Missouri Lawmakers Consider Tax Break for Homeowners Affected by Severe Weather

Missouri Lawmakers Consider Tax Break for Homeowners Affected by Severe Weather

Missouri lawmakers are currently debating a bill that could offer relief to homeowners and renters grappling with the aftermath of severe weather. The proposed legislation, introduced during a special legislative session, would allow for tax deductions based on home insurance deductibles paid to repair storm damage.

The tax deduction proposal is part of a broader agenda for the special session, which also includes discussions on disaster housing grants, affordable housing initiatives, and efforts to keep the state’s professional sports teams from relocating. Gov. Mike Kehoe convened the session on May 30, following months of extreme weather that have battered the state with tornadoes, large hail, and widespread flooding.

“We call on legislators to use this special session as a rare opportunity to support our vulnerable neighbors in their time of need, drive economic development and make transformative investments in our state,” Kehoe said in a statement. “This work is too important to leave unfinished.”

Under the proposed bill, homeowners and renters would be able to reduce their tax liability by the amount of their deductible paid for damages caused by severe weather. The deduction would be capped at $5,000 per household annually for each disaster. To qualify, the affected property must be the primary residence and located within an area covered by a presidential disaster declaration request filed by the governor.

In addition to the tax deduction, lawmakers are also reviewing legislation aimed at expanding eligibility for disaster housing response grants. The goal is to streamline administrative processes and reduce costs, ensuring property owners can receive aid more swiftly.

The impetus for this legislative action comes amid a challenging period for Missouri residents. In May alone, State Farm reported approximately 4,110 home and auto claims in the state following a series of wind, hail, and deadly tornadoes that swept through multiple states May 16-17. The city of St. Louis, in particular, reported that roughly 5,000 buildings were either destroyed or damaged by an EF-3 tornado.

According to BestLink data from 2024, the five largest writers of homeowners multiperil insurance in Missouri, based on direct premiums written, are: State Farm Group, with 24.79%; American Family Insurance Group, 16.1%; Liberty Mutual Insurance Cos., 6.63%; Allstate Insurance Group, 5.61%; and Travelers Group, 5.56%.