Bill > HB2923

This bill, known as the "Homestead Improvement Property Tax Relief Act," establishes an exemption from real property taxation for qualifying improvements made to a homestead. A homestead is defined as a principal residence with no more than four dwelling units and up to five acres of land, owned by a Missouri resident. A "qualifying improvement" is any reconstruction, alteration, addition, or new construction that is not ordinary maintenance or repair and costs over $7,500 in a calendar year, excluding the construction of a new dwelling unless it replaces one destroyed by a "catastrophic event" (like a fire or flood). This exemption, capped at $75,000 in true value, applies for four consecutive tax years and does not reduce the property's pre-improvement base value or land value. Owners must file an intent form before construction and a final application after completion, with specific procedures for reporting progress and final costs. The exemption continues even if the property is sold, as long as it remains a homestead. In cases of catastrophic events, reconstruction or replacement of a dwelling may also qualify for the exemption, with higher limits for uninsured properties. The bill also outlines rules for determining the "improvement value" and requires the state tax commission to adopt uniform rules and forms for its administration, ensuring simplicity, transparency, and equal treatment statewide. This exemption is in addition to other tax relief programs and will apply to improvements commencing on or after January 1st following the bill's effective date, with the general assembly required to appropriate funds for any revenue lost by political subdivisions due to this exemption.

Budget and Finance

https://house.mo.gov/Bill.aspx?bill=HB2923&year=2026&code=R