HB 2535 Missouri House · 2026 Regular Session

Authorizes a homestead tax exemption for certain veterans, and to offset lost property tax revenue, increases the cigarette tax and subjects alternative nicotine products, vapor products, tobacco paraphernalia, and hemp-derived consumable products to an excise tax

HB 2535 provides property tax exemptions for certain veterans and their families starting in 2027. Disabled veterans with a 30%+ disability rating, Purple Heart recipients, and Gold Star spouses (surviving spouses of service members killed in action) receive tax relief based on disability levels, ranging from $3,000 to full exemption on their primary home. To offset lost property tax revenue, the bill increases cigarette taxes and adds new excise taxes on vaping products, tobacco paraphernalia, and hemp consumables. Revenue from these taxes funds a dedicated state fund to reimburse counties for property tax losses tied to the veteran exemptions.

Bill status in committee 1 of 4 stages cleared

Introduction

Dec 2025

Committee Review

Floor Vote

Governor

Introduced Dec 18, 2025 Last action Apr 8, 2026

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What changed between versions

Introduced → House Committee Substitute · 4 edits

MODERATE

The House Committee Substitute restructured the veteran tax exemption bill to simplify eligibility rules and introduce a new benefit for Purple Heart recipients. The definition of a 'Gold Star spouse' was broadened to include any surviving spouse receiving federal dependency compensation, not just those killed in action. Additionally, a new provision allows surviving spouses of disabled veterans to carry over their tax exemption, with a reduction if they remarry.

Scope change

The bill now explicitly includes Purple Heart recipients as a distinct category for tax exemptions and adds a new subsection regarding the transfer of exemptions to surviving spouses.

ELIGIBILITY

The definition of 'Gold Star spouse' was changed from requiring the veteran to be killed in action or die from combat wounds to simply being a surviving spouse certified for federal dependency and indemnity compensation.

Purple Heart recipients are now explicitly listed as eligible for a tax exemption of up to $5,000 or the total property tax amount, whichever is less.

A new provision allows the tax exemption to transfer to a surviving spouse if they hold the title and reside in the home, though the benefit is reduced by 50% if the surviving spouse remarries.

The previous complex tiered system for disabled veterans based on specific disability rating percentages (30-50%, 50-70%) was removed and replaced with a simpler structure.

Floor votes

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No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 8, 2026

Lower · Passed

HCS Reported Do Pass (H) - AYES: 15 NOES: 1 PRESENT: 0

lower

Apr 7, 2026

Lower · Passed

HCS Voted Do Pass (H)

lower

Feb 18, 2026

Committee

Referred: Veterans and Armed Forces(H)

lower

Dec 18, 2025

Introduced

Prefiled (H)

lower

1 primary · 1 co-sponsor