Missouri SB 1067: Reduces the net general revenue collection threshold for income tax rate reductions

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. 1067
101ST GENERAL ASSEMBLY
INTRODUCED BY SENATOR HOSKINS.
4945S.01I ADRIANE D. CROUSE, Secretary
AN ACT
To repeal section 144.1021, RSMo, and section 143.011 as enacted by senate bills nos. 153 & 97,
one hundred first general assembly, first regular session, and to enact in lieu thereof
two new sections relating to income taxes.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 144.1021, RSMo, and section 143.011 as 1
enacted by senate bills nos. 153 & 97, one hundred first general 2
assembly, first regular session, are repealed and two new 3
sections enacted in lieu thereof, to be known as sections 4
143.011 and 144.1021, to read as follows:5
143.011. 1. A tax is hereby imposed for every taxable 1
year on the Missouri taxable income of every resident. The 2
tax shall be determined by applying the tax table or the 3
rate provided in section 143.021, which is based upon the 4
following rates: 5
6
7
If the Missouri
taxable income is:
The tax is:
8
9
Not over $1,000.00 1 1/2% of the Missouri
taxable income

10
11
Over $1,000 but not
over $2,000
$15 plus 2% of excess over
$1,000

12
13
Over $2,000 but not
over $3,000
$35 plus 2 1/2% of excess
over $2,000

SB 1067 2
2. (1) Beginning with the 2017 calendar year, the top 28
rate of tax under subsection 1 of this section may be 29
reduced over a period of years. Each reduction in the top 30
rate of tax shall be by one-tenth of a percent and no more 31
than one reduction shall occur in a calendar year. No more 32
than seven reductions shall be made under this subsection. 33
Reductions in the rate of tax shall take effect on January 34
first of a calendar year and such reduced rates shall 35
continue in effect until the next reduction occurs. 36
(2) A reduction in the rate of tax shall only occur if 37
the amount of net general revenue collected in the previous 38
fiscal year exceeds the highest amount of net general 39
revenue collected in any of the three fiscal years prior to 40
such fiscal year by at least one hundred [fifty] million 41
dollars. 42
14
15
Over $3,000 but not
over $4,000
$60 plus 3% of excess over
$3,000

16
17
Over $4,000 but not
over $5,000
$90 plus 3 1/2% of excess
over $4,000

18
19
Over $5,000 but not
over $6,000
$125 plus 4% of excess over
$5,000

20
21
Over $6,000 but not
over $7,000
$165 plus 4 1/2% of excess
over $6,000

22
23
Over $7,000 but not
over $8,000
$210 plus 5% of excess over
$7,000

24
25
Over $8,000 but not
over $9,000
$260 plus 5 1/2% of excess
over $8,000

26
27
Over $9,000 $315 plus 6% of excess over
$9,000

SB 1067 3
(3) Any modification of tax rates under this 43
subsection shall only apply to tax years that begin on or 44
after a modification takes effect. 45
(4) The director of the department of revenue shall, 46
by rule, adjust the tax tables under subsection 1 of this 47
section to effectuate the provisions of this subsection. 48
The bracket for income subject to the top rate of tax shall 49
be eliminated once the top rate of tax has been reduced to 50
five and one-half percent, and the top remaining rate of tax 51
shall apply to all income in excess of the income in the 52
second highest remaining income bracket. 53
(5) Notwithstanding the provisions of subdivision (1) 54
of this subsection to the contrary, there shall be no 55
reduction under this subsection in the 2024 calendar year. 56
However, such reductions shall continue after the 2024 57
calendar year for subsequent calendar years. 58
3. (1) In addition to the rate reductions under 59
subsection 2 of this section, beginning with the 2019 60
calendar year, the top rate of tax under subsection 1 of 61
this section shall be reduced by four-tenths of one 62
percent. Such reduction in the rate of tax shall take 63
effect on January first of the 2019 calendar year. 64
(2) The modification of tax rates under this 65
subsection shall only apply to tax years that begin on or 66
after the date the modification takes effect. 67
(3) The director of the department of revenue shall, 68
by rule, adjust the tax tables under subsection 1 of this 69
section to effectuate the provisions of this subsection. 70
4. (1) In addition to the rate reductions under 71
subsections 2 and 3 of this section, beginning with the 2024 72
calendar year, the top rate of tax under subsection 1 of 73
this section shall be reduced by one-tenth of one percent. 74

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(2) The modification of tax rates under this 75
subsection shall apply only to tax years that begin on or 76
after the date the modification takes effect. 77
(3) The director of the department of revenue shall, 78
by rule, adjust the tax tables under subsection 1 of this 79
section to effectuate the provisions of this subsection. 80
5. Beginning with the 2017 calendar year, the brackets 81
of Missouri taxable income iden