FIRSTREGULARSESSION
HOUSEBILLNO.115
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEMURPHY.
0469H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection92.130,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
incomeexemptfromearningstax.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section92.130,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection92.130,toreadasfollows:
92.130.1.Theincomereceivedbyany
2 (1)Labor,agriculturalorhorticulturalorganizations;
3 (2)Mutualsavingsbanknothavingacapitalstockrepresentedbyshares;
4 (3)Fraternal-beneficiarysociety,orderorassociation,operatingunderthelodge
5systemorfortheexclusivebenefitofthemembersofafraternityitselfoperatingunderthe
6lodgesystem,andprovidingforthepaymentoflife,sick,accidentorotherbenefitstothe
7membersofsuchsociety,order,orassociationortheirdependents;
8 (4)Domesticbuildingandloanassociationsandcreditunionswithoutcapitalstock
9organizedandoperatedformutualpurposesandwithoutprofit;
10 (5)Cemeterycompanyownedandoperatedexclusivelyforthebenefitofits
11members,unlesssaidcemeteryisoperatedforprofit;
12 (6)Corporationorassociationorganizedandoperatedexclusivelyforreligious,
13charitable,scientificoreducationalpurposes,nopartofthenetincomeofwhichinurestothe
14benefitofanyprivatestockholderorindividual;
15 (7)Businessleague,chamberofcommerceorboardoftradenotorganizedforprofit
16andnopartofthenetincomeofwhichinurestothebenefitofanyprivatestockholderor
17individual;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (8)Civicleagueororganizationnotorganizedforprofitbutoperatedexclusivelyfor
19thepromotionofsocialwelfare;
20 (9)Cluborganizedandoperatedexclusivelyforpleasure,recreationandother
21nonprofitablepurposes,nopartofthenetincomeofwhichinurestothebenefitofanyprivate
22stockholderormember;
23 (10)Farmersorothermutualhail,cycloneorfireinsurancecompany,mutualditchor
24irrigationcompany,mutualorcooperativetelephonecompany,orlikeorganization,the
25incomeofwhichconsistssolelyofassessments,duesandfeescollectedfrommembersforthe
26solepurposeofmeetingitsexpenses;
27 (11)Farmers,fruitgrowersorlikeassociation,organizedandoperatedasasales
28agentforthepurposeofmarketingtheproductsofitsmembersandturningbacktothemthe
29proceedsofsales,lessthenecessarysellingexpenses,onthebasisofthequantityofproduce
30furnishedbythem;
31 (12)Corporationorassociationorganizedfortheexclusivepurposeofholdingtitleto
32property,collectingincometherefrom,andturningovertheentireamountthereof,less
33expenses,toanorganizationwhichitselfisexemptfromthetaximposedbychapter143;
34 (13)Federallandbanksandnationalfarmloanassociations,asprovidedinsection26
35ofanactofCongressapprovedJuly17,1916,entitled"Anacttoprovidecapitalfor
36agriculturaldevelopment,tocreatestandardformsofinvestmentbaseduponfarmmortgage,
37toequalizeratesofinterestuponfarmloans,tofurnishamarketforUnitedStatesbonds,to
38creategovernmentdepositariesandfinancialagentsfortheUnitedStates,andforother
39purposes";
40 (14)Jointstocklandbanksastoincomederivedfrombondsordebenturesorother
41jointstocklandbanksoranyfederallandbankbelongingtosuchjointstocklandbank;
42 (15)Expresscompanieswhichnowpayanannualtaxontheirgrossreceiptsinthis
43stateandinsurancecompanieswhichpayanannualtaxontheirgrosspremiumreceiptsinthis
44state;
45 (16)Trustscreatedbyanemployerandemployeesaspartofastockbonus,pension
46orprofit-sharingplan,fortheexclusivebenefitofemployees,towhichcontributionsare
47madebysuchemployeroremployees,orboth,forthepurposeofdistributingtosuch
48employeestheearningsandprincipalofthefundaccumulatedbythetrustinaccordancewith
49suchplan,oratrustconsistingsolelyofoneormorerestrictedretirementfundscreatedfor
50oneormoreself-employedpersonsaspartofaretirementplanfortheexclusivebenefitof
51suchself-employedpersonorpersons,towhichcontributionsaremadebysuchself-
52employedpersonorpersons,forthepurposeofdistributingtosuchself-employedpersonor
53personstheearningsandprincipalofthefundaccumulatedbythetrustinaccordancewith
54suchplanandtheamountactuallydistributed,ormadeavailabletoanydistributee;or
HB115 2 55 (17)Allcitizenswhoarelow-incometaxpayersastoanyincomereceivedas
56salaries,wages,commissions,andothercompensation.Theterm"low-income
57taxpayer"shallmeananyindividualwhohasanincomeatorbelowonehundred
58fiftypercentofthefederalpovertylevelassuchtermisdefinedunder208.750;shallnot
59betaxableunderanytaxordinanceenactedpursuanttotheprovisionsofsections92.110to
6092.200.
61 2.Thefollowingincomeshallbeexempt,regardlessofwhoreceivesit,fromsuch
62tax:
63 (1)Theproceedsoflifeinsurancepoliciespaidtotheindividualbeneficiariesupon
64thedeathoftheinsured;
65 (2)Theamountreceivedbytheinsuredasareturnofpremiumorpremiumspaidby
66himunderlifeinsuranceorendowmentcontracts,eitherduringthetermoratthematurityof
67thetermmentionedinthecontractoruponthesurrenderofthecontract;
68 (3)Anyamountreceivedunderworkers'compensationacts,ascompensationfor
69personalinjuriesorsickness,plustheamountofanydamagesreceivedwhetherbysuitor
70agreementonaccountofsuchinjuriesorsickness,orthroughthewarriskinsuranceactor
71anylawforthebenefitorreliefofinjuredordisabledmembersofthemilitaryornavalforces
72oftheUnitedStates;
73 (4)Thevalueofpropertyacquiredbygift,bequest,deviseordescent,buttheincome
74fromsuchpropertyshallbeincludedasincome;
75 (5)Interestupontheobligationsofthisstateorofanypoliticalsubdivisionthereof,or
76upontheobligationsoftheUnitedStatesoritspossessions;
77 (6)Anyincomederivedfromanypublicutilityperformingfunctionsofnational
78governmentorthoseincidenttothestateoranypoliticalsubdivisionthereof,orfromthe
79exerciseofanyessentialgovernmentfunctionaccruingtoanystate,territoryortheDistrictof
80Columbia;provided,thatwheneveranystate,territoryortheDistrictofColumbia,orany
81politicalsubdivisionofastateorterritoryhas,priortothepassageofchapter143,enteredin
82goodfaithintoacontractwithanypersonorcorporationtheobjectandpurposeofwhichisto
83acquire,construct,operateormaintainapublicutility,notaxshallbeleviedunderthe
84provisionsofchapter143upontheincomederivedfromtheoperationofsuchpublicutility,
85sofarasthepaymentthereofwillimposealossorburdenuponsuchstate,territoryorthe
86DistrictofColumbia,orapoliticalsubdivisionofthisstate;butthisprovisionisnotintended
87toconferuponsuchpersonorcorporationanyfinancialgainorexemptionortorelievesuch
88personorcorporationfromthepaymentofataxasprovidedforinchapter143uponthepart
HB115 3 89orportionofsaidincometowhichsuchpersonorcorporationshallbeentitledundersuch
90contract.
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