Bill > HB1086

This bill modifies how certain residential real property used for short-term rentals are classified for tax purposes. Specifically, the bill clarifies that a single-family home owned by a sole proprietor, individual, partnership, or limited liability company that is leased for less than 30 consecutive days will still be classified as residential property, even if it is subject to sales tax. The bill explicitly states that leasing a single-family home for less than 30 days does not automatically constitute "transient housing," which would change its property classification. This modification aims to provide clarity and protection for property owners who engage in short-term rentals, ensuring they are not penalized with a different property tax classification simply because they rent out their property for brief periods. The bill allows taxing districts to adjust their operating levy to account for potential revenue differences resulting from this classification change, and provides guidance for county assessors on how to handle such property classifications.

Budget and Finance, Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB1086&year=2025&code=R