FIRSTREGULARSESSION
HOUSEBILLNO.100
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEDAVIDSON.
0158H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections143.011,143.021,and143.171,RSMo,andtoenactinlieuthereofthree
newsectionsrelatingtoincometax.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections143.011,143.021,and143.171,RSMo,arerepealedandthree
2newsectionsenactedinlieuthereof,tobeknownassections143.011,143.021,and143.171,
3toreadasfollows:
143.011.1.ForalltaxyearsbeginningonorbeforeDecember31,2025,ataxis
2herebyimposedforeverytaxableyearontheMissouritaxableincomeofeveryresident.The
3taxshallbedeterminedbyapplyingthetaxtableortherateprovidedinsection143.021,
4whichisbaseduponthefollowingrates:
5 IftheMissouritaxableincome
6 is:
Thetaxis:
7 Notover$1,000.00 11/2%oftheMissouritaxableincome
8 Over$1,000butnotover
9 $2,000
$15plus2%ofexcessover$1,000
10 Over$2,000butnotover
11 $3,000
$35plus21/2%ofexcessover$2,000
12 Over$3,000butnotover
13 $4,000
$60plus3%ofexcessover$3,000
14 Over$4,000butnotover
15 $5,000
$90plus31/2%ofexcessover$4,000
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16 Over$5,000butnotover
17 $6,000
$125plus4%ofexcessover$5,000
18 Over$6,000butnotover
19 $7,000
$165plus41/2%ofexcessover$6,000
20 Over$7,000butnotover
21 $8,000
$210plus5%ofexcessover$7,000
22 Over$8,000butnotover
23 $9,000
$260plus51/2%ofexcessover$8,000
24 Over$9,000 $315plus6%ofexcessover$9,000
25 2.(1)Notwithstandingtheprovisionsofsubsection1ofthissectiontothecontrary,
26beginningwiththe2023calendaryear,butendingonorbeforeDecember31,2025,thetop
27rateoftaxpursuanttosubsection1ofthissectionshallbefourandninety-fivehundredths
28percent.
29 (2)Themodificationoftaxratesmadepursuanttothissubsectionshallapplyonlyto
30taxyearsthatbeginonorafterJanuary1,2023, butbeforeJanuary1,2026.
31 (3)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtable
32providedinsubsection1ofthissectiontoeffectuatetheprovisionsofthissubsection.The
33topremainingrateoftaxshallapplytoallincomeinexcessofseventhousanddollars,as
34adjustedpursuanttosubsection5ofthissection.
35 3.(1)[Inadditiontotheratereductionundersubsection2ofthissection,beginning
36withthe2024calendaryear,thetoprateoftaxundersubsection1ofthissectionmaybe
37reducedbyfifteenhundredthsofapercent.Areductionintherateoftaxshalltakeeffecton
38Januaryfirstofacalendaryearandsuchreducedratesshallcontinueineffectuntilthenext
39reductionoccurs.
40 (2)Areductionintherateoftaxshallonlyoccuriftheamountofnetgeneralrevenue
41collectedinthepreviousfiscalyearexceedsthehighestamountofnetgeneralrevenue
42collectedinanyofthethreefiscalyearspriortosuchfiscalyearbyatleastonehundred
43seventy-fivemilliondollars.
44 (3)Anymodificationoftaxratesunderthissubsectionshallonlyapplytotaxyears
45thatbeginonorafteramodificationtakeseffect.
46 (4)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
47subsection1ofthissectiontoeffectuatetheprovisionsofthissubsection.
48 4.(1)Inadditiontotheratereductionsundersubsections2and3ofthissection,
49beginningwiththecalendaryearimmediatelyfollowingthecalendaryearinwhicha
50reductionismadepursuanttosubsection3ofthissection,thetoprateoftaxundersubsection
511ofthissectionmaybefurtherreducedoveraperiodofyears.Eachreductioninthetoprate
HB100 2 52oftaxshallbebyone-tenthofapercentandnomorethanonereductionshalloccurina
53calendaryear.Nomorethanthreereductionsshallbemadeunderthissubsection.
54ReductionsintherateoftaxshalltakeeffectonJanuaryfirstofacalendaryearandsuch
55reducedratesshallcontinueineffectuntilthenextreductionoccurs.
56 (2)(a)Areductionintherateoftaxshallonlyoccurif:
57 a.Theamountofnetgeneralrevenuecollectedinthepreviousfiscalyearexceedsthe
58highestamountofnetgeneralrevenuecollectedinanyofthethreefiscalyearspriortosuch
59fiscalyearbyatleasttwohundredmilliondollars;and
60 b.Theamountofnetgeneralrevenuecollectedinthepreviousfiscalyearexceedsthe
61amountofnetgeneralrevenuecollectedinthefiscalyearfiveyearsprior,adjustedannually
62bythepercentageincreaseininflationovertheprecedingfivefiscalyears.
63 (b)Theamountofnetgeneralrevenuecollectedrequiredbysubparagrapha.of
64paragraph(a)ofthissubdivisioninordertomakeareductionpursuanttothissubsectionshall
65beadjustedannuallybythepercentincreaseininflationbeginningwithJanuary2,2023.
66 (3)Anymodificationoftaxratesunderthissubsectionshallonlyapplytotaxyears
67thatbeginonorafteramodificationtakeseffect.
68 (4)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
69subsection1ofthissectiontoeffectuatetheprovisionsofthissubsection.Thebracketfor
70incomesubjecttothetoprateoftaxshallbeeliminatedoncethetoprateoftaxhasbeen
71reducedbelowtherateapplicabletosuchbracket,andthetopremainingrateoftaxshall
72applytoallincomeinexcessoftheincomeinthesecondhighestremainingincomebracket.]
73ForalltaxyearsbeginningonorafterJanuary1,2026,ataxoffourpercentishereby
74imposedontheMissouritaxableincomeofeveryresidentofthisstate.Thetaxshallbe
75determinedbytheapplicationoftheincomeprovisionsprovidedundersection143.021.
76 (2)Thedepartmentofrevenueshall,byruleandbypostingonthedepartment's
77website,adjusttheappropriatetaxratetoeffectuatetheprovisionsofthissubsection.
78 4.(1)Uponadoptionofaconstitutionalamendmentauthorizingthecreationof
79thetaxreformfund,inadditiontotheratereductionsmadepursuanttosubsection3of
80thissection,beginningwiththe2027calendaryear,thetaxrateimposedpursuantto
81subsection3ofthissectionmaybereducedoveraperiodofyearspursuantto
82subdivision(2)ofthissubsection.Areductionintherateoftaxshalltakeeffecton
83Januaryfirstoftheimmediatelysucceedingcalendaryearandsuchreducedrateshall
84continueineffectuntilthenextreductionoccurs.
85 (2)Areductionintherateoftaxshalloccuriftheamountofnetgeneralrevenue
86collectedintheimmediatelypreviousfiscalyearexceedsanticipatedgeneralfund
87revenueexpendituresforsuchfiscalyearbyatleastonemilliondollarsandthe
HB100 3 88minimumbalanceinthetaxreformfundisatleastonehundredtwentymilliondollars
89atthecloseofthefiscalyear.Theamountofthereductionshallbecalculatedasfollows:
90 (a)Forthefirstonehundredtwentymilliondollarsinthetaxreformfund,one-
91tenthofonepercent;plus
92 (b)Foreachadditionalsixtymilliondollarsinexcessoftheminimumbalance,
93one-twentiethofonepercent.
94 (3)Anymodificationofthetaxratemadepursuanttothissubsectionshallapply
95onlytotaxyearsthatbeginonorafterthedateamodificationtakeseffect.
96 (4)Thedirectorofthedepartmentofrevenueshalladjustandpublishthetax
97rateasadjustedpursuanttothissubsectiontoeffectuatetheprovisionsofthis
98subsection.
99 5.Beginningwiththe2017calendaryear,andendingonorbeforeDecember31,
1002025,thebracketsofMissouritaxableincomeidentifiedinsubsection1ofthissectionshall
101beadjustedannuallybythepercentincreaseininflation.Thedirectorshallpublishsuch
102bracketsannuallybeginningonorafterOctober1,2016.Modificationstothebracketsshall
103takeeffectonJanuaryfirstofeachcalendaryearandshallapplytotaxyearsbeginningonor
104aftertheeffectivedateofthenewbrackets.
105 6.Asusedinthissection,thefollowingtermsmean:
106 (1)"CPI",theConsumerPriceIndexforAllUrbanConsumersfortheUnitedStates
107asreportedbytheBureauofLaborStatistics,oritssuccessorindex;
108 (2)"CPIfortheprecedingcalendaryear",theaverageoftheCPIasofthecloseofthe
109twelve-monthperiodendingonAugustthirty-firstofsuchcalendaryear;
110 (3)"Netgeneralrevenuecollected",allrevenuedepositedintothegeneralrevenue
111fund,lessrefundsandrevenuesoriginallydepositedintothegeneralrevenuefundbut
112designatedbylawforaspecificdistributionortransfertoanotherstatefund;
113 (4)"Percentincreaseininflation",thepercentage,ifany,bywhichtheCPIforthe
114precedingcalendaryearexceedstheCPIfortheyearbeginningSeptember1,2014,and
115endingAugust31,2015.
143.021.1.Everyresidenthavingataxableincomeshalldeterminehisorhertax
2fromtheratesprovidedinsection143.011.Foralltaxyearsbeginningonorbefore
3December31,2022,thereshallbenotaxonataxableincomeoflessthanonehundred
4dollars.
5 2.(1)Notwithstandingtheprovisionsofsubsection1ofsection143.011tothe
6contrary,foralltaxyearsbeginningonorafterJanuary1,2023,butonorbeforeDecember
731,2025,thereshallbenotaxontaxableincomeoflessthanorequaltoonethousanddollars,
8asadjustedpursuanttosubsection5ofsection143.011.
HB100 4 9 (2)Themodificationsmadepursuanttothissubsectionshallonlyapplytotaxyears
10thatbeginonorafterJanuary1,2023, butonorbeforeDecember31,2025.
11 (3)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtable
12providedinsubsection1ofsection143.011toeffectuatetheprovisionsofthissubsection.
13 3.Notwithstandingtheprovisionsofsubsection3ofsection143.011tothe
14contrary,foralltaxyearsbeginningonorafterJanuary1,2026,thereshallbenotaxon
15taxableincomeoflessthanorequaltoonethousanddollars.
143.171.1.ForalltaxyearsbeginningonorafterJanuary1,1994,andendingonor
2beforeDecember31,2018,anindividualtaxpayershallbeallowedadeductionforhisorher
3federalincometaxliabilityunderChapter1oftheInternalRevenueCodeforthesame
4taxableyearforwhichtheMissourireturnisbeingfiled,nottoexceedfivethousanddollars
5onasingletaxpayer'sreturnortenthousanddollarsonacombinedreturn,afterreductionfor
6allcreditsthereon,exceptthecreditforpaymentsoffederalestimatedtax,thecreditforthe
7overpaymentofanyfederaltax,andthecreditsallowedbytheInternalRevenueCodeby26
8U.S.C.Section31,26U.S.C.Section27,and26U.S.C.Section34.
9 2.(1)Notwithstandinganyotherprovisionoflawtothecontrary,foralltaxyears
10beginningonorafterJanuary1,2019,butonorbeforeDecember31,2025,anindividual
11taxpayershallbeallowedadeductionequaltoapercentageofhisorherfederalincometax
12liabilityunderChapter1oftheInternalRevenueCodeforthesametaxableyearforwhichthe
13Missourireturnisbeingfiled,nottoexceedfivethousanddollarsonasingletaxpayer'sreturn
14ortenthousanddollarsonacombinedreturn,afterreductionforallcreditsthereon,exceptthe
15creditforpaymentsoffederalestimatedtax,thecreditfortheoverpaymentofanyfederaltax,
16andthecreditsallowedbytheInternalRevenueCodeby26U.S.C.Section31,26U.S.C.
17Section27,and26U.S.C.Section34.Thedeductionpercentageisdeterminedaccordingto
18thefollowingtable:
19 IftheMissourigrossincomeonthereturn
20 is:
Thedeductionpercentage
is:
21 $25,000orless 35percent
22 From$25,001to$50,000 25percent
23 From$50,001to$100,000 15percent
24 From$100,001to$125,000 5percent
25 $125,001ormore 0percent
26 (2)Notwithstandinganyprovisionoflawtothecontrary,theamountofanytax
27creditsreducingataxpayer'sfederaltaxliabilitypursuanttoPublicLaw116-136or116-260,
28enactedbythe116thUnitedStatesCongress,forthetaxyearbeginningonorafterJanuary1,
292020,andendingonorbeforeDecember31,2020,andtheamountofanytaxcreditsreducing
HB100 5 30ataxpayer'sfederaltaxliabilityunderanyotherfederallawthatprovidesdirecteconomic
31impactpaymentstotaxpayerstomitigatefinancialchallengesrelatedtotheCOVID-19
32pandemicshallnotbeconsideredindeterminingataxpayer'sfederaltaxliabilityforthe
33purposesofsubdivision(1)ofthissubsection.
34 3.ForalltaxyearsbeginningonorafterSeptember1,1993,butonorbefore
35December31,2025,acorporatetaxpayershallbeallowedadeductionforfiftypercentofits
36federalincometaxliabilityunderChapter1oftheInternalRevenueCodeforthesame
37taxableyearforwhichtheMissourireturnisbeingfiledafterreductionforallcreditsthereon,
38exceptthecreditforpaymentsoffederalestimatedtax,thecreditfortheoverpaymentofany
39federaltax,andthecreditsallowedbytheInternalRevenueCodeby26U.S.C.Section31,26
40U.S.C.Section27,and26U.S.C.Section34.
41 4.ForalltaxyearsbeginningonorbeforeDecember31,2025,ifafederalincome
42taxliabilityforataxyearpriortotheapplicabilityofsections143.011to143.996forwhich
43heorshewasnotpreviouslyentitledtoaMissourideductionislaterpaidoraccrued,heor
44shemaydeductthefederaltaxinthelateryeartotheextentitwouldhavebeendeductibleif
45paidoraccruedintheprioryear.
46 5.ForalltaxyearsbeginningonorafterJanuary1,2026,thereshallbeno
47federalincometaxdeductionforanyindividualorcorporatetaxpayerunderthis
48section.
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HB100 6