SB 540 – Requires amount of taxes paid to another state for property taxes to be added back in income tax calculation

• Sponsor: Bray
• LR Number: 1960S.01I
• Committee: Ways & Means
• Last Action: 3/3/2005 - Second Read and Referred S Ways & Means Committee
• Journal Page: S363
• Effective Date: August 28, 2005

Current Bill Summary

SB 540 - Currently, in certain cases, a nonresident may receive an itemized deduction on their federal return for property taxes paid to another state. Current Missouri law does not require that this amount be "added-back" on the Missouri return. Therefore, the deduction for property taxes paid to another state carries through to apply against the Missouri income tax of a nonresident. This act eliminates this deduction by requiring nonresidents to add-back the amount of the federal deduction on their Missouri tax return.

JASON ZAMKUS