Missouri SB 1010: Reauthorizes an income tax deduction for certain savings accounts

Bill Text

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1010
102ND GENERAL ASSEMBLY
INTRODUCED BY SENATOR CIERPIOT.
3963S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 143.1160, RSMo, and to enact in lieu thereof one new section relating to a tax
deduction for savings accounts for long-term care.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 143.1160, RSMo, is repealed and one 1
new section enacted in lieu thereof, to be known as section 2
143.1160, to read as follows:3
143.1160. 1. As used in this section, the following 1
terms mean: 2
(1) "Account holder", the same meaning as that term is 3
defined in section 191.1603; 4
(2) "Deduction", an amount subtracted from the 5
taxpayer's Missouri adjusted gross income to determine 6
Missouri taxable income for the tax year in which such 7
deduction is claimed; 8
(3) "Eligible expenses", the same meaning as that term 9
is defined in section 191.1603; 10
(4) "Long-term dignity savings account", the same 11
meaning as that term is defined in section 191.1603; 12
(5) "Qualified beneficiary", the same meaning as that 13
term is defined in section 191.1603; 14
(6) "Taxpayer", any individual who is a resident of 15
this state and subject to the income tax imposed under this 16
chapter, excluding withholding tax imposed under sections 17
143.191 to 143.265. 18

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2. For all tax years beginning on or after January 1, 19
2021, a taxpayer shall be allowed a deduction of one hundred 20
percent of a participating taxpayer's contributions to a 21
long-term dignity savings account in the tax year of the 22
contribution. Each taxpayer claiming the deduction under 23
this section shall file an affidavit with the income tax 24
return verifying the amount of their contributions. The 25
amount of the deduction claimed shall not exceed the amount 26
of the taxpayer's Missouri adjusted gross income for the tax 27
year that the deduction is claimed, and shall not exceed 28
four thousand dollars per taxpayer claiming the deduction, 29
or eight thousand dollars if married filing combined. 30
3. Income earned or received as a result of assets in 31
a long-term dignity savings account shall not be subject to 32
state income tax imposed under this chapter. The exemption 33
under this section shall apply only to income maintained, 34
accrued, or expended pursuant to the requirements of 35
sections 191.1601 to 191.1607, and no exemption shall apply 36
to assets and income expended for any other purpose. The 37
amount of the deduction claimed shall not exceed the amount 38
of the taxpayer's Missouri adjusted gross income for the tax 39
year the deduction is claimed. 40
4. If any deductible contributions to or earnings from 41
any such programs referred to in this section are 42
distributed and not used to pay for eligible expenses or are 43
not held for the minimum length of time under subsection 2 44
of section 191.1605, the amount so distributed shall be 45
added to the Missouri adjusted gross income of the account 46
holder or, if the account holder is not living, the 47
qualified beneficiary, in the year of distribution. 48
5. The department of revenue shall promulgate rules to 49
implement the provisions of this section. Any rule or 50

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portion of a rule, as that term is defined in section 51
536.010, that is created under the authority delegated in 52
this section shall become effective only if it complies with 53
and is subject to all of the provisions of chapter 536 and, 54
if applicable, section 536.028. This section and chapter 55
536 are nonseverable and if any of the powers vested with 56
the general assembly pursuant to chapter 536 to review, to 57
delay the effective date, or to disapprove and annul a rule 58
are subsequently held unconstitutional, then the grant of 59
rulemaking authority and any rule proposed or adopted after 60
August 28, 2020, shall be invalid and void. 61
6. Under section 23.253 of the Missouri sunset act: 62
(1) The provisions of the [new] program authorized 63
under this section shall automatically sunset on December 64
[thirty-first four years after August 28, 2020] 31, 2029, 65
unless reauthorized by an act of the general assembly; 66
(2) If such program is reauthorized, the program 67
authorized under this section shall automatically sunset on 68
December thirty-first four years after the effective date of 69
the reauthorization of this section; and 70
(3) This section shall terminate on September first of 71
the calendar year immediately following the calendar year in 72
which the program authorized under this section is sunset. 73
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