Bill > HB2038

This bill establishes the "Missouri Homestead Preservation Tax Credit Program" and creates two new sections in Missouri's tax law to provide property tax relief for eligible homeowners, primarily targeting seniors and disabled individuals. The bill defines an "eligible owner" as an individual who is 65 years or older, owns or has a legal interest in a residential property used as a primary homestead, is responsible for property taxes, and has a household income of $125,000 or less. Starting January 1, 2027, eligible owners will receive a 100% exemption on property taxes for their homestead, which cannot exceed five acres. Applicants must reapply annually and cannot transfer or assign the exemption. The bill also creates a mechanism to limit property tax increases for eligible homeowners by providing a credit that offsets tax liability increases beyond a certain percentage. The program includes strict eligibility requirements, such as having paid property taxes in full for the past three years, and contains provisions for prorating the exemption if the homeowner does not occupy the property for the full tax year. The tax credit program is set to sunset after six years unless reauthorized by the state legislature, ensuring periodic review of its effectiveness and impact. The state tax commission is granted authority to develop and implement regulations for administering the program.

https://house.mo.gov/Bill.aspx?bill=HB2038&year=2026&code=R