Homestead preservation--definitions--homestead exemption creditreceived, when, application process--assessor'sduties--department of revenue duties--apportionment percentageset, how applied, notice to owners--rulemaking authority--sunsetprovision.
137.106. 1. This section may be known and may be cited as "TheMissouri Homestead Preservation Act".
2. As used in this section, the following terms shall mean:
(1) "Department", the department of revenue;
(2) "Director", the director of revenue;
(3) "Disabled", as such term is defined in section 135.010, RSMo;
(4) "Eligible owner", any individual owner of property who issixty-five years old or older as of January first of the tax year in whichthe individual is claiming the credit or who is disabled, and who had anincome of equal to or less than the maximum upper limit in the year priorto completing an application pursuant to this section; or
(a) In the case of a married couple owning property either jointly oras tenants by the entirety, or where only one spouse owns the property,such couple shall be considered an eligible taxpayer if both spouses havereached the age of sixty-five or if one spouse is disabled, or if onespouse is at least sixty-five years old and the other spouse is at leastsixty years old, and the combined income of the couple in the year prior tocompleting an application pursuant to this section did not exceed themaximum upper limit; or
(b) In the case of joint ownership by unmarried persons or ownershipby tenancy in common by two or more unmarried persons, such owners shall beconsidered an eligible owner if each person with an ownership interestindividually satisfies the eligibility requirements for an individualeligible owner under this section and the combined income of allindividuals with an interest in the property is equal to or less than themaximum upper limit in the year prior to completing an application underthis section. If any individual with an ownership interest in the propertyfails to satisfy the eligibility requirements of an individual eligibleowner or if the combined income of all individuals with interest in theproperty exceeds the maximum upper limit, then all individuals with anownership interest in such property shall be deemed ineligible ownersregardless of such other individual's ability to individually meet theeligibility requirements; or
(c) In the case of property held in trust, the eligible owner andrecipient of the tax credit shall be the trust itself provided the previousowner of the homestead or the previous owner's spouse: is the settlor ofthe trust with respect to the homestead; currently resides in suchhomestead; and but for the transfer of such property would have satisfiedthe age, ownership, and maximum upper limit requirements for income asdefined in subdivisions (7) and (8) of this subsection;
No individual shall be an eligible owner if the individual has not paidtheir property tax liability, if any, in full by the payment due date inany of the three prior tax years, except that a late payment of a propertytax liability in any prior year shall not disqualify a potential eligibleowner if such owner paid in full the tax liability and any and allpenalties, additions and interest that arose as a result of such latepayment; no individual shall be an eligible owner if such person filed avalid claim for the senior citizens property tax relief credit pursuant tosections 135.010 to 135.035, RSMo;
(5) "Homestead", as such term is defined pursuant to section 135.010,RSMo, except as limited by provisions of this section to the contrary. Noproperty shall be considered a homestead if such property was improvedsince the most recent annual assessment by more than five percent of theprior year appraised value, except where an eligible owner of the propertyhas made such improvements to accommodate a disabled person;
(6) "Homestead exemption limit", a percentage increase, rounded tothe nearest hundredth of a percent, which shall be equal to the percentageincrease to tax liability, not including improvements, of a homestead fromone tax year to the next that exceeds a certain percentage set pursuant tosubsection 10 of this section. For applications filed in 2005 or 2006, thehomestead exemption limit shall be based on the increase to tax liabilityfrom 2004 to 2005. For applications filed between April 1, 2005, andSeptember 30, 2006, an eligible owner, who otherwise satisfied therequirements of this section, shall not apply for the homestead exemptioncredit more than once during such period. For applications filed after2006, the homestead exemption limit shall be based on the increase to taxliability from two years prior to application to the year immediately priorto application. For applications filed between December 31, 2008, andDecember 31, 2011, the homestead exemption limit shall be based on theincrease in tax liability from the base year to the year prior to theapplication year. For applications filed on or after January 1, 2012, thehomestead exemption limit shall be based on the increase to tax liabilityfrom two years prior to application to the year immediately prior toapplication. For purposes of this subdivision, the term "base year" meansthe year prior to the first year in which the eligible owner's applicationwas approved, or 2006, whichever is later;
(7) "Income", federal adjusted gross income, and in the case ofownership of the homestead by trust, the income of the settlor applicantshall be imputed to the income of the trust for purposes of determiningeligibility with regards to the maximum upper limit;
(8) "Maximum upper limit", in the calendar year 2005, the income sumof seventy thousand dollars; in each successive calendar year this amountshall be raised by the incremental increase in the general price level, asdefined pursuant to article X, section 17 of the Missouri Constitution.
3. Pursuant to article X, section 6(a) of the Constitution ofMissouri, if in the prior tax year, the property tax liability on anyparcel of subclass (1) real property increased by more than the homesteadexemption limit, without regard for any prior credit received due to theprovisions of this section, then any eligible owner of the property shallreceive a homestead exemption credit to be applied in the current tax yearproperty tax liability to offset the prior year increase to tax liabilitythat exceeds the homestead exemption limit, except as eligibility for thecredit is limited by the provisions of this section. The amount of thecredit shall be listed separately on each taxpayer's tax bill for thecurrent tax year, or on a document enclosed with the taxpayer's bill. Thehomestead exemption credit shall not affect the process of setting the taxrate as required pursuant to article X, section 22 of the Constitution ofMissouri and section 137.073 in any prior, current, or subsequent tax year.
4. If application is made in 2005, any potential eligible owner mayapply for the homestead exemption credit by completing an applicationthrough their local assessor's office. Applications may be completedbetween April first and September thirtieth of any tax year in order forthe taxpayer to be eligible for the homestead exemption credit in the taxyear next following the calendar year in which the homestead exemptioncredit application was completed. The application shall be on formsprovided to the assessor's office by the department. Forms also shall bemade available on the department's Internet site and at all permanentbranch offices and all full-time, temporary, or fee offices maintained bythe department of revenue. The applicant shall attest under penalty ofperjury:
(1) To the applicant's age;
(2) That the applicant's prior year income was less than the maximumupper limit;
(3) To the address of the homestead property; and
(4) That any improvements made to the homestead, not made toaccommodate a disabled person, did not total more than five percent of theprior year appraised value. The applicant shall also include with theapplication copies of receipts indicating payment of property tax by theapplicant for the homestead property for the two prior tax years.
5. If application is made in 2005, the assessor, upon request for anapplication, shall:
(1) Certify the parcel number and owner of record as of January firstof the homestead, including verification of the acreage classified asresidential on the assessor's property record card;
(2) Obtain appropriate prior tax year levy codes for each homesteadfrom the county clerks for inclusion on the form;
(3) Record on the application the assessed valuation of the homesteadfor the current tax year, and any new construction or improvements for thecurrent tax year; and
(4) Sign the application, certifying the accuracy of the assessor'sentries.
6. If application is made after 2005, any potential eligible ownermay apply for the homestead exemption credit by completing an application.Applications may be completed between April first and October fifteenth ofany tax year in order for the taxpayer to be eligible for the homesteadexemption credit in the tax year next following the calendar year in whichthe homestead exemption credit application was completed. The applicationshall be on forms provided by the department. Forms also shall be madeavailable on the department's Internet site and at all permanent branchoffices and all full-time, temporary, or fee offices maintained by thedepartment of revenue. The applicant shall attest under penalty ofperjury:
(1) To the applicant's age;
(2) That the applicant's prior year income was less than the maximumupper limit;
(3) To the address of the homestead property;
(4) That any improvements made to the homestead, not made toaccommodate a disabled person, did not total more than five percent of theprior year appraised value; and
(5) The applicant shall also include with the application copies ofreceipts indicating payment of property tax by the applicant for thehomestead property for the three prior tax years.
7. Each applicant shall send the application to the department byOctober fifteenth of each year for the taxpayer to be eligible for thehomestead exemption credit in the tax year next following the calendar yearin which the application was completed.
8. If application is made in 2005, upon receipt of the applications,the department shall calculate the tax liability, adjusted to exclude newconstruction or improvements verify compliance with the maximum incomelimit, verify the age of the applicants, and make adjustments to thesenumbers as necessary on the applications. The department also shalldisallow any application where the applicant has also filed a validapplication for the senior citizens property tax credit, pursuant tosections 135.010 to 135.035, RSMo. Once adjusted tax liability, age, andincome are verified, the director shall determine eligibility for thecredit, and provide a list of all verified eligible owners to the countycollectors or county clerks in counties with a township form of governmentby December fifteenth of each year. By January fifteenth, the countycollectors or county clerks in counties with a township form of governmentshall provide a list to the department of any verified eligible owners whofailed to pay the property tax due for the tax year that ended immediatelyprior. Such eligible owners shall be disqualified from receiving thecredit in the current tax year.
9. If application is made after 2005, upon receipt of theapplications, the department shall calculate the tax liability, verifycompliance with the maximum income limit, verify the age of the applicants,and make adjustments to these numbers as necessary on the applications.The department also shall disallow any application where the applicant alsohas filed a valid application for the senior citizens property tax creditunder sections 135.010 to 135.035, RSMo. Once adjusted tax liability, age,and income are verified, the director shall determine eligibility for thecredit and provide a list of all verified eligible owners to the countyassessors or county clerks in counties with a township form of governmentby December fifteenth of each year. By January fifteenth, the countyassessors shall provide a list to the department of any verified eligibleowners who made improvements not for accommodation of a disability to thehomestead and the dollar amount of the assessed value of such improvements.If the dollar amount of the assessed value of such improvements totaledmore than five percent of the prior year appraised value, such eligibleowners shall be disqualified from receiving the credit in the current taxyear.
10. The director shall calculate the level of appropriation necessaryto set the homestead exemption limit at five percent when based on a yearof general reassessment or at two and one-half percent when based on a yearwithout general reassessment for the homesteads of all verified eligibleowners, and provide such calculation to the speaker of the house ofrepresentatives, the president pro tempore of the senate, and the directorof the office of budget and planning in the office of administration byJanuary thirty-first of each year.
11. For applications made in 2005, the general assembly shall make anappropriation for the funding of the homestead exemption credit that issigned by the governor, then the director shall, by July thirty-first ofsuch year, set the homestead exemption limit. The limit shall be a single,statewide percentage increase to tax liability, rounded to the nearesthundredth of a percent, which, if applied to all homesteads of verifiedeligible owners who applied for the homestead exemption credit in theimmediately prior tax year, would cause all but one-quarter of one percentof the amount of the appropriation, minus any withholding by the governor,to be distributed during that fiscal year. The remaining one-quarter ofone percent shall be distributed to the county assessment funds of eachcounty on a proportional basis, based on the number of eligible owners ineach county; such one-quarter percent distribution shall be delineated inany such appropriation as a separate line item in the total appropriation.If no appropriation is made by the general assembly during any tax year orno funds are actually distributed pursuant to any appropriation therefor,then no homestead preservation credit shall apply in such year.
12. After setting the homestead exemption limit for applications madein 2005, the director shall apply the limit to the homestead of eachverified eligible owner and calculate the credit to be associated with eachverified eligible owner's homestead, if any. The director shall send alist of those eligible owners who are to receive the homestead exemptioncredit, including the amount of each credit, the certified parcel number ofthe homestead, and the address of the homestead property, to the countycollectors or county clerks in counties with a township form of governmentby August thirty-first. Pursuant to such calculation, the director shallinstruct the state treasurer as to how to distribute the appropriation andassessment fund allocation to the county collector's funds of each countyor the treasurer ex officio collector's fund in counties with a townshipform of government where recipients of the homestead exemption credit arelocated, so as to exactly offset each homestead exemption credit beingissued, plus the one-quarter of one percent distribution for the countyassessment funds. As a result of the appropriation, in no case shall apolitical subdivision receive more money than it would have received absentthe provisions of this section plus the one-quarter of one percentdistribution for the county assessment funds. Funds, at the direction ofthe county collector or the treasurer ex officio collector in counties witha township form of government, shall be deposited in the county collector'sfund of a county or the treasurer ex officio collector's fund or may besent by mail to the collector of a county, or the treasurer ex officiocollector in counties with a township form of government, not later thanOctober first in any year a homestead exemption credit is appropriated as aresult of this section and shall be distributed as moneys in such funds arecommonly distributed from other property tax revenues by the collector ofthe county or the treasurer ex officio collector of the county in countieswith a township form of government, so as to exactly offset each homesteadexemption credit being issued. In counties with a township form ofgovernment, the county clerk shall provide the treasurer ex officiocollector a summary of the homestead exemption credit for each township forthe purpose of distributing the total homestead exemption credit to eachtownship collector in a particular county.
13. If, in any given year after 2005, the general assembly shall makean appropriation for the funding of the homestead exemption credit that issigned by the governor, then the director shall determine the apportionmentpercentage by equally apportioning the appropriation among all eligibleapplicants on a percentage basis. If no appropriation is made by thegeneral assembly during any tax year or no funds are actually distributedpursuant to any appropriation therefor, then no homestead preservationcredit shall apply in such year.
14. After determining the apportionment percentage, the directorshall calculate the credit to be associated with each verified eligibleowner's homestead, if any. The director shall send a list of thoseeligible owners who are to receive the homestead exemption credit,including the amount of each credit, the certified parcel number of thehomestead, and the address of the homestead property, to the countycollectors or county clerks in counties with a township form of governmentby August thirty-first. Pursuant to such calculation, the director shallinstruct the state treasurer as to how to distribute the appropriation tothe county collector's fund of each county where recipients of thehomestead exemption credit are located, so as to exactly offset eachhomestead exemption credit being issued. As a result of the appropriation,in no case shall a political subdivision receive more money than it wouldhave received absent the provisions of this section. Funds, at thedirection of the collector of the county or treasurer ex officio collectorin counties with a township form of government, shall be deposited in thecounty collector's fund of a county or may be sent by mail to the collectorof a county, or treasurer ex officio collector in counties with a townshipform of government, not later than October first in any year a homesteadexemption credit is appropriated as a result of this section and shall bedistributed as moneys in such funds are commonly distributed from otherproperty tax revenues by the collector of the county or the treasurer exofficio collector of the county in counties with a township form ofgovernment, so as to exactly offset each homestead exemption credit beingissued.
15. The department shall promulgate rules for implementation of thissection. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2004, shall beinvalid and void. Any rule promulgated by the department shall in no wayimpact, affect, interrupt, or interfere with the performance of therequired statutory duties of any county elected official, more particularlyincluding the county collector when performing such duties as deemednecessary for the distribution of any homestead appropriation and thedistribution of all other real and personal property taxes.
16. In the event that an eligible owner dies or transfers ownershipof the property after the homestead exemption limit has been set in anygiven year, but prior to January first of the year in which the creditwould otherwise be applied, the credit shall be void and any correspondingmoneys, pursuant to subsection 12 of this section, shall lapse to the stateto be credited to the general revenue fund. In the event the collector ofthe county or the treasurer ex officio collector of the county in countieswith a township form of government determines prior to issuing the creditthat the individual is not an eligible owner because the individual did notpay the prior three years' property tax liability in full, the credit shallbe void and any corresponding moneys, under subsection 11 of this section,shall lapse to the state to be credited to the general revenue fund.
17. This section shall apply to all tax years beginning on or afterJanuary 1, 2005. This subsection shall become effective June 28, 2004.
18. In accordance with the provisions of sections 23.250 to 23.298,RSMo, and unless otherwise authorized pursuant to section 23.253, RSMo:
(1) Any new program authorized under the provisions of this sectionshall automatically sunset six years after the effective date of thissection; and
(2) This section shall terminate on September first of the yearfollowing the year in which any new program authorized under this sectionis sunset, and the revisor of statutes shall designate such sections andthis section in a revision bill for repeal.
Homestead preservation--definitions--homestead exemption creditreceived, when, application process--assessor'sduties--department of revenue duties--apportionment percentageset, how applied, notice to owners--rulemaking authority--sunsetprovision.
137.106. 1. This section may be known and may be cited as "TheMissouri Homestead Preservation Act".
2. As used in this section, the following terms shall mean:
(1) "Department", the department of revenue;
(2) "Director", the director of revenue;
(3) "Disabled", as such term is defined in section 135.010, RSMo;
(4) "Eligible owner", any individual owner of property who issixty-five years old or older as of January first of the tax year in whichthe individual is claiming the credit or who is disabled, and who had anincome of equal to or less than the maximum upper limit in the year priorto completing an application pursuant to this section; or
(a) In the case of a married couple owning property either jointly oras tenants by the entirety, or where only one spouse owns the property,such couple shall be considered an eligible taxpayer if both spouses havereached the age of sixty-five or if one spouse is disabled, or if onespouse is at least sixty-five years old and the other spouse is at leastsixty years old, and the combined income of the couple in the year prior tocompleting an application pursuant to this section did not exceed themaximum upper limit; or
(b) In the case of joint ownership by unmarried persons or ownershipby tenancy in common by two or more unmarried persons, such owners shall beconsidered an eligible owner if each person with an ownership interestindividually satisfies the eligibility requirements for an individualeligible owner under this section and the combined income of allindividuals with an interest in the property is equal to or less than themaximum upper limit in the year prior to completing an application underthis section. If any individual with an ownership interest in the propertyfails to satisfy the eligibility requirements of an individual eligibleowner or if the combined income of all individuals with interest in theproperty exceeds the maximum upper limit, then all individuals with anownership interest in such property shall be deemed ineligible ownersregardless of such other individual's ability to individually meet theeligibility requirements; or
(c) In the case of property held in trust, the eligible owner andrecipient of the tax credit shall be the trust itself provided the previousowner of the homestead or the previous owner's spouse: is the settlor ofthe trust with respect to the homestead; currently resides in suchhomestead; and but for the transfer of such property would have satisfiedthe age, ownership, and maximum upper limit requirements for income asdefined in subdivisions (7) and (8) of this subsection;
No individual shall be an eligible owner if the individual has not paidtheir property tax liability, if any, in full by the payment due date inany of the three prior tax years, except that a late payment of a propertytax liability in any prior year shall not disqualify a potential eligibleowner if such owner paid in full the tax liability and any and allpenalties, additions and interest that arose as a result of such latepayment; no individual shall be an eligible owner if such person filed avalid claim for the senior citizens property tax relief credit pursuant tosections 135.010 to 135.035, RSMo;
(5) "Homestead", as such term is defined pursuant to section 135.010,RSMo, except as limited by provisions of this section to the contrary. Noproperty shall be considered a homestead if such property was improvedsince the most recent annual assessment by more than five percent of theprior year appraised value, except where an eligible owner of the propertyhas made such improvements to accommodate a disabled person;
(6) "Homestead exemption limit", a percentage increase, rounded tothe nearest hundredth of a percent, which shall be equal to the percentageincrease to tax liability, not including improvements, of a homestead fromone tax year to the next that exceeds a certain percentage set pursuant tosubsection 10 of this section. For applications filed in 2005 or 2006, thehomestead exemption limit shall be based on the increase to tax liabilityfrom 2004 to 2005. For applications filed between April 1, 2005, andSeptember 30, 2006, an eligible owner, who otherwise satisfied therequirements of this section, shall not apply for the homestead exemptioncredit more than once during such period. For applications filed after2006, the homestead exemption limit shall be based on the increase to taxliability from two years prior to application to the year immediately priorto application. For applications filed between December 31, 2008, andDecember 31, 2011, the homestead exemption limit shall be based on theincrease in tax liability from the base year to the year prior to theapplication year. For applications filed on or after January 1, 2012, thehomestead exemption limit shall be based on the increase to tax liabilityfrom two years prior to application to the year immediately prior toapplication. For purposes of this subdivision, the term "base year" meansthe year prior to the first year in which the eligible owner's applicationwas approved, or 2006, whichever is later;
(7) "Income", federal adjusted gross income, and in the case ofownership of the homestead by trust, the income of the settlor applicantshall be imputed to the income of the trust for purposes of determiningeligibility with regards to the maximum upper limit;
(8) "Maximum upper limit", in the calendar year 2005, the income sumof seventy thousand dollars; in each successive calendar year this amountshall be raised by the incremental increase in the general price level, asdefined pursuant to article X, section 17 of the Missouri Constitution.
3. Pursuant to article X, section 6(a) of the Constitution ofMissouri, if in the prior tax year, the property tax liability on anyparcel of subclass (1) real property increased by more than the homesteadexemption limit, without regard for any prior credit received due to theprovisions of this section, then any eligible owner of the property shallreceive a homestead exemption credit to be applied in the current tax yearproperty tax liability to offset the prior year increase to tax liabilitythat exceeds the homestead exemption limit, except as eligibility for thecredit is limited by the provisions of this section. The amount of thecredit shall be listed separately on each taxpayer's tax bill for thecurrent tax year, or on a document enclosed with the taxpayer's bill. Thehomestead exemption credit shall not affect the process of setting the taxrate as required pursuant to article X, section 22 of the Constitution ofMissouri and section 137.073 in any prior, current, or subsequent tax year.
4. If application is made in 2005, any potential eligible owner mayapply for the homestead exemption credit by completing an applicationthrough their local assessor's office. Applications may be completedbetween April first and September thirtieth of any tax year in order forthe taxpayer to be eligible for the homestead exemption credit in the taxyear next following the calendar year in which the homestead exemptioncredit application was completed. The application shall be on formsprovided to the assessor's office by the department. Forms also shall bemade available on the department's Internet site and at all permanentbranch offices and all full-time, temporary, or fee offices maintained bythe department of revenue. The applicant shall attest under penalty ofperjury:
(1) To the applicant's age;
(2) That the applicant's prior year income was less than the maximumupper limit;
(3) To the address of the homestead property; and
(4) That any improvements made to the homestead, not made toaccommodate a disabled person, did not total more than five percent of theprior year appraised value. The applicant shall also include with theapplication copies of receipts indicating payment of property tax by theapplicant for the homestead property for the two prior tax years.
5. If application is made in 2005, the assessor, upon request for anapplication, shall:
(1) Certify the parcel number and owner of record as of January firstof the homestead, including verification of the acreage classified asresidential on the assessor's property record card;
(2) Obtain appropriate prior tax year levy codes for each homesteadfrom the county clerks for inclusion on the form;
(3) Record on the application the assessed valuation of the homesteadfor the current tax year, and any new construction or improvements for thecurrent tax year; and
(4) Sign the application, certifying the accuracy of the assessor'sentries.
6. If application is made after 2005, any potential eligible ownermay apply for the homestead exemption credit by completing an application.Applications may be completed between April first and October fifteenth ofany tax year in order for the taxpayer to be eligible for the homesteadexemption credit in the tax year next following the calendar year in whichthe homestead exemption credit application was completed. The applicationshall be on forms provided by the department. Forms also shall be madeavailable on the department's Internet site and at all permanent branchoffices and all full-time, temporary, or fee offices maintained by thedepartment of revenue. The applicant shall attest under penalty ofperjury:
(1) To the applicant's age;
(2) That the applicant's prior year income was less than the maximumupper limit;
(3) To the address of the homestead property;
(4) That any improvements made to the homestead, not made toaccommodate a disabled person, did not total more than five percent of theprior year appraised value; and
(5) The applicant shall also include with the application copies ofreceipts indicating payment of property tax by the applicant for thehomestead property for the three prior tax years.
7. Each applicant shall send the application to the department byOctober fifteenth of each year for the taxpayer to be eligible for thehomestead exemption credit in the tax year next following the calendar yearin which the application was completed.
8. If application is made in 2005, upon receipt of the applications,the department shall calculate the tax liability, adjusted to exclude newconstruction or improvements verify compliance with the maximum incomelimit, verify the age of the applicants, and make adjustments to thesenumbers as necessary on the applications. The department also shalldisallow any application where the applicant has also filed a validapplication for the senior citizens property tax credit, pursuant tosections 135.010 to 135.035, RSMo. Once adjusted tax liability, age, andincome are verified, the director shall determine eligibility for thecredit, and provide a list of all verified eligible owners to the countycollectors or county clerks in counties with a township form of governmentby December fifteenth of each year. By January fifteenth, the countycollectors or county clerks in counties with a township form of governmentshall provide a list to the department of any verified eligible owners whofailed to pay the property tax due for the tax year that ended immediatelyprior. Such eligible owners shall be disqualified from receiving thecredit in the current tax year.
9. If application is made after 2005, upon receipt of theapplications, the department shall calculate the tax liability, verifycompliance with the maximum income limit, verify the age of the applicants,and make adjustments to these numbers as necessary on the applications.The department also shall disallow any application where the applicant alsohas filed a valid application for the senior citizens property tax creditunder sections 135.010 to 135.035, RSMo. Once adjusted tax liability, age,and income are verified, the director shall determine eligibility for thecredit and provide a list of all verified eligible owners to the countyassessors or county clerks in counties with a township form of governmentby December fifteenth of each year. By January fifteenth, the countyassessors shall provide a list to the department of any verified eligibleowners who made improvements not for accommodation of a disability to thehomestead and the dollar amount of the assessed value of such improvements.If the dollar amount of the assessed value of such improvements totaledmore than five percent of the prior year appraised value, such eligibleowners shall be disqualified from receiving the credit in the current taxyear.
10. The director shall calculate the level of appropriation necessaryto set the homestead exemption limit at five percent when based on a yearof general reassessment or at two and one-half percent when based on a yearwithout general reassessment for the homesteads of all verified eligibleowners, and provide such calculation to the speaker of the house ofrepresentatives, the president pro tempore of the senate, and the directorof the office of budget and planning in the office of administration byJanuary thirty-first of each year.
11. For applications made in 2005, the general assembly shall make anappropriation for the funding of the homestead exemption credit that issigned by the governor, then the director shall, by July thirty-first ofsuch year, set the homestead exemption limit. The limit shall be a single,statewide percentage increase to tax liability, rounded to the nearesthundredth of a percent, which, if applied to all homesteads of verifiedeligible owners who applied for the homestead exemption credit in theimmediately prior tax year, would cause all but one-quarter of one percentof the amount of the appropriation, minus any withholding by the governor,to be distributed during that fiscal year. The remaining one-quarter ofone percent shall be distributed to the county assessment funds of eachcounty on a proportional basis, based on the number of eligible owners ineach county; such one-quarter percent distribution shall be delineated inany such appropriation as a separate line item in the total appropriation.If no appropriation is made by the general assembly during any tax year orno funds are actually distributed pursuant to any appropriation therefor,then no homestead preservation credit shall apply in such year.
12. After setting the homestead exemption limit for applications madein 2005, the director shall apply the limit to the homestead of eachverified eligible owner and calculate the credit to be associated with eachverified eligible owner's homestead, if any. The director shall send alist of those eligible owners who are to receive the homestead exemptioncredit, including the amount of each credit, the certified parcel number ofthe homestead, and the address of the homestead property, to the countycollectors or county clerks in counties with a township form of governmentby August thirty-first. Pursuant to such calculation, the director shallinstruct the state treasurer as to how to distribute the appropriation andassessment fund allocation to the county collector's funds of each countyor the treasurer ex officio collector's fund in counties with a townshipform of government where recipients of the homestead exemption credit arelocated, so as to exactly offset each homestead exemption credit beingissued, plus the one-quarter of one percent distribution for the countyassessment funds. As a result of the appropriation, in no case shall apolitical subdivision receive more money than it would have received absentthe provisions of this section plus the one-quarter of one percentdistribution for the county assessment funds. Funds, at the direction ofthe county collector or the treasurer ex officio collector in counties witha township form of government, shall be deposited in the county collector'sfund of a county or the treasurer ex officio collector's fund or may besent by mail to the collector of a county, or the treasurer ex officiocollector in counties with a township form of government, not later thanOctober first in any year a homestead exemption credit is appropriated as aresult of this section and shall be distributed as moneys in such funds arecommonly distributed from other property tax revenues by the collector ofthe county or the treasurer ex officio collector of the county in countieswith a township form of government, so as to exactly offset each homesteadexemption credit being issued. In counties with a township form ofgovernment, the county clerk shall provide the treasurer ex officiocollector a summary of the homestead exemption credit for each township forthe purpose of distributing the total homestead exemption credit to eachtownship collector in a particular county.
13. If, in any given year after 2005, the general assembly shall makean appropriation for the funding of the homestead exemption credit that issigned by the governor, then the director shall determine the apportionmentpercentage by equally apportioning the appropriation among all eligibleapplicants on a percentage basis. If no appropriation is made by thegeneral assembly during any tax year or no funds are actually distributedpursuant to any appropriation therefor, then no homestead preservationcredit shall apply in such year.
14. After determining the apportionment percentage, the directorshall calculate the credit to be associated with each verified eligibleowner's homestead, if any. The director shall send a list of thoseeligible owners who are to receive the homestead exemption credit,including the amount of each credit, the certified parcel number of thehomestead, and the address of the homestead property, to the countycollectors or county clerks in counties with a township form of governmentby August thirty-first. Pursuant to such calculation, the director shallinstruct the state treasurer as to how to distribute the appropriation tothe county collector's fund of each county where recipients of thehomestead exemption credit are located, so as to exactly offset eachhomestead exemption credit being issued. As a result of the appropriation,in no case shall a political subdivision receive more money than it wouldhave received absent the provisions of this section. Funds, at thedirection of the collector of the county or treasurer ex officio collectorin counties with a township form of government, shall be deposited in thecounty collector's fund of a county or may be sent by mail to the collectorof a county, or treasurer ex officio collector in counties with a townshipform of government, not later than October first in any year a homesteadexemption credit is appropriated as a result of this section and shall bedistributed as moneys in such funds are commonly distributed from otherproperty tax revenues by the collector of the county or the treasurer exofficio collector of the county in counties with a township form ofgovernment, so as to exactly offset each homestead exemption credit beingissued.
15. The department shall promulgate rules for implementation of thissection. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2004, shall beinvalid and void. Any rule promulgated by the department shall in no wayimpact, affect, interrupt, or interfere with the performance of therequired statutory duties of any county elected official, more particularlyincluding the county collector when performing such duties as deemednecessary for the distribution of any homestead appropriation and thedistribution of all other real and personal property taxes.
16. In the event that an eligible owner dies or transfers ownershipof the property after the homestead exemption limit has been set in anygiven year, but prior to January first of the year in which the creditwould otherwise be applied, the credit shall be void and any correspondingmoneys, pursuant to subsection 12 of this section, shall lapse to the stateto be credited to the general revenue fund. In the event the collector ofthe county or the treasurer ex officio collector of the county in countieswith a township form of government determines prior to issuing the creditthat the individual is not an eligible owner because the individual did notpay the prior three years' property tax liability in full, the credit shallbe void and any corresponding moneys, under subsection 11 of this section,shall lapse to the state to be credited to the general revenue fund.
17. This section shall apply to all tax years beginning on or afterJanuary 1, 2005. This subsection shall become effective June 28, 2004.
18. In accordance with the provisions of sections 23.250 to 23.298,RSMo, and unless otherwise authorized pursuant to section 23.253, RSMo:
(1) Any new program authorized under the provisions of this sectionshall automatically sunset six years after the effective date of thissection; and
(2) This section shall terminate on September first of the yearfollowing the year in which any new program authorized under this sectionis sunset, and the revisor of statutes shall designate such sections andthis section in a revision bill for repeal.
Homestead preservation--definitions--homestead exemption creditreceived, when, application process--assessor'sduties--department of revenue duties--apportionment percentageset, how applied, notice to owners--rulemaking authority--sunsetprovision.
137.106. 1. This section may be known and may be cited as "TheMissouri Homestead Preservation Act".
2. As used in this section, the following terms shall mean:
(1) "Department", the department of revenue;
(2) "Director", the director of revenue;
(3) "Disabled", as such term is defined in section 135.010, RSMo;
(4) "Eligible owner", any individual owner of property who issixty-five years old or older as of January first of the tax year in whichthe individual is claiming the credit or who is disabled, and who had anincome of equal to or less than the maximum upper limit in the year priorto completing an application pursuant to this section; or
(a) In the case of a married couple owning property either jointly oras tenants by the entirety, or where only one spouse owns the property,such couple shall be considered an eligible taxpayer if both spouses havereached the age of sixty-five or if one spouse is disabled, or if onespouse is at least sixty-five years old and the other spouse is at leastsixty years old, and the combined income of the couple in the year prior tocompleting an application pursuant to this section did not exceed themaximum upper limit; or
(b) In the case of joint ownership by unmarried persons or ownershipby tenancy in common by two or more unmarried persons, such owners shall beconsidered an eligible owner if each person with an ownership interestindividually satisfies the eligibility requirements for an individualeligible owner under this section and the combined income of allindividuals with an interest in the property is equal to or less than themaximum upper limit in the year prior to completing an application underthis section. If any individual with an ownership interest in the propertyfails to satisfy the eligibility requirements of an individual eligibleowner or if the combined income of all individuals with interest in theproperty exceeds the maximum upper limit, then all individuals with anownership interest in such property shall be deemed ineligible ownersregardless of such other individual's ability to individually meet theeligibility requirements; or
(c) In the case of property held in trust, the eligible owner andrecipient of the tax credit shall be the trust itself provided the previousowner of the homestead or the previous owner's spouse: is the settlor ofthe trust with respect to the homestead; currently resides in suchhomestead; and but for the transfer of such property would have satisfiedthe age, ownership, and maximum upper limit requirements for income asdefined in subdivisions (7) and (8) of this subsection;
No individual shall be an eligible owner if the individual has not paidtheir property tax liability, if any, in full by the payment due date inany of the three prior tax years, except that a late payment of a propertytax liability in any prior year shall not disqualify a potential eligibleowner if such owner paid in full the tax liability and any and allpenalties, additions and interest that arose as a result of such latepayment; no individual shall be an eligible owner if such person filed avalid claim for the senior citizens property tax relief credit pursuant tosections 135.010 to 135.035, RSMo;
(5) "Homestead", as such term is defined pursuant to section 135.010,RSMo, except as limited by provisions of this section to the contrary. Noproperty shall be considered a homestead if such property was improvedsince the most recent annual assessment by more than five percent of theprior year appraised value, except where an eligible owner of the propertyhas made such improvements to accommodate a disabled person;
(6) "Homestead exemption limit", a percentage increase, rounded tothe nearest hundredth of a percent, which shall be equal to the percentageincrease to tax liability, not including improvements, of a homestead fromone tax year to the next that exceeds a certain percentage set pursuant tosubsection 10 of this section. For applications filed in 2005 or 2006, thehomestead exemption limit shall be based on the increase to tax liabilityfrom 2004 to 2005. For applications filed between April 1, 2005, andSeptember 30, 2006, an eligible owner, who otherwise satisfied therequirements of this section, shall not apply for the homestead exemptioncredit more than once during such period. For applications filed after2006, the homestead exemption limit shall be based on the increase to taxliability from two years prior to application to the year immediately priorto application. For applications filed between December 31, 2008, andDecember 31, 2011, the homestead exemption limit shall be based on theincrease in tax liability from the base year to the year prior to theapplication year. For applications filed on or after January 1, 2012, thehomestead exemption limit shall be based on the increase to tax liabilityfrom two years prior to application to the year immediately prior toapplication. For purposes of this subdivision, the term "base year" meansthe year prior to the first year in which the eligible owner's applicationwas approved, or 2006, whichever is later;
(7) "Income", federal adjusted gross income, and in the case ofownership of the homestead by trust, the income of the settlor applicantshall be imputed to the income of the trust for purposes of determiningeligibility with regards to the maximum upper limit;
(8) "Maximum upper limit", in the calendar year 2005, the income sumof seventy thousand dollars; in each successive calendar year this amountshall be raised by the incremental increase in the general price level, asdefined pursuant to article X, section 17 of the Missouri Constitution.
3. Pursuant to article X, section 6(a) of the Constitution ofMissouri, if in the prior tax year, the property tax liability on anyparcel of subclass (1) real property increased by more than the homesteadexemption limit, without regard for any prior credit received due to theprovisions of this section, then any eligible owner of the property shallreceive a homestead exemption credit to be applied in the current tax yearproperty tax liability to offset the prior year increase to tax liabilitythat exceeds the homestead exemption limit, except as eligibility for thecredit is limited by the provisions of this section. The amount of thecredit shall be listed separately on each taxpayer's tax bill for thecurrent tax year, or on a document enclosed with the taxpayer's bill. Thehomestead exemption credit shall not affect the process of setting the taxrate as required pursuant to article X, section 22 of the Constitution ofMissouri and section 137.073 in any prior, current, or subsequent tax year.
4. If application is made in 2005, any potential eligible owner mayapply for the homestead exemption credit by completing an applicationthrough their local assessor's office. Applications may be completedbetween April first and September thirtieth of any tax year in order forthe taxpayer to be eligible for the homestead exemption credit in the taxyear next following the calendar year in which the homestead exemptioncredit application was completed. The application shall be on formsprovided to the assessor's office by the department. Forms also shall bemade available on the department's Internet site and at all permanentbranch offices and all full-time, temporary, or fee offices maintained bythe department of revenue. The applicant shall attest under penalty ofperjury:
(1) To the applicant's age;
(2) That the applicant's prior year income was less than the maximumupper limit;
(3) To the address of the homestead property; and
(4) That any improvements made to the homestead, not made toaccommodate a disabled person, did not total more than five percent of theprior year appraised value. The applicant shall also include with theapplication copies of receipts indicating payment of property tax by theapplicant for the homestead property for the two prior tax years.
5. If application is made in 2005, the assessor, upon request for anapplication, shall:
(1) Certify the parcel number and owner of record as of January firstof the homestead, including verification of the acreage classified asresidential on the assessor's property record card;
(2) Obtain appropriate prior tax year levy codes for each homesteadfrom the county clerks for inclusion on the form;
(3) Record on the application the assessed valuation of the homesteadfor the current tax year, and any new construction or improvements for thecurrent tax year; and
(4) Sign the application, certifying the accuracy of the assessor'sentries.
6. If application is made after 2005, any potential eligible ownermay apply for the homestead exemption credit by completing an application.Applications may be completed between April first and October fifteenth ofany tax year in order for the taxpayer to be eligible for the homesteadexemption credit in the tax year next following the calendar year in whichthe homestead exemption credit application was completed. The applicationshall be on forms provided by the department. Forms also shall be madeavailable on the department's Internet site and at all permanent branchoffices and all full-time, temporary, or fee offices maintained by thedepartment of revenue. The applicant shall attest under penalty ofperjury:
(1) To the applicant's age;
(2) That the applicant's prior year income was less than the maximumupper limit;
(3) To the address of the homestead property;
(4) That any improvements made to the homestead, not made toaccommodate a disabled person, did not total more than five percent of theprior year appraised value; and
(5) The applicant shall also include with the application copies ofreceipts indicating payment of property tax by the applicant for thehomestead property for the three prior tax years.
7. Each applicant shall send the application to the department byOctober fifteenth of each year for the taxpayer to be eligible for thehomestead exemption credit in the tax year next following the calendar yearin which the application was completed.
8. If application is made in 2005, upon receipt of the applications,the department shall calculate the tax liability, adjusted to exclude newconstruction or improvements verify compliance with the maximum incomelimit, verify the age of the applicants, and make adjustments to thesenumbers as necessary on the applications. The department also shalldisallow any application where the applicant has also filed a validapplication for the senior citizens property tax credit, pursuant tosections 135.010 to 135.035, RSMo. Once adjusted tax liability, age, andincome are verified, the director shall determine eligibility for thecredit, and provide a list of all verified eligible owners to the countycollectors or county clerks in counties with a township form of governmentby December fifteenth of each year. By January fifteenth, the countycollectors or county clerks in counties with a township form of governmentshall provide a list to the department of any verified eligible owners whofailed to pay the property tax due for the tax year that ended immediatelyprior. Such eligible owners shall be disqualified from receiving thecredit in the current tax year.
9. If application is made after 2005, upon receipt of theapplications, the department shall calculate the tax liability, verifycompliance with the maximum income limit, verify the age of the applicants,and make adjustments to these numbers as necessary on the applications.The department also shall disallow any application where the applicant alsohas filed a valid application for the senior citizens property tax creditunder sections 135.010 to 135.035, RSMo. Once adjusted tax liability, age,and income are verified, the director shall determine eligibility for thecredit and provide a list of all verified eligible owners to the countyassessors or county clerks in counties with a township form of governmentby December fifteenth of each year. By January fifteenth, the countyassessors shall provide a list to the department of any verified eligibleowners who made improvements not for accommodation of a disability to thehomestead and the dollar amount of the assessed value of such improvements.If the dollar amount of the assessed value of such improvements totaledmore than five percent of the prior year appraised value, such eligibleowners shall be disqualified from receiving the credit in the current taxyear.
10. The director shall calculate the level of appropriation necessaryto set the homestead exemption limit at five percent when based on a yearof general reassessment or at two and one-half percent when based on a yearwithout general reassessment for the homesteads of all verified eligibleowners, and provide such calculation to the speaker of the house ofrepresentatives, the president pro tempore of the senate, and the directorof the office of budget and planning in the office of administration byJanuary thirty-first of each year.
11. For applications made in 2005, the general assembly shall make anappropriation for the funding of the homestead exemption credit that issigned by the governor, then the director shall, by July thirty-first ofsuch year, set the homestead exemption limit. The limit shall be a single,statewide percentage increase to tax liability, rounded to the nearesthundredth of a percent, which, if applied to all homesteads of verifiedeligible owners who applied for the homestead exemption credit in theimmediately prior tax year, would cause all but one-quarter of one percentof the amount of the appropriation, minus any withholding by the governor,to be distributed during that fiscal year. The remaining one-quarter ofone percent shall be distributed to the county assessment funds of eachcounty on a proportional basis, based on the number of eligible owners ineach county; such one-quarter percent distribution shall be delineated inany such appropriation as a separate line item in the total appropriation.If no appropriation is made by the general assembly during any tax year orno funds are actually distributed pursuant to any appropriation therefor,then no homestead preservation credit shall apply in such year.
12. After setting the homestead exemption limit for applications madein 2005, the director shall apply the limit to the homestead of eachverified eligible owner and calculate the credit to be associated with eachverified eligible owner's homestead, if any. The director shall send alist of those eligible owners who are to receive the homestead exemptioncredit, including the amount of each credit, the certified parcel number ofthe homestead, and the address of the homestead property, to the countycollectors or county clerks in counties with a township form of governmentby August thirty-first. Pursuant to such calculation, the director shallinstruct the state treasurer as to how to distribute the appropriation andassessment fund allocation to the county collector's funds of each countyor the treasurer ex officio collector's fund in counties with a townshipform of government where recipients of the homestead exemption credit arelocated, so as to exactly offset each homestead exemption credit beingissued, plus the one-quarter of one percent distribution for the countyassessment funds. As a result of the appropriation, in no case shall apolitical subdivision receive more money than it would have received absentthe provisions of this section plus the one-quarter of one percentdistribution for the county assessment funds. Funds, at the direction ofthe county collector or the treasurer ex officio collector in counties witha township form of government, shall be deposited in the county collector'sfund of a county or the treasurer ex officio collector's fund or may besent by mail to the collector of a county, or the treasurer ex officiocollector in counties with a township form of government, not later thanOctober first in any year a homestead exemption credit is appropriated as aresult of this section and shall be distributed as moneys in such funds arecommonly distributed from other property tax revenues by the collector ofthe county or the treasurer ex officio collector of the county in countieswith a township form of government, so as to exactly offset each homesteadexemption credit being issued. In counties with a township form ofgovernment, the county clerk shall provide the treasurer ex officiocollector a summary of the homestead exemption credit for each township forthe purpose of distributing the total homestead exemption credit to eachtownship collector in a particular county.
13. If, in any given year after 2005, the general assembly shall makean appropriation for the funding of the homestead exemption credit that issigned by the governor, then the director shall determine the apportionmentpercentage by equally apportioning the appropriation among all eligibleapplicants on a percentage basis. If no appropriation is made by thegeneral assembly during any tax year or no funds are actually distributedpursuant to any appropriation therefor, then no homestead preservationcredit shall apply in such year.
14. After determining the apportionment percentage, the directorshall calculate the credit to be associated with each verified eligibleowner's homestead, if any. The director shall send a list of thoseeligible owners who are to receive the homestead exemption credit,including the amount of each credit, the certified parcel number of thehomestead, and the address of the homestead property, to the countycollectors or county clerks in counties with a township form of governmentby August thirty-first. Pursuant to such calculation, the director shallinstruct the state treasurer as to how to distribute the appropriation tothe county collector's fund of each county where recipients of thehomestead exemption credit are located, so as to exactly offset eachhomestead exemption credit being issued. As a result of the appropriation,in no case shall a political subdivision receive more money than it wouldhave received absent the provisions of this section. Funds, at thedirection of the collector of the county or treasurer ex officio collectorin counties with a township form of government, shall be deposited in thecounty collector's fund of a county or may be sent by mail to the collectorof a county, or treasurer ex officio collector in counties with a townshipform of government, not later than October first in any year a homesteadexemption credit is appropriated as a result of this section and shall bedistributed as moneys in such funds are commonly distributed from otherproperty tax revenues by the collector of the county or the treasurer exofficio collector of the county in counties with a township form ofgovernment, so as to exactly offset each homestead exemption credit beingissued.
15. The department shall promulgate rules for implementation of thissection. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2004, shall beinvalid and void. Any rule promulgated by the department shall in no wayimpact, affect, interrupt, or interfere with the performance of therequired statutory duties of any county elected official, more particularlyincluding the county collector when performing such duties as deemednecessary for the distribution of any homestead appropriation and thedistribution of all other real and personal property taxes.
16. In the event that an eligible owner dies or transfers ownershipof the property after the homestead exemption limit has been set in anygiven year, but prior to January first of the year in which the creditwould otherwise be applied, the credit shall be void and any correspondingmoneys, pursuant to subsection 12 of this section, shall lapse to the stateto be credited to the general revenue fund. In the event the collector ofthe county or the treasurer ex officio collector of the county in countieswith a township form of government determines prior to issuing the creditthat the individual is not an eligible owner because the individual did notpay the prior three years' property tax liability in full, the credit shallbe void and any corresponding moneys, under subsection 11 of this section,shall lapse to the state to be credited to the general revenue fund.
17. This section shall apply to all tax years beginning on or afterJanuary 1, 2005. This subsection shall become effective June 28, 2004.
18. In accordance with the provisions of sections 23.250 to 23.298,RSMo, and unless otherwise authorized pursuant to section 23.253, RSMo:
(1) Any new program authorized under the provisions of this sectionshall automatically sunset six years after the effective date of thissection; and
(2) This section shall terminate on September first of the yearfollowing the year in which any new program authorized under this sectionis sunset, and the revisor of statutes shall designate such sections andthis section in a revision bill for repeal.
