COMMITTEE ACTION: Voted "Do Pass with HCS" by the Standing Committee on Ways and Means by a vote of 8 to 0.

The following is a summary of the House Committee Substitute for SB 994.

MILITARY INCOME TAX EXEMPTION (Section 143.121)

Currently, for purposes of calculating the Missouri taxable income, 100% of the income received by any person as salary or compensation in any form as a member of the active duty component of the Armed Forces of the United States, and to the extent that such income is included in the Federal adjusted gross income, may be deducted from the taxpayer's Missouri adjusted gross income to determine the taxpayer's Missouri taxable income. The taxpayer's retirement benefits are automatically subtracted from the taxpayer's Federal adjusted gross income.

Beginning January 1, 2027, this bill specifies that all taxable pay, benefits, and allowances paid to or received by a member or former member of the uniformed services as salary, retirement benefits, or compensation in any form for military service in the uniformed services including, but not limited to, basic pay, drill pay, annual training pay, active duty pay, active duty training pay, special and incentive pay, bonuses, inactive duty training (IDT) pay, annual training pay, and any other form of military income is subtracted from a taxpayer's Federal adjusted gross income for the purpose of calculating the taxpayer's Missouri adjusted gross income.

BEGINNING FARMER INCOME TAX DEDUCTION (Section 143.121)

Current law authorizes an income tax deduction for certain income received for the sale or lease of farmland to beginning farmers. This bill adds a definition of "taxpayer" to such deduction.

TAX RETURNS (Sections 143.511, 143.591, and 143.971)

Current law provides that the date for filing income tax returns must be the 15th day of the fourth month following the close of the taxpayer's taxable year. This bill provides that such date must be the date prescribed for the filing of federal tax returns (Section 143.511). Currently, an employer with at least 250 employees must electronically submit a tax return that indicates the amount of taxes withheld on wages in the previous tax year by January 31. Beginning January 1, 2027, the bill changes the number of employees to at least 10.

This bill provides that tax return forms for all tax years beginning on or after January 1, 2026, must indicate the name of the public school district in which the taxpayer resides.

TAX DEFICIENCIES (Sections 143.512 and 143.621)

This bill provides that, if a taxpayer has an income tax balance due because of a full or partial denial of a tax credit, the taxpayer must not be held liable for any addition to tax, penalty, or interest on that amount of the balance due. The bill applies if the only reason for the denial is due to the tax credit reaching it's maximum amount for the relevant year, as specified in the bill.

This bill provides that a taxpayer that has paid a deficiency and any interest, additions to tax, or penalties attributable to such deficiency that is subsequently found to be erroneous, regardless of whether the taxpayer has timely filed a protest with the Director of Revenue, must be entitled to a refund in the amount of the deficiency and any interest, additions to tax, or penalties attributable to such deficiency that were paid by the taxpayer. The refund must be paid as provided in current law.

There is a delayed effective date for certain sections in the bill.

The following is a summary of the public testimony from the committee hearing. The testimony was based on the introduced version of the bill.

PROPONENTS: Supporters say that this bill offers taxpayer protections. Those in support of the bill state that, currently, if a person who claimed a tax credit is denied that credit because the credit hit its cap, the person would have to pay penalties and interest on their outstanding taxes. Supporters say this bill addresses this issue and provides that, if a person who claimed a tax credit is denied solely because the credit hit its cap, the person would not have to pay such penalties and interest. Those in support of the bill state it allows farmers who have trusts and LLCs to benefit from the Beginning Farmer Income Tax Deduction program.

Testifying in person for the bill were Senator Henderson; Missouri Bankers Association; Missouri Soybean Association; Missouri Farm Bureau; Missouri Corn Growers Association; Arnie C. Dienoff; and Feeding Missouri.

OPPONENTS: There was no opposition voiced to the committee.



Written testimony has been submitted for this bill. The full written testimony and witnesses testifying online can be found under Testimony on the bill page on the House website.

COMMITTEE ACTION: Voted "Do Pass with HCS" by the Special Committee on Property Tax Reform by a vote of 11 to 5. Voted "Do Pass" by the Standing Committee on Rules-Legislative by a vote of 9 to 2.



The following is a summary of the House Committee Substitute for SB 1066.

The bill prohibits any political subdivision or election authority from advertising or describing any proposed property tax as a "no tax increase" tax proposal (Section 67.496, RSMo).

This bill requires political subdivisions or special districts to label property tax-related ballot measures numerically or alphabetically. Ballot measures must not be labeled in a descriptive manner (Section 115.240).

Beginning January 1, 2027, the bill requires that ballot language for a vote to levy a real property tax or personal property tax include elements as specified in the bill.

This bill requires ballot language to describe the desired tax as a specified amount per $100,000 or per $10,000 of appraised value, depending on whether the property is residential, commercial, agricultural, or a motor vehicle.

The bill prohibits any political subdivision or election authority from advertising or describing any proposed property tax as a "no tax increase" tax proposal, unless failing to adopt the proposed measure will actually increase the tax and adopting the proposed measure will cause the tax rate to stay the same or decrease.

The bill requires ballot language statements to be fair, true, and accurate (Section 115.706).

This bill modifies the definition of "residential property" for the purposes of the taxation of real property by providing that such definition must include single family homes that are owned by a sole proprietor, individual, partnership, or limited liability company and leased, in whole or in part, for a term of less than 30 consecutive days, provided that this provision may not apply to any such property in excess of 15 such properties owned by the same individual or business or by any business entity in which the individual or business holds any ownership, membership, or beneficial interest (Section 137.016).

This bill provides that each political subdivision that adopts or has adopted any tax abatement or similar economic incentive must decrease the levy of real property tax rates to reduce the amount of tax revenues the political subdivision received from the additional tax abatement revenue (Section 137.039).

Currently, any political subdivision that received approval for a tax rate increase may levy a property tax rate to collect substantially the same amount of tax revenue as the amount of revenue that would have been derived by applying the voter- approved increased tax rate ceiling to the total assessed valuation of the political subdivision. However, the tax rate must not exceed the greater of the most recent voter-approved rate or the most recent adjusted voter-approved rate.

The bill removes the single tax rate in the exception and provides that the rates of levy for each subclass of real property, individually, and personal property, in the aggregate, must not exceed the greater of the most recent voter-approved rate or most recent adjusted voter approved rate.

Currently, if the tax revenue from various tax rates is different than the tax revenue that would have been determined from a single tax rate, then the political subdivision must revise the tax rates of those subclasses of real property, individually, and/or personal property, in the aggregate that had a tax rate reduction. This revision must yield an amount equal to the difference and must be apportioned among the subclasses of real property, individually, and/or personal property, in the aggregate, based on the relative assessed valuation of the class or subclasses that experienced the tax rate reduction. Additionally, for school districts that levy separate tax rates on each subclass of real property and personal property, in the aggregate, or that had voter-approved ballots that set or increased the subclass rates differently prior to 2011, a blended tax rate must be used to calculate the single tax rate.

This bill repeals this language. Political subdivisions are no longer required to compare revenues generated by multiple levies to a single-rate baseline or to adjust multiple levies based on a single-rate baseline. The bill requires that, if voters in a political subdivision approve a levy increase prior to the expiration of a previously- approved temporary levy increase, the new tax rate ceiling will remain in effect only until the temporary levy increase expires under the terms originally approved by voters. At that time, the tax rate ceiling will be decreased by the amount of the temporary levy increase unless voters of the political subdivision are asked to approve an additional permanent increase and such increase is approved.

This bill requires that, when voters in a political subdivision pass a tax rate increase, the political subdivision must use the current tax rate ceiling and the increase approved by the voters in establishing the rates of levy for the tax year immediately following the election. If the assessed valuation of real property in a political subdivision sees a reduction in value in the tax year immediately following the election, the political subdivision can raise its tax rates so that the revenue received from the local real property tax rates equals the amount the political subdivision would have received from the increased rates of levy had there been no reduction in the assessed valuation of real property in the political subdivision. In the event of an increased tax rate ceiling, the rate must be revenue neutral as required in Article X, Section 22 of the Constitution of Missouri (Section 137.073).

As it relates to setting property tax rates, the bill repeals the single property tax rate and replaces the language with that relating to multiple tax rates (Section 137.079).

This bill provides that when a valuation of utility, industrial, commercial, railroad, and other real properties is made by a computer, computer-assisted method, or a computer program, the burden of proof to sustain the valuation must be on the assessor at any hearing or appeal.

The bill provides that, before any assessor may increase the assessed valuation of any parcel of utility, industrial, commercial, railroad, or other real property by more than 15% since the last assessment, the assessor must conduct a physical inspection of the property.

Currently, any county and city not within a county can opt out of implementing the provisions of certain sections of House bill 1150 (2002) and certain provisions of Senate bill 960, which includes setting separate levies to be calculated for each subclass of real property and for personal property using the assessed valuation for each class of real property and of personal property. Any county and city not within a county may also opt out of implementing certain provisions of House Bill 1150 (2002) and certain provisions of Senate Bill 960 as they relate to tax rate ceilings, blended tax rates, tax rate calculations, and credit card usage to pay property taxes.

This bill repeals the references to the provisions of House Bill 1150 (2002) and Senate Bill 960 (2004), as well as the corresponding procedures to opt out of or to implement these provisions.

The bill requires that, beginning January 1, 2027, each county and city not within a county must determine the assessed valuation, set and revise rates of levy, and make adjustments to current levies for each subclass of real property, individually, and for personal property, in the aggregate (Section 137.115).

Under the provisions of this bill, once an eligible taxpayer qualifies for the Homestead Property Tax Credit for seniors citizens, such taxpayer must maintain his or her eligibility without needing to reapply each year. The tax credit must continue to be automatically applied to the eligible taxpayer?s homestead until the tax year in which such taxpayer relocates or dies, which must be certified within 90 days of the date of either event. If a credit is granted in error due to the taxpayer failing to notify the collector of relocation or death, the county can remedy the error.

This bill requires the tax statement to include a note informing the taxpayer that it is his or her responsibility to notify the county if he or she is no longer eligible for the tax credit.

The bill clarifies that real property tax imposed by a county or by a political subdivision within the county includes, but is not limited to: tax levies for debt service, tax levies for operating purposes, and tax levies for capital improvements and projects.

This bill requires the Department of Heath and Senior Services (DHSS) to establish a secure electronic portal that is accessible to each county if an appropriation is provided. This portal must allow county designees to access certain information to determine the death status of recipients of the senior property tax credit. If no appropriation is provided to establish this portal, DHSS must provide to each county a list of all individuals whose deaths were recorded within the county between July 1st of the preceding year to June 30th of the current year. This list must be provided by July 30th of each year.

The bill requires each county designee to implement procedures to determine whether a change of ownership has occurred for any homestead receiving the senior property tax credit before issuing the property tax statement each year.

This bill requires any payment of real or personal property taxes made through the United States Postal Service (USPS) to be postmarked by January 5th, and payments made through other means must be received by December 31st.

The bill allows township collectors to accept partial or installment payments of real and personal property taxes prior to delinquency.

This bill allows counties to extend the deadline for real or personal property tax payments by no more than 30 days if a county experiences certain difficulties that delay the preparation of mailing of real or personal property tax statements.

The bill allows assessors or certain other county designees a grace period of no more than 10 days following the deadline for certain forms that are sent through USPS and postmarked prior to the due date (Section 137.1050).

Currently, the eligible credit amount in "five percent counties" may be increased by no more than 5% per year or the percent increase in inflation, whichever is higher. The bill changes the language to provide that the eligible credit amount in "five percent counties" may be increased by no more than 5% per year or the percent increase in inflation, whichever is lower (Section 137.1055).

Currently, no school district can receive more state aid for its education program than it received per weighted average daily attendance for the school year 2005-06 from the foundation formula, unless it has an operating levy for school purposes of not less than $2.75. This bill sets an end date for this operating levy floor. The bill provides that, for school districts that imposed a levy of $2.75 in 2026, their maximum levy must be $2.75 in 2027. After 2027, these school districts must set their levy as provided by the Missouri Constitution (Section 163.021). This bill contains a severability clause.



The following is a summary of the public testimony from the committee hearing. The testimony was based on the introduced version of the bill.

PROPONENTS: Supporters say that in some counties, single family homes that are used as rentals are being classified as commercial property, and this bill addresses the classification of these properties. Those in support of the bill state that if these single family homes were to sell, they would sell at a residential rate because they are used for residential purposes. Hotels are different because they generate income from other activities beyond sleeping, such as through spas, restaurants, and bars in the hotels. Supporters say that there is currently ambiguity in the law regarding the classification of these single family homes that are used as rentals, and this bill provides clarity and fairness for homeowners. Those in support of the bill state that some people rent out their homes for short term leases to pay utilities and taxes. If these homes were reclassified as commercial properties, some homeowners would not be able to keep that home.

Testifying in person for the bill were Senator Brown; Missouri Vacation Home Association; Jim Brown; and Missouri Association of Realtors.

OPPONENTS: Those who oppose the bill say that those who purchase a home for the sole purpose of renting it out collect sales taxes just like other businesses, so they should be classified as a business. The 15-home cap in the bill does not keep people from creating a limited liability company for each home to avoid ever hitting that cap.

Testifying in person against the bill was Missouri Hotel & Lodging Association.



Written testimony has been submitted for this bill. The full written testimony and witnesses testifying online can be found under Testimony on the bill page on the House website.

HCS HBs 1768 & 2060 -- CLASSIFICATION OF CERTAIN RESIDENTIAL REAL PROPERTY (Brown)

COMMITTEE OF ORIGIN: Special Committee on Property Tax Reform

Currently, real property is divided into three separate classifications based on the use or purpose of the property. Each of the subclassifications of property are assessed at different rates. When real property is used for different purposes resulting in different classifications, the county assessor must allocate to each classification the percentage of the true value in money of the property devoted to each use.

This bill provides that when a single family home that is owned by a sole proprietor, individual, partnership, or limited liability company (LLC) is leased, in whole or in part, for 30 consecutive days or less, the home will be classified as residential property and will not necessarily be considered "transient housing".

This bill is similar to SCS HB 1086 (2025) and SCS HB 1086 (2025).

HCS HB 1790 -- TAX LEVIES BY POLITICAL SUBDIVISIONS (Murphy)

COMMITTEE OF ORIGIN: Standing Committee on Government Efficiency

This bill requires that the election authority for a political subdivision or special district label taxation-related ballot measures numerically or alphabetically. Ballot measures will not be labeled in any other descriptive manner.

The bill requires that any ballot measure that seeks approval to add, change, or modify a tax on real property use language to express the effect of the proposed change in terms of real dollars owed per $100,000 of a property's market valuation.

This bill requires that if voters in a political subdivision approve a levy increase prior to the expiration of a previously approved temporary levy increase, the new tax rate ceiling will remain in effect only until the temporary levy increase expires under the terms originally approved by voters. At that time, the tax rate ceiling will be decreased by the amount of the temporary levy increase unless voters of the political subdivision are asked to approve an additional permanent increase, the ballot language makes clear that the temporary levy increase is being made permanent, and such increase is approved.

The bill requires that when voters in a political subdivision pass a tax rate increase, the political subdivision must use the current tax rate ceiling and the increase approved by the voters in establishing the rates of levy for the tax year immediately following the election. If the assessed valuation of real property in a political subdivision sees a reduction in value in the tax year immediately following the election, the political subdivision may raise its tax rates so that the revenue received from the local real property tax rates equals the amount the political subdivision would have received from the increased rates of levy had there been no reduction in the assessed valuation of real property in the political subdivision. In the event of an increased tax rate ceiling, such rate must be revenue neutral as required in Article X, Section 22 of the Constitution of Missouri.

This bill is similar to HCS HB 119 (2025) and HCS HB 1517 (2024).

HCS HB 2944 -- SENIOR CITIZEN HOMESTEAD TAX CREDIT (Billington)

COMMITTEE OF ORIGIN: Special Committee on Property Tax Reform

Under the provisions of this bill, once an eligible taxpayer qualifies for the Homestead Property Tax Credit for seniors citizens, such taxpayer must maintain his or her eligibility without needing to reapply each year. The tax credit must continue to be automatically applied to the eligible taxpayer?s homestead until the tax year in which such taxpayer relocates or dies, which must be certified within 90 days of the date of either event. If a credit is granted in error due to the taxpayer failing to notify the collector of relocation or death, the county can remedy the error.

This bill requires the tax statement to include a note informing the taxpayer that it is his or her responsibility to notify the county if he or she is no longer eligible for the tax credit.

The bill clarifies that real property tax imposed by a county or by a political subdivision within the county includes, but is not limited to: tax levies for debt service, tax levies for operating purposes, and tax levies for capital improvements and projects.

This bill requires the Department of Heath and Senior Services (DHSS) to establish a secure electronic portal that is accessible to each county if an appropriation is provided. This portal must allow county designees to access certain information to determine the death status of recipients of the senior property tax credit. If no appropriation is provided to establish this portal, DHSS must provide to each county a list of all individuals whose deaths were recorded within the county between July 1st of the preceding year to June 30th of the current year. This list must be provided by July 30th of each year.

The bill requires each county designee to implement procedures to determine whether a change of ownership has occurred for any homestead receiving the senior property tax credit before issuing the property tax statement each year.

This bill requires any payment of real or personal property taxes made through the United States Postal Service (USPS) to be postmarked by January 5th, and payments made through other means must be received by December 31st. The bill allows township collectors to accept partial or installment payments of real and personal property taxes prior to delinquency.

This bill allows counties to extend the deadline for real or personal property tax payments by no more than 30 days if a county experiences certain difficulties that delay the preparation of mailing of real or personal property tax statements.

The bill allows assessors or certain other county designees a grace period of no more than 10 days following the deadline for certain forms that are sent through USPS and postmarked prior to the due date.

SCS/SBs 1410 & 853 - This act modifies provisions relating to property taxes.

PROPERTY TAX DEADLINES

Current law requires a county assessor to provide notification to a taxpayer by no later than June 15 if the assessor increases the taxpayer's real property valuation. This act requires such notice to be provided by no later than June 1. (Section 137.180)

Additionally, current law requires a taxpayer to file an appeal of the taxpayer's assessed valuation by no later than the second Monday in July. This act requires such appeal to be filed by no later than the first Monday in August. (Sections 137.275 to 138.180)

These provisions are identical to SB 853 (2026).

PROPERTY TAX INSTALLMENTS

Current law authorizes counties to provide for the payment of real and personal property taxes in installments, but excludes township counties from utilizing such payment plans. This act repeals such prohibition for township counties and allows the form of the installments to be determined by the governing body of the county. (Section 139.053)

This provision is substantially similar to SB 1211 (2026) and HB 388 (2025).

DELINQUENT PROPERTY TAX NOTICES

This act authorizes a collector to offer a trusted contact program to a taxpayer, who may designate one or more trusted contacts for the collector to contact in the event the taxpayer has not paid the taxpayer's property tax liability by March 1 of a calendar year. (Section 140.010)

JOSH NORBERG

JOSH NORBERG

TAX BALLOT MEASURE LANGUAGE

This act requires an election authority to label property tax ballot measures numerically or alphabetically. (Section 115.240)

This provision is substantially similar to a provision in SB 1517 (2026) and HCS/HB 1790 (2026).

This act provides that any ballot measures proposing a new or increased real or personal property tax levy shall include certain information, as described in the act. (Section 115.706)

ASSESSMENT OF SHORT-TERM RENTALS

This act modifies the definition of "residential property" for the purposes of the taxation of real property by providing that such definition shall include single family homes that are owned by a sole proprietor, individual, partnership, or limited liability company and leased, in whole or in part, for a term of less than thirty consecutive days. (Section 137.016)

This provision is identical to SCS/SBs 1066 & 1088 (2026) and SCS/HB 1086 (2025), and is substantially similar to SB 1303 (2026), SB 699 (2025), and SB 784 (2025), and to a provision in HB 660 (2025).

REAL PROPERTY ASSESSMENTS

Current law provides that the burden of proof to sustain a property valuation shall be on the assessor for any assessment of residential real property that is made by a computer, computer-assisted method, or a computer program. This act applies such provision to all non-agricultural real property. (Section 137.115.1(5))

Current law requires an assessor to conduct a physical inspection prior to increasing the assessed value of residential real property by more than 15%. This act applies such provision to all non-agricultural real property and requires such physical inspections to be conducted prior to July 1. The act also prohibits any increase in the assessed value of real property of more than 15% over a two-year reassessment cycle and requires any increases of 15% to be spread over the two-year cycle, as described in the act. (Section 137.115.10 to .12)

Current law requires assessors to provide notice to taxpayers when the valuation of the taxpayer's real property has increased. This act requires an assessor to provide any third party documents, reports, or other data that was relied upon in the computation of assessed value. (Sections 137.180 and 137.355)

These provisions are identical to SB 1521 (2026) and SB 787 (2025), and to provisions in SCS/SB 85 (2025) and HB 780 (2025), and are substantially similar to provisions in HB 1582 (2025).

APPEALS OF PROPERTY ASSESSMENTS

This act provides that any appeal of an assessment involving an increase of more than fifteen percent that is not disposed of by the board of equalization by September 30 shall be dismissed and the assessor's increased assessed valuation shall be void. (Section 138.010)

Current law provides that a taxpayer shall prevail in any appeal of an assessed valuation for which an assessor fails to provide evidence of a required physical inspection. This act provides that, in such cases, the increased assessed valuation shall be void.

This act also provides that if a taxpayer submits a written appraisal report certified by the Missouri Real Estate Appraisers Commission at least five days in advance of a board of equalization hearing, the value of the property as determined in the appraisal report shall presumptively determine the property's true value in money. (Section 138.060)

This act provides that if a transfer of ownership of real property occurs after January 1 of a non-reassessment year, the new owner shall be entitled to appeal the assessed value of such property directly to the State Tax Commission by no later than December 31 of such year, regardless of whether the previous owner appealed the value of the property during the previous reassessment year. (Section 138.135)

The act provides that if an assessor appeals a decision of the State Tax Commission on any grounds other than overvaluation and the taxpayer is the prevailing party, the taxpayer shall be awarded costs of appeal and attorney's fees. (Section 138.430)

Current law authorizes any first class charter county or city not within a county to require, by ordinance or charter, the reimbursement of just and reasonable appraisal costs, attorney fees, and court costs resulting from hearings before the State Tax Commission for taxpayer appeals of property assessments. This act requires such reimbursements. This act also increases the maximum amount of fees to be reimbursed from $1,000 to $5,000 for residential property appeals, and from $4,000 to $5,000 for utility, industrial railroad, or other subclass three property appeals. (Section 138.434)

STATE TAX COMMISSION

This act provides that when the State Tax Commission equalizes the valuation of a class or subclass of property that results in an increase of more than fifteen percent, such increase shall be evenly divided between each of the successive reassessment cycles in a manner that does not cause an increase of more than fifteen percent for any two-year assessment cycle. (Section 138.390)

PROTESTED PROPERTY TAXES

Current law requires a taxpayer to file a written protest of property taxes with the collector at the same time such taxpayer makes full payment of such taxes. This act repeals such requirement.

This act also provides that the interest due to a taxpayer whose protested taxes were distributed to a taxing authority shall be calculated from the date that the protested taxes were distributed to the taxing authority through the date of the refund.

Any taxpayer determined by a circuit court or the State Tax Commission to be entitled to a refund of property taxes shall receive such refund from the collector within thirty days of the final determination of the refund amount by the circuit court or State Tax Commission. If such refund is not issued within thirty days, the taxpayer shall be entitled to interest on the refund as calculated under current law. (Section 139.031)

These provisions are identical to provisions in SB 1522 (2026).

This act is identical to HCS/HB 2178 (2026).

JOSH NORBERG

JOSH NORBERG