SB 1535 - This act establishes the "Missouri Disabled Veteran Homestead Tax Credit Act". This act authorizes a county to grant a property tax credit on real property used as a homestead by a veteran with a 100% permanent disability rating. The tax credit shall apply to all property tax levies imposed on the taxpayer's residence, excluding the state levy imposed for the Blind Pension Fund. To qualify for a property tax credit, the taxpayer's qualified residence shall not have a market value exceeding $500,000 exclusive of any portion of the property used for commercial purposes. A property tax credit authorized by this act shall transfer to the taxpayer's surviving spouse as long as the spouse holds the legal or beneficial title to the residence, permanently resides at the residence, and does not remarry. To grant property tax credits authorized by the act, a county shall opt in to the provisions of the act by an affirmative majority vote of the governing body of the county. The governing body may at any time rescind the property tax credit program by an affirmative vote. The total amount of property tax credits authorized pursuant to this act shall be considered tax revenue actually received by the county and political subdivisions. This act is identical to HB 2588 (2026). JOSH NORBERG

2026 Regular Session Introduced by Jill Carter

Missouri bill creates homestead property tax credit for disabled veterans to reduce housing costs for service-connected disabled military members and their families.

Hearing Conducted S Veterans and Military Affairs Committee

Legislative bill overview

SB 1535 establishes a new homestead tax credit for disabled veterans in Missouri, providing property tax relief for eligible disabled military veterans and their families. The bill creates a mechanism through which disabled veterans can receive reduced property tax assessments on their primary residences based on their service-related disability status.

Why is this important

Property taxes represent a significant annual expense for homeowners, and disabled veterans often face reduced earning capacity due to service-related injuries or conditions. This tax credit directly reduces the financial burden on a vulnerable population while potentially improving housing stability and quality of life for those who have served.

Potential points of contention

Funding mechanism unclear – The bill's fiscal impact and how revenue loss from reduced tax collections will be offset (state funds, local absorption, or revenue redistribution) is not detailed in available information

Eligibility criteria specificity – Questions remain about disability rating thresholds, income limits, property value caps, and whether all disabled veterans or only those meeting certain criteria qualify

Implementation costs – Administrative expenses for processing applications, verifying military service, and managing the program could be substantial and may affect overall cost-effectiveness