Missouri SB 138: Modifies provisions relating to income taxes

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.
FIRST REGULAR SESSION
SENATE BILL NO. 138
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR TRENT.
1286S.02I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 143.011, 143.021, and 143.171, RSMo, and to enact in lieu thereof three new
sections relating to income taxes.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 143.011, 143.021, and 143.171, RSMo, 1
are repealed and three new sections enacted in lieu thereof, to 2
be known as sections 143.011, 143.021, and 143.171, to read as 3
follows:4
143.011. 1. For all tax years beginning on or before 1
December 31, 2025, a tax is hereby imposed for every taxable 2
year on the Missouri taxable income of every resident. The 3
tax shall be determined by applying the tax table or the 4
rate provided in section 143.021, which is based upon the 5
following rates: 6
7
8
If the Missouri
taxable income is:
The tax is:
9
10
Not over $1,000.00 1 1/2% of the Missouri
taxable income

11
12
Over $1,000 but not
over $2,000
$15 plus 2% of excess over
$1,000

13
14
Over $2,000 but not
over $3,000
$35 plus 2 1/2% of excess
over $2,000

SB 138 2
2. (1) Notwithstanding the provisions of subsection 1 29
of this section to the contrary, beginning with the 2023 30
calendar year, but ending on or before December 31, 2025, 31
the top rate of tax pursuant to subsection 1 of this section 32
shall be four and ninety-five hundredths percent. 33
(2) The modification of tax rates made pursuant to 34
this subsection shall apply only to tax years that begin on 35
or after January 1, 2023, but before January 1, 2026. 36
(3) The director of the department of revenue shall, 37
by rule, adjust the tax table provided in subsection 1 of 38
this section to effectuate the provisions of this 39
subsection. The top remaining rate of tax shall apply to 40
all income in excess of seven thousand dollars, as adjusted 41
pursuant to subsection 5 of this section. 42
3. (1) [In addition to the rate reduction under 43
subsection 2 of this section, beginning with the 2024 44
15
16
Over $3,000 but not
over $4,000
$60 plus 3% of excess over
$3,000

17
18
Over $4,000 but not
over $5,000
$90 plus 3 1/2% of excess
over $4,000

19
20
Over $5,000 but not
over $6,000
$125 plus 4% of excess over
$5,000

21
22
Over $6,000 but not
over $7,000
$165 plus 4 1/2% of excess
over $6,000

23
24
Over $7,000 but not
over $8,000
$210 plus 5% of excess over
$7,000

25
26
Over $8,000 but not
over $9,000
$260 plus 5 1/2% of excess
over $8,000

27
28
Over $9,000 $315 plus 6% of excess over
$9,000

SB 138 3
calendar year, the top rate of tax under subsection 1 of 45
this section may be reduced by fifteen hundredths of a 46
percent. A reduction in the rate of tax shall take effect 47
on January first of a calendar year and such reduced rates 48
shall continue in effect until the next reduction occurs. 49
(2) A reduction in the rate of tax shall only occur if 50
the amount of net general revenue collected in the previous 51
fiscal year exceeds the highest amount of net general 52
revenue collected in any of the three fiscal years prior to 53
such fiscal year by at least one hundred seventy-five 54
million dollars. 55
(3) Any modification of tax rates under this 56
subsection shall only apply to tax years that begin on or 57
after a modification takes effect. 58
(4) The director of the department of revenue shall, 59
by rule, adjust the tax tables under subsection 1 of this 60
section to effectuate the provisions of this subsection. 61
4. (1) In addition to the rate reductions under 62
subsections 2 and 3 of this section, beginning with the 63
calendar year immediately following the calendar year in 64
which a reduction is made pursuant to subsection 3 of this 65
section, the top rate of tax under subsection 1 of this 66
section may be further reduced over a period of years. Each 67
reduction in the top rate of tax shall be by one-tenth of a 68
percent and no more than one reduction shall occur in a 69
calendar year. No more than three reductions shall be made 70
under this subsection. Reductions in the rate of tax shall 71
take effect on January first of a calendar year and such 72
reduced rates shall continue in effect until the next 73
reduction occurs. 74
(2) (a) A reduction in the rate of tax shall only 75
occur if: 76

SB 138 4
a. The amount of net general revenue collected in the 77
previous fiscal year exceeds the highest amount of net 78
general revenue collected in any of the three fiscal years 79
prior to such fiscal year by at least two hundred million 80
dollars; and 81
b. The amount of net general revenue collected in the 82
previous fiscal year exceeds the amount of net general 83
revenue collected in the fiscal year five years prior, 84
adjusted annually by the percentage increase in inflation 85
over the preceding five fiscal years. 86
(b) The amount of