Property taxes in Missouri ranked about in the middle among the 50 states in 2008 according to The Tax Foundation. Property taxes in the state as a percentage of median home value were 0.87%, ranking Missouri in 23rd place. Property taxes are levied at the local level in Missouri and the rates vary by jurisdiction. The assessed value of residential property for tax purposes is 19% of market value. For example, a home with a market value of $100,000 would have an assessed value of $19,000. At a tax rate of $4.579 per $100 of assessed value the property taxes would be $870 a year.
Property tax credit
Missouri homeowners and renters who are 65 or older, or who are totally disabled may qualify for a property tax credit. Renters and part-year owners can qualify for this credit if total household income is not more than $27,500, or $29,000 if married filing jointly. Veterans who are totally disabled due to their military service do not have to include their Veterans Administration benefits in their income for purposes of determining whether they qualify. Missouri residents who own and occupy their home the entire year qualify for the credit if their total household income is not more than $30,000, or $34,000 if married filing jointly. Surviving spouses receiving Social Security benefits who are age 60 or older can also qualify.
For tax years 2008-2009, the maximum credit is $750 if you rent and $1,100 if you own your home. To claim the credit, you must file Form MO-PTC – Property Tax Credit Claim, with your Missouri Individual Income Tax Return – Form MO-1040 (long form) or your Missouri Individual Income Tax Return and Property Tax Claim/Pension Exemption – Form MO-1040P (short form). If you do not have to file a Missouri state income tax return you can still claim the property tax credit by filing Form MO-PTC. If you are claiming the property tax credit as a renter, you must complete and attach the Certification of Rent Paid – Form MO-CRP.
Homestead preservation credit
Missouri homeowners who are age 65 or older or totally disabled may be able to claim the homestead preservation credit. This credit is for the amount by which the property taxes exceed a 2.5 percent increase in a year in which the value of the property is not reassessed and the excess over a 5 percent increase in a reassessment year. This credit depends on legislation to fund the credit and if there is insufficient funding to pay the entire amount, the credit is a flat percentage state-wide. The credit is not refunded but is instead applied against property taxes for the following year.
To be eligible for the homestead preservation credit you must have owned and occupied the property as your principal residence for the three previous years. Your federal adjusted gross income must not be more than $77,254 (for 2009) for both single and married filing jointly. To claim the credit you must file Form HPC with the Missouri Department of Revenue by October 15.
You have to apply for the homestead preservation credit each year you are eligible and your property taxes increase more than the specified percentages. If you claim the property tax credit you are not eligible for the homestead preservation credit, so you should see which credit is more advantageous.
Sources:
Application for Homestead Preservation Credit – Form HPC – Missouri Department of Revenue
Certification of Rent Paid – Form MO-CRP – Missouri Department of Revenue
Homestead Preservation Credit – Missouri Department of Revenue
Missouri Individual Income Tax Return – Form MO-1040 – Missouri Department of Revenue
Missouri Individual Income Tax Return and Property Tax Claim/Pension Exemption – Form MO-1040P – Missouri Department of Revenue
Property Tax Credit – Missouri Department of Revenue
Property Tax Credit Claim – Form MO-PTC – Missouri Department of Revenue
Property Taxes on Owner-Occupied Housing by State, 2004 – 2008 – The Tax Foundation
Reference:
- Frequently Asked Questions – Homestead Preservation Credit – Missouri Department of Revenue: dor.mo.gov/tax/misc/forms/hpcf.pdf
- Frequently Asked Questions – Property Tax Credit Claim: dor.mo.gov/tax/personal/faq/ptc.htm#q1
