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. 27
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR MOON.
1153S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 143.011, RSMo, and to enact in lieu thereof two new sections relating to taxation.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 143.011, RSMo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
143.011 and 146.200, to read as follows:3
143.011. 1. A tax is hereby imposed for 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
16
17
Over $4,000 but not over
$5,000
$90 plus 3 1/2% of excess over
$4,000
SB 27 2
2. (1) Notwithstanding the provisions of subsection 1 28
of this section to the contrary, beginning with the 2023 29
calendar year, the top 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
percent. A reduction in the rate of tax shall take effect 46
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 27 3
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 under 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 reductions shall be made 69
under this subsection. Reductions in the rate of tax shall 70
take effect on January first of a calendar year and such 71
reduced rates shall continue in effect until the next 72
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
general revenue collected in any of the three fiscal years 78 SB 27 4
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 year 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. (1) In addition to the rate reductions pursuant to 102
subsections 2 to 4 of this section, beginning with the 2026 103
calendar year, the top rate of tax pursuant to subsection 1 104
of this section may be reduced by seventeen-hundredths of 105
one percent. Such reduction in the rate of tax shall take 106
effect on January first of a calendar year. 107
(2) A reduction in the rate of tax under this 108
subsection shall only occur if one or more institutions is 109 SB 27 5
subject to the tax imposed on the endowments of institutions 110
of higher education pursuant to section 146.200. 111
(3) The modification of tax rates under this 112
subsection shall only apply to tax years that begin on or 113
after the date the modification takes effect. 114
(4) The director of the department of revenue shall, 115
by rule, adjust the tax tables under subsection 1 of this 116
section to effectuate the provisions of this subsection. 117
6. Beginning with the 2017 calendar year, the brackets 118
of Missouri taxable income identified in subsection 1 of 119
this section shall be adjusted annually by the percent 120
increase in inflation. The director shall publish such 121
brackets annually beginning on or after October 1, 2016. 122
Modifications to the brackets shall take effect on January 123
first of each calendar year and shall apply to tax years 124
beginning on or after the effective date of the new brackets. 125
[6.]7. As used in this section, the following terms 126
mean: 127
(1) "CPI", the Consumer Price Index for All Urban 128
Consumers for the United States as reported by the Bureau of 129
Labor Statistics, or its successor index; 130
(2) "CPI for the preceding calendar year", the average 131
of the CPI as of the close of the twelve-month period ending 132
on August thirty-first of such calendar year; 133
(3) "Net general revenue collected", all revenue 134
deposited into the general revenue fund, less refunds and 135
revenues originally deposited into the general revenue fund 136
but designated by law for a specific distribution or 137
transfer to another state fund; 138
(4) "Percent increase in inflation", the percentage, 139
if any, by which the CPI for the preceding calendar year 140 SB 27 6
exceeds the CPI for the year beginning September 1, 2014, 141
and ending August 31, 2015. 142
146.200. 1. As used in this section, the following 1
terms shall mean: 2
(1) "Endowment", a permanent fund held by an 3
institution of higher education that: 4
(a) Consists of property, cash, cash equivalents, 5
stocks, bonds, or any other marketable security; 6
(b) Is used for purposes indicated by donors to such 7
fund or for other purposes related to the mission of the 8
institution of higher education; and 9
(c) Attempts to maintain and grow the principal of 10
such fund, while annually disbursing all or part of 11
investment earnings generated by the fund; 12
(2) "Qualifying institution of higher education", an 13
institution of higher education that: 14
(a) Is affiliated with, or provides medical faculty 15
to, any abortion facility, as such term is defined in 16
section 188.015; 17
(b) Offers specific medical residencies or fellowships 18
that offer training in performing or inducing abortions; or 19
(c) Supports in any manner any abortion facility where 20
abortions are performed or induced when not necessary to 21
save the life of the mother. 22
2. For all tax years beginning on or after January 1, 23
2026, a tax is hereby imposed for every tax year on the 24
endowment of a qualifying institution of higher education at 25
a rate of one and nine-tenths percent of the aggregate fair 26
market value of the assets of such endowment. Any 27
institution that becomes a qualifying institution of higher 28
education on or after January 1, 2026, shall remain subject 29
to the tax imposed under this section regardless of whether 30 SB 27 7
such institution no longer meets the definition of a 31
qualifying institution of higher education as defined under 32
this section. 33
3. Revenues generated by the tax imposed under this 34
section shall be deposited in the general revenue fund. 35
4. The department of revenue shall promulgate rules to 36
implement the provisions of this section. Any rule or 37
portion of a rule, as that term is defined in section 38
536.010, that is created under the authority delegated in 39
this section shall become effective only if it complies with 40
and is subject to all of the provisions of chapter 536 and, 41
if applicable, section 536.028. This section and chapter 42
536 are nonseverable and if any of the powers vested with 43
the general assembly under chapter 536 to review, to delay 44
the effective date, or to disapprove and annul a rule are 45
subsequently held unconstitutional, then the grant of 46
rulemaking authority and any rule proposed or adopted after 47
August 28, 2025, shall be invalid and void. 48