EXPLANATION- Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 146
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR COLEMAN.
0647S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 143.011, RSMo, and to enact in lieu thereof one new section relating to income
taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 143.011, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 143.011, 2
to read as follows:3
143.011. 1. For all tax years beginning on or before 1
December 31, 2025, a tax is hereby imposed for every taxable 2
year on the Missouri taxable income of every resident. The 3
tax shall be determined by applying the tax table or the 4
rate provided in section 143.021, which is based upon the 5
following rates: 6
7
8
If the Missouri taxable
income is:
The tax is:
9
10
Not over $1,000.00 1 1/2% of the Missouri taxable
income
11
12
Over $1,000 but not over
$2,000
$15 plus 2% of excess over
$1,000
13
14
Over $2,000 but not over
$3,000
$35 plus 2 1/2% of excess over
$2,000
15
16
Over $3,000 but not over
$4,000
$60 plus 3% of excess over
$3,000
SB 146 2
2. (1) Notwithstanding the provisions of subsection 1 29
of this section to the contrary, beginning with the 2023 30
calendar year, the top rate of tax pursuant to subsection 1 31
of this section shall be four and ninety-five hundredths 32
percent. 33
(2) The modification of tax rates made pursuant to 34
this subsection shall apply only to tax years that begin on 35
or after January 1, 2023. 36
(3) The director of the department of revenue shall, 37
by rule, adjust the tax table provided in subsection 1 of 38
this section to effectuate the provisions of this 39
subsection. The top remaining rate of tax shall apply to 40
all income in excess of seven thousand dollars, as adjusted 41
pursuant to subsection 5 of this section. 42
3. (1) In addition to the rate reduction under 43
subsection 2 of this section, beginning with the 2024 44
calendar year, the top rate of tax under subsection 1 of 45
this section may be reduced by fifteen hundredths of a 46
17
18
Over $4,000 but not over
$5,000
$90 plus 3 1/2% of excess over
$4,000
19
20
Over $5,000 but not over
$6,000
$125 plus 4% of excess over
$5,000
21
22
Over $6,000 but not over
$7,000
$165 plus 4 1/2% of excess over
$6,000
23
24
Over $7,000 but not over
$8,000
$210 plus 5% of excess over
$7,000
25
26
Over $8,000 but not over
$9,000
$260 plus 5 1/2% of excess over
$8,000
27
28
Over $9,000 $315 plus 6% of excess over
$9,000
SB 146 3
percent. A reduction in the rate of tax shall take effect 47
on January first of a calendar year and such reduced rates 48
shall continue in effect until the next reduction occurs. 49
(2) A reduction in the rate of tax shall only occur if 50
the amount of net general revenue collected in the previous 51
fiscal year exceeds the highest amount of net general 52
revenue collected in any of the three fiscal years prior to 53
such fiscal year by at least one hundred seventy-five 54
million dollars. 55
(3) Any modification of tax rates under this 56
subsection shall only apply to tax years that begin on or 57
after a modification takes effect. 58
(4) The director of the department of revenue shall, 59
by rule, adjust the tax tables under subsection 1 of this 60
section to effectuate the provisions of this subsection. 61
4. [(1) In addition to the rate reductions under 62
subsections 2 and 3 of this section, beginning with the 63
calendar year immediately following the calendar year in 64
which a reduction is made pursuant to subsection 3 of this 65
section, the top rate of tax under subsection 1 of this 66
section may be further reduced over a period of years. Each 67
reduction in the top rate of tax shall be by one-tenth of a 68
percent and no more than one reduction shall occur in a 69
calendar year. No more than three reductions shall be made 70
under this subsection. Reductions in the rate of tax shall 71
take effect on January first of a calendar year and such 72
reduced rates shall continue in effect until the next 73
reduction occurs. 74
(2) (a) A reduction in the rate of tax shall only 75
occur if: 76
a. The amount of net general revenue collected in the 77
previous fiscal year exceeds the highest amount of net 78 SB 146 4
general revenue collected in any of the three fiscal years 79
prior to such fiscal year by at least two hundred million 80
dollars; and 81
b. The amount of net general revenue collected in the 82
previous fiscal year exceeds the amount of net general 83
revenue collected in the fiscal year five years prior, 84
adjusted annually by the percentage increase in inflation 85
over the preceding five fiscal years. 86
(b) The amount of net general revenue collected 87
required by subparagraph a. of paragraph (a) of this 88
subdivision in order to make a reduction pursuant to this 89
subsection shall be adjusted annually by the percent 90
increase in inflation beginning with January 2, 2023. 91
(3) Any modification of tax rates under this 92
subsection shall only apply to tax years that begin on or 93
after a modification takes effect. 94
(4) The director of the department of revenue shall, 95
by rule, adjust the tax tables under subsection 1 of this 96
section to effectuate the provisions of this subsection. 97
The bracket for income subject to the top rate of tax shall 98
be eliminated once the top rate of tax has been reduced 99
below the rate applicable to such bracket, and the top 100
remaining rate of tax shall apply to all income in excess of 101
the income in the second highest remaining income bracket] 102
For all tax years beginning on or after January 1, 2026, 103
there shall be no tax imposed upon Missouri taxable income 104
pursuant to this section. 105
5. Beginning with the 2017 calendar year, the brackets 106
of Missouri taxable income identified in subsection 1 of 107
this section shall be adjusted annually by the percent 108
increase in inflation. The director shall publish such 109
brackets annually beginning on or after October 1, 2016. 110 SB 146 5
Modifications to the brackets shall take effect on January 111
first of each calendar year and shall apply to tax years 112
beginning on or after the effective date of the new brackets. 113
6. As used in this section, the following terms mean: 114
(1) "CPI", the Consumer Price Index for All Urban 115
Consumers for the United States as reported by the Bureau of 116
Labor Statistics, or its successor index; 117
(2) "CPI for the preceding calendar year", the average 118
of the CPI as of the close of the twelve-month period ending 119
on August thirty-first of such calendar year; 120
(3) "Net general revenue collected", all revenue 121
deposited into the general revenue fund, less refunds and 122
revenues originally deposited into the general revenue fund 123
but designated by law for a specific distribution or 124
transfer to another state fund; 125
(4) "Percent increase in inflation", the percentage, 126
if any, by which the CPI for the preceding calendar year 127
exceeds the CPI for the year beginning September 1, 2014, 128
and ending August 31, 2015. 129