Bill > HB859

This bill introduces a new tax deduction for Missouri taxpayers who pay tangible personal property taxes. Specifically, the bill allows qualified taxpayers to deduct 100% of the tangible personal property taxes they actually paid in a given tax year from their Missouri adjusted gross income, starting January 1, 2026. A qualified taxpayer is defined as an individual with an income tax liability who has paid such property taxes. Taxpayers can choose to take this deduction directly from their adjusted gross income or as an itemized deduction on their state income tax return. However, taxpayers cannot claim this deduction for any property tax amounts that have already been used to obtain another state tax credit, exemption, or deduction. The bill includes provisions for the Missouri Department of Revenue to create rules for implementing the deduction and includes a sunset provision that will automatically terminate the program after six years unless reauthorized by the state legislature. The bill aims to provide tax relief for individuals by allowing them to offset their income tax liability with the tangible personal property taxes they have paid.

Budget and Finance, Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB859&year=2025&code=R