|SB 0730||Creates the Missouri Homestead Preservation Act|
|LR Number:||2966S.13T||Fiscal Note:||2966-13|
|Committee:||Ways and Means|
|Last Action:||06/28/04 - Signed by Governor||Journal page:|
|Title:||CCS HS HCS SS SCS SB 730|
|Effective Date:||August 28, 2004|
CCS/HS/HCS/SS/SCS/SB 730 - This act creates the Missouri Homestead Preservation Act. The act will enable senior citizens and disabled persons to obtain a credit against their property taxes for an increase to their taxes that exceeds 5% in a reassessment year and two and one-half percent in a non- reassessment year. The credit for an excessive increase will be applied against the taxes paid in the following year. The act requires an appropriation by the Legislature to fund the credit. A more detailed summary follows:
After April 1st but by September 30 of any year, all persons wishing to participate in the homestead exemption must fill out an application with their local assessor. Applicants must attest under a penalty of perjury to the following information:
1. Age 65 or older (if married, at least one 65 or older and the other at least 60), or at least one spouse disabled;
2. Limited income (where "circuit breaker" leaves off up to $70K of household income);
3. Verification of homestead property (farms will be the house and appurtenances and the up to five acres surrounding the house, as such land is classified residential property on the assessor's property record card); and
4. Certification that the property owner has not made any improvements to the property in the last year of greater than 5% of the prior year appraised value. This will be verified by the assessors.
Applicants must mail the application to the Department of Revenue (DOR) by September 30 of each year. By December 15th the DOR certifies to collectors those applicants who meet requirements of the homestead exemption credit.
In January the legislature will file an appropriation bill to fund homestead exemption based on following criteria:
Appropriation = Sum tax liability increases on a per homestead recipient basis in the prior year that exceed 5% (or 2.5% for a non-reassessment year).
By January 15th county collectors must provide list to the Department of Revenue of any eligible owners who have failed to pay the property taxes due for the year that just ended. Such owners are disqualified from the pending appropriation and the appropriation will be adjusted accordingly.
After the legislature makes an appropriation for the homestead exemption credits, the Department of Revenue will calculate/verify that the amount of the appropriation matches the level of exemption (the 5% cap). If appropriation is insufficient, the Department of Revenue will adjust the 5% (or 2.5%) figure accordingly. The Department of Revenue then certifies a list to collectors of each homestead recipient, including the specific homestead exemption credit the recipient is to receive. The State Treasurer next sends money to county collection funds to be distributed as normal property tax funds are distributed.
Around October/November county collectors send current year
tax bills with credits for prior year homestead exemption listed
on the bills and applied against current bills.