For Immediate Release
Date: April 2, 2007
Contact: Maura Browning
Phone: (573) 751-8222

Application Period Begins for Homestead Preservation Credit

       JEFFERSON CITY – The Missouri Department of Revenue opened the application period for the Homestead Preservation Credit program that provides a real estate property tax credit to qualified senior citizens and disabled persons. Applications must be postmarked between April 1, 2007, and October 15, 2007, to be eligible.

       The Homestead credit is provided to 100% disabled persons or to Missourians age 65 or older as of January 1, 2007. To qualify, one spouse of a married couple must meet the age 65 requirement and the other spouse must be age 60 or older. Also, the applicant(s) must:
       · Have a 2006 federal adjusted gross income (FAGI) of $74,262 or lower;
       · Submit copies of paid real estate property tax receipts for the previous three years (for example, an application this year would require proof that 2004, 2005, and 2006 property taxes were paid);
       · Must own and occupy the property.

       The program has expanded to include property held in trust and property with improvements over 5 percent of the homestead’s value made to accommodate a disabled person. Also, property is eligible if it is owned by two or more unmarried persons who meet the above eligibility requirements and whose combined income does not exceed $74,262.

       If an applicant meets the qualifications, the timeline below shows the process through which a person would receive the credit:

April 1 – October 15, 2007: Applicant submits an application to the department, including copies of paid property tax receipts from 2004, 2005, and 2006

October – November 2007: Department reviews applications to determine eligibility

December 15, 2007: Department sends a list of all verified eligible owners to county assessors

January 15, 2008: Assessors provide Department with listing of eligible owners that made improvements not for accommodation of a disability and the amount of the assessed value of the improvements

January 2008: Department compiles information for appropriation request and provides to legislature

May 2008: Legislature appropriates funding for Homestead Preservation Credit (Since the program requires a legislative appropriation, the credit is not guaranteed. If it is not fully funded, eligible applicants’ credits will be prorated.)

August 2008: Department notifies applicant’s local county assessor/collector of the amount of the applicant’s credit

October 2008: Applicant’s county collector receives wire transfer or check totaling the credit amount for all eligible county property owners

November/December 2008: Eligible applicant receives real estate property tax bill from county assessor which shows the application of the Homestead Preservation credit

       The Homestead Preservation Credit program does not provide an applicant with a refund check from the state or county government. Instead, the program creates a credit on the following year’s property tax bill. The average credit in 2006 was $156.14.

       For example, if an applicant’s property tax bill was $1,000 in 2005 and increased to $1,200 in 2006, the portion eligible for the credit is only that amount greater than a 2.5 percent increase. In this example, 2.5 percent is $25. Therefore, any amount over $1,025 is eligible for credit, which in this case is $175. After applying in 2007 for the $175 credit, the credit would appear on the applicant’s 2008 property tax bill.

       Individuals cannot claim both the Homestead Preservation Credit and the Missouri Property Tax Credit Claim (“Circuit Breaker”) for the same periods.

       For more information, please email homestead@dor.mo.gov, visit the department’s web site at www.dor.mo.gov/tax/personal/homestead/ or call (573) 751-3505.

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