Missouri HB 2846: Modifies the state income tax brackets

Bill Text

SECOND REGULAR SESSION
HOUSE BILL NO. 2846
101ST GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE MCGIRL.
5480H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT
To repeal 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 one new section relating to
income tax.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 143.011 as enacted by senate bills nos. 153 & 97, one hundred
2 first general assembly, first regular session, is repealed and one new section enacted in lieu
3 thereof, to be known as section 143.011, to read as follows:
143.011. 1. For all tax years ending on or before December 31, 2022, a tax is
2 herebyimposed for everytaxableyear onthe Missouri taxableincomeof everyresident. The
3 tax shall be determined by applying the tax table or the rate provided in section 143.021,
4 which is based upon the following rates:
5 If the Missouri taxable
6 income is:
The tax is:
Not over $1,000.007 1 1/2% of the Missouri taxable
8 income
9 Over $1,000 but not over
10 $2,000
$15 plus 2% of excess over $1,000
11 Over $2,000 but not over
12 $3,000
$35 plus 2 1/2% of excess over
$2,000
13 Over $3,000 but not over
14 $4,000
$60 plus 3% of excess over $3,000
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

15 Over $4,000 but not over
16 $5,000
$90 plus 3 1/2% of excess over
$4,000
17 Over $5,000 but not over
18 $6,000
$125 plus 4% of excess over $5,000
19 Over $6,000 but not over
20 $7,000
$165 plus 4 1/2% of excess over
$6,000
21 Over $7,000 but not over
22 $8,000
$210 plus 5% of excess over $7,000
23 Over $8,000 but not over
24 $9,000
$260 plus 5 1/2% of excess over
$8,000
25 Over $9,000 $315 plus 6% of excess over $9,000
26 2. (1) Beginning with the 2017 calendar year and ending on or before December
27 31, 2022, the top rate of tax under subsection 1 of this section may be reduced over a period
28 of years. Each reduction in the top rate of tax shall be by one-tenth of a percent and no more
29 than one reduction shall occur in a calendar year. No more than seven reductions shall be
30 madeunderthissubsection. ReductionsintherateoftaxshalltakeeffectonJanuaryfirstofa
31 calendar year and such reduced rates shall continue in effect until the next reduction occurs.
32 (2) Areductionintherateoftaxshallonlyoccuriftheamountofnetgeneralrevenue
33 collected in the previous fiscal year exceeds the highest amount of net general revenue
34 collected in any of the three fiscal years prior to such fiscal year by at least one hundred fifty
35 million dollars.
36 (3) Any modification of tax rates under this subsection shall only apply to tax years
37 that begin on or after a modification takes effect.
38 (4) Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
39 subsection 1 of this section to effectuate the provisions of this subsection. The bracket for
40 income subject to the top rate of tax shall be eliminated once the top rate of tax has been
41 reduced to five and one-half percent, and the top remaining rate of tax shall apply to all
42 income in excess of the income in the second highest remaining income bracket.
43 [(5) Notwithstanding the provisions of subdivision (1) of this subsection to the
44 contrary, there shall be no reduction under this subsection in the 2024 calendar year.
45 However, such reductions shall continue after the 2024 calendar year for subsequent calendar
46 years.]
47 3. (1) In addition to the rate reductions under subsection 2 of this section, beginning
48 with the 2019 calendar year, the top rate of tax under subsection 1 of this section shall be
49 reduced by four-tenths of one percent. Such reduction in the rate of tax shall take effect on
50 January first of the 2019 calendar year and end on or before December 31, 2022.
HB 2846 2

51 (2) The modification of tax rates under this subsection shall only apply to tax years
52 that begin on or after the date the modification takes effect.
53 (3) Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
54 subsection 1 of this section to effectuate the provisions of this subsection.
55 [4. (1) In addition to the rate reductions under subsections 2 and 3 of this section,
56 beginning with the 2024 calendar year, the top rate of tax under subsection 1 of this section
57 shall be reduced by one-tenth of one percent.
58 (2) The modification of tax rates under this subsection shall apply only to tax years
59 that begin on or after the date the modification takes effect.
60 (3) Thedirectorofthedepartmentofrevenueshall,byrule,adjustthetaxtablesunder
61 subsection 1 of this section to effectuate the provisions of this subsection.
62 5.]4. Beginningwiththe2017calendaryearandendingonorbeforeDecember31,
63 2022, the brackets of Missouri taxable inco