About HB2089
Understanding the Disabled Veterans Homestead Exemption and why it matters.
What is HB2089?
Missouri House Bill 2089 expands the Homestead Exemption for disabled veterans, allowing eligible veterans to exempt up to $250,000 of home value from property tax.
The bill ensures veterans with disabilities receive fair tax relief and aligns Missouri with neighboring states that already offer similar protections. It recognizes that those who served our country deserve to stay in their homes without being burdened by rising property taxes.
Read the Full Bill TextQuick Facts
Key Provisions
Expanded Homestead Exemption
Increases the homestead exemption cap to $250,000 for eligible disabled veterans, up from current levels.
Surviving Spouse Protection
Surviving spouses of veterans whose death was service-connected receive a 100% property tax exemption, portable to a new primary residence.
Cost-of-Living Adjustment
Proposed increase accounts for rising housing costs, ensuring the exemption remains meaningful over time.
Disability Rating Eligibility
Available to veterans with qualifying VA disability ratings, ensuring aid reaches those with service-connected conditions.
State Alignment
Brings Missouri in line with neighboring states like Kansas and Illinois that already offer similar or greater exemptions.
Family Stability
Helps veteran families maintain housing stability, reducing the risk of displacement due to rising property taxes.
Proposed Revisions to HB2089
We support HB2089 and recommend these amendments to make it even stronger for Missouri veterans.
Periodic Review of the Assessed Value Cap
HB2089 sets the eligibility cap at $250,000. As property values change over time, a fixed cap risks excluding veterans whose homes appreciate beyond the threshold through no action of their own.
Recommendation: The assessed value cap should be reviewed and adjusted every 10 years to reflect current market conditions. The bill should also explicitly clarify that the cap is based on the assessed value shown on the homeowner's property tax statement, not the market or sales value of the home. This ensures the exemption remains meaningful over time and that eligibility is determined by the same figure veterans see on their tax bill.
Clarify and Broaden Disability Eligibility
Recommendation: Explicitly define "veteran with a disability" as any veteran who has received a disability rating from the U.S. Department of Veterans Affairs. This ensures all service-connected disabilities are recognized while preserving the tiered benefit structure.
Maintain and Codify Tiered Exemptions
The tiered structure is strong and should be retained, with clarification that exemptions apply as reductions to assessed value:
- 30%–49% disability: $2,500 reduction
- 50%–69% disability: $5,000 reduction
- 70%+ disability: 100% property tax exemption
Expand Surviving Spouse Protections
Surviving spouses of veterans killed in the line of duty or whose death is service-connected should receive a full (100%) property tax exemption, portable to a new primary residence provided eligibility conditions are maintained.
Add Personal Property Tax Relief (Vehicle Exemption)
Exempt one primary vehicle owned by the qualifying veteran or surviving spouse from personal property tax. This provides everyday financial relief and supports mobility and independence for disabled veterans.
Preserve Administrative Efficiency
We support the bill's provision allowing veterans rated 100% permanent and total to avoid annual reapplication. This reduces burden for both veterans and county offices.
Align Missouri with Neighboring States
Illinois offers full exemptions at 70%+ disability with no value cap. Arkansas provides full exemptions for 100% disabled veterans. These amendments bring Missouri in line. See comparison table.
Those who served our nation deserve the security of knowing they can remain in their homes. HB2089 is about honoring that commitment.