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Missouri House Bill HB100

Missouri 2025 Regular Session

Missouri House Bill HB100 Compare Versions

Only one version of the bill is available at this time.
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11 FIRSTREGULARSESSION
22 HOUSEBILLNO.100
33 103RDGENERALASSEMBLY
44 INTRODUCEDBYREPRESENTATIVEDAVIDSON.
55 0158H.01I DANARADEMANMILLER,ChiefClerk
66 ANACT
77 Torepealsections143.011,143.021,and143.171,RSMo,andtoenactinlieuthereofthree
88 newsectionsrelatingtoincometax.
99 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1010 SectionA.Sections143.011,143.021,and143.171,RSMo,arerepealedandthree
1111 2newsectionsenactedinlieuthereof,tobeknownassections143.011,143.021,and143.171,
1212 3toreadasfollows:
1313 143.011.1.ForalltaxyearsbeginningonorbeforeDecember31,2025,ataxis
1414 2herebyimposedforeverytaxableyearontheMissouritaxableincomeofeveryresident.The
1515 3taxshallbedeterminedbyapplyingthetaxtableortherateprovidedinsection143.021,
1616 4whichisbaseduponthefollowingrates:
1717 5 IftheMissouritaxableincome
1818 6 is:
1919 Thetaxis:
2020 7 Notover$1,000.00 11/2%oftheMissouritaxableincome
2121 8 Over$1,000butnotover
2222 9 $2,000
2323 $15plus2%ofexcessover$1,000
2424 10 Over$2,000butnotover
2525 11 $3,000
2626 $35plus21/2%ofexcessover$2,000
2727 12 Over$3,000butnotover
2828 13 $4,000
2929 $60plus3%ofexcessover$3,000
3030 14 Over$4,000butnotover
3131 15 $5,000
3232 $90plus31/2%ofexcessover$4,000
3333 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
3434 intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16 Over$5,000butnotover
3535 17 $6,000
3636 $125plus4%ofexcessover$5,000
3737 18 Over$6,000butnotover
3838 19 $7,000
3939 $165plus41/2%ofexcessover$6,000
4040 20 Over$7,000butnotover
4141 21 $8,000
4242 $210plus5%ofexcessover$7,000
4343 22 Over$8,000butnotover
4444 23 $9,000
4545 $260plus51/2%ofexcessover$8,000
4646 24 Over$9,000 $315plus6%ofexcessover$9,000
4747 25 2.(1)Notwithstandingtheprovisionsofsubsection1ofthissectiontothecontrary,
4848 26beginningwiththe2023calendaryear,butendingonorbeforeDecember31,2025,thetop
4949 27rateoftaxpursuanttosubsection1ofthissectionshallbefourandninety-fivehundredths
5050 28percent.
5151 29 (2)Themodificationoftaxratesmadepursuanttothissubsectionshallapplyonlyto
5252 30taxyearsthatbeginonorafterJanuary1,2023, butbeforeJanuary1,2026.
5353 31 (3)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtable
5454 32providedinsubsection1ofthissectiontoeffectuatetheprovisionsofthissubsection.The
5555 33topremainingrateoftaxshallapplytoallincomeinexcessofseventhousanddollars,as
5656 34adjustedpursuanttosubsection5ofthissection.
5757 35 3.(1)[Inadditiontotheratereductionundersubsection2ofthissection,beginning
5858 36withthe2024calendaryear,thetoprateoftaxundersubsection1ofthissectionmaybe
5959 37reducedbyfifteenhundredthsofapercent.Areductionintherateoftaxshalltakeeffecton
6060 38Januaryfirstofacalendaryearandsuchreducedratesshallcontinueineffectuntilthenext
6161 39reductionoccurs.
6262 40 (2)Areductionintherateoftaxshallonlyoccuriftheamountofnetgeneralrevenue
6363 41collectedinthepreviousfiscalyearexceedsthehighestamountofnetgeneralrevenue
6464 42collectedinanyofthethreefiscalyearspriortosuchfiscalyearbyatleastonehundred
6565 43seventy-fivemilliondollars.
6666 44 (3)Anymodificationoftaxratesunderthissubsectionshallonlyapplytotaxyears
6767 45thatbeginonorafteramodificationtakeseffect.
6868 46 (4)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
6969 47subsection1ofthissectiontoeffectuatetheprovisionsofthissubsection.
7070 48 4.(1)Inadditiontotheratereductionsundersubsections2and3ofthissection,
7171 49beginningwiththecalendaryearimmediatelyfollowingthecalendaryearinwhicha
7272 50reductionismadepursuanttosubsection3ofthissection,thetoprateoftaxundersubsection
7373 511ofthissectionmaybefurtherreducedoveraperiodofyears.Eachreductioninthetoprate
7474 HB100 2 52oftaxshallbebyone-tenthofapercentandnomorethanonereductionshalloccurina
7575 53calendaryear.Nomorethanthreereductionsshallbemadeunderthissubsection.
7676 54ReductionsintherateoftaxshalltakeeffectonJanuaryfirstofacalendaryearandsuch
7777 55reducedratesshallcontinueineffectuntilthenextreductionoccurs.
7878 56 (2)(a)Areductionintherateoftaxshallonlyoccurif:
7979 57 a.Theamountofnetgeneralrevenuecollectedinthepreviousfiscalyearexceedsthe
8080 58highestamountofnetgeneralrevenuecollectedinanyofthethreefiscalyearspriortosuch
8181 59fiscalyearbyatleasttwohundredmilliondollars;and
8282 60 b.Theamountofnetgeneralrevenuecollectedinthepreviousfiscalyearexceedsthe
8383 61amountofnetgeneralrevenuecollectedinthefiscalyearfiveyearsprior,adjustedannually
8484 62bythepercentageincreaseininflationovertheprecedingfivefiscalyears.
8585 63 (b)Theamountofnetgeneralrevenuecollectedrequiredbysubparagrapha.of
8686 64paragraph(a)ofthissubdivisioninordertomakeareductionpursuanttothissubsectionshall
8787 65beadjustedannuallybythepercentincreaseininflationbeginningwithJanuary2,2023.
8888 66 (3)Anymodificationoftaxratesunderthissubsectionshallonlyapplytotaxyears
8989 67thatbeginonorafteramodificationtakeseffect.
9090 68 (4)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
9191 69subsection1ofthissectiontoeffectuatetheprovisionsofthissubsection.Thebracketfor
9292 70incomesubjecttothetoprateoftaxshallbeeliminatedoncethetoprateoftaxhasbeen
9393 71reducedbelowtherateapplicabletosuchbracket,andthetopremainingrateoftaxshall
9494 72applytoallincomeinexcessoftheincomeinthesecondhighestremainingincomebracket.]
9595 73ForalltaxyearsbeginningonorafterJanuary1,2026,ataxoffourpercentishereby
9696 74imposedontheMissouritaxableincomeofeveryresidentofthisstate.Thetaxshallbe
9797 75determinedbytheapplicationoftheincomeprovisionsprovidedundersection143.021.
9898 76 (2)Thedepartmentofrevenueshall,byruleandbypostingonthedepartment's
9999 77website,adjusttheappropriatetaxratetoeffectuatetheprovisionsofthissubsection.
100100 78 4.(1)Uponadoptionofaconstitutionalamendmentauthorizingthecreationof
101101 79thetaxreformfund,inadditiontotheratereductionsmadepursuanttosubsection3of
102102 80thissection,beginningwiththe2027calendaryear,thetaxrateimposedpursuantto
103103 81subsection3ofthissectionmaybereducedoveraperiodofyearspursuantto
104104 82subdivision(2)ofthissubsection.Areductionintherateoftaxshalltakeeffecton
105105 83Januaryfirstoftheimmediatelysucceedingcalendaryearandsuchreducedrateshall
106106 84continueineffectuntilthenextreductionoccurs.
107107 85 (2)Areductionintherateoftaxshalloccuriftheamountofnetgeneralrevenue
108108 86collectedintheimmediatelypreviousfiscalyearexceedsanticipatedgeneralfund
109109 87revenueexpendituresforsuchfiscalyearbyatleastonemilliondollarsandthe
110110 HB100 3 88minimumbalanceinthetaxreformfundisatleastonehundredtwentymilliondollars
111111 89atthecloseofthefiscalyear.Theamountofthereductionshallbecalculatedasfollows:
112112 90 (a)Forthefirstonehundredtwentymilliondollarsinthetaxreformfund,one-
113113 91tenthofonepercent;plus
114114 92 (b)Foreachadditionalsixtymilliondollarsinexcessoftheminimumbalance,
115115 93one-twentiethofonepercent.
116116 94 (3)Anymodificationofthetaxratemadepursuanttothissubsectionshallapply
117117 95onlytotaxyearsthatbeginonorafterthedateamodificationtakeseffect.
118118 96 (4)Thedirectorofthedepartmentofrevenueshalladjustandpublishthetax
119119 97rateasadjustedpursuanttothissubsectiontoeffectuatetheprovisionsofthis
120120 98subsection.
121121 99 5.Beginningwiththe2017calendaryear,andendingonorbeforeDecember31,
122122 1002025,thebracketsofMissouritaxableincomeidentifiedinsubsection1ofthissectionshall
123123 101beadjustedannuallybythepercentincreaseininflation.Thedirectorshallpublishsuch
124124 102bracketsannuallybeginningonorafterOctober1,2016.Modificationstothebracketsshall
125125 103takeeffectonJanuaryfirstofeachcalendaryearandshallapplytotaxyearsbeginningonor
126126 104aftertheeffectivedateofthenewbrackets.
127127 105 6.Asusedinthissection,thefollowingtermsmean:
128128 106 (1)"CPI",theConsumerPriceIndexforAllUrbanConsumersfortheUnitedStates
129129 107asreportedbytheBureauofLaborStatistics,oritssuccessorindex;
130130 108 (2)"CPIfortheprecedingcalendaryear",theaverageoftheCPIasofthecloseofthe
131131 109twelve-monthperiodendingonAugustthirty-firstofsuchcalendaryear;
132132 110 (3)"Netgeneralrevenuecollected",allrevenuedepositedintothegeneralrevenue
133133 111fund,lessrefundsandrevenuesoriginallydepositedintothegeneralrevenuefundbut
134134 112designatedbylawforaspecificdistributionortransfertoanotherstatefund;
135135 113 (4)"Percentincreaseininflation",thepercentage,ifany,bywhichtheCPIforthe
136136 114precedingcalendaryearexceedstheCPIfortheyearbeginningSeptember1,2014,and
137137 115endingAugust31,2015.
138138 143.021.1.Everyresidenthavingataxableincomeshalldeterminehisorhertax
139139 2fromtheratesprovidedinsection143.011.Foralltaxyearsbeginningonorbefore
140140 3December31,2022,thereshallbenotaxonataxableincomeoflessthanonehundred
141141 4dollars.
142142 5 2.(1)Notwithstandingtheprovisionsofsubsection1ofsection143.011tothe
143143 6contrary,foralltaxyearsbeginningonorafterJanuary1,2023,butonorbeforeDecember
144144 731,2025,thereshallbenotaxontaxableincomeoflessthanorequaltoonethousanddollars,
145145 8asadjustedpursuanttosubsection5ofsection143.011.
146146 HB100 4 9 (2)Themodificationsmadepursuanttothissubsectionshallonlyapplytotaxyears
147147 10thatbeginonorafterJanuary1,2023, butonorbeforeDecember31,2025.
148148 11 (3)Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtable
149149 12providedinsubsection1ofsection143.011toeffectuatetheprovisionsofthissubsection.
150150 13 3.Notwithstandingtheprovisionsofsubsection3ofsection143.011tothe
151151 14contrary,foralltaxyearsbeginningonorafterJanuary1,2026,thereshallbenotaxon
152152 15taxableincomeoflessthanorequaltoonethousanddollars.
153153 143.171.1.ForalltaxyearsbeginningonorafterJanuary1,1994,andendingonor
154154 2beforeDecember31,2018,anindividualtaxpayershallbeallowedadeductionforhisorher
155155 3federalincometaxliabilityunderChapter1oftheInternalRevenueCodeforthesame
156156 4taxableyearforwhichtheMissourireturnisbeingfiled,nottoexceedfivethousanddollars
157157 5onasingletaxpayer'sreturnortenthousanddollarsonacombinedreturn,afterreductionfor
158158 6allcreditsthereon,exceptthecreditforpaymentsoffederalestimatedtax,thecreditforthe
159159 7overpaymentofanyfederaltax,andthecreditsallowedbytheInternalRevenueCodeby26
160160 8U.S.C.Section31,26U.S.C.Section27,and26U.S.C.Section34.
161161 9 2.(1)Notwithstandinganyotherprovisionoflawtothecontrary,foralltaxyears
162162 10beginningonorafterJanuary1,2019,butonorbeforeDecember31,2025,anindividual
163163 11taxpayershallbeallowedadeductionequaltoapercentageofhisorherfederalincometax
164164 12liabilityunderChapter1oftheInternalRevenueCodeforthesametaxableyearforwhichthe
165165 13Missourireturnisbeingfiled,nottoexceedfivethousanddollarsonasingletaxpayer'sreturn
166166 14ortenthousanddollarsonacombinedreturn,afterreductionforallcreditsthereon,exceptthe
167167 15creditforpaymentsoffederalestimatedtax,thecreditfortheoverpaymentofanyfederaltax,
168168 16andthecreditsallowedbytheInternalRevenueCodeby26U.S.C.Section31,26U.S.C.
169169 17Section27,and26U.S.C.Section34.Thedeductionpercentageisdeterminedaccordingto
170170 18thefollowingtable:
171171 19 IftheMissourigrossincomeonthereturn
172172 20 is:
173173 Thedeductionpercentage
174174 is:
175175 21 $25,000orless 35percent
176176 22 From$25,001to$50,000 25percent
177177 23 From$50,001to$100,000 15percent
178178 24 From$100,001to$125,000 5percent
179179 25 $125,001ormore 0percent
180180 26 (2)Notwithstandinganyprovisionoflawtothecontrary,theamountofanytax
181181 27creditsreducingataxpayer'sfederaltaxliabilitypursuanttoPublicLaw116-136or116-260,
182182 28enactedbythe116thUnitedStatesCongress,forthetaxyearbeginningonorafterJanuary1,
183183 292020,andendingonorbeforeDecember31,2020,andtheamountofanytaxcreditsreducing
184184 HB100 5 30ataxpayer'sfederaltaxliabilityunderanyotherfederallawthatprovidesdirecteconomic
185185 31impactpaymentstotaxpayerstomitigatefinancialchallengesrelatedtotheCOVID-19
186186 32pandemicshallnotbeconsideredindeterminingataxpayer'sfederaltaxliabilityforthe
187187 33purposesofsubdivision(1)ofthissubsection.
188188 34 3.ForalltaxyearsbeginningonorafterSeptember1,1993,butonorbefore
189189 35December31,2025,acorporatetaxpayershallbeallowedadeductionforfiftypercentofits
190190 36federalincometaxliabilityunderChapter1oftheInternalRevenueCodeforthesame
191191 37taxableyearforwhichtheMissourireturnisbeingfiledafterreductionforallcreditsthereon,
192192 38exceptthecreditforpaymentsoffederalestimatedtax,thecreditfortheoverpaymentofany
193193 39federaltax,andthecreditsallowedbytheInternalRevenueCodeby26U.S.C.Section31,26
194194 40U.S.C.Section27,and26U.S.C.Section34.
195195 41 4.ForalltaxyearsbeginningonorbeforeDecember31,2025,ifafederalincome
196196 42taxliabilityforataxyearpriortotheapplicabilityofsections143.011to143.996forwhich
197197 43heorshewasnotpreviouslyentitledtoaMissourideductionislaterpaidoraccrued,heor
198198 44shemaydeductthefederaltaxinthelateryeartotheextentitwouldhavebeendeductibleif
199199 45paidoraccruedintheprioryear.
200200 46 5.ForalltaxyearsbeginningonorafterJanuary1,2026,thereshallbeno
201201 47federalincometaxdeductionforanyindividualorcorporatetaxpayerunderthis
202202 48section.
203203 âś”
204204 HB100 6