FIRSTREGULARSESSION
HOUSEBILLNO.512
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEMAYHEW.
0901H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection143.114,RSMo,andtoenactinlieuthereofonenewsectionrelatingtotax
deductionsforcertainsecurities.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section143.114,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection143.114,toreadasfollows:
143.114.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Commercialdomicile",theprincipalplacefromwhichthetradeorbusinessof
3thetaxpayerisdirectedormanaged;
4 (2)"Deduction",anamountsubtractedfromthetaxpayer'sMissouriadjustedgross
5incometodetermineMissouritaxableincomeforthetaxyearinwhichsuchdeductionis
6claimed;
7 (3)"Employersecurities",thesamemeaningasdefinedunderSection409(l)ofthe
8InternalRevenueCodeof1986,asamended;
9 (4)"Missouricorporation",acorporationwhosecommercialdomicileisinthisstate;
10 (5)"QualifiedMissouriemployeestockownershipplan",anemployeestock
11ownershipplan,asdefinedunderSection4975(e)(7)oftheInternalRevenueCodeof1986,
12asamended, andtrustthatisestablishedbyaMissouricorporationforthebenefitofthe
13employeesofthecorporation;
14 (6)"Taxpayer",anindividual,firm,partnerinafirm,corporation,partnership,
15shareholderinanScorporation,ormemberofalimitedliabilitycompanysubjecttothe
16incometaximposedunderchapter143,excludingwithholdingtaximposedbysections
17143.191to143.265.
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 2.ForalltaxyearsbeginningonorafterJanuary1,[2017] 2023, inadditiontoall
19othermodificationsallowedbylaw,ataxpayershallbeallowedadeductionfromthe
20taxpayer'sfederaladjustedgrossincomewhendeterminingMissouriadjustedgrossincomein
21anamountequaltofiftypercentofthenetcapitalgainfromthesaleorexchangeofemployer
22securitiesofaMissouricorporationtoaqualifiedMissouriemployeestockownershipplanif,
23uponcompletionofthetransaction,thequalifiedMissouriemployeestockownershipplan
24ownsatleastthirtypercentofalloutstandingemployersecuritiesissuedbytheMissouri
25corporation.
26 3.WheneveranemployeeleavesaMissouricorporationwithaqualifiedMissouri
27employeestockownershipplan,theMissouricorporationshallinformtheformeremployee
28ofthedeadlineforwhentheformeremployeeshalldecidewhethertheywillreceivetheir
29sharesofemployersecuritiesorcompensationfortheirsharesofemployersecurities.
30 4.Thedepartmentofrevenuemaypromulgaterulesandregulationsforthe
31administrationofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
32536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffective
33onlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
34section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
35vestedwiththegeneralassemblypursuanttochapter536toreview,todelaytheeffective
36date,ortodisapproveandannularulearesubsequentlyheldunconstitutional,thenthegrant
37ofrulemakingauthorityandanyruleproposedoradoptedafterAugust28,2016,shallbe
38invalidandvoid.
39 [5.Undersection23.253oftheMissourisunsetact:
40 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
41automaticallysunsetonDecemberthirty-first,sixyearsafterOctober14,2016,unless
42reauthorizedbyanactofthegeneralassembly;
43 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
44automaticallysunsetonDecemberthirty-first,twelveyearsaftertheeffectivedateofthe
45reauthorizationofthissection;and
46 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
47followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.]
âś”
HB512 2