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Missouri House Bill HB2657

Missouri 2024 Regular Session

Missouri House Bill HB2657 Compare Versions

OldNewDifferences
11 SECONDREGULARSESSION
2-[PERFECTED]
32 HOUSEBILLNO.2657
43 102NDGENERALASSEMBLY
54 INTRODUCEDBYREPRESENTATIVEMCGIRL.
6-5498H.01P DANARADEMANMILLER,ChiefClerk
5+5498H.01I DANARADEMANMILLER,ChiefClerk
76 ANACT
87 Torepealsection143.124,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
98 privatepensiontaxation.
109 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1110 SectionA.Section143.124,RSMo,isrepealedandonenewsectionenactedinlieu
1211 2thereof,tobeknownassection143.124,toreadasfollows:
1312 143.124.1.Otherprovisionsoflawtothecontrarynotwithstanding,fortaxyears
1413 2endingonorbeforeDecember31,2006,thetotalamountofallannuities,pensions,or
1514 3retirementallowancesabovetheamountofsixthousanddollarsannuallyprovidedbyanylaw
1615 4ofthisstate,theUnitedStates,oranyotherstatetoanypersonexceptasprovidedin
1716 5subsection4ofthissection,shallbesubjecttotaxpursuanttotheprovisionsofthischapter,
1817 6inthesamemanner,tothesameextentandunderthesameconditionsasanyothertaxable
1918 7incomereceivedbythepersonreceivingit.Forpurposesofthissection,"annuity,pension,
2019 8retirementbenefit,orretirementallowance"shallbedefinedasanannuity,pensionor
2120 9retirementallowanceprovidedbytheUnitedStates,thisstate,anyotherstateoranypolitical
2221 10subdivisionoragencyorinstitutionofthisoranyotherstate.Foralltaxyearsbeginningon
2322 11orafterJanuary1,1998,forpurposesofthissection,annuity,pensionorretirementallowance
2423 12shallbedefinedtoinclude401(k)plans,deferredcompensationplans,self-employed
2524 13retirementplans,alsoknownasKeoghplans,annuitiesfromadefinedpensionplanand
2625 14individualretirementarrangements,alsoknownasIRAs,asdescribedintheInternalRevenue
2726 15Code,butnotincludingRothIRAs,aswellasanannuity,pensionorretirementallowance
2827 16providedbytheUnitedStates,thisstate,anyotherstateoranypoliticalsubdivisionoragency
28+17orinstitutionofthisoranyotherstate.Anindividualtaxpayershallonlybealloweda
2929 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
30-intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17orinstitutionofthisoranyotherstate.Anindividualtaxpayershallonlybealloweda
31-18maximumdeductionequaltotheamountsprovidedunderthissectionforeachtaxpayeron
30+intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18maximumdeductionequaltotheamountsprovidedunderthissectionforeachtaxpayeron
3231 19thecombinedreturn.
3332 20 2.FortheperiodbeginningJuly1,1989,andendingDecember31,1989,thereshall
3433 21besubtractedfromMissouriadjustedgrossincomeforthatperiod,determinedpursuantto
3534 22section143.121,thefirstthreethousanddollarsofretirementbenefitsreceivedbyeach
3635 23taxpayer:
3736 24 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er)
3837 25andthetaxpayer'sMissouriadjustedgrossincomeislessthantwelvethousandfivehundred
3938 26dollars;or
4039 27 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined
4140 28Missouriadjustedgrossincomeislessthansixteenthousanddollars;or
4241 29 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's
4342 30Missouriadjustedgrossincomeislessthaneightthousanddollars.
4443 31 3.ForthetaxyearsbeginningonorafterJanuary1,1990,butendingonorbefore
4544 32December31,2006,thereshallbesubtractedfromMissouriadjustedgrossincome,
4645 33determinedpursuanttosection143.121,amaximumofthefirstsixthousanddollarsof
4746 34retirementbenefitsreceivedbyeachtaxpayerfromsourcesotherthanprivatelyfunded
4847 35sources,andfortaxyearsbeginningonorafterJanuary1,1998,thereshallbesubtracted
4948 36fromMissouriadjustedgrossincome,determinedpursuanttosection143.121,amaximumof
5049 37thefirstonethousanddollarsofanyretirementallowancereceivedfromanyprivatelyfunded
5150 38sourcefortaxyearsbeginningonorafterJanuary1,1998,butbeforeJanuary1,1999,anda
5251 39maximumofthefirstthreethousanddollarsofanyretirementallowancereceivedfromany
5352 40privatelyfundedsourcefortaxyearsbeginningonorafterJanuary1,1999,butbefore
5453 41January1,2000,andamaximumofthefirstfourthousanddollarsofanyretirement
5554 42allowancereceivedfromanyprivatelyfundedsourcefortaxyearsbeginningonorafter
5655 43January1,2000,butbeforeJanuary1,2001,andamaximumofthefirstfivethousanddollars
5756 44ofanyretirementallowancereceivedfromanyprivatelyfundedsourcefortaxyears
5857 45beginningonorafterJanuary1,2001,butbeforeJanuary1,2002,andamaximumofthefirst
5958 46sixthousanddollarsofanyretirementallowancereceivedfromanyprivatelyfundedsources
6059 47fortaxyearsbeginningonorafterJanuary1,2002, butbeforeJanuary1,2025,anda
6160 48maximumofthefirsttwelvethousanddollarsofanyretirementallowancereceivedfrom
6261 49anyprivatelyfundedsourcesfortaxyearsbeginningonorafterJanuary1,2025. A
6362 50taxpayershallbeentitledtothemaximumexemptionprovidedbythissubsection:
6463 51 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er)
6564 52andthetaxpayer'sMissouriadjustedgrossincomeislessthan[twenty-five] fiftythousand
6665 53dollars;or
6766 HB2657 2 54 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined
6867 55Missouriadjustedgrossincomeislessthan[thirty-two] sixty-fourthousanddollars;or
6968 56 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's
7069 57Missouriadjustedgrossincomeislessthan[sixteen] thirty-twothousandsixhundred
7170 58dollars.
7271 59 4.Ifataxpayer'sadjustedgrossincomeexceedstheadjustedgrossincomeceilingfor
7372 60suchtaxpayer'sfilingstatus,asprovidedinsubdivisions(1),(2)and(3)ofsubsection3ofthis
7473 61section,suchtaxpayershallbeentitledtoanexemptionequaltothegreaterofzeroorthe
7574 62maximumexemptionprovidedinsubsection3ofthissectionreducedbyonedollarforevery
7675 63dollarsuchtaxpayer'sincomeexceedstheceilingforhisorherfilingstatus.
7776 64 5.Forpurposesofthissubsection,theterm"maximumSocialSecuritybenefit
7877 65available"shallmeanthirty-twothousandfivehundreddollarsforthetaxyearbeginningon
7978 66orafterJanuary1,2007,andforeachsubsequenttaxyearsuchamountshallbeincreasedby
8079 67thepercentageincreaseintheConsumerPriceIndexforAllUrbanConsumers,orits
8180 68successorindex,assuchindexisdefinedandofficiallyreportedbytheUnitedStates
8281 69DepartmentofLabor,oritssuccessoragency.ForthetaxyearbeginningonorafterJanuary
8382 701,2007,butendingonorbeforeDecember31,2007,thereshallbesubtractedfromMissouri
8483 71adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
8584 72equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
8685 73thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
8786 74adjustedgrossincome;ortwentypercentoftheretirementbenefitsreceivedfromsources
8887 75otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
8988 76Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,
9089 772008,butendingonorbeforeDecember31,2008,thereshallbesubtractedfromMissouri
9190 78adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
9291 79equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
9392 80thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
9493 81adjustedgrossincome;orthirty-fivepercentoftheretirementbenefitsreceivedfromsources
9594 82otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
9695 83Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,
9796 842009,butendingonorbeforeDecember31,2009,thereshallbesubtractedfromMissouri
9897 85adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
9998 86equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
10099 87thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
101100 88adjustedgrossincome;orfiftypercentoftheretirementbenefitsreceivedfromsourcesother
102101 89thanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocialSecurity
103102 90benefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,2010,but
104103 HB2657 3 91endingonorbeforeDecember31,2010,thereshallbesubtractedfromMissouriadjusted
105104 92grossincome,determinedpursuanttosection143.121,amaximumofanamountequaltothe
106105 93greaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesotherthan
107106 94privatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
108107 95adjustedgrossincome;orsixty-fivepercentoftheretirementbenefitsreceivedfromsources
109108 96otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
110109 97Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,
111110 982011,butendingonorbeforeDecember31,2011,thereshallbesubtractedfromMissouri
112111 99adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
113112 100equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
114113 101thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
115114 102adjustedgrossincome;oreightypercentoftheretirementbenefitsreceivedfromsources
116115 103otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
117116 104Securitybenefitavailableforsuchtaxyear.ForalltaxyearsbeginningonorafterJanuary1,
118117 1052012,thereshallbesubtractedfromMissouriadjustedgrossincome,determinedpursuantto
119118 106section143.121,amaximumofanamountequaltoonehundredpercentoftheretirement
120119 107benefitsreceivedfromsourcesotherthanprivatelyfundedsourcesinthetaxyear,butnotto
121120 108exceedthemaximumSocialSecuritybenefitavailableforsuchtaxyear.Foralltaxyears
122121 109beginningonorbeforeDecember31,2023,ataxpayershallbeentitledtothemaximum
123122 110exemptionprovidedbythissubsection:
124123 111 (1)Ifthetaxpayer'sfilingstatusismarriedfilingcombined,andtheircombined
125124 112Missouriadjustedgrossincomeisequaltoorlessthanonehundredthousanddollars;or
126125 113 (2)Ifthetaxpayer'sfilingstatusissingle,headofhousehold,qualifyingwidow(er),
127126 114ormarriedfilingseparately,andthetaxpayer'sMissouriadjustedgrossincomeisequaltoor
128127 115lessthaneighty-fivethousanddollars.
129128 116
130129 117ForalltaxyearsbeginningonorafterJanuary1,2024,ataxpayershallbeentitledtothe
131130 118maximumexemptionprovidedbythissubsectionregardlessofthetaxpayer'sfilingstatusor
132131 119theamountofthetaxpayer'sMissouriadjustedgrossincome.
133132 120 6.ForalltaxyearsbeginningonorbeforeDecember31,2023,ifataxpayer's
134133 121adjustedgrossincomeexceedstheadjustedgrossincomeceilingforsuchtaxpayer'sfiling
135134 122status,asprovidedinsubdivisions(1)and(2)ofsubsection5ofthissection,suchtaxpayer
136135 123shallbeentitledtoanexemption,lessanyapplicablereductionprovidedundersubsection7
137136 124ofthissection,equaltothegreaterofzeroorthemaximumexemptionprovidedinsubsection
138137 1255ofthissectionreducedbyonedollarforeverydollarsuchtaxpayer'sincomeexceedsthe
139138 126ceilingforhisorherfilingstatus.
140139 HB2657 4 127 7.Forpurposesofcalculatingthesubtractionprovidedinsubsection5ofthissection,
141140 128suchsubtractionshallbedecreasedbyanamountequaltoanySocialSecuritybenefit
142141 129exemptionprovidedundersection143.125.
143142 130 8.Forpurposesofthissection,anySocialSecuritybenefitsotherwiseincludedin
144143 131Missouriadjustedgrossincomeshallbesubtracted;butSocialSecuritybenefitsshallnotbe
145144 132subtractedforpurposesofothercomputationspursuanttothischapter,andarenottobe
146145 133consideredasretirementbenefitsforpurposesofthissection.
147146 134 9.Theprovisionsofsubdivisions(1)and(2)ofsubsection3ofthissectionshall
148147 135applyduringalltaxyearsinwhichthefederalInternalRevenueCodeprovidesexemption
149148 136levelsforcalculationofthetaxabilityofSocialSecuritybenefitsthatarethesameasthe
150149 137levelsinsubdivisions(1)and(2)ofsubsection3ofthissection.Iftheexemptionlevelsfor
151150 138thecalculationofthetaxabilityofSocialSecuritybenefitsareadjustedbyapplicablefederal
152151 139laworregulation,theexemptionlevelsinsubdivisions(1)and(2)ofsubsection3ofthis
153152 140sectionshallbeaccordinglyadjustedtothesameexemptionlevels.
154153 141 10.Theportionofataxpayer'slumpsumdistributionfromanannuityorother
155154 142retirementplannototherwiseincludedinMissouriadjustedgrossincomeascalculated
156155 143pursuanttothischapterbutsubjecttotaxationunderInternalRevenueCodeSection402shall
157156 144betaxedinanamountequaltotenpercentofthetaxpayer'sfederalliabilityonsuch
158157 145distributionforthesametaxyear.
159158 146 11.Forpurposesofthissection,retirementbenefitsreceivedshallnotincludeany
160159 147withdrawalsfromqualifiedretirementplanswhicharesubsequentlyrolledoverintoanother
161160 148retirementplan.
162161 149 12.Theexemptionsprovidedforinthissectionshallnotaffectthecalculationofthe
163162 150incometobeusedtodeterminethepropertytaxcreditprovidedinsections135.010to
164163 151135.035.
165164 152 13.Theexemptionsprovidedforinthissectionshallapplytoanyannuity,pension,or
166165 153retirementallowanceasdefinedinsubsection1ofthissectiontotheextentthatsuchamounts
167166 154areincludedinthetaxpayer'sfederaladjustedgrossincomeandnototherwisedeductedfrom
168167 155thetaxpayer'sfederaladjustedgrossincomeinthecalculationofMissouritaxableincome.
169168 156Thissubsectionshallnotapplytoanyindividualwhoqualifiesunderfederalguidelinestobe
170169 157onehundredpercentdisabled.
171170 âś”
172171 HB2657 5