PURPOSE: This rule establishes the procedures for implementation of the Homestead Preservation Credit created by section 137.106, RSMo.

1. (1) This rule only applies to applications filed in 2005.

2. (2) Definition of Terms.

   1. (A) Application year—the calendar year in which the application for property tax credit is filed.
   2. (B) Assessor—the county assessor for the county in which the homestead is located.
   3. (C) Credit year—the calendar year immediately following the application year.
   4. (D) Department—the Missouri Department of Revenue.
   5. (E) Homestead—the dwelling in Missouri owned and occupied by a taxpayer and up to five (5) acres of land surrounding it as is reasonably necessary for use of the dwelling as a home. The dwelling may be a mobile home.
   6. (F) Homestead Preservation Credit—the credit provided pursuant to section 137.106, RSMo.
   7. (G) Levy codes—the nine (9)-digit number used by the Missouri state auditor in the annual property tax compliance report.
   8. (H) Prior year—the calendar year immediately preceding the application year.
   9. (I) Homestead exemption limit—a single, statewide percentage increase in property tax liability from the prior year to the application year.
   10. (J) Verified eligible owners—taxpayers who have met the qualifications for the Homestead Preservation Credit.

3. (3) Application of Rule.

   1. (A) A taxpayer must complete an application on the form prescribed by the department. The taxpayer must obtain from the assessor the information the assessor is required to provide on the form. The taxpayer must submit the properly completed application to the department between April 1 and September 30 of the application year. An application postmarked on or before September 30 is timely.
   2. (B) Upon presentation by the taxpayer, the assessor must complete the portion of the application designated for completion by the assessor using the levy codes applicable to the homestead. If an application is presented to the assessor for completion before the assessor has all the information necessary to complete the application, the assessor may hold the application until the information is available and forward the application to the department when it is completed. If the assessor elects to hold the application and forward it to the department, the assessor must submit the properly completed application to the department between April 1 and September 30 of the application year or the application will be denied.
   3. (C) Upon receipt of the application, the department will determine if the taxpayer is a verified eligible owner. The department must provide a list of all verified eligible owners to the county collectors, or in township counties, the county clerk, by December 15 of the application year. By January 15 of the credit year, the collectors or township clerks must provide the department with a list of verified eligible owners who failed to pay property taxes due for the application year, which owners shall be disqualified from receiving property tax credit in the current tax year. If a collector, or a clerk in a township county, is unable to provide this information to the department by January 15 of the credit year, the collector or clerk must provide the information as soon as possible and in no event later than April 1 of the credit year.

   4. (D) The Department of Revenue will calculate the level of appropriations necessary to set the homestead exemption limit for all verifiable homestead owners as follows:

      1. 1. In odd application years, the appro-

priation amount will be the amount by which the aggregate tax liability for the application year exceeds a five percent (5%) increase from the prior year’s aggregate tax liability for all qualifying homestead property, plus one-quarter of one percent (1/4 of 1%) of the total; and

1. 2. In even application years, the appro-

priation amount will be the amount by which the aggregate tax liability for the application year exceeds a two and one-half percent (2.5%) increase from the prior year’s aggregate tax liability for all qualifying property, plus one-quarter of one percent (1/4 of 1%) of the total.

1. (E) The department will provide the appropriation calculation to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Director of the Office of Budget and Planning by January 31 of the credit year. The department will provide an updated calculation, if necessary, no later than April 10 of the credit year. 12 CSR 10-405
2. (F) If funds are appropriated for the Homestead Preservation Credit, the department will set the homestead exemption limit by July 31 of the credit year. If no appropriation is made, then no Homestead Preservation Credit shall apply in that year.

3. (G) After setting the homestead exemption limit, the department will calculate the credit, if any, applicable to each verified eligible owner. By August 31 of the credit year, the department will send to county collectors and township county clerks:

   1. 1. A list of verified eligible owners;
   2. 2. The amount of each credit;
   3. 3. The certified parcel number of the

homestead; and

1. 4. The address of the homestead proper-

ty.

1. (H) The department will instruct the state treasurer to distribute the appropriation to the collector’s fund in each county to exactly offset the homestead exemption credit being issued, plus one-quarter of one percent (1/4 of 1%) to the county assessment fund. The funds shall be forwarded to the collectors and clerks of township counties by October 1 of the credit year.
2. (I) In the event an applicant dies or transfers ownership of the homestead property after application but prior to the mailing of the tax bill in the credit year, the credit is void and any money allotted for a credit on the property tax for that property lapses to the state to be credited to the general revenue fund.

AUTHORITY: section 137.106, RSMo Supp. 2005.* Emergency rule filed March 10, 2005, effective March 20, 2005, expired Sept. 16, 2005. Original rule filed March 10, 2005, effective Sept. 30, 2005. Amended: Filed Oct. 17, 2005, effective April 30, 2006.

*Original authority: 137.106, RSMo 2004, amended 2005.