COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1327H.04C Bill No.:HCS for SS for SB 67 Subject:Taxation and Revenue - General; Tax Credits; Taxation and Revenue - Income Type:Original Date:April 14, 2025Bill Summary:This proposal modifies provisions relating to income tax.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1327H.04C
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 1327H.04C
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FISCAL ANALYSIS
ASSUMPTION
Section 32.115 - Affordable Housing Tax Credits
Officials from the Office of Administration – Budget & Planning (B&P) assume this
provision will not impact TSR or the calculation under Article X, Section 18(e).
Officials from the Department of Revenue (DOR) assume the Affordable Housing tax credit
program is a two-part credit with an $11 million combined cap. The first part of the credit is for
businesses that are making contributions to affordable housing. This part of the credit is limited
to $10 million of the cap. The second part of the credit is for businesses that make contributions
to neighborhood organizations and this part of the credit is limited to $1 million of the cap. This
proposal allows the contributions to the neighborhood organizations to use any remaining cap
space not used by the businesses making contributions to affordable housing. Therefore, the $1
million cap can be increased if the $10 million doesn’t use all their allotment. Since this
proposal just allows the sharing of a cap this would not have any additional fiscal impact on the
state.
For informational purposes, the Department is providing the amount of the Affordable Housing
Tax Credit that has been authorized, issued and redeemed over the last few years.
YearAuthorizedIssued
Total
Redeemed
FY 2024$2,769,394.00$5,263,913.00$5,211,902.60FY 2023$8,932,400.00$4,174,401.00$8,716,793.01FY 2022$4,835,176.00$10,482,025.00$3,619,925.08FY 2021978,796.00$3,592,427.00$4,119,705.33FY 2020$10,971,408.00$4,510,701.00$4,025,790.93FY 2019$4,253,693.00$3,308,659.00$5,001,344.36FY 2018$4,676,726.00$6,145,103.00$4,752,091.91FY 2017$10,347,442.00$7,386,034.00$10,172,259.92FY 2016$10,988,370.00$13,171,092.00$8,484,672.81FY 2015$10,901,753.00$8,717,177.00$3,358,807.75 L.R. No. 1327H.04C
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FY 2014$8,197,923.00$4,844,279.00$5,620,749.73FY 2013$6,495,974.00$4,967,887.00$7,406,987.96FY 2012$4,871,580.00$5,990,591.00$5,629,465.92
This proposal will not have a fiscal impact on the Department.
Officials from the BAP and the DOR assume the provision will have no additional fiscal impact
to the state. Oversight does not have any information to the contrary. Therefore, Oversight will
reflect a zero impact in the fiscal note for this provision
Section 143.121 MAGI Subtractions for Farmers
Officials from the Office of Administration – Budget & Planning (B&P) assumeB&P's
estimated cost for HB 202 / SB 138 was based on the definition of beginning farmer. B&P was
unable then (and now) to separate sales by owner type. Therefore, the estimated costs reflected in
the TAFP fiscal notes included all potential owners. This provision will not impact TSR or the
calculation under Article X, Section 18(e) beyond what was already estimated during the 2023
session.
Officials from the Department of Revenue (DOR) assumed the language in this bill is
clarifying language and will not have any additional impact.
Oversight notes that this proposed Amendment will not change the overall impact, calculated in
FY 2023, to the state revenues but only clarifies the definition of the taxpayer. Oversight does
not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the
fiscal note for this section.
§§ 143.511 Individual Income Tax Filing Deadlines
Officials from the Department of Revenue (DOR) assume this proposal would allow the filing
deadline for the individual income tax returns to move when the federal government moves the
deadline. Currently, Missouri tax returns are due on April 15th each year unless moved by the
Governor Office. Sometimes, the federal filing deadline is moved to another day. DOR assumes
no administrative impact from this change.
Officials from the Office of Administration – Budget & Planning (B&P) assume this
provision would allow the annual income tax due date to change from April 15th to the date
required for federal income tax returns. B&P notes that there are many years where the federal
annual due date falls after April 15th. B&P further notes that DOR already matches the Missouri
income tax due date with the federal due date. Therefore, this provision will not impact state
revenues. L.R. No. 1327H.04C
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Oversight notes that DOR and B&P both assume the proposal will have no fiscal impact on their
respective organization or overall state revenues. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for this Section.
§ 143.512 – Tax Credit Balance Due Penalty
Officials from the Office of Administration – Budget & Planning (B&P) assumed this
proposal would waive any addition to tax, interest, and penalties on taxes due because of tax
credits being apportioned, if the resulting tax due is paid within 60 days. B&P notes that this
would only apply to tax credits that are apportioned among taxpayers, in the event that
redemptions are greater than the amount allowed per statute or appropriation.
B&P notes that currently taxpayers are encouraged remit their full tax liability, calculated before
a tax credit, in the event that their tax credit claim is denied. However, for those taxpayers that
do not remit the full amount and end up with a tax due notice, interest and penalties are currently
levied on the overdue amount.
Based on information provided by DOR, this provision could reduce TSR by an unknown, likely
minimal, amount.
Officials from the Department of Revenue (DOR) assume This proposal would allow a
taxpayer who attempts to claim a tax credit, that is denied from a lack of available funds, and that
denial causes a balance due notice to be generated by DOR, to pay their balance due without
paying a penalty or interest for sixty days. If the balance due is not paid within sixty days the
penalty and interest would still be owed.
DOR notes that tax credits can be denied for various reasons. Many of the state tax credit
programs have caps that are first come first serve and taxpayers can be denied if their claim is
filed later than others.
DOR has two tax credits that have caps and are apportioned credits. These credits allow people
to apply and then the amount of the credit is adjusted downward should the number of credits
claimed exceed the cap. Those two credits are the Champion for Children and Food Pantry tax
credit programs.
DOR notes the Champion for Children tax credit program already grants DOR the authority to
notify taxpayers of the apportionment of their credit and to adjust the credit downward.
Additionally, the program also allows DOR to give those taxpayers a sixty-day grace period to
make an additional payment should their account require it. This proposal would not impact the
Champion for Children program.
DOR notes that the Food Pantry program does not allow for such a grace period. At this time,
DOR would notify the taxpayer of the adjustment and then is required to assess penalties and L.R. No. 1327H.04C
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interest. It appears this proposal attempts to allow DOR to give them a grace period. DOR
assumes this would have minimal impact of less than $10,000 annually.
Oversight notes that officials from the DOR and B&P both assume this Section would have a
minimal impact on the general revenue, if any.
Oversight is unsure of how many taxpayers previously receive notice of apportionment thus
additional tax due. However, based on responses from DOR and B&P, Oversight will assume
that the total amount of interest and penalties owed, less than $10,000, is not material. Therefore,
Oversight will not show an impact in the fiscal note.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation appears to have no direct fiscal impact.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 1327H.04C
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SOURCES OF INFORMATION
Office of Administration – Budget & Planning
Department of Revenue
Julie MorffJessica HarrisDirectorAssistant DirectorApril 14, 2025April 14, 2025