HB 2276 -- Property Taxation

Sponsor:  Bivins

This bill changes the laws regarding the Missouri Homestead
Preservation Act and property taxation.

MISSOURI HOMESTEAD PRESERVATION ACT

The bill eliminates the senior citizens property tax credit and
the Missouri Homestead Preservation credit as of December 31,
2008.  Beginning January 1, 2009, the bill re-establishes the
Missouri Homestead Preservation Act for taxpayers who are 65
years of age or older and have a federal adjusted gross income of
$50,000 or less, adjusted annually by the increase in the federal
Consumer Price Index.  The first $50,000 of assessed valuation on
a qualifying homestead will be exempt from the payment of
property taxes.

Individuals who are 65 years of age or older by October 15 may
elect to have the property tax on their homestead deferred if
their total federal adjusted gross income is less than $50,000,
their equity interest in the homestead is at least 10%, and the
homestead is insured for at least the amount of the assessed
valuation.  The amount of deferred taxes will be reduced by 50
cents for each dollar of household income in excess of the
maximum income limit until the household income exceeds the
maximum upper limit by a factor of two.  A lien for the amount of
the deferred taxes, fees, and accrued interest will be placed
against the property until the taxes are paid voluntarily or
after the death of the taxpayer or the sale or transfer of the
homestead.  A spouse who does not meet the age requirement, but
meets the other requirements, may continue the prior deferral of
the property tax after the death of the qualifying taxpayer.
Once the surviving spouse is 62 years of age as of October 15, he
or she may elect to defer the current assessment year's taxes on
the homestead.  The heirs to a homestead with property tax
deferrals may apply for a five-year extension of time to pay the
tax if they occupy the home as their principal residence by
February 15 of the year following the death.

The Department of Revenue will review income tax returns to
determine who may be eligible for the tax deferral and notify
them by mail when their federal adjusted gross income exceeds the
maximum upper limit for the tax year and the taxpayer elected a
deferral.

The bill creates the Senior Property Tax Deferral Revolving
Account to make payments to county tax collectors for property
taxes deferred and administrative expenses and to receive
repayments of deferred property taxes.  If there is insufficient
money in the account to make payments to the counties, as
determined by the State Auditor, the necessary amount will be
transferred from general revenue and repaid as funds become
available.

PROPERTY TAXATION

The bill:

(1)  Allows any political subdivision to reduce its tax rate
ceiling upon the approval of the voters and requires ballot
language on property tax issues to clearly indicate whether the
proposal will increase or decrease the voter's property taxes;

(2)  Requires the state to reimburse each county $7 per parcel of
real property for the costs and expenses incurred to assess and
maintain equalized assessed valuations of real and personal
property and to prepare assessment lists;

(3)  Requires the Department of Revenue to appoint a taxpayer
advocate to represent and protect the interests of the public in
any proceeding before or on appeal from the State Tax Commission.
The advocate must be an attorney and will have discretion to
represent or refrain from representing the public in any
proceeding.  The advocate may employ staff or hire on a contract
basis as necessary; and

(4)  Allows a taxpayer to pay the same amount of property tax
that was due on the taxpayer's previous tax bill and only protest
the increase in assessed valuation or property tax bill to the
commission.

The provisions of the bill regarding the Missouri Homestead
Preservation Act will expire six years from the effective date.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm