Missouri 2025 Regular Session

Missouri Senate Bill SB146 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	EXPLANATION- Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3	3	and is intended to be omitted in the law.
4	4
5	5	FIRST REGULAR SESSION
6	6	SENATE BILL NO. 146
7	7	103RD GENERAL ASSEMBLY
8	8
9	9	INTRODUCED BY SENATOR COLEMAN.
10	10	0647S.01I KRISTINA MARTIN, Secretary
11	11	AN ACT
12	12	To repeal section 143.011, RSMo, and to enact in lieu thereof one new section relating to income
13	13	taxes.
14	14
15	15
16	16	Be it enacted by the General Assembly of the State of Missouri, as follows:
17	17	Section A. Section 143.011, RSMo, is repealed and one new 1
18	18	section enacted in lieu thereof, to be known as section 143.011, 2
19	19	to read as follows:3
20	20	143.011. 1. For all tax years beginning on or before 1
21	21	December 31, 2025, a tax is hereby imposed for every taxable 2
22	22	year on the Missouri taxable income of every resident. The 3
23	23	tax shall be determined by applying the tax table or the 4
24	24	rate provided in section 143.021, which is based upon the 5
25	25	following rates: 6
26	26	7
27	27	8
28	28	If the Missouri taxable
29	29	income is:
30	30	The tax is:
31	31	9
32	32	10
33	33	Not over $1,000.00 1 1/2% of the Missouri taxable
34	34	income
35	35
36	36	11
37	37	12
38	38	Over $1,000 but not over
39	39	$2,000
40	40	$15 plus 2% of excess over
41	41	$1,000
42	42
43	43	13
44	44	14
45	45	Over $2,000 but not over
46	46	$3,000
47	47	$35 plus 2 1/2% of excess over
48	48	$2,000
49	49
50	50	15
51	51	16
52	52	Over $3,000 but not over
53	53	$4,000
54	54	$60 plus 3% of excess over
55	55	$3,000
56	56	SB 146 2
57	57	2. (1) Notwithstanding the provisions of subsection 1 29
58	58	of this section to the contrary, beginning with the 2023 30
59	59	calendar year, the top rate of tax pursuant to subsection 1 31
60	60	of this section shall be four and ninety-five hundredths 32
61	61	percent. 33
62	62	(2) The modification of tax rates made pursuant to 34
63	63	this subsection shall apply only to tax years that begin on 35
64	64	or after January 1, 2023. 36
65	65	(3) The director of the department of revenue shall, 37
66	66	by rule, adjust the tax table provided in subsection 1 of 38
67	67	this section to effectuate the provisions of this 39
68	68	subsection. The top remaining rate of tax shall apply to 40
69	69	all income in excess of seven thousand dollars, as adjusted 41
70	70	pursuant to subsection 5 of this section. 42
71	71	3. (1) In addition to the rate reduction under 43
72	72	subsection 2 of this section, beginning with the 2024 44
73	73	calendar year, the top rate of tax under subsection 1 of 45
74	74	this section may be reduced by fifteen hundredths of a 46
75	75	17
76	76	18
77	77	Over $4,000 but not over
78	78	$5,000
79	79	$90 plus 3 1/2% of excess over
80	80	$4,000
81	81
82	82	19
83	83	20
84	84	Over $5,000 but not over
85	85	$6,000
86	86	$125 plus 4% of excess over
87	87	$5,000
88	88
89	89	21
90	90	22
91	91	Over $6,000 but not over
92	92	$7,000
93	93	$165 plus 4 1/2% of excess over
94	94	$6,000
95	95
96	96	23
97	97	24
98	98	Over $7,000 but not over
99	99	$8,000
100	100	$210 plus 5% of excess over
101	101	$7,000
102	102
103	103	25
104	104	26
105	105	Over $8,000 but not over
106	106	$9,000
107	107	$260 plus 5 1/2% of excess over
108	108	$8,000
109	109
110	110	27
111	111	28
112	112	Over $9,000 $315 plus 6% of excess over
113	113	$9,000
114	114	SB 146 3
115	115	percent. A reduction in the rate of tax shall take effect 47
116	116	on January first of a calendar year and such reduced rates 48
117	117	shall continue in effect until the next reduction occurs. 49
118	118	(2) A reduction in the rate of tax shall only occur if 50
119	119	the amount of net general revenue collected in the previous 51
120	120	fiscal year exceeds the highest amount of net general 52
121	121	revenue collected in any of the three fiscal years prior to 53
122	122	such fiscal year by at least one hundred seventy-five 54
123	123	million dollars. 55
124	124	(3) Any modification of tax rates under this 56
125	125	subsection shall only apply to tax years that begin on or 57
126	126	after a modification takes effect. 58
127	127	(4) The director of the department of revenue shall, 59
128	128	by rule, adjust the tax tables under subsection 1 of this 60
129	129	section to effectuate the provisions of this subsection. 61
130	130	4. [(1) In addition to the rate reductions under 62
131	131	subsections 2 and 3 of this section, beginning with the 63
132	132	calendar year immediately following the calendar year in 64
133	133	which a reduction is made pursuant to subsection 3 of this 65
134	134	section, the top rate of tax under subsection 1 of this 66
135	135	section may be further reduced over a period of years. Each 67
136	136	reduction in the top rate of tax shall be by one-tenth of a 68
137	137	percent and no more than one reduction shall occur in a 69
138	138	calendar year. No more than three reductions shall be made 70
139	139	under this subsection. Reductions in the rate of tax shall 71
140	140	take effect on January first of a calendar year and such 72
141	141	reduced rates shall continue in effect until the next 73
142	142	reduction occurs. 74
143	143	(2) (a) A reduction in the rate of tax shall only 75
144	144	occur if: 76
145	145	a. The amount of net general revenue collected in the 77
146	146	previous fiscal year exceeds the highest amount of net 78 SB 146 4
147	147	general revenue collected in any of the three fiscal years 79
148	148	prior to such fiscal year by at least two hundred million 80
149	149	dollars; and 81
150	150	b. The amount of net general revenue collected in the 82
151	151	previous fiscal year exceeds the amount of net general 83
152	152	revenue collected in the fiscal year five years prior, 84
153	153	adjusted annually by the percentage increase in inflation 85
154	154	over the preceding five fiscal years. 86
155	155	(b) The amount of net general revenue collected 87
156	156	required by subparagraph a. of paragraph (a) of this 88
157	157	subdivision in order to make a reduction pursuant to this 89
158	158	subsection shall be adjusted annually by the percent 90
159	159	increase in inflation beginning with January 2, 2023. 91
160	160	(3) Any modification of tax rates under this 92
161	161	subsection shall only apply to tax years that begin on or 93
162	162	after a modification takes effect. 94
163	163	(4) The director of the department of revenue shall, 95
164	164	by rule, adjust the tax tables under subsection 1 of this 96
165	165	section to effectuate the provisions of this subsection. 97
166	166	The bracket for income subject to the top rate of tax shall 98
167	167	be eliminated once the top rate of tax has been reduced 99
168	168	below the rate applicable to such bracket, and the top 100
169	169	remaining rate of tax shall apply to all income in excess of 101
170	170	the income in the second highest remaining income bracket] 102
171	171	For all tax years beginning on or after January 1, 2026, 103
172	172	there shall be no tax imposed upon Missouri taxable income 104
173	173	pursuant to this section. 105
174	174	5. Beginning with the 2017 calendar year, the brackets 106
175	175	of Missouri taxable income identified in subsection 1 of 107
176	176	this section shall be adjusted annually by the percent 108
177	177	increase in inflation. The director shall publish such 109
178	178	brackets annually beginning on or after October 1, 2016. 110 SB 146 5
179	179	Modifications to the brackets shall take effect on January 111
180	180	first of each calendar year and shall apply to tax years 112
181	181	beginning on or after the effective date of the new brackets. 113
182	182	6. As used in this section, the following terms mean: 114
183	183	(1) "CPI", the Consumer Price Index for All Urban 115
184	184	Consumers for the United States as reported by the Bureau of 116
185	185	Labor Statistics, or its successor index; 117
186	186	(2) "CPI for the preceding calendar year", the average 118
187	187	of the CPI as of the close of the twelve-month period ending 119
188	188	on August thirty-first of such calendar year; 120
189	189	(3) "Net general revenue collected", all revenue 121
190	190	deposited into the general revenue fund, less refunds and 122
191	191	revenues originally deposited into the general revenue fund 123
192	192	but designated by law for a specific distribution or 124
193	193	transfer to another state fund; 125
194	194	(4) "Percent increase in inflation", the percentage, 126
195	195	if any, by which the CPI for the preceding calendar year 127
196	196	exceeds the CPI for the year beginning September 1, 2014, 128
197	197	and ending August 31, 2015. 129
198	198	