Missouri 2022 1st Special Session

Missouri Senate Bill SB3 Latest Draft

Bill / Enrolled Version

                             
EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted 
and is intended to be omitted in the law. 
FIRST EXTRAORDINARY SESSION 
[TRULY AGREED TO AND FINALLY PASSED ] 
SENATE SUBSTITUTE FOR 
SENATE COMMITTEE SUBSTITUTE FOR 
SENATE BILLS NOS. 3 & 5 
101ST GENERAL ASSEMBLY 
2022 
5974S.05T   
AN ACT 
To repeal section 143.021, RSMo, and section 143.011 as enacted by senate bills nos. 153 & 97, 
one hundred first general assembly, first regular session, and to enact in lieu thereof 
two new sections relating to income taxes, with an effective date for a certain section. 
 
Be it enacted by the General Assembly of the State of Missouri, as follows: 
     Section A.  Section 143.021, RSMo, and section 143.011 as 1 
enacted by senate bills nos. 153 & 97, one hundred first general 2 
assembly, first regular session, are repealed and two new 3 
sections enacted in lieu the reof, to be known as sections 4 
143.011 and 143.021, to read as follows:5 
     143.011.  1.  A tax is hereby imposed for every taxable 1 
year on the Missouri taxable income of every resident.  The  2 
tax shall be determined by applying the tax table or the 3 
rate provided in section 143.021, which is based upon the 4 
following rates: 5 
6 
7 
  If the Missouri taxable 
income is: 
The tax is:   
8 
9 
  Not over $1,000.00 1 1/2% of the Missouri taxable 
income 
  
10 
11 
  Over $1,000 but not over 
$2,000 
$15 plus 2% of excess over 
$1,000 
    SS SCS SBs 3 & 5 	2 
     2.  (1)  [Beginning with the 2017 calendar year, the 28 
top rate of tax under subsection 1 of this section may be 29 
reduced over a period of years. Each reduction in the top 30 
rate of tax shall be by one -tenth of a percent and no more 31 
than one reduction shall occur in a calendar year.  No more  32 
than seven reduction s shall be made under this subsection.   33 
Reductions in the rate of tax shall take effect on January 34 
first of a calendar year and such reduced rates shall 35 
continue in effect until the next reduction occurs. 36 
     (2)  A reduction in the rate of tax shall o nly occur if  37 
the amount of net general revenue collected in the previous 38 
fiscal year exceeds the highest amount of net general 39 
revenue collected in any of the three fiscal years prior to 40 
12 
13 
  Over $2,000 but not over 
$3,000 
$35 plus 2 1/2% of excess over 
$2,000 
  
14 
15 
  Over $3,000 but not over 
$4,000 
$60 plus 3% of excess over 
$3,000 
  
16 
17 
  Over $4,000 but not over 
$5,000 
$90 plus 3 1/2% of excess over 
$4,000 
  
18 
19 
  Over $5,000 but not over 
$6,000 
$125 plus 4% of excess over 
$5,000 
  
20 
21 
  Over $6,000 but not over 
$7,000 
$165 plus 4 1/2% of excess over 
$6,000 
  
22 
23 
  Over $7,000 but not over 
$8,000 
$210 plus 5% of excess over 
$7,000 
  
24 
25 
  Over $8,000 but not over 
$9,000 
$260 plus 5 1/2% of excess over 
$8,000 
  
26 
27 
  Over $9,000 	$315 plus 6% of excess over 
$9,000 
    SS SCS SBs 3 & 5 	3 
such fiscal year by at least one hundred fifty million 41 
dollars. 42 
     (3)  Any modification of tax rates under this 43 
subsection shall only apply to tax years that begin on or 44 
after a modification takes effect. 45 
     (4)  The director of the department of revenue shall, 46 
by rule, adjust the tax tables under subsection 1 of this  47 
section to effectuate the provisions of this subsection.   48 
The bracket for income subject to the top rate of tax shall 49 
be eliminated once the top rate of tax has been reduced to 50 
five and one-half percent, and the top remaining rate of tax 51 
shall apply to all income in excess of the income in the 52 
second highest remaining income bracket. 53 
     (5)  Notwithstanding the provisions of subdivision (1) 54 
of this subsection to the contrary, there shall be no 55 
reduction under this subsection in the 2024 ca lendar year.   56 
However, such reductions shall continue after the 2024 57 
calendar year for subsequent calendar years. 58 
     3.  (1)  In addition to the rate reductions under 59 
subsection 2 of this section, beginning with the 2019 60 
calendar year, the top rate o f tax under subsection 1 of 61 
this section shall be reduced by four -tenths of one  62 
percent.  Such reduction in the rate of tax shall take 63 
effect on January first of the 2019 calendar year. 64 
     (2)  The modification of tax rates under this 65 
subsection shall only apply to tax years that begin on or 66 
after the date the modification takes effect. 67 
     (3)  The director of the department of revenue shall, 68 
by rule, adjust the tax tables under subsection 1 of this 69 
section to effectuate the provisions of this su bsection. 70 
     4.  (1)  In addition to the rate reductions under 71 
subsections 2 and 3 of this section, beginning with the 2024 72   SS SCS SBs 3 & 5 	4 
calendar year, the top rate of tax under subsection 1 of 73 
this section shall be reduced by one -tenth of one percent. 74 
     (2)  The modification of tax rates under this 75 
subsection shall apply only to tax years that begin on or 76 
after the date the modification takes effect. 77 
     (3)  The director of the department of revenue shall, 78 
by rule, adjust the tax tables under subsection 1 of this  79 
section to effectuate the provisions of this subsection. ]  80 
Notwithstanding the provisions of subsection 1 of this 81 
section to the contrary, beginning with the 2023 calendar 82 
year, the top rate of tax pursuant to subsection 1 of this 83 
section shall be four and ninety-five hundredths percent. 84 
     (2)  The modification of tax rates made pursuant to 85 
this subsection shall apply only to tax years that begin on 86 
or after January 1, 2023. 87 
     (3)  The director of the department of revenue shall, 88 
by rule, adjust the tax table provided in subsection 1 of 89 
this section to effectuate the provisions of this 90 
subsection.  The top remaining rate of tax shall apply to 91 
all income in excess of seven thousand dollars, as adjusted 92 
pursuant to subsection 5 of this section. 93 
     3.  (1)  In addition to the rate reduction under 94 
subsection 2 of this section, beginning with the 2024 95 
calendar year, the top rate of tax under subsection 1 of 96 
this section may be reduced by fifteen hundredths of a 97 
percent.  A reduction in the rate of tax shall take effect 98 
on January first of a calendar year and such reduced rates 99 
shall continue in effect until the next reduction occurs. 100 
     (2)  A reduction in the rate of tax shall only occur if 101 
the amount of net general revenue coll ected in the previous 102 
fiscal year exceeds the highest amount of net general 103 
revenue collected in any of the three fiscal years prior to 104   SS SCS SBs 3 & 5 	5 
such fiscal year by at least one hundred seventy -five  105 
million dollars. 106 
     (3)  Any modification of tax rates under this  107 
subsection shall only apply to tax years that begin on or 108 
after a modification takes effect. 109 
     (4)  The director of the department of revenue shall, 110 
by rule, adjust the tax tables under subsection 1 of this 111 
section to effectuate the provisions of this subsection. 112 
     4.  (1)  In addition to the rate reductions under 113 
subsections 2 and 3 of this section, beginning with the 114 
calendar year immediately following the calendar year in 115 
which a reduction is made pursuant to subsection 3 of this 116 
section, the top rate of tax under subsection 1 of this 117 
section may be further reduced over a period of years.  Each  118 
reduction in the top rate of tax shall be by one -tenth of a  119 
percent and no more than one reduction shall occur in a 120 
calendar year.  No more than three reductions shall be made 121 
under this subsection.  Reductions in the rate of tax shall 122 
take effect on January first of a calendar year and such 123 
reduced rates shall continue in effect until the next 124 
reduction occurs. 125 
     (2)  (a)  A reduction in the rate of tax shall only 126 
occur if: 127 
     a.  The amount of net general revenue collected in the 128 
previous fiscal year exceeds the highest amount of net 129 
general revenue collected in any of the three fiscal years 130 
prior to such fiscal year by at least two hundred million 131 
dollars; and 132 
     b.  The amount of net general revenue collected in the 133 
previous fiscal year exceeds the amount of net general 134 
revenue collected in the fiscal year five years prior, 135   SS SCS SBs 3 & 5 	6 
adjusted annually by the percentage increase in inflation  136 
over the preceding five fiscal years. 137 
     (b)  The amount of net general revenue collected 138 
required by subparagraph a of paragraph (a) of this 139 
subdivision in order to make a reduction pursuant to this 140 
subsection shall be adjusted annually by the percent  141 
increase in inflation beginning with the effective date of 142 
this section. 143 
     (3)  Any modification of tax rates under this 144 
subsection shall only apply to tax years that begin on or 145 
after a modification takes effect. 146 
     (4)  The director of the department of revenue shall, 147 
by rule, adjust the tax tables under subsection 1 of this 148 
section to effectuate the provisions of this subsection.   149 
The bracket for income subject to the top rate of tax shall 150 
be eliminated once the top rate of tax has been reduced  151 
below the rate applicable to such bracket, and the top 152 
remaining rate of tax shall apply to all income in excess of 153 
the income in the second highest remaining income bracket. 154 
     5.  Beginning with the 2017 calendar year, the brackets 155 
of Missouri taxable income identified in subsection 1 of 156 
this section shall be adjusted annually by the percent 157 
increase in inflation.  The director shall publish such 158 
brackets annually beginning on or after October 1, 2016.   159 
Modifications to the brac kets shall take effect on January 160 
first of each calendar year and shall apply to tax years 161 
beginning on or after the effective date of the new brackets. 162 
     6.  As used in this section, the following terms mean: 163 
     (1)  "CPI", the Consumer Price Index for All Urban  164 
Consumers for the United States as reported by the Bureau of 165 
Labor Statistics, or its successor index; 166   SS SCS SBs 3 & 5 	7 
     (2)  "CPI for the preceding calendar year", the average 167 
of the CPI as of the close of the twelve month period ending 168 
on August thirty-first of such calendar year; 169 
     (3)  "Net general revenue collected", all revenue 170 
deposited into the general revenue fund, less refunds and 171 
revenues originally deposited into the general revenue fund 172 
but designated by law for a specific distribut ion or  173 
transfer to another state fund; 174 
     (4)  "Percent increase in inflation", the percentage, 175 
if any, by which the CPI for the preceding calendar year 176 
exceeds the CPI for the year beginning September 1, 2014, 177 
and ending August 31, 2015. 178 
     143.021.  1.  Every resident having a taxable income 1 
shall determine his or her tax from the rates provided in 2 
section 143.011.  For all tax years beginning on or before 3 
December 31, 2022, there shall be no tax on a taxable income 4 
of less than one hundred dollars. 5 
     2.  (1)  Notwithstanding the provisions of subsection 1 6 
of section 143.011 to the contrary, for all tax years 7 
beginning on or after January 1, 2023, there shall be no tax 8 
on taxable income of less than or equal to one thousand  9 
dollars, as adjusted pursuant to subsection 5 of section 10 
143.011. 11 
     (2)  The modifications made pursuant to this subsection 12 
shall only apply to tax years that begin on or after January 13 
1, 2023. 14 
     (3)  The director of the department of revenue shall,  15 
by rule, adjust the tax table provided in subsection 1 of 16 
section 143.011 to effectuate the provisions of this 17 
subsection. 18   SS SCS SBs 3 & 5 	8 
     Section B.  The repeal and reenactment of section 1 
143.011 of this act shall become effective on January 1,  2 
2023. 3 
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