SB 5 - This act modifies provisions relating to income taxes.PERSONAL INCOME TAXES
Beginning with the 2023 calendar year, this act provides that the top rate of income tax shall be 4.8%. Additionally, beginning with the 2024 calendar year, this act provides that the top rate of income tax may be further reduced by 0.4% over a period of years, with each 0.1% reduction becoming effective if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least $150 million. (Section 143.011)
Current law exempts the first $100 of a taxpayer's income from taxation. For all tax years beginning on or after January 1, 2023, this act exempts the first $1,000 of income from taxation. (Section 144.021)
Current law authorizes a taxpayer to deduct a percentage of the taxpayer's federal income tax liability from the taxpayer's Missouri adjusted gross income. This act disallows such deduction beginning with the 2023 tax year. (Section 143.171)
CORPORATE INCOME TAXES
Current law imposes an income tax on the taxable income of corporations at a rate of 4%. For all tax years beginning on or after January 1, 2023, this act reduces the tax rate to 3.5%. Additionally, beginning with the 2024 calendar year, this act provides that the corporate income tax rate may be further reduced by 0.5% if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least $150 million. (Section 143.071)
This act contains an emergency clause.
JOSH NORBERG