HJR 28 -- PROPERTY TAX EXEMPTION FOR VETERAN ORGANIZATIONS

SPONSOR:  Jackson

COMMITTEE ACTION:  Voted "do pass" by the Committee on Veterans
by a vote of 11 to 0.

This proposed constitutional amendment exempts, upon voter
approval, the property of veteran organizations from taxation.

FISCAL NOTE:  Estimated Effect on General Revenue Fund of a cost
of $52,560 in FY 2007, $0 in FY 2008, and $0 in FY 2009.  No
impact on Other State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the property of veteran service
organizations like the American Legion or the Veterans of Foreign
Wars is generally considered tax exempt because they are devoted
to charitable work.  Historically, these organizations have never
been taxed because they are incorporated as not-for-profits,
which should qualify for the exemption.  However, some county
assessors have started taxing the property because the Missouri
Constitution does not expressly exempt them from property tax.
The bill will allow Missouri citizens to vote on if this property
should be taxed.

Testifying for the bill were Representative Jackson; Veterans of
Foreign Wars of the United States, Missouri Department; Marine
Corps League, Department of Missouri; Military Officers
Association of America, State Council; Missouri Association of
Veterans Organizations; American Legion, Department of Missouri;
Missouri County Collectors Association; and Pat Kerr.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that to be exempt from
taxation, it must be in the Missouri Constitution.  Benevolent
organizations are exempt for any activities which are charitable,
religious, or educational.  If the veteran service organizations
use their halls for tax-exempt purposes, assessors will usually
allow them to remain exempt.  However, there is a problem because
the exemption is not explicitly stated in the Missouri
Constitution.

Others testifying on the bill was Missouri Assessors Association.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:45 am