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HB 2923MISSOURISession 2026State Billin committee
High Impact

Missouri bill creates a property tax exemption for home improvements up to $75,000

Original title: REAL PROPERTY TAX EXEMPTIONS FOR IMPROVEMENTS TO A HOMESTEAD

Last action · April 9, 2026: HCS Reported Do Pass (H)Sponsor: Carolyn Caton

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

House Bill 2923 establishes the 'Homestead Improvement Property Tax Relief Act,' exempting up to $75,000 of the added value from qualifying home improvements from real property taxation for four consecutive tax years. The measure applies to owner-occupied residential properties with up to four dwelling units and requires property owners to file an intent form and application with the local assessor. The state is required to appropriate funds annually to reimburse local political subdivisions for any lost revenues resulting from the exemption.

Why it matters

Homeowners who invest more than $7,500 in property renovations or rebuild after a catastrophic disaster can avoid immediate property tax increases on the added value for four years, while local taxing districts are guaranteed state reimbursement for the resulting revenue gap.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Homeowners

Property owners making qualifying renovations exceeding $7,500 receive a four-year exemption on the added property value up to $75,000.

Directly affected

County Assessors

Assessors must review intent and exemption forms, determine preimprovement base values, and calculate exempt improvement values according to new rules.

Directly affected

Political Subdivisions

Local taxing districts experience temporary property tax valuation freezes on qualifying improvements, offset by state appropriations for lost revenues.

Key Facts

  • Exempts the improvement value of qualifying home renovations up to $75,000 in true value from ad valorem taxation for four consecutive tax years.
  • Applies to 'homestead property,' defined as residential real estate improved with no more than four dwelling units, used as a principal residence, and containing no more than five acres (or necessary acreage).
  • Qualifying improvements must cost more than $7,500 in a calendar year and exclude ordinary maintenance or repair.
  • Requires property owners to file a homestead improvement exemption intent form prior to issuing a building permit or within 60 days of starting construction.
Show all 8 facts
  • Mandates that property owners submit a final exemption form within 180 days after completion of the improvement, with applications barred after two years.
  • Grants special exemption limits for homes damaged or destroyed by catastrophic events, offering up to $75,000 for insured dwellings and up to $200,000 for uninsured dwellings when reconstructed within three years.
  • Requires the General Assembly to make an annual appropriation to reimburse local political subdivisions for revenues lost due to the tax exemption.
  • Prohibits political subdivisions from denying the exemption, imposing additional local restrictions, or reducing the duration or amount of the tax break.

Frequently Asked Questions

What types of home improvements qualify for the tax exemption?
Any reconstruction, alteration, addition, or new construction to an existing homestead property or its attached structures that exceeds $7,500 in a calendar year qualifies, provided it is not ordinary maintenance or repair.
How long does the property tax exemption last?
The exemption applies for four consecutive tax years, beginning with the first tax year the improvement is reflected in the assessment, as long as the property remains the owner's principal residence.
What happens if my home is destroyed by a tornado or fire?
If a dwelling is damaged or destroyed by a catastrophic event and rebuilt on the same parcel within three years, the reconstruction is treated as a qualifying improvement exempting up to $75,000 of value for an insured dwelling or up to $200,000 for an uninsured dwelling.
Do I need to notify the county assessor before starting construction?
Yes, owners must file a homestead improvement exemption intent form prior to obtaining a building permit or within 60 days of starting construction.

What else do you want to know?

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

7 actions
  1. Apr 9, 2026HouseCommittee
    HCS Reported Do Pass (H)
  2. Apr 9, 2026HouseCommittee
    HCS Voted Do Pass (H)
  3. Apr 9, 2026House
    Executive Session Completed (H)
  4. Apr 2, 2026House
    Public Hearing Completed (H)
  5. Mar 5, 2026HouseCommittee
    Referred: Special Committee on Tax Reform(H)
  6. Jan 13, 2026HouseFloor
    Read Second Time (H)
Show 1 earlier action
  1. Jan 12, 2026HouseIntroduced
    Introduced and Read First Time (H)

Version history & redline

2 versions on file
Comparing Introduced → House Committee Substitute
removed addedOfficial text
SECOND REGULAR SESSION HOUSE removed: BILL NO. 2923 103RD GENERAL ASSEMBLY INTRODUCED BY REPRESENTATIVE CATON. 5818H.01I JOSEPH ENGLER, Chief Clerk AN ACT To repeal section 137.115, RSMo, and to enact in lieu thereof two new sections relating to real property tax exemptions for improvements to a homestead. Be it enacted by the General Assembly of the state of Missouri, as follows: Section A. Section 137.115, RSMo, is repealed and two new sections enacted in lieu 2 thereof, to be known as sections 137.115 and 137.1081, to read as follows: 137.115. 1. (1) All other laws to the contrary notwithstanding, the assessor or the 2 assessor's deputies in all counties of this state including the City of St. Louis shall annually 3 make a list of all real and tangible personal property taxable in the assessor's city, county, 4 town or district. 5 (2) Except as otherwise provided in subsection 3 of this section and section 137.078, 6 the assessor shall annually assess all personal property at thirty-three and one-third percent of 7 its true value in money as of January first of each calendar year. 8 (3) The assessor shall annually assess all real property, including any new 9 construction and improvements to real property that are not exempt under section 10 137.1081, and possessory interests in real property at the percent of its true value in money 11 set in subsection 5 of this section. The true value in money of any possessory interest in real 12 property in subclass (3), where such real property is on or lies within the ultimate airport 13 boundary as shown by a federal airport layout plan, as defined by 14 CFR 151.5, of a 14 commercial airport having a FAR Part 139 certification and owned by a political subdivision, 15 shall be the otherwise applicable true value in money of any such possessory interest in real 16 property, less the total dollar amount of costs paid by a party, other than the political 17 subdivision, towards any new construction or improvements on such real property completed EXPLANATION — 31,897 more removed characters - read the previous versionadded: COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 2923 103RD GENERAL ASSEMBLY 5818H.02C JOSEPH ENGLER, Chief Clerk AN ACT To repeal section 137.115, RSMo, and to enact in lieu thereof two new sections relating to real property tax exemptions for improvements to a homestead. Be it enacted by the General Assembly of the state of Missouri, as follows: Section A. Section 137.115, RSMo, is repealed and two new sections enacted in lieu 2 thereof, to be known as sections 137.115 and 137.1081, to read as follows: 137.115. 1. (1) All other laws to the contrary notwithstanding, the assessor or the 2 assessor's deputies in all counties of this state including the City of St. Louis shall annually 3 make a list of all real and tangible personal property taxable in the assessor's city, county, 4 town or district. 5 (2) Except as otherwise provided in subsection 3 of this section and section 137.078, 6 the assessor shall annually assess all personal property at thirty-three and one-third percent of 7 its true value in money as of January first of each calendar year. 8 (3) The assessor shall annually assess all real property, including any new 9 construction and improvements to real property that are not exempt under section 10 137.1081, and possessory interests in real property at the percent of its true value in money 11 set in subsection 5 of this section. The true value in money of any possessory interest in real 12 property in subclass (3), where such real property is on or lies within the ultimate airport 13 boundary as shown by a federal airport layout plan, as defined by 14 CFR 151.5, of a 14 commercial airport having a FAR Part 139 certification and owned by a political subdivision, 15 shall be the otherwise applicable true value in money of any such possessory interest in real 16 property, less the total dollar amount of costs paid by a party, other than the political 17 subdivision, towards any new construction or improvements on such real property completed 18 after January 1, 31,942 more added characters - read this versionHB 2923 13
Redline computed from the official version text (record lane).View this version →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Carolyn CatonHouse · District 33RepublicanSponsor

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

State-Mandated Local Tax Exemption with State Reimbursement

The bill forces all local political subdivisions to honor a uniform property tax exemption for home improvements while constitutionally obligating the General Assembly to appropriate funds for lost local revenues.

General AssemblyState Tax Commission

Connected Entities

State Tax Commission, General Assembly, City of St. Louis
OrganizationState Tax Commission“Responsible for adopting rules, standard forms, and procedures to implement the ”Map →
OrganizationGeneral Assembly“Enacting legislative body of the state of Missouri”Map →
locationCity of St. Louis“Jurisdiction subject to real property assessment and tax provisions”Map →

Sources

Open source document

house.mo.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz45
    Current news / social attention level

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