HB 3078 — Provides local property tax credits for certain disabled veterans

SECOND REGULAR SESSION HOUSE COMMITTEE SUBSTITUTE FOR HOUSE BILL NO.NOS.

3078 & 2672 103RD GENERAL ASSEMBLY INTRODUCED6785H.03C BYJOSEPH REPRESENTATIVEENGLER, SCHMIDT.Chief Clerk AN ACT To amend chapter 137, RSMo, by adding thereto two new sections relating to local property tax credits for certain disabled veterans.

6785H.01I JOSEPH ENGLER, Chief Clerk AN ACT To amend chapter 137, RSMo, by adding thereto one new section relating to a local real property tax credit for certain disabled veterans.

Chapter 137, RSMo, is amended by adding thereto onetwo new section,sections, to be known as sectionsections 137.1052,137.1052 and 137.1054, to read as follows:

(2) "Disability"CPI", rating", the percentageConsumer ofPrice disabilityIndex assignedfor toAll aUrban disabledConsumers, veteranas defined and officially recorded by the United States Department of VeteransLabor Affairs,or reflectingits thesuccessor; degree to which the veteran's disability impacts the veteran's ability to work and perform daily activities;

(3) "Disabled"Disability veteran",rating", athe Missouripercentage residentof whodisability hasassigned beento separateda underdisabled honorableveteran conditionsby fromthe activeUnited serviceStates inDepartment anyof branchVeterans orAffairs, reservereflecting component of the Armeddegree Forcesto ofwhich the Unitedveteran's Statesdisability orimpacts the Nationalveteran's Guardability ofto awork stateand asperform defineddaily inactivities; 32 U.S.C.

(4) "Disabled veteran", a Missouri resident who has been separated under honorable conditions from active service in any branch or reserve component of the Armed Forces of the United States or the National Guard of a state as defined in 32 U.S.C.

(4)(5) "Eligible owner", an individual who is a disabled veteran, is the owner of record of thea qualified residence or has a legal or equitable interest in a qualified residence EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law.

HBHCS HBs 3078 2& residence2672 2 as evidenced by a written instrument, and is liable for the payment of real property taxes on the qualified residence;

(5)(6) "Homestead", the residential real property that is used as a primary residence and the adjacent real property as is reasonably necessary for use of the residence as a home dwelling;

(6)(7) "Primary residence", the real property owned and occupied by an eligible owner as the principal place of residence, and not to exceed five acres of land surrounding it as is reasonably necessary for use of the dwelling as a home;

(7)(8) "Qualified amount", for any eligible owner in a given tax year, the total amount of real property taxes levied and imposed on the qualified residence and shall include all ad valorem taxes levied on the qualified residence by any county or other political subdivision including, but not limited to, county levies, municipal levies, school district levies including bonded indebtedness levies, fire protection district levies, library district levies, and any other local ad valorem levy authorized by law, but shall exclude the levy imposed for the state blind pension fund;

(8)(9) "Qualified residence", the homestead of an eligible owner that has a market value not to exceed five hundred thousand dollars, but less any portion of that property that is used for commercial purposes.

The five-hundred-thousand-dollar limit shall be increased annually per calendar year for inflation by an amount equal to the percentage change in the annual average of the CPI, or zero, whichever is greater.

(9)(10) "Real property tax credit", a credit against an eligible owner's liability for tax on the qualified residence that is levied and imposed by the governing body of a county or other political subdivision of this state with the power to levy and impose taxes on real property in this state.

HCS HBs 3078 & 2672 3 (3) A county may grant a tax credit under this section for any percentage of the qualified amount that does not exceed one hundred percent of the eligible owner's liability for tax on the qualified residence under this section.

Such percentage shall be stated in any vote taken by the governing body of the county under subsection 8 of this HB 3078 3 section.

and HCS HBs 3078 & 2672 4 (3) The governing body of the county may, by a majority affirmative vote, opt to rescind and cease the real property tax credit program authorized under this section and previously adopted by the governing body, for the next year of the general HB 3078 4 reassessment, prior to January first of any year.

Any rescission shall be prospective only and shall not affect real property tax credits previously applied.

11.11.For the purposes of calculating property tax levies under section 137.073, and for all other laws prescribing the distribution or allocation of property tax revenues, the total amount of real property tax credits authorized under this section shall be considered tax revenue actually received by the county or other political subdivision.

For the purposes of calculating property tax levies under section 137.073, and for all other laws prescribing the distribution or allocation of property tax revenues, the total amount of real property tax credits authorized under this section shall be considered tax revenue actually received by the county or other political subdivision.

137.1054.

1.

This section shall be known and may be cited as the "Missouri Disabled Veteran Personal Property Tax Credit Act".

2.

As used in this section, the following terms mean:

(1) "County", any county or city not within a county in this state;

(2) "Credit percentage", the same percentage as the eligible veteran's disability rating, not to exceed one hundred percent;

(3) "Disability rating", the percentage of disability assigned to a disabled veteran by the United States Department of Veterans Affairs, reflecting the degree to which the veteran's disability impacts his or her ability to work and perform daily activities, expressed as a whole number percentage;

(4) "Disabled veteran", a Missouri resident who has been separated under honorable conditions from active service in any branch or reserve component of the Armed Forces of the United States or the National Guard of a state as defined in 32 HCS HBs 3078 & 2672 5 U.S.C.

Section 101, as amended, and has a service-connected disability and has received a disability rating of seventy percent or greater, as certified by the United States Department of Veterans Affairs;

(5) "Eligible veteran", an individual who is a disabled veteran, is a resident of the county adopting an ordinance under this section, owns and maintains a qualified vehicle in this state, and is liable for the payment of personal property taxes on the qualified vehicle;

(6) "Personal property tax credit", a credit against an eligible owner's liability for tax on the qualified vehicle that is levied and imposed by the governing body of a county or other political subdivision of this state with the power to levy and impose taxes on personal property in this state;

(7) "Qualified tax liability", the total personal property taxes levied on each qualifying vehicle for the tax year, excluding any taxes levied for the blind pension fund;

(8) "Qualified vehicle", a motor vehicle titled solely in the name of the eligible veteran or jointly with the eligible veteran's spouse, licensed in Missouri as required under chapter 301, and used primarily for personal, noncommercial purposes.

3.

(1) For all tax years beginning on or after January 1, 2027, a county may authorize a personal property tax credit for eligible veterans in an amount equal to the credit percentage applied to the qualified tax liability for each qualified vehicle, up to two vehicles, if such county adopts an order, ordinance, or resolution authorizing such personal property tax credit.

(2) A county that adopts and authorizes a personal property tax credit under the provisions of this section may authorize:

(a) A uniform credit percentage equal to the eligible veteran's disability rating;

or (b) A schedule of credit percentages based on disability rating tiers, provided that no credit shall be granted for a disability rating below seventy percent.