| 1 | 1 | | FIRSTREGULARSESSION |
|---|
| 2 | 2 | | HOUSEBILLNO.426 |
|---|
| 3 | 3 | | 103RDGENERALASSEMBLY |
|---|
| 4 | 4 | | INTRODUCEDBYREPRESENTATIVEVERNETTI. |
|---|
| 5 | 5 | | 1018H.01I DANARADEMANMILLER,ChiefClerk |
|---|
| 6 | 6 | | ANACT |
|---|
| 7 | 7 | | Torepealsection143.124,RSMo,andtoenactinlieuthereofonenewsectionrelatingto |
|---|
| 8 | 8 | | privatepensiontaxation. |
|---|
| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
|---|
| 10 | 10 | | SectionA.Section143.124,RSMo,isrepealedandonenewsectionenactedinlieu |
|---|
| 11 | 11 | | 2thereof,tobeknownassection143.124,toreadasfollows: |
|---|
| 12 | 12 | | 143.124.1.Otherprovisionsoflawtothecontrarynotwithstanding,fortaxyears |
|---|
| 13 | 13 | | 2endingonorbeforeDecember31,2006,thetotalamountofallannuities,pensions,or |
|---|
| 14 | 14 | | 3retirementallowancesabovetheamountofsixthousanddollarsannuallyprovidedbyanylaw |
|---|
| 15 | 15 | | 4ofthisstate,theUnitedStates,oranyotherstatetoanypersonexceptasprovidedin |
|---|
| 16 | 16 | | 5subsection4ofthissection,shallbesubjecttotaxpursuanttotheprovisionsofthischapter, |
|---|
| 17 | 17 | | 6inthesamemanner,tothesameextentandunderthesameconditionsasanyothertaxable |
|---|
| 18 | 18 | | 7incomereceivedbythepersonreceivingit.Forpurposesofthissection,"annuity,pension, |
|---|
| 19 | 19 | | 8retirementbenefit,orretirementallowance"shallbedefinedasanannuity,pensionor |
|---|
| 20 | 20 | | 9retirementallowanceprovidedbytheUnitedStates,thisstate,anyotherstateoranypolitical |
|---|
| 21 | 21 | | 10subdivisionoragencyorinstitutionofthisoranyotherstate.Foralltaxyearsbeginningon |
|---|
| 22 | 22 | | 11orafterJanuary1,1998,forpurposesofthissection,annuity,pensionorretirementallowance |
|---|
| 23 | 23 | | 12shallbedefinedtoinclude401(k)plans,deferredcompensationplans,self-employed |
|---|
| 24 | 24 | | 13retirementplans,alsoknownasKeoghplans,annuitiesfromadefinedpensionplanand |
|---|
| 25 | 25 | | 14individualretirementarrangements,alsoknownasIRAs,asdescribedintheInternalRevenue |
|---|
| 26 | 26 | | 15Code,butnotincludingRothIRAs,aswellasanannuity,pensionorretirementallowance |
|---|
| 27 | 27 | | 16providedbytheUnitedStates,thisstate,anyotherstateoranypoliticalsubdivisionoragency |
|---|
| 28 | 28 | | 17orinstitutionofthisoranyotherstate.Anindividualtaxpayershallonlybealloweda |
|---|
| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
|---|
| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18maximumdeductionequaltotheamountsprovidedunderthissectionforeachtaxpayeron |
|---|
| 31 | 31 | | 19thecombinedreturn. |
|---|
| 32 | 32 | | 20 2.FortheperiodbeginningJuly1,1989,andendingDecember31,1989,thereshall |
|---|
| 33 | 33 | | 21besubtractedfromMissouriadjustedgrossincomeforthatperiod,determinedpursuantto |
|---|
| 34 | 34 | | 22section143.121,thefirstthreethousanddollarsofretirementbenefitsreceivedbyeach |
|---|
| 35 | 35 | | 23taxpayer: |
|---|
| 36 | 36 | | 24 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er) |
|---|
| 37 | 37 | | 25andthetaxpayer'sMissouriadjustedgrossincomeislessthantwelvethousandfivehundred |
|---|
| 38 | 38 | | 26dollars;or |
|---|
| 39 | 39 | | 27 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined |
|---|
| 40 | 40 | | 28Missouriadjustedgrossincomeislessthansixteenthousanddollars;or |
|---|
| 41 | 41 | | 29 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's |
|---|
| 42 | 42 | | 30Missouriadjustedgrossincomeislessthaneightthousanddollars. |
|---|
| 43 | 43 | | 31 3.[ForthetaxyearsbeginningonorafterJanuary1,1990,butendingonorbefore |
|---|
| 44 | 44 | | 32December31,2006,] ThereshallbesubtractedfromMissouriadjustedgrossincome, |
|---|
| 45 | 45 | | 33determinedpursuanttosection143.121,[amaximumofthefirstsixthousanddollarsof |
|---|
| 46 | 46 | | 34retirementbenefitsreceivedbyeachtaxpayerfromsourcesotherthanprivatelyfunded |
|---|
| 47 | 47 | | 35sources,andfortaxyearsbeginningonorafterJanuary1,1998,thereshallbesubtracted |
|---|
| 48 | 48 | | 36fromMissouriadjustedgrossincome,determinedpursuanttosection143.121,amaximumof |
|---|
| 49 | 49 | | 37thefirstonethousanddollarsofanyretirementallowancereceivedfromanyprivatelyfunded |
|---|
| 50 | 50 | | 38sourcefortaxyearsbeginningonorafterJanuary1,1998,butbeforeJanuary1,1999,anda |
|---|
| 51 | 51 | | 39maximumofthefirstthreethousanddollarsofanyretirementallowancereceivedfromany |
|---|
| 52 | 52 | | 40privatelyfundedsourcefortaxyearsbeginningonorafterJanuary1,1999,butbefore |
|---|
| 53 | 53 | | 41January1,2000,andamaximumofthefirstfourthousanddollarsofanyretirement |
|---|
| 54 | 54 | | 42allowancereceivedfromanyprivatelyfundedsourcefortaxyearsbeginningonorafter |
|---|
| 55 | 55 | | 43January1,2000,butbeforeJanuary1,2001,andamaximumofthefirstfivethousanddollars |
|---|
| 56 | 56 | | 44ofanyretirementallowancereceivedfromanyprivatelyfundedsourcefortaxyears |
|---|
| 57 | 57 | | 45beginningonorafterJanuary1,2001,butbeforeJanuary1,2002,and]amaximumofthe |
|---|
| 58 | 58 | | 46firstsixthousanddollarsofanyretirementallowancereceivedbyeachtaxpayerfromany |
|---|
| 59 | 59 | | 47privatelyfundedsourcesfortaxyearsbeginningonorafterJanuary1,2002, butbefore |
|---|
| 60 | 60 | | 48January1,2026. ForalltaxyearsbeginningonorbeforeDecember31,2025,ataxpayer |
|---|
| 61 | 61 | | 49shallbeentitledtothemaximumexemptionprovidedbythissubsection: |
|---|
| 62 | 62 | | 50 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er) |
|---|
| 63 | 63 | | 51andthetaxpayer'sMissouriadjustedgrossincomeislessthantwenty-fivethousanddollars; |
|---|
| 64 | 64 | | 52or |
|---|
| 65 | 65 | | 53 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined |
|---|
| 66 | 66 | | 54Missouriadjustedgrossincomeislessthanthirty-twothousanddollars;or |
|---|
| 67 | 67 | | HB426 2 55 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's |
|---|
| 68 | 68 | | 56Missouriadjustedgrossincomeislessthansixteenthousanddollars. |
|---|
| 69 | 69 | | 57 |
|---|
| 70 | 70 | | 58ForalltaxyearsbeginningonorafterJanuary1,2026,thereshallbesubtractedfrom |
|---|
| 71 | 71 | | 59Missouriadjustedgrossincome,determinedundersection143.121,onehundred |
|---|
| 72 | 72 | | 60percentofanyretirementallowancereceivedbyeachtaxpayerfromanyprivately |
|---|
| 73 | 73 | | 61fundedsources.Ataxpayershallbeentitledtotheexemptionprovidedbythis |
|---|
| 74 | 74 | | 62subsectionregardlessofthetaxpayer'sfilingstatusortheamountofthetaxpayer's |
|---|
| 75 | 75 | | 63Missouriadjustedgrossincome. |
|---|
| 76 | 76 | | 64 4.Ifataxpayer'sadjustedgrossincomeexceedstheadjustedgrossincomeceilingfor |
|---|
| 77 | 77 | | 65suchtaxpayer'sfilingstatus,asprovidedinsubdivisions(1),(2)and(3)ofsubsection3ofthis |
|---|
| 78 | 78 | | 66section,suchtaxpayershallbeentitledtoanexemptionequaltothegreaterofzeroorthe |
|---|
| 79 | 79 | | 67maximumexemptionprovidedinsubsection3ofthissectionreducedbyonedollarforevery |
|---|
| 80 | 80 | | 68dollarsuchtaxpayer'sincomeexceedstheceilingforhisorherfilingstatus. |
|---|
| 81 | 81 | | 69 5.Forpurposesofthissubsection,theterm"maximumSocialSecuritybenefit |
|---|
| 82 | 82 | | 70available"shallmeanthirty-twothousandfivehundreddollarsforthetaxyearbeginningon |
|---|
| 83 | 83 | | 71orafterJanuary1,2007,andforeachsubsequenttaxyearsuchamountshallbeincreasedby |
|---|
| 84 | 84 | | 72thepercentageincreaseintheConsumerPriceIndexforAllUrbanConsumers,orits |
|---|
| 85 | 85 | | 73successorindex,assuchindexisdefinedandofficiallyreportedbytheUnitedStates |
|---|
| 86 | 86 | | 74DepartmentofLabor,oritssuccessoragency.ForthetaxyearbeginningonorafterJanuary |
|---|
| 87 | 87 | | 751,2007,butendingonorbeforeDecember31,2007,thereshallbesubtractedfromMissouri |
|---|
| 88 | 88 | | 76adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
|---|
| 89 | 89 | | 77equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
|---|
| 90 | 90 | | 78thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
|---|
| 91 | 91 | | 79adjustedgrossincome;ortwentypercentoftheretirementbenefitsreceivedfromsources |
|---|
| 92 | 92 | | 80otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
|---|
| 93 | 93 | | 81Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1, |
|---|
| 94 | 94 | | 822008,butendingonorbeforeDecember31,2008,thereshallbesubtractedfromMissouri |
|---|
| 95 | 95 | | 83adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
|---|
| 96 | 96 | | 84equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
|---|
| 97 | 97 | | 85thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
|---|
| 98 | 98 | | 86adjustedgrossincome;orthirty-fivepercentoftheretirementbenefitsreceivedfromsources |
|---|
| 99 | 99 | | 87otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
|---|
| 100 | 100 | | 88Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1, |
|---|
| 101 | 101 | | 892009,butendingonorbeforeDecember31,2009,thereshallbesubtractedfromMissouri |
|---|
| 102 | 102 | | 90adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
|---|
| 103 | 103 | | 91equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
|---|
| 104 | 104 | | HB426 3 92thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
|---|
| 105 | 105 | | 93adjustedgrossincome;orfiftypercentoftheretirementbenefitsreceivedfromsourcesother |
|---|
| 106 | 106 | | 94thanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocialSecurity |
|---|
| 107 | 107 | | 95benefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,2010,but |
|---|
| 108 | 108 | | 96endingonorbeforeDecember31,2010,thereshallbesubtractedfromMissouriadjusted |
|---|
| 109 | 109 | | 97grossincome,determinedpursuanttosection143.121,amaximumofanamountequaltothe |
|---|
| 110 | 110 | | 98greaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesotherthan |
|---|
| 111 | 111 | | 99privatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
|---|
| 112 | 112 | | 100adjustedgrossincome;orsixty-fivepercentoftheretirementbenefitsreceivedfromsources |
|---|
| 113 | 113 | | 101otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
|---|
| 114 | 114 | | 102Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1, |
|---|
| 115 | 115 | | 1032011,butendingonorbeforeDecember31,2011,thereshallbesubtractedfromMissouri |
|---|
| 116 | 116 | | 104adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount |
|---|
| 117 | 117 | | 105equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother |
|---|
| 118 | 118 | | 106thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal |
|---|
| 119 | 119 | | 107adjustedgrossincome;oreightypercentoftheretirementbenefitsreceivedfromsources |
|---|
| 120 | 120 | | 108otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial |
|---|
| 121 | 121 | | 109Securitybenefitavailableforsuchtaxyear.ForalltaxyearsbeginningonorafterJanuary1, |
|---|
| 122 | 122 | | 1102012,thereshallbesubtractedfromMissouriadjustedgrossincome,determinedpursuantto |
|---|
| 123 | 123 | | 111section143.121,amaximumofanamountequaltoonehundredpercentoftheretirement |
|---|
| 124 | 124 | | 112benefitsreceivedfromsourcesotherthanprivatelyfundedsourcesinthetaxyear,butnotto |
|---|
| 125 | 125 | | 113exceedthemaximumSocialSecuritybenefitavailableforsuchtaxyear.Foralltaxyears |
|---|
| 126 | 126 | | 114beginningonorbeforeDecember31,2023,ataxpayershallbeentitledtothemaximum |
|---|
| 127 | 127 | | 115exemptionprovidedbythissubsection: |
|---|
| 128 | 128 | | 116 (1)Ifthetaxpayer'sfilingstatusismarriedfilingcombined,andtheircombined |
|---|
| 129 | 129 | | 117Missouriadjustedgrossincomeisequaltoorlessthanonehundredthousanddollars;or |
|---|
| 130 | 130 | | 118 (2)Ifthetaxpayer'sfilingstatusissingle,headofhousehold,qualifyingwidow(er), |
|---|
| 131 | 131 | | 119ormarriedfilingseparately,andthetaxpayer'sMissouriadjustedgrossincomeisequaltoor |
|---|
| 132 | 132 | | 120lessthaneighty-fivethousanddollars. |
|---|
| 133 | 133 | | 121 |
|---|
| 134 | 134 | | 122ForalltaxyearsbeginningonorafterJanuary1,2024,ataxpayershallbeentitledtothe |
|---|
| 135 | 135 | | 123maximumexemptionprovidedbythissubsectionregardlessofthetaxpayer'sfilingstatusor |
|---|
| 136 | 136 | | 124theamountofthetaxpayer'sMissouriadjustedgrossincome. |
|---|
| 137 | 137 | | 125 6.ForalltaxyearsbeginningonorbeforeDecember31,2023,ifataxpayer's |
|---|
| 138 | 138 | | 126adjustedgrossincomeexceedstheadjustedgrossincomeceilingforsuchtaxpayer'sfiling |
|---|
| 139 | 139 | | 127status,asprovidedinsubdivisions(1)and(2)ofsubsection5ofthissection,suchtaxpayer |
|---|
| 140 | 140 | | 128shallbeentitledtoanexemption,lessanyapplicablereductionprovidedundersubsection7 |
|---|
| 141 | 141 | | HB426 4 129ofthissection,equaltothegreaterofzeroorthemaximumexemptionprovidedinsubsection |
|---|
| 142 | 142 | | 1305ofthissectionreducedbyonedollarforeverydollarsuchtaxpayer'sincomeexceedsthe |
|---|
| 143 | 143 | | 131ceilingforhisorherfilingstatus. |
|---|
| 144 | 144 | | 132 7.Forpurposesofcalculatingthesubtractionprovidedinsubsection5ofthissection, |
|---|
| 145 | 145 | | 133suchsubtractionshallbedecreasedbyanamountequaltoanySocialSecuritybenefit |
|---|
| 146 | 146 | | 134exemptionprovidedundersection143.125. |
|---|
| 147 | 147 | | 135 8.Forpurposesofthissection,anySocialSecuritybenefitsotherwiseincludedin |
|---|
| 148 | 148 | | 136Missouriadjustedgrossincomeshallbesubtracted;butSocialSecuritybenefitsshallnotbe |
|---|
| 149 | 149 | | 137subtractedforpurposesofothercomputationspursuanttothischapter,andarenottobe |
|---|
| 150 | 150 | | 138consideredasretirementbenefitsforpurposesofthissection. |
|---|
| 151 | 151 | | 139 9.Theprovisionsofsubdivisions(1)and(2)ofsubsection3ofthissectionshall |
|---|
| 152 | 152 | | 140applyduringalltaxyearsinwhichthefederalInternalRevenueCodeprovidesexemption |
|---|
| 153 | 153 | | 141levelsforcalculationofthetaxabilityofSocialSecuritybenefitsthatarethesameasthe |
|---|
| 154 | 154 | | 142levelsinsubdivisions(1)and(2)ofsubsection3ofthissection.Iftheexemptionlevelsfor |
|---|
| 155 | 155 | | 143thecalculationofthetaxabilityofSocialSecuritybenefitsareadjustedbyapplicablefederal |
|---|
| 156 | 156 | | 144laworregulation,theexemptionlevelsinsubdivisions(1)and(2)ofsubsection3ofthis |
|---|
| 157 | 157 | | 145sectionshallbeaccordinglyadjustedtothesameexemptionlevels. |
|---|
| 158 | 158 | | 146 10.Theportionofataxpayer'slumpsumdistributionfromanannuityorother |
|---|
| 159 | 159 | | 147retirementplannototherwiseincludedinMissouriadjustedgrossincomeascalculated |
|---|
| 160 | 160 | | 148pursuanttothischapterbutsubjecttotaxationunderInternalRevenueCodeSection402shall |
|---|
| 161 | 161 | | 149betaxedinanamountequaltotenpercentofthetaxpayer'sfederalliabilityonsuch |
|---|
| 162 | 162 | | 150distributionforthesametaxyear. |
|---|
| 163 | 163 | | 151 11.Forpurposesofthissection,retirementbenefitsreceivedshallnotincludeany |
|---|
| 164 | 164 | | 152withdrawalsfromqualifiedretirementplanswhicharesubsequentlyrolledoverintoanother |
|---|
| 165 | 165 | | 153retirementplan. |
|---|
| 166 | 166 | | 154 12.Theexemptionsprovidedforinthissectionshallnotaffectthecalculationofthe |
|---|
| 167 | 167 | | 155incometobeusedtodeterminethepropertytaxcreditprovidedinsections135.010to |
|---|
| 168 | 168 | | 156135.035. |
|---|
| 169 | 169 | | 157 13.Theexemptionsprovidedforinthissectionshallapplytoanyannuity,pension,or |
|---|
| 170 | 170 | | 158retirementallowanceasdefinedinsubsection1ofthissectiontotheextentthatsuchamounts |
|---|
| 171 | 171 | | 159areincludedinthetaxpayer'sfederaladjustedgrossincomeandnototherwisedeductedfrom |
|---|
| 172 | 172 | | 160thetaxpayer'sfederaladjustedgrossincomeinthecalculationofMissouritaxableincome. |
|---|
| 173 | 173 | | 161Thissubsectionshallnotapplytoanyindividualwhoqualifiesunderfederalguidelinestobe |
|---|
| 174 | 174 | | 162onehundredpercentdisabled. |
|---|
| 175 | 175 | | âś” |
|---|
| 176 | 176 | | HB426 5 |
|---|