| 1 | 1 | | |
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| 2 | 2 | | EXPLANATION- Matter enclosed in bold-faced brackets [thus] in this bill is not enacted |
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| 3 | 3 | | and is intended to be omitted in the law. |
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| 4 | 4 | | |
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| 5 | 5 | | FIRST REGULAR SESSION |
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| 6 | 6 | | SENATE BILL NO. 27 |
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| 7 | 7 | | 103RD GENERAL ASSEMBLY |
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| 8 | 8 | | |
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| 9 | 9 | | INTRODUCED BY SENATOR MOON. |
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| 10 | 10 | | 1153S.01I KRISTINA MARTIN, Secretary |
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| 11 | 11 | | AN ACT |
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| 12 | 12 | | To repeal section 143.011, RSMo, and to enact in lieu thereof two new sections relating to taxation. |
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| 13 | 13 | | |
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| 14 | 14 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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| 15 | 15 | | Section A. Section 143.011, RSMo, is repealed and two new 1 |
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| 16 | 16 | | sections enacted in lieu thereof, to be known as sections 2 |
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| 17 | 17 | | 143.011 and 146.200, to read as follows:3 |
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| 18 | 18 | | 143.011. 1. A tax is hereby imposed for every taxable 1 |
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| 19 | 19 | | year on the Missouri taxable income of every resident. The 2 |
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| 20 | 20 | | tax shall be determined by applying the tax table or the 3 |
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| 21 | 21 | | rate provided in section 143.021, which is based upon the 4 |
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| 22 | 22 | | following rates: 5 |
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| 23 | 23 | | 6 |
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| 24 | 24 | | 7 |
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| 25 | 25 | | If the Missouri taxable |
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| 26 | 26 | | income is: |
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| 27 | 27 | | The tax is: |
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| 28 | 28 | | 8 |
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| 29 | 29 | | 9 |
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| 30 | 30 | | Not over $1,000.00 1 1/2% of the Missouri taxable |
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| 31 | 31 | | income |
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| 32 | 32 | | |
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| 33 | 33 | | 10 |
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| 34 | 34 | | 11 |
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| 35 | 35 | | Over $1,000 but not over |
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| 36 | 36 | | $2,000 |
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| 37 | 37 | | $15 plus 2% of excess over |
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| 38 | 38 | | $1,000 |
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| 39 | 39 | | |
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| 40 | 40 | | 12 |
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| 41 | 41 | | 13 |
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| 42 | 42 | | Over $2,000 but not over |
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| 43 | 43 | | $3,000 |
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| 44 | 44 | | $35 plus 2 1/2% of excess over |
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| 45 | 45 | | $2,000 |
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| 46 | 46 | | |
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| 47 | 47 | | 14 |
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| 48 | 48 | | 15 |
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| 49 | 49 | | Over $3,000 but not over |
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| 50 | 50 | | $4,000 |
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| 51 | 51 | | $60 plus 3% of excess over |
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| 52 | 52 | | $3,000 |
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| 53 | 53 | | |
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| 54 | 54 | | 16 |
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| 55 | 55 | | 17 |
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| 56 | 56 | | Over $4,000 but not over |
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| 57 | 57 | | $5,000 |
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| 58 | 58 | | $90 plus 3 1/2% of excess over |
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| 59 | 59 | | $4,000 |
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| 60 | 60 | | SB 27 2 |
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| 61 | 61 | | 2. (1) Notwithstanding the provisions of subsection 1 28 |
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| 62 | 62 | | of this section to the contrary, beginning with the 2023 29 |
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| 63 | 63 | | calendar year, the top rate of tax pursuant to subsection 1 30 |
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| 64 | 64 | | of this section shall be four and ninety-five hundredths 31 |
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| 65 | 65 | | percent. 32 |
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| 66 | 66 | | (2) The modification of tax rates made pursuant to 33 |
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| 67 | 67 | | this subsection shall apply only to tax years that begin on 34 |
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| 68 | 68 | | or after January 1, 2023. 35 |
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| 69 | 69 | | (3) The director of the department of revenue shall, 36 |
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| 70 | 70 | | by rule, adjust the tax table provided in subsection 1 of 37 |
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| 71 | 71 | | this section to effectuate the provisions of this 38 |
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| 72 | 72 | | subsection. The top remaining rate of tax shall apply to 39 |
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| 73 | 73 | | all income in excess of seven thousand dollars, as adjusted 40 |
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| 74 | 74 | | pursuant to subsection 5 of this section. 41 |
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| 75 | 75 | | 3. (1) In addition to the rate reduction under 42 |
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| 76 | 76 | | subsection 2 of this section, beginning with the 2024 43 |
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| 77 | 77 | | calendar year, the top rate of tax under subsection 1 of 44 |
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| 78 | 78 | | this section may be reduced by fifteen hundredths of a 45 |
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| 79 | 79 | | percent. A reduction in the rate of tax shall take effect 46 |
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| 80 | 80 | | 18 |
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| 81 | 81 | | 19 |
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| 82 | 82 | | Over $5,000 but not over |
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| 83 | 83 | | $6,000 |
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| 84 | 84 | | $125 plus 4% of excess over |
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| 85 | 85 | | $5,000 |
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| 86 | 86 | | |
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| 87 | 87 | | 20 |
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| 88 | 88 | | 21 |
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| 89 | 89 | | Over $6,000 but not over |
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| 90 | 90 | | $7,000 |
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| 91 | 91 | | $165 plus 4 1/2% of excess over |
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| 92 | 92 | | $6,000 |
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| 93 | 93 | | |
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| 94 | 94 | | 22 |
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| 95 | 95 | | 23 |
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| 96 | 96 | | Over $7,000 but not over |
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| 97 | 97 | | $8,000 |
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| 98 | 98 | | $210 plus 5% of excess over |
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| 99 | 99 | | $7,000 |
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| 100 | 100 | | |
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| 101 | 101 | | 24 |
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| 102 | 102 | | 25 |
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| 103 | 103 | | Over $8,000 but not over |
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| 104 | 104 | | $9,000 |
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| 105 | 105 | | $260 plus 5 1/2% of excess over |
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| 106 | 106 | | $8,000 |
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| 107 | 107 | | |
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| 108 | 108 | | 26 |
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| 109 | 109 | | 27 |
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| 110 | 110 | | Over $9,000 $315 plus 6% of excess over |
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| 111 | 111 | | $9,000 |
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| 112 | 112 | | SB 27 3 |
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| 113 | 113 | | on January first of a calendar year and such reduced rates 47 |
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| 114 | 114 | | shall continue in effect until the next reduction occurs. 48 |
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| 115 | 115 | | (2) A reduction in the rate of tax shall only occur if 49 |
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| 116 | 116 | | the amount of net general revenue collected in the previous 50 |
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| 117 | 117 | | fiscal year exceeds the highest amount of net general 51 |
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| 118 | 118 | | revenue collected in any of the three fiscal years prior to 52 |
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| 119 | 119 | | such fiscal year by at least one hundred seventy-five 53 |
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| 120 | 120 | | million dollars. 54 |
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| 121 | 121 | | (3) Any modification of tax rates under this 55 |
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| 122 | 122 | | subsection shall only apply to tax years that begin on or 56 |
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| 123 | 123 | | after a modification takes effect. 57 |
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| 124 | 124 | | (4) The director of the department of revenue shall, 58 |
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| 125 | 125 | | by rule, adjust the tax tables under subsection 1 of this 59 |
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| 126 | 126 | | section to effectuate the provisions of this subsection. 60 |
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| 127 | 127 | | 4. (1) In addition to the rate reductions under 61 |
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| 128 | 128 | | subsections 2 and 3 of this section, beginning with the 62 |
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| 129 | 129 | | calendar year immediately following the calendar year in 63 |
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| 130 | 130 | | which a reduction is made pursuant to subsection 3 of this 64 |
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| 131 | 131 | | section, the top rate of tax under subsection 1 of this 65 |
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| 132 | 132 | | section may be further reduced over a period of years. Each 66 |
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| 133 | 133 | | reduction in the top rate of tax shall be by one-tenth of a 67 |
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| 134 | 134 | | percent and no more than one reduction shall occur in a 68 |
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| 135 | 135 | | calendar year. No more than three reductions shall be made 69 |
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| 136 | 136 | | under this subsection. Reductions in the rate of tax shall 70 |
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| 137 | 137 | | take effect on January first of a calendar year and such 71 |
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| 138 | 138 | | reduced rates shall continue in effect until the next 72 |
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| 139 | 139 | | reduction occurs. 73 |
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| 140 | 140 | | (2) (a) A reduction in the rate of tax shall only 74 |
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| 141 | 141 | | occur if: 75 |
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| 142 | 142 | | a. The amount of net general revenue collected in the 76 |
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| 143 | 143 | | previous fiscal year exceeds the highest amount of net 77 |
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| 144 | 144 | | general revenue collected in any of the three fiscal years 78 SB 27 4 |
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| 145 | 145 | | prior to such fiscal year by at least two hundred million 79 |
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| 146 | 146 | | dollars; and 80 |
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| 147 | 147 | | b. The amount of net general revenue collected in the 81 |
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| 148 | 148 | | previous fiscal year exceeds the amount of net general 82 |
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| 149 | 149 | | revenue collected in the fiscal year five years prior, 83 |
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| 150 | 150 | | adjusted annually by the percentage increase in inflation 84 |
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| 151 | 151 | | over the preceding five fiscal years. 85 |
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| 152 | 152 | | (b) The amount of net general revenue collected 86 |
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| 153 | 153 | | required by subparagraph a. of paragraph (a) of this 87 |
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| 154 | 154 | | subdivision in order to make a reduction pursuant to this 88 |
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| 155 | 155 | | subsection shall be adjusted annually by the percent 89 |
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| 156 | 156 | | increase in inflation beginning with January 2, 2023. 90 |
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| 157 | 157 | | (3) Any modification of tax rates under this 91 |
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| 158 | 158 | | subsection shall only apply to tax years that begin on or 92 |
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| 159 | 159 | | after a modification takes effect. 93 |
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| 160 | 160 | | (4) The director of the department of revenue shall, 94 |
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| 161 | 161 | | by rule, adjust the tax tables under subsection 1 of this 95 |
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| 162 | 162 | | section to effectuate the provisions of this subsection. 96 |
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| 163 | 163 | | The bracket for income subject to the top rate of tax shall 97 |
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| 164 | 164 | | be eliminated once the top rate of tax has been reduced 98 |
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| 165 | 165 | | below the rate applicable to such bracket, and the top 99 |
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| 166 | 166 | | remaining rate of tax shall apply to all income in excess of 100 |
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| 167 | 167 | | the income in the second highest remaining income bracket. 101 |
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| 168 | 168 | | 5. (1) In addition to the rate reductions pursuant to 102 |
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| 169 | 169 | | subsections 2 to 4 of this section, beginning with the 2026 103 |
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| 170 | 170 | | calendar year, the top rate of tax pursuant to subsection 1 104 |
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| 171 | 171 | | of this section may be reduced by seventeen-hundredths of 105 |
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| 172 | 172 | | one percent. Such reduction in the rate of tax shall take 106 |
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| 173 | 173 | | effect on January first of a calendar year. 107 |
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| 174 | 174 | | (2) A reduction in the rate of tax under this 108 |
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| 175 | 175 | | subsection shall only occur if one or more institutions is 109 SB 27 5 |
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| 176 | 176 | | subject to the tax imposed on the endowments of institutions 110 |
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| 177 | 177 | | of higher education pursuant to section 146.200. 111 |
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| 178 | 178 | | (3) The modification of tax rates under this 112 |
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| 179 | 179 | | subsection shall only apply to tax years that begin on or 113 |
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| 180 | 180 | | after the date the modification takes effect. 114 |
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| 181 | 181 | | (4) The director of the department of revenue shall, 115 |
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| 182 | 182 | | by rule, adjust the tax tables under subsection 1 of this 116 |
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| 183 | 183 | | section to effectuate the provisions of this subsection. 117 |
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| 184 | 184 | | 6. Beginning with the 2017 calendar year, the brackets 118 |
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| 185 | 185 | | of Missouri taxable income identified in subsection 1 of 119 |
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| 186 | 186 | | this section shall be adjusted annually by the percent 120 |
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| 187 | 187 | | increase in inflation. The director shall publish such 121 |
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| 188 | 188 | | brackets annually beginning on or after October 1, 2016. 122 |
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| 189 | 189 | | Modifications to the brackets shall take effect on January 123 |
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| 190 | 190 | | first of each calendar year and shall apply to tax years 124 |
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| 191 | 191 | | beginning on or after the effective date of the new brackets. 125 |
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| 192 | 192 | | [6.]7. As used in this section, the following terms 126 |
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| 193 | 193 | | mean: 127 |
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| 194 | 194 | | (1) "CPI", the Consumer Price Index for All Urban 128 |
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| 195 | 195 | | Consumers for the United States as reported by the Bureau of 129 |
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| 196 | 196 | | Labor Statistics, or its successor index; 130 |
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| 197 | 197 | | (2) "CPI for the preceding calendar year", the average 131 |
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| 198 | 198 | | of the CPI as of the close of the twelve-month period ending 132 |
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| 199 | 199 | | on August thirty-first of such calendar year; 133 |
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| 200 | 200 | | (3) "Net general revenue collected", all revenue 134 |
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| 201 | 201 | | deposited into the general revenue fund, less refunds and 135 |
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| 202 | 202 | | revenues originally deposited into the general revenue fund 136 |
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| 203 | 203 | | but designated by law for a specific distribution or 137 |
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| 204 | 204 | | transfer to another state fund; 138 |
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| 205 | 205 | | (4) "Percent increase in inflation", the percentage, 139 |
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| 206 | 206 | | if any, by which the CPI for the preceding calendar year 140 SB 27 6 |
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| 207 | 207 | | exceeds the CPI for the year beginning September 1, 2014, 141 |
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| 208 | 208 | | and ending August 31, 2015. 142 |
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| 209 | 209 | | 146.200. 1. As used in this section, the following 1 |
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| 210 | 210 | | terms shall mean: 2 |
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| 211 | 211 | | (1) "Endowment", a permanent fund held by an 3 |
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| 212 | 212 | | institution of higher education that: 4 |
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| 213 | 213 | | (a) Consists of property, cash, cash equivalents, 5 |
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| 214 | 214 | | stocks, bonds, or any other marketable security; 6 |
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| 215 | 215 | | (b) Is used for purposes indicated by donors to such 7 |
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| 216 | 216 | | fund or for other purposes related to the mission of the 8 |
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| 217 | 217 | | institution of higher education; and 9 |
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| 218 | 218 | | (c) Attempts to maintain and grow the principal of 10 |
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| 219 | 219 | | such fund, while annually disbursing all or part of 11 |
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| 220 | 220 | | investment earnings generated by the fund; 12 |
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| 221 | 221 | | (2) "Qualifying institution of higher education", an 13 |
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| 222 | 222 | | institution of higher education that: 14 |
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| 223 | 223 | | (a) Is affiliated with, or provides medical faculty 15 |
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| 224 | 224 | | to, any abortion facility, as such term is defined in 16 |
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| 225 | 225 | | section 188.015; 17 |
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| 226 | 226 | | (b) Offers specific medical residencies or fellowships 18 |
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| 227 | 227 | | that offer training in performing or inducing abortions; or 19 |
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| 228 | 228 | | (c) Supports in any manner any abortion facility where 20 |
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| 229 | 229 | | abortions are performed or induced when not necessary to 21 |
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| 230 | 230 | | save the life of the mother. 22 |
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| 231 | 231 | | 2. For all tax years beginning on or after January 1, 23 |
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| 232 | 232 | | 2026, a tax is hereby imposed for every tax year on the 24 |
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| 233 | 233 | | endowment of a qualifying institution of higher education at 25 |
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| 234 | 234 | | a rate of one and nine-tenths percent of the aggregate fair 26 |
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| 235 | 235 | | market value of the assets of such endowment. Any 27 |
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| 236 | 236 | | institution that becomes a qualifying institution of higher 28 |
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| 237 | 237 | | education on or after January 1, 2026, shall remain subject 29 |
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| 238 | 238 | | to the tax imposed under this section regardless of whether 30 SB 27 7 |
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| 239 | 239 | | such institution no longer meets the definition of a 31 |
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| 240 | 240 | | qualifying institution of higher education as defined under 32 |
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| 241 | 241 | | this section. 33 |
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| 242 | 242 | | 3. Revenues generated by the tax imposed under this 34 |
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| 243 | 243 | | section shall be deposited in the general revenue fund. 35 |
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| 244 | 244 | | 4. The department of revenue shall promulgate rules to 36 |
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| 245 | 245 | | implement the provisions of this section. Any rule or 37 |
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| 246 | 246 | | portion of a rule, as that term is defined in section 38 |
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| 247 | 247 | | 536.010, that is created under the authority delegated in 39 |
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| 248 | 248 | | this section shall become effective only if it complies with 40 |
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| 249 | 249 | | and is subject to all of the provisions of chapter 536 and, 41 |
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| 250 | 250 | | if applicable, section 536.028. This section and chapter 42 |
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| 251 | 251 | | 536 are nonseverable and if any of the powers vested with 43 |
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| 252 | 252 | | the general assembly under chapter 536 to review, to delay 44 |
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| 253 | 253 | | the effective date, or to disapprove and annul a rule are 45 |
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| 254 | 254 | | subsequently held unconstitutional, then the grant of 46 |
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| 255 | 255 | | rulemaking authority and any rule proposed or adopted after 47 |
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| 256 | 256 | | August 28, 2025, shall be invalid and void. 48 |
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| 257 | 257 | | |
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