Missouri 2025 Regular Session

Missouri Senate Bill SB651 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	FIRST REGULAR SESSION
5	5	SENATE BILL NO. 651
6	6	103RD GENERAL ASSEMBLY
7	7	INTRODUCED BY SENATOR GREGORY (15).
8	8	2476S.01I KRISTINA MARTIN, Secretary
9	9	AN ACT
10	10	To repeal section 143.011, RSMo, and to enact in lieu thereof one new section relating to an
11	11	income tax exemption for certain seniors.
12	12
13	13	Be it enacted by the General Assembly of the State of Missouri, as follows:
14	14	Section A. Section 143.011, RSMo, is repealed and one new 1
15	15	section enacted in lieu thereof, to be known as section 143.011, 2
16	16	to read as follows:3
17	17	143.011. 1. Except as provided in subsection 6 of 1
18	18	this section, a tax is hereby imposed for every taxable year 2
19	19	on the Missouri taxable income of every resident. The tax 3
20	20	shall be determined by applying the tax table or the rate 4
21	21	provided in section 14 3.021, which is based upon the 5
22	22	following rates: 6
23	23	7
24	24	8
25	25	If the Missouri taxable
26	26	income is:
27	27	The tax is:
28	28	9
29	29	10
30	30	Not over $1,000.00 1 1/2% of the Missouri taxable
31	31	income
32	32
33	33	11
34	34	12
35	35	Over $1,000 but not over
36	36	$2,000
37	37	$15 plus 2% of excess over
38	38	$1,000
39	39
40	40	13
41	41	14
42	42	Over $2,000 but not over
43	43	$3,000
44	44	$35 plus 2 1/2% of excess over
45	45	$2,000
46	46
47	47	15
48	48	16
49	49	Over $3,000 but not over
50	50	$4,000
51	51	$60 plus 3% of excess over
52	52	$3,000
53	53	SB 651 2
54	54	2. (1) Notwithstanding the provisions of subsection 1 29
55	55	of this section to the contrary, beginning with the 2023 30
56	56	calendar year, the top rate of tax pursuant to subsection 1 31
57	57	of this section shall be four and ninety -five hundredths 32
58	58	percent. 33
59	59	(2) The modification of tax rates made pursuant to 34
60	60	this subsection shall apply only to tax years that begin on 35
61	61	or after January 1, 2023. 36
62	62	(3) The director of the department of revenue shall, 37
63	63	by rule, adjust the tax table provided in subsection 1 of 38
64	64	this section to effectuate the provisions of this 39
65	65	subsection. The top remaining rate of tax shall apply to 40
66	66	all income in excess of seven thousand dollars, as adjusted 41
67	67	pursuant to subsection 5 of this section. 42
68	68	3. (1) In addition to the rate reduction under 43
69	69	subsection 2 of this section, beginning with the 2 024 44
70	70	calendar year, the top rate of tax under subsection 1 of 45
71	71	this section may be reduced by fifteen hundredths of a 46
72	72	17
73	73	18
74	74	Over $4,000 but not over
75	75	$5,000
76	76	$90 plus 3 1/2% of excess over
77	77	$4,000
78	78
79	79	19
80	80	20
81	81	Over $5,000 but not over
82	82	$6,000
83	83	$125 plus 4% of excess over
84	84	$5,000
85	85
86	86	21
87	87	22
88	88	Over $6,000 but not over
89	89	$7,000
90	90	$165 plus 4 1/2% of excess over
91	91	$6,000
92	92
93	93	23
94	94	24
95	95	Over $7,000 but not over
96	96	$8,000
97	97	$210 plus 5% of excess over
98	98	$7,000
99	99
100	100	25
101	101	26
102	102	Over $8,000 but not over
103	103	$9,000
104	104	$260 plus 5 1/2% of excess over
105	105	$8,000
106	106
107	107	27
108	108	28
109	109	Over $9,000 $315 plus 6% of excess over
110	110	$9,000
111	111	SB 651 3
112	112	percent. A reduction in the rate of tax shall take effect 47
113	113	on January first of a calendar year and such reduced rates 48
114	114	shall continue in effect until the next reduction occurs. 49
115	115	(2) A reduction in the rate of tax shall only occur if 50
116	116	the amount of net general revenue collected in the previous 51
117	117	fiscal year exceeds the highest amount of net general 52
118	118	revenue collected in any of the three fiscal years prior to 53
119	119	such fiscal year by at least one hundred seventy -five 54
120	120	million dollars. 55
121	121	(3) Any modification of tax rates under this 56
122	122	subsection shall only apply to tax years that begin on or 57
123	123	after a modification takes effect. 58
124	124	(4) The director of the department of revenue shall, 59
125	125	by rule, adjust the tax tables under subsection 1 of this 60
126	126	section to effectuate the provisions of this subsection. 61
127	127	4. (1) In addition to the rate reductions under 62
128	128	subsections 2 and 3 of this section, b eginning with the 63
129	129	calendar year immediately following the calendar year in 64
130	130	which a reduction is made pursuant to subsection 3 of this 65
131	131	section, the top rate of tax under subsection 1 of this 66
132	132	section may be further reduced over a period of years. Each 67
133	133	reduction in the top rate of tax shall be by one -tenth of a 68
134	134	percent and no more than one reduction shall occur in a 69
135	135	calendar year. No more than three reductions shall be made 70
136	136	under this subsection. Reductions in the rate of tax shall 71
137	137	take effect on January first of a calendar year and such 72
138	138	reduced rates shall continue in effect until the next 73
139	139	reduction occurs. 74
140	140	(2) (a) A reduction in the rate of tax shall only 75
141	141	occur if: 76
142	142	a. The amount of net general revenue collected in the 77
143	143	previous fiscal year exceeds the highest amount of net 78 SB 651 4
144	144	general revenue collected in any of the three fiscal years 79
145	145	prior to such fiscal year by at least two hundred million 80
146	146	dollars; and 81
147	147	b. The amount of net general revenue collected in the 82
148	148	previous fiscal year exceeds the amount of net general 83
149	149	revenue collected in the fiscal year five years prior, 84
150	150	adjusted annually by the percentage increase in inflation 85
151	151	over the preceding five fiscal years. 86
152	152	(b) The amount of net general revenue collected 87
153	153	required by subparagraph a. of paragraph (a) of this 88
154	154	subdivision in order to make a reduction pursuant to this 89
155	155	subsection shall be adjusted annually by the percent 90
156	156	increase in inflation beginning with January 2, 2023. 91
157	157	(3) Any modification of tax rates under this 92
158	158	subsection shall only apply to tax years that begin on or 93
159	159	after a modification takes effect. 94
160	160	(4) The director of the department of revenue shall, 95
161	161	by rule, adjust the tax tables under subsection 1 of this 96
162	162	section to effectuate the provisions of this subsection. 97
163	163	The bracket for income subject to the top rate of tax shall 98
164	164	be eliminated once the top rate of tax has been reduced 99
165	165	below the rate applicable to such bracket, and the top 100
166	166	remaining rate of tax shall apply to all income in excess of 101
167	167	the income in the second highest remaining income bracket. 102
168	168	5. Beginning with the 2017 calendar year, the brackets 103
169	169	of Missouri taxable income identified in subsection 1 of 104
170	170	this section shall be adjusted annually by the percent 105
171	171	increase in inflation. The director shall publish such 106
172	172	brackets annually beginning on or after October 1, 2016. 107
173	173	Modifications to the brackets shall take effect on January 108
174	174	first of each calendar year and shall apply to tax years 109
175	175	beginning on or after the effective date of the new brackets. 110 SB 651 5
176	176	6. Notwithstanding any provision of law to the 111
177	177	contrary, for all tax years beginning on or after January 1, 112
178	178	2026, no person aged sixty -five or older shall be subject to 113
179	179	income tax pursuant to this chapter. 114
180	180	[6.] 7. As used in this section, the following terms 115
181	181	mean: 116
182	182	(1) "CPI", the Consumer Price Index for All Urban 117
183	183	Consumers for the United States as reported by the Bureau of 118
184	184	Labor Statistics, or its successor index; 119
185	185	(2) "CPI for the preceding calendar year", the average 120
186	186	of the CPI as of the close of the twelve -month period ending 121
187	187	on August thirty-first of such calendar year; 122
188	188	(3) "Net general revenue collected", all revenue 123
189	189	deposited into the general revenue fund, less refunds and 124
190	190	revenues originally deposited into the general revenue fund 125
191	191	but designated by law for a specific distribution or 126
192	192	transfer to another state fund; 127
193	193	(4) "Percent increase in inflation", the percentage, 128
194	194	if any, by which the CPI for the preceding calendar year 129
195	195	exceeds the CPI for the year beginning September 1, 2014, 130
196	196	and ending August 31, 2015. 131
197	197	