HCS/SS#3/SCS/SB 131 - This act establishes and modifies provisions relating to taxation.TAXATION BALLOT MEASURE LANGUAGE
This act requires an election authority to label ballot measures relating to taxation numerically or alphabetically in the order in which they are submitted, and prohibits labeling such measures in any other descriptive manner. (Section 115.240)
This act requires any ballot measure seeking to add, change, or modify a tax on real property to express the effect of the proposed change within the ballot language in terms of the change in dollars owed per $100,000 of a property's market valuation. (Section 137.067)
This provision is identical to a provision in CCS/HS/HCS/SS#2/SCS/SB 96 (2023).
This act requires that if the voters in a political subdivision approve an increase to the tax rate ceiling prior to the expiration of a previously approved temporary levy increase, the new tax rate ceiling shall remain in effect only until such time as the temporary levy increase expires under the terms originally approved by a vote of the people, at which time the tax rate ceiling shall be decreased by the amount of the temporary levy increase.
If, prior to the expiration of a temporary levy increase, voters are asked to approve an additional permanent levy increase, voters shall be submitted ballot language that clearly indicates that if the permanent levy increase is approved, the temporary levy shall be made permanent. (Section 137.073)
This provision is identical to a provision in CCS/HS/HCS/SS#2/SCS/SB 96 (2023) and is substantially similar to SB 880 (2018) and SB 357 (2017).
These provisions are identical to HS/HCS/HB 186 (2023).
FIREARMS EXCISE TAX INCOME TAX CREDIT
For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit for taxpayers making sales of firearms or ammunition. The tax credit shall be equal to the amount of the federal firearms and ammunition excise tax imposed on the sale of such firearms and ammunition sold by the taxpayer during the tax year.
Tax credits authorized by the act shall not be refundable, and shall not be transferred, sold, or assigned. A taxpayer shall not be able to claim a tax credit pursuant to the act if the taxpayer also retained sales taxes pursuant to the act for the same federal firearms excise tax paid.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.098)
This provision is identical to a provision in HCS/SS/SB 143 (2023).
ASSESSMENT OF MOTOR VEHICLES
Current law requires assessors to use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide to determine the true value of motor vehicles for the purposes of property tax assessments. For the 2023 tax year, this act requires the State Tax Commission to require an assessor to use such publication or the Kelley Blue Book, Edmunds, or another similar publication, and allows the assessor to use the current or any of the three immediately previous years' October issue of such publication.
For all tax years beginning on or after January 1, 2024, this act requires assessors to use the manufacturer's suggested retail price as depreciated using a fifteen year depreciation table provided in the act. When the manufacturer's suggested retail price data is not available from an approved source or the assessor deems it not appropriate for a vehicle, the assessor may obtain a manufacturer's suggested retail price from a source that he or she deems reliable and shall apply the depreciation schedule provided by the act.
This provision contains an emergency clause.
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS/SB 143 (2023), and HCS/SB 247 (2023), and is substantially similar to SB 493 (2023) and SCS/HCS#2/HB 713 (2023), and to a provision in SS/SCS/SB 133 (2023), as amended, and is similar to SS/SCS/SB 8 (2023).
INDIVIDUAL INCOME TAXES
Current law provides that the top rate of income tax is 4.95%, with additional potential reductions conditional on meeting certain revenue triggers, for an eventual top rate of 4.5%. Beginning with the 2024 calendar year, this act reduces the top rate of tax to 4.5% and maintains the additional potential reductions in current law, for an eventual top rate of 4.05%. (Section 143.011)
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS/SB 143 (2023), HCS/SB 247 (2023), and HCS/HBs 816 & 660 (2023), and is substantially similar to a provision in SCS/HCS#2/HB 713 (2023).
CORPORATE INCOME TAXES
Current law authorizes an income tax deduction for a percentage of a taxpayer's business deduction from certain combined sources. This act adds the total combined profit as reported on an IRS Schedule F form and Form 4835. (Section 143.022)
This provision is identical to a provision in HCS/SS/SCS/SB 133 (2023), HS/HCS/HB 356 (2023), and HCS/HB 1023 (2023).
Current law levies a tax on the Missouri taxable income of corporations at a rate of 4.0%. For all tax years beginning on or after January 1, 2024, this act reduces such rate to 2.0%. Additionally, beginning in the 2026 calendar year, the corporate income tax rate shall be reduced to 1.0% if in any fiscal year after the 2024 fiscal year the amount of net corporate income tax revenue collected exceeds the amount collected during the 2024 fiscal year by at least $50 million. Finally, beginning in the calendar year following the calendar year in which the rate of tax is reduced to 1.0%, the corporate income tax rate may be reduced to 0% if during any fiscal year the amount of net general revenue collected during the immediately preceding fiscal year exceeds the amount of net general revenue collected during the fiscal year in which the rate of tax was reduced to 1.0% by at least $250 million.
For all tax years beginning after the fiscal year in which the corporate income tax is eliminated, no corporate income tax credits shall be claimed in any tax years in which there is no tax imposed on the Missouri taxable income of corporations. (Section 143.071)
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS/SCS/SB 133 (2023), HCS/SS/SB 143 (2023), HCS/SB 247 (2023), and HCS/HBs 816 & 660 (2023), is substantially similar to HB 1131 (2023), and is similar to SS/SCS/SBs 93 & 135 (2023) and to a provision in SCS/HCS#2/HB 713 (2023).
ESOP INCOME TAX DEDUCTION
Current law authorizes an income tax deduction equal to 50% of the net capital gain from selling employer securities to a qualified Missouri employee stock ownership plan, with such deduction scheduled to sunset on December 31, 2022. This act repeals the sunset provision. (Section 143.114)
This provision is identical to HB 512 (2023) and to a provision in CCS/SB 20 (2023), HCS/SB 247 (2023), HS/HCS/HB 356 (2023), SCS/HCS#2/HB 713 (2023), and SCS/HCS/HB 934 (2023), and is similar to a provision in HCS/SS/SB 807 (2022) and HCS/SS/SCS/SB 931 (2022).
RETIREMENT BENEFITS INCOME TAX DEDUCTION
Current law authorizes a taxpayer to deduct a maximum of the first $6,000 of any retirement allowance received from any privately funded sources if the taxpayer's Missouri adjusted gross income is less than $16,000 if filing married separately, $25,000 if filing single, or $32,000 if filing married combined. For all tax years beginning on or after January 1, 2024, this act increases such deduction to $12,000 and increases the income thresholds to $32,000, $50,000, and $64,000 respectively. (Section 143.124)
These provisions are identical to provisions in HS/HCS/HB 356 (2023) and SCS/HCS#2/HB 713 (2023), and are substantially similar to SB 241 (2023), SB 448 (2023), SB 585 (2023), HB 156 (2023), HB 456 (2023), HB 662 (2023), HB 1206 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020), and to provisions in HCS/SS#3/SCS/SB 131 (2023), SS/SB 190 (2023), and HCS/SB 247 (2023).
Current law allows taxpayers with certain filing status and adjusted gross income below certain thresholds to deduct 100% of Social Security retirement and disability benefits from the taxpayer's Missouri adjusted gross income, with a reduced deduction as the taxpayer's adjusted gross income increases. For all tax years beginning on or after January 1, 2024, this act allows the maximum deduction to all taxpayers regardless of filing status or adjusted gross income and allows the deduction to be taken for Social Security retirement, disability, survivors, and supplemental benefits. (Section 143.125)
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS#2/SCS/SB 96 (2023), HCS/SS/SCS/SB 133 (2023), HB 156 (2023), HB 456 (2023), HB 662 (2023), and HCS/HBs 816 & 660 (2023), and is substantially similar to a provision in SS/SB 190 (2023), SB 241 (2023), HCS/SB 247 (2023), SB 448 (2023), SB 585 (2023), HB 1206 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020).
FIREARMS EXCISE TAX SALES TAXES
Beginning August 28, 2023, this act provides that all sales of firearms and ammunition sold in this state shall be exempt from state and local sales taxes.
Beginning August 28, 2023, from every remittance of sales tax to the Director of Revenue made by a person selling firearms or ammunition, the person shall be entitled to deduct and retain an amount equal to the amount of the federal firearms and ammunition excise tax paid by such person on the sale of ammunition and firearms sold by such person. (Section 144.064)
This provision is identical to a provision in HCS/SS/SB 143 (2023), is substantially similar to SB 1102 (2022) and SB 567 (2021), and is similar to HB 749 (2023).
DOGS
Current law provides that a dog shall not be permitted in the state unless the owner has paid a dog tax. This act repeals such provision. (Section 273.050)
This provision is identical to a provision in HCS/SS/SCS/SB 133 (2023), HCS/SB 247 (2023), HCS/HBs 816 & 660 (2023), and HS/HCS/HB 356 (2023).
JOSH NORBERG