COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0110S.01I Bill No.:SB 102 Subject:Taxation and Revenue - Income Type:Original Date:January 15, 2025Bill Summary:This proposal reauthorizes an income tax deduction for certain savings
accounts.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*
Could exceed
($32,438)
Could exceed
($31,748)
Could exceed
($31,058)
Total Estimated Net
Effect on General
Revenue
Could exceed
($32,438)
Could exceed
($31,748)
Could exceed
($31,058)
*Oversight notes for the purpose of the fiscal note, Oversight assumes a top income tax rate of
4.7% in tax year 2025 (FY 2026) and future income tax rate reductions from SB 3 (2022) will
trigger consecutively (4.6% in FY 2027 and 4.5% in FY 2028+).
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0110S.01I
Bill No. SB 102
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0110S.01I
Bill No. SB 102
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January 15, 2025
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FISCAL ANALYSIS
ASSUMPTION
Section 143.1160 - Long-Term Dignity Saving Account Income Tax Deduction
Officials from the Department of Revenue (DOR) note currently, a taxpayer is entitled to an
income tax deduction equal to 100% of the contributions they make to a long-term dignity
savings account. The program was created in HB 1682 in 2020 and contained sunset language
that stops the program on December 31, 2024.
For informational purposes only, the department is presenting the activity of the program since
its inception.
Tax YearReturns Filed Deduction Claimed2021233$137,7992022264$664,1552023221$690,168
This proposal would become effective on August 28, 2025, if adopted. The long-term dignity act
will have sunset as of December 31, 2024. This proposal, therefore, is attempting to restart the
program and provide a revised sunset date of December 31, 2030. DOR notes the language in
existing statute (143.1160.6(2)) only allows the program to be extended an additional four years
if reauthorized.
DOR notes the restarting of this program will result in additional impact to general revenue
starting in FY 2026. DOR notes that deductions do not reduce revenue dollar for dollar but in
proportion to the top rate of tax. This deduction would result in a loss of $32,438 annually based
on the 4.7% tax rate in tax year 2025.
DOR will show the loss equal to the tax year 2023 loss. Additionally, this will result in
additional computer programming costing $1,832.
Oversight assumes the Department of Revenue is provided with core funding to handle a certain
amount of activity each year. Oversight assumes DOR could absorb the costs related to this
proposal. If multiple bills pass which require additional staffing and duties at substantial costs,
DOR could request funding through the appropriation process.
Officials from the Office of Administration - Budget and Planning (B&P) note this proposal
extends and existing program. Therefore, this proposal does not impact:
- TSR L.R. No. 0110S.01I
Bill No. SB 102
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- The calculation under Article X, Section 18(e).
Oversight notes according to an online survey conducted by Genworth Financial, the median
annual long-term care costs in Missouri in 2021 were as follows:
In-Home Care Homemaker Services $ 57,200 Home Health Aide $ 57,200 Community and Assisted Living Adult Daycare $ 22,800 Assisted Living Facility $ 36,000 Nursing Home Facility Semi-Private Room $ 63,145 Private Room $ 71,175
Source: https://www.genworth.com/aging-and-you/finances/cost-of-care.html
Oversight notes the cost of long-term care varies across the state. The American Council on
Aging shows the average nursing home costs for Missouri in 2021:
Nursing Home Costs by Region – 2021
Region
Private Room
Daily Cost
Private Room
Annual Cost
Shared Room
Daily Cost
Shared Room
Annual Cost
Statewide
Average$195$71,175$173$63,145
Cape Girardeau$198$72,270$172$62,780Columbia$191$69,715$168$61,138Jefferson City$203$73,913$188$68,438Joplin$215$78,293$186$67,890Kansas City$260$94,900$213$77,563Springfield$201$73,183$173$63,145St Joseph$180$65,518$165$60,225St Louis$222$80,848$185$67,525Rest of State$178$64,970$163$59,495
Source: American Council on Aging, Last updated: March 04, 2022
Oversight notes for the purpose of the fiscal note, Oversight assumes a top income tax rate of
4.7% in tax year 2025 (FY 2026) and future income tax rate reductions from SB 3 (2022) will
trigger consecutively (4.6% in FY 2027 and 4.5% in FY 2028+). L.R. No. 0110S.01I
Bill No. SB 102
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Oversight notes this is a relatively new program, therefore Oversight will use the deduction
amounts from 2023 ($690,168) as the baseline for future amounts claimed. Oversight assumes
the actual future impacts could be higher as knowledge of this program spreads; therefore,
Oversight will show the impact as could exceed the figures estimated by DOR. Oversight does
not anticipate the actual impact will reach the $250,000 threshold.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUERevenue Reduction - §143.1160 -
Extension of the Long-Term Dignity Act
Could exceed
($32,438)
Could exceed
($31,748)
Could exceed
($31,058)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
Could exceed
($32,438)
Could exceed
($31,748)
Could exceed
($31,058)
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Current law authorizes an income tax deduction for one hundred percent of a participating
taxpayer's contributions to a long-term dignity savings account, with such deduction scheduled to
sunset on December 31, 2024. This act extends the sunset on the deduction until December 31,
2030.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 0110S.01I
Bill No. SB 102
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SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 15, 2025January 15, 2025