Homestead Preservation Act

The Homestead Preservation Act (SB 730) gives qualified senior citizens and 100 percent disabled individuals a credit on their real estate property tax if those taxes increase 2.5 percent in a non-reassessment year or 5 percent in a reassessment year. The credit would be for the amount that exceeds the 2.5 or 5 percent increase in taxes. The act requires a legislative appropriation to fund the credit. If the funding is less than 100 percent, the credit will be a flat statewide percentage based on the appropriation amount. This credit will be applied against the taxes for the following year.

Qualifications

  • Age 65 or older (if married, at least one 65 or older and the other at least 60), or 100 percent disabled.
  • Maximum Federal adjusted gross income does not exceed $70,000 per application.
  • All real estate taxes must have been paid for current year and previous two years.
  • The property (home and up to five acres) must be owned and occupied by the claimant.
  • Cannot file for Missouri Property Tax Credit (MO-PTC) for the same tax period.

Present status

  • The Missouri Department of Revenue (department) has a team developing the procedures, guidelines, and forms. The team will be consulting with counties throughout the development process.
  • The application forms and instructions will be distributed to all County Assessors before April 1, 2005. Forms and instructions will also be available in all department offices throughout the state as well as the department website.

Important dates

  • April 1, 2005 to September 30, 2005 - Application period.
  • December 15, 2005 - Department sends list of verified owners to County Collectors.
  • January 15, 2006 - County Collectors send list of owners who failed to pay current taxes.
  • January 31, 2006 - Department calculates appropriation and sends to House and Senate.
  • July 31, 2006 - Credit limit is set based on funding (Amount of credit depends on the amount appropriated.)
  • August 31, 2006 - Department sends list of eligible owners and amount of credit to county collectors.
  • October 1, 2006 - Funds are deposited with collectors.
  • October/November - Credit reflected on approved applicants’ tax bill for 2006.

Points of Contact