HB100--TAXREDUCTION
SPONSOR: Davidson
BeginningJanuary1,2026,aflatrateof4%personalincometaxis
imposedontheincomeofeveryMissouriresident.
UpontheadoptionofaConstitutional amendmentcreatingaTax
ReformFund,beginning2027,theflatrateof4%maybereducedin
thefollowingmanner:
(1)Iftheamountofnetgeneralrevenuecollectedintheprevious
fiscalyearexceedsanticipatedrevenueexpendituresbyatleast$1
million,andtheminimumbalanceintheTaxReformFundisatleast
$120millionatthecloseofthefiscalyear,theamountofthe
reductionwillbecalculatedasfollows:
(a)Forthefirst$120millionintheFund:1/10of1%;
(b)Foreachadditional$60millionintheFund:1/20of1%.
Allreductionstothe4%flattaxratewilltakeeffectonJanuary
1stoftheimmediatelysucceedingcalendaryear,andthereduction
willcontinueineffectuntilthenextreductionoccurs.Thisbill
alsorepealsallprevioustriggeredratereductionsinstatute
relatedtopersonalincometax.
BeginningJanuary1,2026,therewillbenotaxonincomeofless
thanorequalto$1,000.
BeginningJanuary1,2026,therewillbenofederalincometax
deductionforanyindividualorcorporatetaxpayers.
ThisbillissimilartoHB2919(2024)andHB1252(2023).