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. 25
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR MOON.
1037S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 143.121 and 408.010, RSMo, and to enact in lieu thereof two new sections
relating to the sole purpose of regulating the treatment and use of gold and silver.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 143.121 and 408.010, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 143.121 and 408.010, to read as follows:3
143.121. 1. The Missouri adjusted gross income of a 1
resident individual shall be the taxpayer's federal adjusted 2
gross income subject to the modifications in this section. 3
2. There shall be added to the taxpayer's federal 4
adjusted gross income: 5
(1) The amount of any federal income tax refund 6
received for a prior year which resulted in a Missouri 7
income tax benefit. The amount added pursuant to this 8
subdivision shall not include an y amount of a federal income 9
tax refund attributable to a tax credit reducing a 10
taxpayer's federal tax liability pursuant to Public Law 116 - 11
136 or 116-260, enacted by the 116th United States Congress, 12
for the tax year beginning on or after January 1, 2 020, and 13
ending on or before December 31, 2020, and deducted from 14
Missouri adjusted gross income pursuant to section 143.171. 15
The amount added under this subdivision shall also not 16
include any amount of a federal income tax refund 17
attributable to a tax credit reducing a taxpayer's federal 18 SB 25 2
tax liability under any other federal law that provides 19
direct economic impact payments to taxpayers to mitigate 20
financial challenges related to the COVID -19 pandemic, and 21
deducted from Missouri adjusted gross in come under section 22
143.171; 23
(2) Interest on certain governmental obligations 24
excluded from federal gross income by 26 U.S.C. Section 103 25
of the Internal Revenue Code, as amended. The previous 26
sentence shall not apply to interest on obligations o f the 27
state of Missouri or any of its political subdivisions or 28
authorities and shall not apply to the interest described in 29
subdivision (1) of subsection 3 of this section. The amount 30
added pursuant to this subdivision shall be reduced by the 31
amounts applicable to such interest that would have been 32
deductible in computing the taxable income of the taxpayer 33
except only for the application of 26 U.S.C. Section 265 of 34
the Internal Revenue Code, as amended. The reduction shall 35
only be made if it is at least five hundred dollars; 36
(3) The amount of any deduction that is included in 37
the computation of federal taxable income pursuant to 26 38
U.S.C. Section 168 of the Internal Revenue Code as amended 39
by the Job Creation and Worker Assistance Act of 2002 to the 40
extent the amount deducted relates to property purchased on 41
or after July 1, 2002, but before July 1, 2003, and to the 42
extent the amount deducted exceeds the amount that would 43
have been deductible pursuant to 26 U.S.C. Section 168 of 44
the Internal Revenue Code of 1986 as in effect on January 1, 45
2002; 46
(4) The amount of any deduction that is included in 47
the computation of federal taxable income for net operating 48
loss allowed by 26 U.S.C. Section 172 of the Internal 49
Revenue Code of 1986, as amended, other than the deduction 50 SB 25 3
allowed by 26 U.S.C. Section 172(b)(1)(G) and 26 U.S.C. 51
Section 172(i) of the Internal Revenue Code of 1986, as 52
amended, for a net operating loss the taxpayer claims in the 53
tax year in which the net operating l oss occurred or carries 54
forward for a period of more than twenty years and carries 55
backward for more than two years. Any amount of net 56
operating loss taken against federal taxable income but 57
disallowed for Missouri income tax purposes pursuant to this 58
subdivision after June 18, 2002, may be carried forward and 59
taken against any income on the Missouri income tax return 60
for a period of not more than twenty years from the year of 61
the initial loss; and 62
(5) For nonresident individuals in all taxab le years 63
ending on or after December 31, 2006, the amount of any 64
property taxes paid to another state or a political 65
subdivision of another state for which a deduction was 66
allowed on such nonresident's federal return in the taxable 67
year unless such state, political subdivision of a state, or 68
the District of Columbia allows a subtraction from income 69
for property taxes paid to this state for purposes of 70
calculating income for the income tax for such state, 71
political subdivision of a state, or the Dis trict of 72
Columbia; 73
(6) For all tax years beginning on or after January 1, 74
2018, any interest expense paid or accrued in a previous 75
taxable year, but allowed as a deduction under 26 U.S.C. 76
Section 163, as amended, in the current taxable year by 77
reason of the carryforward of disallowed business interest 78
provisions of 26 U.S.C. Section 163(j), as amended. For the 79
purposes of this subdivision, an interest expense is 80
considered paid or accrued only in the first taxable year 81
the deduction would ha ve been allowable under 26 U.S.C. 82 SB 25 4
Section 163, as amended, if the limitation under 26 U.S.C. 83
Section 163(j), as amended, did not exist. 84
3. There shall be subtracted from the taxpayer's 85
federal adjusted gross income the following amounts to the 86
extent included in federal adjusted gross income: 87
(1) Interest received on deposits held at a federal 88
reserve bank or interest or dividends on obligations of the 89
United States and its territories and possessions or of any 90
authority, commission or in strumentality of the United 91
States to the extent exempt from Missouri income taxes 92
pursuant to the laws of the United States. The amount 93
subtracted pursuant to this subdivision shall be reduced by 94
any interest on indebtedness incurred to carry the des cribed 95
obligations or securities and by any expenses incurred in 96
the production of interest or dividend income described in 97
this subdivision. The reduction in the previous sentence 98
shall only apply to the extent that such expenses including 99
amortizable bond premiums are deducted in determining the 100
taxpayer's federal adjusted gross income or included in the 101
taxpayer's Missouri itemized deduction. The reduction shall 102
only be made if the expenses total at least five hundred 103
dollars; 104
(2) The portion of any gain, from the sale or other 105
disposition of property having a higher adjusted basis to 106
the taxpayer for Missouri income tax purposes than for 107
federal income tax purposes on December 31, 1972, that does 108
not exceed such difference in basis. If a gain is 109
considered a long-term capital gain for federal income tax 110
purposes, the modification shall be limited to one -half of 111
such portion of the gain; 112
(3) The amount necessary to prevent the taxation 113
pursuant to this chapter of any annuity or other amount of 114 SB 25 5
income or gain which was properly included in income or gain 115
and was taxed pursuant to the laws of Missouri for a taxable 116
year prior to January 1, 1973, to the taxpayer, or to a 117
decedent by reason of whose death the taxpayer acquire d the 118
right to receive the income or gain, or to a trust or estate 119
from which the taxpayer received the income or gain; 120
(4) Accumulation distributions received by a taxpayer 121
as a beneficiary of a trust to the extent that the same are 122
included in federal adjusted gross income; 123
(5) The amount of any state income tax refund for a 124
prior year which was included in the federal adjusted gross 125
income; 126
(6) The portion of capital gain specified in section 127
135.357 that would otherwise be inclu ded in federal adjusted 128
gross income; 129
(7) The amount that would have been deducted in the 130
computation of federal taxable income pursuant to 26 U.S.C. 131
Section 168 of the Internal Revenue Code as in effect on 132
January 1, 2002, to the extent that amo unt relates to 133
property purchased on or after July 1, 2002, but before July 134
1, 2003, and to the extent that amount exceeds the amount 135
actually deducted pursuant to 26 U.S.C. Section 168 of the 136
Internal Revenue Code as amended by the Job Creation and 137
Worker Assistance Act of 2002; 138
(8) For all tax years beginning on or after January 1, 139
2005, the amount of any income received for military service 140
while the taxpayer serves in a combat zone which is included 141
in federal adjusted gross income and not otherwise excluded 142
therefrom. As used in this section, "combat zone" means any 143
area which the President of the United States by Executive 144
Order designates as an area in which Armed Forces of the 145
United States are or have engaged in combat. Service is 146 SB 25 6
performed in a combat zone only if performed on or after the 147
date designated by the President by Executive Order as the 148
date of the commencing of combat activities in such zone, 149
and on or before the date designated by the President by 150
Executive Order as the date of the termination of combatant 151
activities in such zone; 152
(9) For all tax years ending on or after July 1, 2002, 153
with respect to qualified property that is sold or otherwise 154
disposed of during a taxable year by a taxpayer and for 155
which an additional modification was made under subdivision 156
(3) of subsection 2 of this section, the amount by which 157
additional modification made under subdivision (3) of 158
subsection 2 of this section on qualified property has not 159
been recovered through th e additional subtractions provided 160
in subdivision (7) of this subsection; 161
(10) For all tax years beginning on or after January 162
1, 2014, the amount of any income received as payment from 163
any program which provides compensation to agricultural 164
producers who have suffered a loss as the result of a 165
disaster or emergency, including the: 166
(a) Livestock Forage Disaster Program; 167
(b) Livestock Indemnity Program; 168
(c) Emergency Assistance for Livestock, Honeybees, and 169
Farm-Raised Fish; 170
(d) Emergency Conservation Program; 171
(e) Noninsured Crop Disaster Assistance Program; 172
(f) Pasture, Rangeland, Forage Pilot Insurance Program; 173
(g) Annual Forage Pilot Program; 174
(h) Livestock Risk Protection Insurance Plan; 175
(i) Livestock Gross Margin Insurance Plan; 176
(11) For all tax years beginning on or after January 177
1, 2018, any interest expense paid or accrued in the current 178 SB 25 7
taxable year, but not deducted as a result of the limitation 179
imposed under 26 U.S.C. Section 163(j), as amended. For the 180
purposes of this subdivision, an interest expense is 181
considered paid or accrued only in the first taxable year 182
the deduction would have been allowable under 26 U.S.C. 183
Section 163, as amended, if the limitation under 26 U.S. C. 184
Section 163(j), as amended, did not exist; 185
(12) One hundred percent of any retirement benefits 186
received by any taxpayer as a result of the taxpayer's 187
service in the Armed Forces of the United States, including 188
reserve components and the Nation al Guard of this state, as 189
defined in 32 U.S.C. Sections 101(3) and 109, and any other 190
military force organized under the laws of this state; [and] 191
(13) For all tax years beginning on or after January 192
1, 2022, one hundred percent of any federal, s tate, or local 193
grant moneys received by the taxpayer if the grant money was 194
disbursed for the express purpose of providing or expanding 195
access to broadband internet to areas of the state deemed to 196
be lacking such access ; and 197
(14) For all tax years beginning on or after January 198
1, 2026, the portion of capital gain on the sale or exchange 199
of specie, as that term is defined in section 408.010, that 200
are otherwise included in the taxpayer's federal adjusted 201
gross income. 202
4. There shall be added to or subtracted from the 203
taxpayer's federal adjusted gross income the taxpayer's 204
share of the Missouri fiduciary adjustment provided in 205
section 143.351. 206
5. There shall be added to or subtracted from the 207
taxpayer's federal adjusted gross incom e the modifications 208
provided in section 143.411. 209 SB 25 8
6. In addition to the modifications to a taxpayer's 210
federal adjusted gross income in this section, to calculate 211
Missouri adjusted gross income there shall be subtracted 212
from the taxpayer's federal adjusted gross income any gain 213
recognized pursuant to 26 U.S.C. Section 1033 of the 214
Internal Revenue Code of 1986, as amended, arising from 215
compulsory or involuntary conversion of property as a result 216
of condemnation or the imminence thereof. 217
7. (1) As used in this subsection, "qualified health 218
insurance premium" means the amount paid during the tax year 219
by such taxpayer for any insurance policy primarily 220
providing health care coverage for the taxpayer, the 221
taxpayer's spouse, or the taxpayer' s dependents. 222
(2) In addition to the subtractions in subsection 3 of 223
this section, one hundred percent of the amount of qualified 224
health insurance premiums shall be subtracted from the 225
taxpayer's federal adjusted gross income to the extent the 226
amount paid for such premiums is included in federal taxable 227
income. The taxpayer shall provide the department of 228
revenue with proof of the amount of qualified health 229
insurance premiums paid. 230
8. (1) Beginning January 1, 2014, in addition to the 231
subtractions provided in this section, one hundred percent 232
of the cost incurred by a taxpayer for a home energy audit 233
conducted by an entity certified by the department of 234
natural resources under section 640.153 or the 235
implementation of any energy effic iency recommendations made 236
in such an audit shall be subtracted from the taxpayer's 237
federal adjusted gross income to the extent the amount paid 238
for any such activity is included in federal taxable 239
income. The taxpayer shall provide the department of 240
revenue with a summary of any recommendations made in a 241 SB 25 9
qualified home energy audit, the name and certification 242
number of the qualified home energy auditor who conducted 243
the audit, and proof of the amount paid for any activities 244
under this subsection f or which a deduction is claimed. The 245
taxpayer shall also provide a copy of the summary of any 246
recommendations made in a qualified home energy audit to the 247
department of natural resources. 248
(2) At no time shall a deduction claimed under this 249
subsection by an individual taxpayer or taxpayers filing 250
combined returns exceed one thousand dollars per year for 251
individual taxpayers or cumulatively exceed two thousand 252
dollars per year for taxpayers filing combined returns. 253
(3) Any deduction claime d under this subsection shall 254
be claimed for the tax year in which the qualified home 255
energy audit was conducted or in which the implementation of 256
the energy efficiency recommendations occurred. If 257
implementation of the energy efficiency recommendatio ns 258
occurred during more than one year, the deduction may be 259
claimed in more than one year, subject to the limitations 260
provided under subdivision (2) of this subsection. 261
(4) A deduction shall not be claimed for any otherwise 262
eligible activity unde r this subsection if such activity 263
qualified for and received any rebate or other incentive 264
through a state-sponsored energy program or through an 265
electric corporation, gas corporation, electric cooperative, 266
or municipally owned utility. 267
9. The provisions of subsection 8 of this section 268
shall expire on December 31, 2020. 269
10. (1) As used in this subsection, the following 270
terms mean: 271
(a) "Beginning farmer", a taxpayer who: 272 SB 25 10
a. Has filed at least one but not more than ten 273
Internal Revenue Service Schedule F (Form 1040) Profit or 274
Loss From Farming forms since turning eighteen years of age; 275
b. Is approved for a beginning farmer loan through the 276
USDA Farm Service Agency Beginning Farmer direct or 277
guaranteed loan program; 278
c. Has a farming operation that is determined by the 279
department of agriculture to be new production agriculture 280
but is the principal operator of a farm and has substantial 281
farming knowledge; or 282
d. Has been determined by the department of 283
agriculture to be a qualified family member; 284
(b) "Farm owner", an individual who owns farmland and 285
disposes of or relinquishes use of all or some portion of 286
such farmland as follows: 287
a. A sale to a beginning farmer; 288
b. A lease or rental agre ement not exceeding ten years 289
with a beginning farmer; or 290
c. A crop-share arrangement not exceeding ten years 291
with a beginning farmer; 292
(c) "Qualified family member", an individual who is 293
related to a farm owner within the fourth degree by bl ood, 294
marriage, or adoption and who is purchasing or leasing or is 295
in a crop-share arrangement for land from all or a portion 296
of such farm owner's farming operation. 297
(2) (a) In addition to all other subtractions 298
authorized in this section, a taxp ayer who is a farm owner 299
who sells all or a portion of such farmland to a beginning 300
farmer may subtract from such taxpayer's Missouri adjusted 301
gross income an amount to the extent included in federal 302
adjusted gross income as provided in this subdivisio n. 303 SB 25 11
(b) Subject to the limitations in paragraph (c) of 304
this subdivision, the amount that may be subtracted shall be 305
equal to the portion of capital gains received from the sale 306
of such farmland that such taxpayer receives in the tax year 307
for which such taxpayer subtracts such capital gain. 308
(c) A taxpayer may subtract the following amounts and 309
percentages per tax year in total capital gains received 310
from the sale of such farmland under this subdivision: 311
a. For the first two million dol lars received, one 312
hundred percent; 313
b. For the next one million dollars received, eighty 314
percent; 315
c. For the next one million dollars received, sixty 316
percent; 317
d. For the next one million dollars received, forty 318
percent; and 319
e. For the next one million dollars received, twenty 320
percent. 321
(d) The department of revenue shall prepare an annual 322
report reviewing the costs and benefits and containing 323
statistical information regarding the subtraction of capital 324
gains authorized under this subdivision for the previous tax 325
year including, but not limited to, the total amount of all 326
capital gains subtracted and the number of taxpayers 327
subtracting such capital gains. Such report shall be 328
submitted before February first of each ye ar to the 329
committee on agriculture policy of the Missouri house of 330
representatives and the committee on agriculture, food 331
production and outdoor resources of the Missouri senate, or 332
the successor committees. 333
(3) (a) In addition to all other subt ractions 334
authorized in this section, a taxpayer who is a farm owner 335 SB 25 12
who enters a lease or rental agreement for all or a portion 336
of such farmland with a beginning farmer may subtract from 337
such taxpayer's Missouri adjusted gross income an amount to 338
the extent included in federal adjusted gross income as 339
provided in this subdivision. 340
(b) Subject to the limitation in paragraph (c) of this 341
subdivision, the amount that may be subtracted shall be 342
equal to the portion of cash rent income received from the 343
lease or rental of such farmland that such taxpayer receives 344
in the tax year for which such taxpayer subtracts such 345
income. 346
(c) No taxpayer shall subtract more than twenty -five 347
thousand dollars per tax year in total cash rent income 348
received from the lease or rental of such farmland under 349
this subdivision. 350
(4) (a) In addition to all other subtractions 351
authorized in this section, a taxpayer who is a farm owner 352
who enters a crop-share arrangement on all or a portion of 353
such farmland with a beginning farmer may subtract from such 354
taxpayer's Missouri adjusted gross income an amount to the 355
extent included in federal adjusted gross income as provided 356
in this subdivision. 357
(b) Subject to the limitation in paragraph (c) of this 358
subdivision, the amount that may be subtracted shall be 359
equal to the portion of income received from the crop -share 360
arrangement on such farmland that such taxpayer receives in 361
the tax year for which such taxpayer subtracts such income. 362
(c) No taxpayer shall subtract more than twenty -five 363
thousand dollars per tax year in total income received from 364
the lease or rental of such farmland under this subdivision. 365
(5) The department of agriculture shall, by rule, 366
establish a process to verify that a taxpayer is a beginning 367 SB 25 13
farmer for purposes of this section and shall provide 368
verification to the beginning farmer and farm seller of such 369
farmer's and seller's certification and qualification for 370
the exemption provided in this subsection. 371
408.010. [The silver coins of the United States are 1
hereby declared a] 1. This section shall be known and may 2
be cited as the "Constitutional Money Act". 3
2. Specie legal tender and electronic currency shall 4
be accepted as legal tender[, at their par value, fixed by 5
the laws of the United States, and shall be receivable in ] 6
for payment of all public debts[, public or private, ] 7
hereafter contracted in the state of Missouri [; provided, 8
however, that no person shall have the right to pay , upon 9
any one debt, dimes and half dimes to an amount exceeding 10
ten dollars, or of twenty and twenty -five cent pieces 11
exceeding twenty dollars ] and may be accepted as payment for 12
all private debts hereafter contracted in the state of 13
Missouri, in the discretion of the receiving entity. 14
3. The director of the department of revenue shall 15
promulgate rules on the methods of acceptance of specie 16
legal tender as payment for any debt, tax, fee, or 17
obligation owed. Costs incurred in the course of 18
verification of the weight and purity of any specie legal 19
tender or electronic currency during any such transaction 20
shall be borne by the receiving entity. Any rule or portion 21
of a rule, as that term is defined in section 536.010, that 22
is created under the authority delegated in this subsection 23
shall become effective only if it complies with and is 24
subject to all of the provisions of chapter 536 and, if 25
applicable, section 536.028. This subsection and chapter 26
536 are nonseverable and if any of the powers vested with 27
the general assembly pursuant to chapter 536 to review, to 28 SB 25 14
delay the effective date, or to disapprove and annul a rule 29
are subsequently held unconstitutional, then the grant of 30
rulemaking authority and any rule proposed or adopted a fter 31
August 28, 2025, shall be invalid and void. 32
4. Except as expressly provided by contract, no person 33
or entity shall be required to use specie legal tender or 34
electronic currency in the payment of any debt and nothing 35
in this section shall pro hibit the use of federal reserve 36
notes in the payment of any debt. 37
5. Any entity doing business in this state may, if 38
requested by an employee, pay compensation to such employee, 39
in full or in part, in the dollar equivalent specie legal 40
tender either in physical or in electronic transfer form. 41
Any entity choosing to compensate its employees in specie 42
legal tender shall be responsible for verifying the weight 43
and purity of any physical specie legal tender before 44
compensating employees. 45
6. Under no circumstance shall the state of Missouri 46
or any department, agency, court, political subdivision, or 47
instrumentality thereof: 48
(1) Seize from any person any specie legal tender or 49
electronic currency that is owned by such person, except as 50
otherwise provided in section 513.607. Any person whose 51
specie legal tender or electronic currency is seized in 52
violation of this subdivision shall have a cause of action 53
in a court of competent jurisdiction, with any successful 54
such action resulting in the award of attorney's fees; 55
(2) Enforce or attempt to enforce any federal acts, 56
laws, executive orders, administrative orders, rules, 57
regulations, statutes, or ordinances infringing on the right 58
of a person to keep and use specie legal te nder and 59
electronic currency as provided in this section; 60 SB 25 15
(3) Restrict in any way the ability of a person or 61
financial institution to acquire specie legal tender or 62
electronic currency or use specie legal tender or electronic 63
currency in transact ions; or 64
(4) Enact any law discriminating or favoring one means 65
of legal tender in the course of a transaction over another 66
means of legal tender. 67
7. For purposes of this section, the following terms 68
mean: 69
(1) "Bullion", refined precio us metal, limited to gold 70
and silver only, in any shape or form, with uniform content 71
and purity, including, but not limited to, coins, rounds, 72
bars, ingots, and any other products, that are: 73
(a) Stamped or imprinted with the weight and purity of 74
the precious metal that it contains; and 75
(b) Valued primarily based on its metal content and 76
not on its form and function; 77
(2) "Electronic currency", a representation of actual 78
gold and silver, specie, and bullion held in an account, 79
which may be transferred by electronic instruction. Such 80
representation shall reflect the exact unit of physical 81
specie or gold and silver bullion in the account in its 82
fractional troy ounce measurement as provided in this 83
section; 84
(3) "Legal tender", a recognized medium of exchange 85
for the payment of debts, public charges, taxes, or dues 86
that is: 87
(a) Authorized by the United States Congress pursuant 88
to Article I, Section 8 of the United States Constitution; or 89
(b) Authorized by Missouri law pursuant to Article I, 90
Section 10 of the United States Constitution; 91
(4) "Precious metal", gold or silver; 92 SB 25 16
(5) "Specie", bullion fabricated into products of 93
uniform shape, size, design, content, weight, and purity 94
that are suitable for or customarily used as currency, as a 95
medium of exchange, or as the medium for purchase, sale, 96
storage, transfer, or delivery of precious metals in retail 97
or wholesale transactions; 98
(6) "Specie legal tender", includes any of the 99
following: 100
(a) Specie coin issued by the federal government at 101
any time; and 102
(b) Any other specie, provided such specie does not 103
contain any insignia, symbols, or other recognizable logos 104
of the Nazi Party. 105