HB 56 -- Public Assistance

Co-Sponsors:  Ward, Selby

This bill provides tax-related and other forms of assistance to
senior citizens and low-income individuals.  The provisions
providing assistance to senior citizens are:

(1)�An increase in the property tax credit for senior citizens,
commonly known as the "circuit breaker" tax credit, from $750 to
$2,000, effective January 1, 2002.  Eligible taxpayers who are
single with an income of $30,000 or less and those who are
married with a combined income of $40,000 or less are eligible
for a circuit breaker tax credit equal to the lesser of the
taxpayer's property taxes or rent, or $2,000, effective January
1, 2002;

(2)�Beginning in tax years after December 31, 2001, a
nonrefundable income tax credit is available to taxpayers who
are 65 years of age or older.  The tax credit is equal to the
lesser of zero or the amount of real and personal property taxes
paid to support public schools less the amount of any circuit
breaker tax credit received;

(3)�An exemption for all persons 65 years of age and older from
the 1% tax on the retail sale of food; and

(4)�An exemption of the cash value of an insurance policy from
the resources used to determine eligibility for Medicaid and
Medicare benefits.

Provisions providing assistance to low income persons include
requiring the Department of Social Services to apply for any
needed federal waivers to increase the asset limits for Medicaid
eligibility from $1,000 to $4,000 for single persons, and from
$2,000 to $6,000 for married couples.  The bill also changes all
references in the existing statutes authorizing health care for
uninsured children to health care for uninsured families,
thereby expanding medical coverage for the uninsured to certain
low-income persons above age 19.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:00 pm