HF 1653 Summary

• Creates a new refundable renter's income tax credit under section 290.0693, effective for rent paid after December 31, 2022, replacing the previous property tax refund system for renters.

• Renter's credit is calculated based on rent constituting property taxes (17% of gross rent) exceeding specified percentages of household income, with income thresholds ranging from $0 to $73,680 and maximum credits from $250 to $2,580.

• Requires landlords and managing agents to furnish rent certificates to tenants by February 1 and maintain records for three years, with penalties up to $100 per failure or 50% of overstated rent claims.

• Establishes simplified filing process for taxpayers without income tax liability and provides annual adjustment of income thresholds and maximum refund amounts by the Commissioner of Revenue.

• Updates related statutes including income definitions, homestead classifications, proof of claim requirements, and interest calculations on refunds, with most provisions effective for rent paid in 2023 and following years.