Perfected

PROPERTY TAX CREDIT

This act authorizes a county to grant a property tax credit to eligible taxpayers residing in such county, provided such county has adopted an ordinance authorizing such credit, or a petition in support of such credit is delivered to the governing body of the county and is subsequently submitted to and approved by the voters, as described in the act.

Eligible taxpayers are defined as residents who: 1) are eligible for Social Security retirement benefits; 2) are the owner of record of or have a legal or equitable interest in a homestead; and 3) are liable for the payment of real property taxes on such homestead.

The amount of the property tax credit shall be equal to the difference between the real property tax liability on the homestead in a given year minus the real property tax liability on such homestead in the year in which the taxpayer became an eligible taxpayer.

A credit granted pursuant to this act shall be applied when calculating the eligible taxpayer's property tax liability for the tax year. The amount of the credit shall be noted on the statement of tax due sent to the eligible taxpayer by the county collector.

The amount of property tax credits authorized by a county pursuant to this act shall be considered tax revenue actually received by the county for the purposes of calculating property tax levies. (Section 137.1050)

This provision is substantially similar to SB 715 (2022) and to a provision in SS#2/SCS/SB 649 (2022).

ESOP INCOME TAX DEDUCTION

Current law authorizes an income tax deduction equal to 50% of the net capital gain from selling employer securities to a qualified Missouri employee stock ownership plan, with such deduction scheduled to sunset on December 31, 2022. This act repeals the sunset provision. (Section 143.114)

This act is similar to a provision in HCS/SS/SB 807 (2022) and HCS/SS/SCS/SB 931 (2022).

RETIREMENT BENEFITS INCOME TAX DEDUCTION

Current law allows taxpayers with certain filing status and adjusted gross income below certain thresholds to deduct 100% of certain retirement and Social Security benefits from the taxpayer's Missouri adjusted gross income, with a reduced deduction as the taxpayer's adjusted gross income increases. For all tax years beginning on or after January 1, 2024, this act allows the maximum deduction to all taxpayers regardless of filing status or adjusted gross income. (Sections 143.124 and 143.125)

This provision is identical to SB 448 (2023), SB 241 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020).

RETIREMENT ALLOWANCE MULTIPLIER

Current law provides that between July 1, 2001 and July 1, 2014, a member of Public School Retirement System of Missouri ("PSRS") with thirty-one years or more of service, regardless of age, be provided a retirement allowance with a multiplier of 2.55% of the member's final average salary for each year of the membership service. This act modifies this provision by removing the expiration date and by providing that a member with thirty-two years or more of service may receive such retirement allowance. (Section 169.070)

This provision is identical to HCS/HB 2161 (2022), HB 2430 (2022), a provision in SS/SB 75 (2023), HCS/HB 2799 (2022), HCS/HB 811 (2021), and HCS/HB 828 (2021), and is similar to HB 1298 (2020), HB 69 (2019), HB 2633 (2018), HCS/HBs 1780 & 1420 (2016), SB 219 (2015), HCS/HB 478 (2015), and a provision in HCS/SCS/SB 172 (2015).

WORKING AFTER RETIREMENT

Currently, any teacher retired from PSRS can be employed in a position covered under the Public Education Employee Retirement System of Missouri ("PEERS") without stopping their retirement benefit. Such teachers may earn up to 60% of the minimum teacher's salary as set forth in law, but will not contribute to either retirement system nor earn creditable service. Beginning on August 28, 2023, and ending on June 30, 2028, this act allows such teachers to earn up to 133% of the annual earnings limit applicable to a Social Security recipient before the calendar year of attainment of full retirement age under federal regulations. After June 30, 2028, such teachers may earn up to the annual earnings limit applicable to a Social Security recipient before the calendar year of attainment of full retirement age. Additionally, this act shall not apply to retired members currently receiving benefits who are employed as a full-time teacher of certain state agencies and institutions.

Additionally, current law provides that a retired teacher or a retired noncertificated employee who is receiving a retirement benefit from PSRS/PEERS is allowed to work full-time for up to two years for a PSRS/PEERS-covered school district if there is a shortage of certified teachers or noncertificated employees. This act allows such employees to work full-time up to four years for such districts. Furthermore, the number of retired teachers that currently may teach in a school district with a critical shortage shall not exceed, at any one time, the lesser of 10% of the teacher staff for that school district, or five teachers. This act provides that the total number of retired teachers shall not exceed, at any one time, the greater of 1% of the total of teacher and non-certified staff for that school district, or five teachers. (Sections 169.560 & 169.596)

These provisions are identical to provisions in SS/SB 75 (2023) and are similar to a provision in HCS/SS/SCS/SB 681 & 662 (2022), provisions in HCS/SS#2/SB 997 (2022), HCS/HB 1753 (2022), a provision in HB 1881 (2022), HB 2114 (2022), SCS/HCS/HB 2304 (2022), HB 2787 (2022), provisions in HCS/HB 2799 (2022), provisions in HCS/HB 811 (2021), a provision in HB 812 (2021), a provision in HB 2291 (2020), and provisions in HB 2460 (2020).

SAME-SEX DOMESTIC PARTNERSHIP POP-UP PROVISIONS

Under current law, a member of PSRS or PEERS with twenty-five or more years of creditable service, or who is at least age fifty-five with five or more years of creditable service, may elect in an application for retirement to receive the actuarial equivalent of the member's retirement allowance in reduced monthly payments for life during retirement.

This act provides that a member who elected to receive reduced monthly payments on or before September 1, 2015, with his or her same-sex domestic partner as the nominated beneficiary may have the retirement allowance increased to the amount he or she would have received if he or she had not elected to receive reduced payments. The member shall execute an affidavit, along with any supporting information and documentation required by the Board of Trustees, attesting to the existence of the domestic partnership at the time of the nomination and that the partnership has since ended. The nominated beneficiary is required to consent to the removal and disclaim all rights to future benefits in writing, or the parties must obtain a court order or judgment after September 1, 2023, removing the nominated beneficiary. If the member and beneficiary were legally married at the time of retirement or thereafter, the marriage is required to be dissolved, and the dissolution decree shall provide for the sole retention of the allowance by the member.

A member who elected to receive reduced monthly payments on or before September 1, 2015, with his or her same-sex domestic partner as the nominated beneficiary may nominate a successor beneficiary. If the former nominated partner precedes the member in death, the member shall execute an affidavit attesting to the existence of the partnership at the time of the former nomination. Otherwise, the member shall execute an affidavit, along with any supporting information and documentation required by the Board of Trustees, attesting to the existence of the domestic partnership at the time of the nomination and that the partnership has since ended, and the nominated beneficiary is required to consent to the removal and disclaim all rights to future benefits in writing or the parties must obtain a court order or judgment after September 1, 2023, removing the nominated beneficiary. If the member and beneficiary were legally married at the time of retirement or thereafter, the marriage is required to be dissolved, and the dissolution decree shall provide for the sole retention of the allowance by the member. Any nomination of a successor beneficiary shall occur within one year of September 1, 2023, or within one year of marriage, whichever is later. (Sections 169.141 & 169.715)

These provisions are identical to SB 339 (2023) and SB 712 (2022), and to provisions in SS/SB 75 (2023), and are substantially similar to SB 608 (2021).

JOSH NORBERG