SCS/SB 27 - This act creates the Missouri Individual Income Flat Tax Act. The act creates a flat tax on individual income at a rate of four percent. The act also replaces most additions and subtractions from Missouri adjusted gross income with a larger personal deduction of $10,000 per taxpayer ($20,000 for a combined return, $15,000 for a head of household return and $20,000 for a surviving spouse return). The act provides both non-resident and partnership allocation and computation of Missouri individual income tax liability.

The act subjects to appropriations any taxpayer's tax credit issued after the effective date of the act in excess of $500K. This is a limit on the claim by a taxpayer and not a limit on the tax credit program itself

The act decouples from the federal IRC by setting the reference to the IRC in current law as being the IRC as it stood on January 1, 2003.

The act also requires all lottery and other gaming winnings to be included in Missouri nonresident adjusted gross income when the winnings are from a Missouri source.

This act is similar to SB 1153 (2002). The act contains an emergency clause for some sections.
JEFF CRAVER