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assembly, first regular session, are repealed and two new 3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