 (2) "Eligible taxpayer", a Missouri resident who: 6 (a) Is [sixty-two] sixty-five years of age or older as of January first of the 7 applicable tax year; 8 (b) a. Has a combined household Missouri adjusted gross income less than or 9 equal to seventy-five thousand dollars; or 10 b. Is receiving public assistance benefits for Social Security retirement or 11 disability as determined under the federal Social Security Act, 42 U.S.C. Section 301 et 12 seq., as amended, or public assistance benefits from the United States Department of 13 Veterans Affairs related to veteran status, retirement, or a service-related disability as a 14 result of service in any branch of the Armed Forces of the United States; 15 [(b)] (c) Is an owner of record of a homestead or has a legal or equitable interest in 16 such property as evidenced by a written instrument; and 17 [(c)] (d) Is liable for the payment of real property taxes on such homestead;
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 3526 2
18 (3) "Homestead", real property actually occupied by an eligible taxpayer as the 19 primary residence. An eligible taxpayer shall not claim more than one primary residence; 20 (4) "Initial credit year": 21 (a) In the case of a taxpayer that meets all requirements of subdivision (2) of this 22 subsection prior to the year in which a credit is authorized pursuant to subsection 2 of this 23 section, the year in which such credit is authorized; 24 (b) For all other taxpayers, the year in which the taxpayer meets all requirements of 25 subdivision (2) of this subsection. 26 27 If in any tax year subsequent to the eligible taxpayer's initial credit year the eligible taxpayer's 28 real property tax liability is lower than such liability in the initial credit year, such tax year 29 shall be considered the eligible taxpayer's initial credit year for all subsequent tax years. This 30 provision shall not apply if an eligible taxpayer's real property tax liability is lower than such 31 liability in the taxpayer's initial credit year solely due to a reduction in a property tax levy 32 made pursuant to section 321.554. 33 2. [(1)] Any county authorized to impose a property tax [may] shall grant a property 34 tax credit to eligible taxpayers residing in such county in an amount equal to the taxpayer's 35 eligible credit amount[, provided that: 36 (a) Such county adopts an ordinance authorizing such credit; or 37 (b) a. A petition in support of a referendum on such a credit is signed by at least five 38 percent of the registered voters of such county voting in the last gubernatorial election and the 39 petition is delivered to the governing body of the county, which shall subsequently hold a 40 referendum on such credit. 41 b. The ballot of submission for the question submitted to the voters pursuant to 42 paragraph (b) of this subdivision shall be in substantially the following form:] 43 [Shall the County of ______ exempt senior citizens aged 62 and 44 older from increases in the property tax liability due on such 45 senior citizens' primary residence?] 46 [ YES ] [ NO ] 47 48 [If a majority of the votes cast on the proposal by the qualified voters voting thereon are in 49 favor of the proposal, then the credit shall be in effect. 50 (2) An ordinance adopted pursuant to paragraph (a) of subdivision (1) of this 51 subsection shall not preclude such ordinance from being amended or superseded by a petition 52 subsequently adopted pursuant to paragraph (b) of subdivision (1) of this subsection]. 53 3. (1) A county granting credit pursuant to this section shall apply such credit when 54 calculating the eligible taxpayer's property tax liability for the tax year. The amount of the HB 3526 3
55 credit shall be noted on the statement of tax due sent to the eligible taxpayer by the county 56 collector. The county governing body may adopt reasonable procedures in order to carry out 57 the purposes and intent of this section, provided that the county shall not adopt any procedure 58 that limits the definition or scope of eligible credit amount or eligible taxpayer as defined in 59 this section. A county shall create a simple one-page application, keep and maintain 60 records related to the eligible taxpayers and property tax credits granted under the 61 provisions of this section, and notify an eligible taxpayer annually of continued 62 participation and eligibility. 63 (2) If an eligible taxpayer makes new construction and improvements to such eligible 64 taxpayer's homestead, the real property tax liability for the taxpayer's initial credit year shall 65 be increased to reflect the real property tax liability attributable to such new construction and 66 improvements. 67 (3) If an eligible taxpayer's homestead is annexed into a taxing jurisdiction to which 68 such eligible taxpayer did not owe real property tax in the eligible taxpayer's initial credit 69 year, then the real property tax liability for the taxpayer's initial credit year shall be increased 70 to reflect the real property tax liability owed to the annexing taxing jurisdiction. 71 4. For the purposes of calculating property tax levies pursuant to section 137.073, the 72 total amount of credits authorized by a county pursuant to this section shall be considered tax 73 revenue, as such term is defined in section 137.073, actually received. 74 5. A county granting a tax credit pursuant to this section shall notify each political 75 subdivision within such county of the total credit amount applicable to such political 76 subdivision by no later than November thirtieth of each year. 77 6. Subject to appropriation, the state shall reimburse, on an annual basis, any 78 political subdivision of this state for any decrease in revenue due to the provisions of this 79 section in accordance with the provisions of Article X, Section 6(a) of the Constitution of 80 Missouri. ✔
Statutes affected: