| 1 | 1 | | SECONDREGULARSESSION |
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| 2 | 2 | | HOUSEBILLNO.2635 |
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| 3 | 3 | | 101STGENERALASSEMBLY |
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| 4 | 4 | | INTRODUCEDBYREPRESENTATIVEGREGORY(96). |
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| 5 | 5 | | 4962H.01I DANARADEMANMILLER,ChiefClerk |
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| 6 | 6 | | ANACT |
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| 7 | 7 | | Torepealsections143.123and143.124,RSMo,andtoenactinlieuthereoftwonewsections |
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| 8 | 8 | | relatingtoincometax. |
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| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
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| 10 | 10 | | SectionA.Sections143.123and143.124,RSMo,arerepealedandtwonewsections |
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| 11 | 11 | | 2enactedinlieuthereof,tobeknownassections143.123and143.124,toreadasfollows: |
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| 12 | 12 | | 143.123.1.Anysixthousanddollarsubtractionprovidedbylawforannuities, |
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| 13 | 13 | | 2pensions,andretirementallowancesintotalpertaxpayer,ashereafterprovidedbysubsequent |
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| 14 | 14 | | 3law,shallbeimplementedinamaximumamountofsixthousanddollarsperyear,orthree |
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| 15 | 15 | | 4thousanddollarsforasix-monthperiod. |
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| 16 | 16 | | 5 2.Inadditiontoallothersubtractionsauthorizedunderthissectionand |
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| 17 | 17 | | 6notwithstandinganyprovisionofthissectionoranyotherprovisionoflawtothe |
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| 18 | 18 | | 7contrary,foralltaxyearsbeginningonorafterJanuary1,2023,thereshallbe |
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| 19 | 19 | | 8subtractedfromMissouriadjustedgrossincome,determinedundersection143.121,the |
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| 20 | 20 | | 9totalamountofanyretirementbenefitsreceivedbyataxpayersixty-fiveyearsofageor |
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| 21 | 21 | | 10older,totheextentthatsuchamountisincludedinsuchtaxpayer'sfederaladjusted |
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| 22 | 22 | | 11grossincomeandnototherwisedeductedfromthetaxpayer'sfederaladjustedgross |
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| 23 | 23 | | 12incomeinthecalculationofMissouritaxableincome.Forpurposesofthissubsection, |
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| 24 | 24 | | 13theterm"retirementbenefits"shallinclude,butnotbelimitedto,anywithdrawalsor |
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| 25 | 25 | | 14distributionsfromanyretirementaccount. |
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| 26 | 26 | | 143.124.1.Otherprovisionsoflawtothecontrarynotwithstanding,fortaxyears |
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| 27 | 27 | | 2endingonorbeforeDecember31,2006,thetotalamountofallannuities,pensions,or |
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| 28 | 28 | | 3retirementallowancesabovetheamountofsixthousanddollarsannuallyprovidedbyanylaw |
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| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
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| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 4ofthisstate,theUnitedStates,oranyotherstatetoanypersonexceptasprovidedin |
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| 31 | 31 | | 5subsection4ofthissection,shallbesubjecttotaxpursuanttotheprovisionsofthischapter, |
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| 32 | 32 | | 6inthesamemanner,tothesameextentandunderthesameconditionsasanyothertaxable |
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| 33 | 33 | | 7incomereceivedbythepersonreceivingit.Forpurposesofthissection,"annuity,pension, |
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| 34 | 34 | | 8retirementbenefit,orretirementallowance"shallbedefinedasanannuity,pensionor |
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| 35 | 35 | | 9retirementallowanceprovidedbytheUnitedStates,thisstate,anyotherstateoranypolitical |
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| 36 | 36 | | 10subdivisionoragencyorinstitutionofthisoranyotherstate.Foralltaxyearsbeginningon |
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| 37 | 37 | | 11orafterJanuary1,1998,forpurposesofthissection,annuity,pensionorretirementallowance |
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| 38 | 38 | | 12shallbedefinedtoinclude401(k)plans,deferredcompensationplans,self-employed |
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| 39 | 39 | | 13retirementplans,alsoknownasKeoghplans,annuitiesfromadefinedpensionplanand |
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| 40 | 40 | | 14individualretirementarrangements,alsoknownasIRAs,asdescribedintheInternalRevenue |
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| 41 | 41 | | 15Code,butnotincludingRothIRAs,aswellasanannuity,pensionorretirementallowance |
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| 42 | 42 | | 16providedbytheUnitedStates,thisstate,anyotherstateoranypoliticalsubdivisionoragency |
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| 43 | 43 | | 17orinstitutionofthisoranyotherstate.Anindividualtaxpayershallonlybealloweda |
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| 44 | 44 | | 18maximumdeductionequaltotheamountsprovidedunderthissectionforeachtaxpayeron |
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| 45 | 45 | | 19thecombinedreturn. |
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| 46 | 46 | | 20 2.FortheperiodbeginningJuly1,1989,andendingDecember31,1989,thereshall |
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| 47 | 47 | | 21besubtractedfromMissouriadjustedgrossincomeforthatperiod,determinedpursuantto |
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| 48 | 48 | | 22section143.121,thefirstthreethousanddollarsofretirementbenefitsreceivedbyeach |
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| 49 | 49 | | 23taxpayer: |
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| 50 | 50 | | 24 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er) |
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| 51 | 51 | | 25andthetaxpayer'sMissouriadjustedgrossincomeislessthantwelvethousandfivehundred |
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| 52 | 52 | | 26dollars;or |
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| 53 | 53 | | 27 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined |
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| 54 | 54 | | 28Missouriadjustedgrossincomeislessthansixteenthousanddollars;or |
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| 55 | 55 | | 29 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's |
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| 56 | 56 | | 30Missouriadjustedgrossincomeislessthaneightthousanddollars. |
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| 57 | 57 | | 31 3.ForthetaxyearsbeginningonorafterJanuary1,1990,butendingonorbefore |
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| 58 | 58 | | 32December31,2006,thereshallbesubtractedfromMissouriadjustedgrossincome, |
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| 59 | 59 | | 33determinedpursuanttosection143.121,amaximumofthefirstsixthousanddollarsof |
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| 60 | 60 | | 34retirementbenefitsreceivedbyeachtaxpayerfromsourcesotherthanprivatelyfunded |
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| 61 | 61 | | 35sources,andfortaxyearsbeginningonorafterJanuary1,1998,thereshallbesubtracted |
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| 62 | 62 | | 36fromMissouriadjustedgrossincome,determinedpursuanttosection143.121,amaximumof |
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| 63 | 63 | | 37thefirstonethousanddollarsofanyretirementallowancereceivedfromanyprivatelyfunded |
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| 64 | 64 | | 38sourcefortaxyearsbeginningonorafterJanuary1,1998,butbeforeJanuary1,1999,anda |
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| 65 | 65 | | 39maximumofthefirstthreethousanddollarsofanyretirementallowancereceivedfromany |
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| 66 | 66 | | 40privatelyfundedsourcefortaxyearsbeginningonorafterJanuary1,1999,butbefore |
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| 67 | 67 | | HB2635 2 41January1,2000,andamaximumofthefirstfourthousanddollarsofanyretirement |
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| 68 | 68 | | 42allowancereceivedfromanyprivatelyfundedsourcefortaxyearsbeginningonorafter |
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| 69 | 69 | | 43January1,2000,butbeforeJanuary1,2001,andamaximumofthefirstfivethousanddollars |
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| 70 | 70 | | 44ofanyretirementallowancereceivedfromanyprivatelyfundedsourcefortaxyears |
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| 71 | 71 | | 45beginningonorafterJanuary1,2001,butbeforeJanuary1,2002,andamaximumofthefirst |
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| 72 | 72 | | 46sixthousanddollarsofanyretirementallowancereceivedfromanyprivatelyfundedsources |
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| 73 | 73 | | 47fortaxyearsbeginningonorafterJanuary1,2002.Ataxpayershallbeentitledtothe |
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| 74 | 74 | | 48maximumexemptionprovidedbythissubsection: |
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| 75 | 75 | | 49 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er) |
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| 76 | 76 | | 50andthetaxpayer'sMissouriadjustedgrossincomeislessthantwenty-fivethousanddollars; |
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| 77 | 77 | | 51or |
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| 78 | 78 | | 52 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined |
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| 79 | 79 | | 53Missouriadjustedgrossincomeislessthanthirty-twothousanddollars;or |
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| 80 | 80 | | 54 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's |
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| 81 | 81 | | 55Missouriadjustedgrossincomeislessthansixteenthousanddollars. |
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| 82 | 82 | | 56 4.Ifataxpayer'sadjustedgrossincomeexceedstheadjustedgrossincomeceilingfor |
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| 83 | 83 | | 57suchtaxpayer'sfilingstatus,asprovidedinsubdivisions(1),(2)and(3)ofsubsection3ofthis |
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| 84 | 84 | | 58section,suchtaxpayershallbeentitledtoanexemptionequaltothegreaterofzeroorthe |
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| 85 | 85 | | 59maximumexemptionprovidedinsubsection3ofthissectionreducedbyonedollarforevery |
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| 86 | 86 | | 60dollarsuchtaxpayer'sincomeexceedstheceilingforhisorherfilingstatus. |
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| 87 | 87 | | 61 5.Forpurposesofthissubsection,theterm"maximumSocialSecuritybenefit |
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| 88 | 88 | | 62available"shallmeanthirty-twothousandfivehundreddollarsforthetaxyearbeginningon |
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| 89 | 89 | | 63orafterJanuary1,2007,andforeachsubsequenttaxyearsuchamountshallbeincreasedby |
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| 90 | 90 | | 64thepercentageincreaseintheConsumerPriceIndexforAllUrbanConsumers,orits |
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| 91 | 91 | | 65successorindex,assuchindexisdefinedandofficiallyreportedbytheUnitedStates |
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| 92 | 92 | | 66DepartmentofLabor,oritssuccessoragency.ForthetaxyearbeginningonorafterJanuary |
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| 93 | 93 | | 671,2007,butendingonorbeforeDecember31,2007,thereshallbesubtractedfromMissouri |
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| 94 | 94 | | 68adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
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| 95 | 95 | | 69equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
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| 96 | 96 | | 70thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
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| 97 | 97 | | 71adjustedgrossincome;ortwentypercentoftheretirementbenefitsreceivedfromsources |
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| 98 | 98 | | 72otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
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| 99 | 99 | | 73Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1, |
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| 100 | 100 | | 742008,butendingonorbeforeDecember31,2008,thereshallbesubtractedfromMissouri |
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| 101 | 101 | | 75adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
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| 102 | 102 | | 76equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
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| 103 | 103 | | 77thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
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| 104 | 104 | | HB2635 3 78adjustedgrossincome;orthirty-fivepercentoftheretirementbenefitsreceivedfromsources |
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| 105 | 105 | | 79otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
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| 106 | 106 | | 80Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1, |
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| 107 | 107 | | 812009,butendingonorbeforeDecember31,2009,thereshallbesubtractedfromMissouri |
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| 108 | 108 | | 82adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
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| 109 | 109 | | 83equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
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| 110 | 110 | | 84thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
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| 111 | 111 | | 85adjustedgrossincome;orfiftypercentoftheretirementbenefitsreceivedfromsourcesother |
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| 112 | 112 | | 86thanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocialSecurity |
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| 113 | 113 | | 87benefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,2010,but |
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| 114 | 114 | | 88endingonorbeforeDecember31,2010,thereshallbesubtractedfromMissouriadjusted |
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| 115 | 115 | | 89grossincome,determinedpursuanttosection143.121,amaximumofanamountequaltothe |
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| 116 | 116 | | 90greaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesotherthan |
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| 117 | 117 | | 91privatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
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| 118 | 118 | | 92adjustedgrossincome;orsixty-fivepercentoftheretirementbenefitsreceivedfromsources |
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| 119 | 119 | | 93otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
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| 120 | 120 | | 94Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1, |
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| 121 | 121 | | 952011,butendingonorbeforeDecember31,2011,thereshallbesubtractedfromMissouri |
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| 122 | 122 | | 96adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
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| 123 | 123 | | 97equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
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| 124 | 124 | | 98thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
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| 125 | 125 | | 99adjustedgrossincome;oreightypercentoftheretirementbenefitsreceivedfromsources |
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| 126 | 126 | | 100otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
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| 127 | 127 | | 101Securitybenefitavailableforsuchtaxyear.ForalltaxyearsbeginningonorafterJanuary1, |
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| 128 | 128 | | 1022012,thereshallbesubtractedfromMissouriadjustedgrossincome,determinedpursuantto |
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| 129 | 129 | | 103section143.121,amaximumofanamountequaltoonehundredpercentoftheretirement |
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| 130 | 130 | | 104benefitsreceivedfromsourcesotherthanprivatelyfundedsourcesinthetaxyear,butnotto |
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| 131 | 131 | | 105exceedthemaximumSocialSecuritybenefitavailableforsuchtaxyear.Ataxpayershallbe |
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| 132 | 132 | | 106entitledtothemaximumexemptionprovidedbythissubsection: |
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| 133 | 133 | | 107 (1)Ifthetaxpayer'sfilingstatusismarriedfilingcombined,andtheircombined |
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| 134 | 134 | | 108Missouriadjustedgrossincomeisequaltoorlessthanonehundredthousanddollars;or |
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| 135 | 135 | | 109 (2)Ifthetaxpayer'sfilingstatusissingle,headofhousehold,qualifyingwidow(er), |
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| 136 | 136 | | 110ormarriedfilingseparately,andthetaxpayer'sMissouriadjustedgrossincomeisequaltoor |
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| 137 | 137 | | 111lessthaneighty-fivethousanddollars. |
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| 138 | 138 | | 112 6.Ifataxpayer'sadjustedgrossincomeexceedstheadjustedgrossincomeceilingfor |
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| 139 | 139 | | 113suchtaxpayer'sfilingstatus,asprovidedinsubdivisions(1)and(2)ofsubsection5ofthis |
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| 140 | 140 | | 114section,suchtaxpayershallbeentitledtoanexemption,lessanyapplicablereduction |
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| 141 | 141 | | HB2635 4 115providedundersubsection7ofthissection,equaltothegreaterofzeroorthemaximum |
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| 142 | 142 | | 116exemptionprovidedinsubsection5ofthissectionreducedbyonedollarforeverydollarsuch |
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| 143 | 143 | | 117taxpayer'sincomeexceedstheceilingforhisorherfilingstatus. |
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| 144 | 144 | | 118 7.Forpurposesofcalculatingthesubtractionprovidedinsubsection5ofthissection, |
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| 145 | 145 | | 119suchsubtractionshallbedecreasedbyanamountequaltoanySocialSecuritybenefit |
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| 146 | 146 | | 120exemptionprovidedundersection143.125. |
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| 147 | 147 | | 121 8.Forpurposesofthissection,anySocialSecuritybenefitsotherwiseincludedin |
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| 148 | 148 | | 122Missouriadjustedgrossincomeshallbesubtracted;butSocialSecuritybenefitsshallnotbe |
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| 149 | 149 | | 123subtractedforpurposesofothercomputationspursuanttothischapter,andarenottobe |
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| 150 | 150 | | 124consideredasretirementbenefitsforpurposesofthissection. |
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| 151 | 151 | | 125 9.Theprovisionsofsubdivisions(1)and(2)ofsubsection3ofthissectionshall |
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| 152 | 152 | | 126applyduringalltaxyearsinwhichthefederalInternalRevenueCodeprovidesexemption |
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| 153 | 153 | | 127levelsforcalculationofthetaxabilityofSocialSecuritybenefitsthatarethesameasthe |
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| 154 | 154 | | 128levelsinsubdivisions(1)and(2)ofsubsection3ofthissection.Iftheexemptionlevelsfor |
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| 155 | 155 | | 129thecalculationofthetaxabilityofSocialSecuritybenefitsareadjustedbyapplicablefederal |
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| 156 | 156 | | 130laworregulation,theexemptionlevelsinsubdivisions(1)and(2)ofsubsection3ofthis |
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| 157 | 157 | | 131sectionshallbeaccordinglyadjustedtothesameexemptionlevels. |
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| 158 | 158 | | 132 10.Theportionofataxpayer'slumpsumdistributionfromanannuityorother |
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| 159 | 159 | | 133retirementplannototherwiseincludedinMissouriadjustedgrossincomeascalculated |
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| 160 | 160 | | 134pursuanttothischapterbutsubjecttotaxationunderInternalRevenueCodeSection402shall |
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| 161 | 161 | | 135betaxedinanamountequaltotenpercentofthetaxpayer'sfederalliabilityonsuch |
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| 162 | 162 | | 136distributionforthesametaxyear. |
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| 163 | 163 | | 137 11.Forpurposesofthissection,retirementbenefitsreceivedshallnotincludeany |
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| 164 | 164 | | 138withdrawalsfromqualifiedretirementplanswhicharesubsequentlyrolledoverintoanother |
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| 165 | 165 | | 139retirementplan. |
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| 166 | 166 | | 140 12.Theexemptionsprovidedforinthissectionshallnotaffectthecalculationofthe |
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| 167 | 167 | | 141incometobeusedtodeterminethepropertytaxcreditprovidedinsections135.010to |
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| 168 | 168 | | 142135.035. |
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| 169 | 169 | | 143 13.Theexemptionsprovidedforinthissectionshallapplytoanyannuity,pension,or |
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| 170 | 170 | | 144retirementallowanceasdefinedinsubsection1ofthissectiontotheextentthatsuchamounts |
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| 171 | 171 | | 145areincludedinthetaxpayer'sfederaladjustedgrossincomeandnototherwisedeductedfrom |
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| 172 | 172 | | 146thetaxpayer'sfederaladjustedgrossincomeinthecalculationofMissouritaxableincome. |
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| 173 | 173 | | 147Thissubsectionshallnotapplytoanyindividualwhoqualifiesunderfederalguidelinestobe |
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| 174 | 174 | | 148onehundredpercentdisabled. |
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| 175 | 175 | | 149 14.Inadditiontoallothersubtractionsauthorizedunderthissectionand |
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| 176 | 176 | | 150notwithstandinganyprovisionofthissectionoranyotherprovisionoflawtothe |
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| 177 | 177 | | 151contrary,foralltaxyearsbeginningonorafterJanuary1,2023,thereshallbe |
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| 178 | 178 | | HB2635 5 152subtractedfromMissouriadjustedgrossincome,determinedundersection143.121,the |
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| 179 | 179 | | 153totalamountofanyretirementbenefitsreceivedbyataxpayersixty-fiveyearsofageor |
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| 180 | 180 | | 154older,totheextentthatsuchamountisincludedinsuchtaxpayer'sfederaladjusted |
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| 181 | 181 | | 155grossincomeandnototherwisedeductedfromthetaxpayer'sfederaladjustedgross |
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| 182 | 182 | | 156incomeinthecalculationofMissouritaxableincome.Forpurposesofthissubsection, |
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| 183 | 183 | | 157theterm"retirementbenefits"shallinclude,butnotbelimitedto,anywithdrawalsor |
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| 184 | 184 | | 158distributionsfromanyretirementaccount. |
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| 185 | 185 | | âś” |
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| 186 | 186 | | HB2635 6 |
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