JEFFERSON CITY — Missourians will soon see the first major tax overhaul in the Show-Me State in nearly 100 years. The General Assembly successfully overrode the governor’s veto of Senate Bill 509 today. The legislation will reform our current tax code giving Missourians more take-home pay, and the measure also phases in tax relief to small businesses.

Senate Leader Tom Dempsey, R-St. Charles, said tax reform has been one of the Senate’s top priorities for the past few years, and he is proud to see such a major accomplishment come to pass after years of hard work.

“Ultimately, the governor did not want to sign a tax relief bill to benefit Missouri taxpayers and small businesses,” said Dempsey. “He would rather spend his time searching for technical issues than to constructively engage with lawmakers on how to provide tax relief to thousands of Missourians. Our citizens should be spending their own money, not handing it over to the government.”

Senate Bill 509 would reduce personal income taxes by a half percent over five years for those in the top tax bracket. Small businesses would be allowed a 25 percent deduction for business income, which would be phased in over a five-year period. This bill contains a trigger that will not allow any reduction to go into effect unless the highest net general revenue collected in the previous three fiscal years is exceeded by at least $150 million. The changes will not be implemented until 2017.

Bill sponsor Sen. Will Kraus, R-Lee’s Summit, has been leading the way on income tax reform. He said providing a break to those in the top tax bracket will have an energizing effect on the economy.

“Not only does this responsible tax reform put money back in the hands of the people who earned it, it will also act as an economic driver for the state of Missouri,” said Kraus. “With a two-year delay and aggressive triggers designed to protect current budget levels, Senate Bill 509 is specifically designed to use a portion of our future revenue growth to stimulate Missouri’s lagging economy.”

Majority Floor Leader Ron Richard, R-Joplin, said this bill will give Missouri businesses the opportunity to reinvest into the economy.

“Missouri’s economy is not growing at a fast enough rate,” said Richard. “This bill will increase our ability to bring more quality jobs to the state and will send a strong message that Missouri is open for business.”

The bill will go into effect on Jan. 1, 2017. For more on this bill and others, go to www.senate.mo.gov.