SB 18 - This act modifies provisions relating to income taxes.INDIVIDUAL INCOME TAXES
Current law provides for reductions to the top rate of income tax to an eventual rate of 4.8% over a period of years, contingent on meeting certain net general revenue collection triggers. This act repeals all such scheduled reductions and reduces the top rate of income tax to 4.7% beginning in the 2023 calendar year. Beginning with the 2024 calendar year, the act provides for an additional seven reductions over a period of years. Each reduction shall be by 0.1% and shall only be 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 sets the Missouri standard deduction equal to the allowable federal standard deduction. For all tax years beginning on or after January 1, 2023, this act sets the Missouri standard deduction equal to the allowable federal standard deduction plus $2,000 for every filing status except married filing combined, and plus $4,000 for the filing status of married filing combined. (Section 143.131)
CORPORATE INCOME TAXES
Current law imposes a tax of 4% on corporate income. For all tax years beginning on or after January 1, 2023, this act provides that there shall be no tax on corporate income.
This provision is identical to SB 701 (2022) and is substantially similar to SB 393 (2021) and HB 2239 (2020).
This act contains an emergency clause.
JOSH NORBERG