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. 236
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
0284S.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Section A. Section 143.011, RSMo, is repealed and one new 1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. A tax is hereby imposed f or every taxable 1
year on the Missouri taxable income of every resident. The 2
tax shall be determined by applying the tax table or the 3
rate provided in section 143.021, which is based upon the 4
following rates: 5
6
7
If the Missouri taxable
income is:
The tax is:
8
9
Not over $1,000.00 1 1/2% of the Missouri taxable
income
10
11
Over $1,000 but not over
$2,000
$15 plus 2% of excess over
$1,000
12
13
Over $2,000 but not over
$3,000
$35 plus 2 1/2% of excess over
$2,000
14
15
Over $3,000 but not over
$4,000
$60 plus 3% of excess over
$3,000
SB 236 2
2. (1) Notwithstanding the provisions of subsection 1 28
of this section to the contrary, beginning with the 2023 29
calendar year, the t op rate of tax pursuant to subsection 1 30
of this section shall be four and ninety -five hundredths 31
percent. 32
(2) The modification of tax rates made pursuant to 33
this subsection shall apply only to tax years that begin on 34
or after January 1, 2023. 35
(3) The director of the department of revenue shall, 36
by rule, adjust the tax table provided in subsection 1 of 37
this section to effectuate the provisions of this 38
subsection. The top remaining rate of tax shall apply to 39
all income in excess of seven thousand dollars, as adjusted 40
pursuant to subsection 5 of this section. 41
3. (1) In addition to the rate reduction under 42
subsection 2 of this section, beginning with the 2024 43
calendar year, the top rate of tax under subsection 1 of 44
this section may be reduced by fifteen hundredths of a 45
16
17
Over $4,000 but not over
$5,000
$90 plus 3 1/2% of excess over
$4,000
18
19
Over $5,000 but not over
$6,000
$125 plus 4% of excess over
$5,000
20
21
Over $6,000 but not over
$7,000
$165 plus 4 1/2% of excess over
$6,000
22
23
Over $7,000 but not over
$8,000
$210 plus 5% of excess over
$7,000
24
25
Over $8,000 but not over
$9,000
$260 plus 5 1/2% of excess over
$8,000
26
27
Over $9,000 $315 plus 6% of excess over
$9,000
SB 236 3
percent. A reduction in the rate of tax shall take effect 46
on January first of a calendar year and such reduced rates 47
shall continue in effect until the next reduction occurs. 48
(2) A reduction in the rate of tax shall only occur if 49
the amount of net general revenue collected in the previous 50
fiscal year exceeds the highest amount of net general 51
revenue collected in any of the three fiscal years prior to 52
such fiscal year by at least one hundred seventy -five 53
million dollars. 54
(3) Any modification of tax rates under this 55
subsection shall only apply to tax years that begin on or 56
after a modification takes effect. 57
(4) The director of the department of revenue shall, 58
by rule, adjust the tax tables u nder subsection 1 of this 59
section to effectuate the provisions of this subsection. 60
4. (1) In addition to the rate reductions under 61
subsections 2 and 3 of this section, beginning with the 62
calendar year immediately following the calendar year in 63
which a reduction is made pursuant to subsection 3 of this 64
section, the top rate of tax under subsection 1 of this 65
section may be further reduced over a period of years. Each 66
reduction in the top rate of tax shall be by one -tenth of a 67
percent and no more than one reduction shall occur in a 68
calendar year. No more than [three] four reductions shall 69
be made under this subsection. Reductions in the rate of 70
tax shall take effect on January first of a calendar year 71
and such reduced rates shall continue in effect until the 72
next reduction occurs. 73
(2) (a) A reduction in the rate of tax shall only 74
occur if: 75
a. The amount of net general revenue collected in the 76
previous fiscal year exceeds the highest amount of net 77 SB 236 4
general revenue collected i n any of the three fiscal years 78
prior to such fiscal year by at least two hundred million 79
dollars; and 80
b. The amount of net general revenue collected in the 81
previous fiscal year exceeds the amount of net general 82
revenue collected in the fiscal ye ar five years prior, 83
adjusted annually by the percentage increase in inflation 84
over the preceding five fiscal years. 85
(b) The amount of net general revenue collected 86
required by subparagraph a. of paragraph (a) of this 87
subdivision in order to make a reduction pursuant to this 88
subsection shall be adjusted annually by the percent 89
increase in inflation beginning with January 2, 2023. 90
(3) Any modification of tax rates under this 91
subsection shall only apply to tax years that begin on or 92
after a modification takes effect. 93
(4) The director of the department of revenue shall, 94
by rule, adjust the tax tables under subsection 1 of this 95
section to effectuate the provisions of this subsection. 96
The bracket for income subject to the top rate of tax shall 97
be eliminated once the top rate of tax has been reduced 98
below the rate applicable to such bracket, and the top 99
remaining rate of tax shall apply to all income in excess of 100
the income in the second highest remaining income bracket. 101
5. Beginning with the 2017 calendar year, the brackets 102
of Missouri taxable income identified in subsection 1 of 103
this section shall be adjusted annually by the percent 104
increase in inflation. The director shall publish such 105
brackets annually beginning on or after October 1, 2016. 106
Modifications to the brackets shall take effect on January 107
first of each calendar year and shall apply to tax years 108
beginning on or after the effective date of the new brackets. 109 SB 236 5
6. As used in this section, the following te rms mean: 110
(1) "CPI", the Consumer Price Index for All Urban 111
Consumers for the United States as reported by the Bureau of 112
Labor Statistics, or its successor index; 113
(2) "CPI for the preceding calendar year", the average 114
of the CPI as of the cl ose of the twelve-month period ending 115
on August thirty-first of such calendar year; 116
(3) "Net general revenue collected", all revenue 117
deposited into the general revenue fund, less refunds and 118
revenues originally deposited into the general revenue f und 119
but designated by law for a specific distribution or 120
transfer to another state fund; 121
(4) "Percent increase in inflation", the percentage, 122
if any, by which the CPI for the preceding calendar year 123
exceeds the CPI for the year beginning Septembe r 1, 2014, 124
and ending August 31, 2015. 125