Homestead Preservation Credit

State

Missouri

Year

2006

Variations in Receipt of Benefit

Other Variation in Receipt of Benefits

Benefit Type

Credit

Benefit

Eligible applicants may receive credit if real estate property tax increases by more than 2.5% in a non-reassessment (even number) year or 5% in a reassessment (odd number) year. For applications filed in 2006, the homestead exemption limit is based on the increase to tax liability from 2004 to 2005. The amount of property tax increase above these percentages is the basis for the credit. The credit is applied to the applicant's property tax bill for the following year. State appropriations determined the actual amount of credit that each eligible applicant receives.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Eligibility is limited to the applicant's place of residence, including up to 5 acres on which the home is situated. It may consist of part of a multi-dwelling or multipurpose building and part of the land upon which it is built. No property shall be considered a homestead if such property was improved since the most recent annual assessment by more than 5% percent of the prior year appraised value, except where an eligible owner of the property has made such improvements to accommodate a disabled person.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Description of Eligibility Criteria

Applicants must be at least 65 years of age, or 100% disabled. Income must be less than $70,000 set in 2005 and adjusted annually using the incremental increase in the Consumer Price Index for All Urban Consumers for the United States, or its successor publications, as defined and officially reported by the United States Department of Labor, or its successor agency. Married couple are considered an eligible taxpayer if both spouses have reached the age of 65 or if one spouse is disabled, or if one spouse is at least 65 years old and the other spouse is at least 60 years old, and the combined income of the couple in the year prior to completing an application did not exceed the maximum upper limit. Income is defined as federal adjusted gross income.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

If the general assembly shall make an appropriation for the funding of the homestead exemption credit that is signed by the governor, then the director shall, determine the apportionment percentage by equally apportioning the appropriation among all eligible applicants on a percentage basis. If no appropriation is made by the general assembly during any tax year or no funds are actually distributed, then no homestead preservation credit shall apply in such year.

Record ID

MO102_RR06

Footnotes

Applicants can not receive both the Missouri Property Tax Credit Claim and the Homestead Preservation Credit.

Sources

Mo. Rev. Stat. § 135.010 (in effect for 2006); Mo. Rev. Stat. § 137.106 (in effect for 2006)
Source Constitution: 
Mo. Const. Art. X, § 17
Missouri’s Homestead Preservation Act (2006), Missouri Senate [http://www.senate.mo.gov/05info/members/d23/Homestead_preservation.pdf Accessed on 04/22/2010]
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