SB 247
Modifies provisions relating to taxation
LR Number:
0966H.04C
Last Action:
5/12/2023 - In Conference
Journal Page:
Title:
HCS SB 247
Effective Date:
August 28, 2023
House Handler:

Current Bill Summary

HCS/SB 247 - This act modifies provisions relating to taxation.

SENIOR CITIZEN PROPERTY TAX CREDIT

Current law authorizes an income tax credit for certain senior citizens and disabled veterans in amount equal to a portion of such taxpayer's property tax liabilities, with the amount of the credit dependent on the taxpayer's income and property tax liability. This act modifies the definition of "income" to increase the amount deducted from Missouri adjusted gross income from $2,000 to $2,800, or, for claimants who owned and occupied the residence for the entire year, such amount is increased from $4,000 to $5,800. (Section 135.010)

The maximum allowable credit under current law is limited to $750 in rent constituting property taxes actually paid or $1,100 in actual property tax paid. This act increases such amounts to $1,055 and $1,550, respectively, and annually adjusts such maximum amounts for inflation. (Section 135.025)

Additionally, current law limits the tax credit to qualifying taxpayers with an income of $27,500 or less, or $30,000 in the case of a homestead owned and occupied by a claimant for the entire year. This act increases such maximum income to $38,200, or $42,200 in the case of a homestead owned and occupied by a claimant for the entire year, and annually adjusts both amounts for inflation. (Section 135.030)

These provisions are identical to HCS/HB 1134 (2023) and to provisions in HCS/SS/SB 143 (2023), and are substantially similar to provisions in SS/SCS/SB 15 (2023) and HB 1351 (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 ten 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. (Section 137.115)

This provision contains an emergency clause.

This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), and HCS/SS/SB 143 (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).

PROPERTY TAX CREDIT

This act authorizes a county to grant a property tax credit to eligible taxpayers residing in such county, provided such county has adopted an ordinance authorizing such credit, or a petition in support of such credit is delivered to the governing body of the county and is subsequently submitted to and approved by the voters, as described in the act.

Eligible taxpayers are defined as residents who: 1) are eligible for Social Security retirement benefits; 2) are the owner of record of or have a legal or equitable interest in a homestead; and 3) are liable for the payment of real property taxes on such homestead.

The amount of the property tax credit shall be equal to the difference between the real property tax liability on the homestead in a given year minus the real property tax liability on such homestead in the year in which the taxpayer became an eligible taxpayer.

A credit granted pursuant to this act shall be applied when calculating the eligible taxpayer's property tax liability for the tax year. The amount of the credit shall be noted on the statement of tax due sent to the eligible taxpayer by the county collector.

The amount of property tax credits authorized by a county pursuant to this act shall be considered tax revenue actually received by the county for the purposes of calculating property tax levies. (Section 137.1050)

This provision is identical to a provision in SS/SB 190 (2023) and is substantially similar to SB 715 (2022) and to a provision in SS/SCS/SB 133 (2023), as amended, SS/SB 540 (2023), as amended, and SS#2/SCS/SB 649 (2022).

INDIVIDUAL INCOME TAX RATE

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#3/SCS/SB 131 (2023), HCS/SS/SB 143 (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 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#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HCS/SS/SB 143 (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/SS#3/SCS/SB 131 (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 allows taxpayers with certain filing status and adjusted gross income below certain thresholds to deduct 100% of certain retirement and Social Security 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. (Sections 143.124 and 143.125)

These provisions are identical to SB 241 (2023), SB 448 (2023), HB 1206 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020), and to provisions in SS/SB 190 (2023), and are substantially similar to SB 585 (2023), HB 156 (2023), HB 456 (2023), HB 662 (2023), and to provisions in HCS/SS#3/SCS/SB 131 (2023), HS/HCS/HB 356 (2023), and SCS/HCS#2/HB 713 (2023).

SALES TAX EXEMPTIONS

This act provides that the sale of tangible personal property purchased by a consumer for use or consumption, and not for resale, for valuable consideration directly from a seller at an auction of used tangible personal property, as defined in the act, shall be exempt from state and local sales and use tax. (Sections 144.030 and 144.615)

This provision is identical to a provision in HCS/HBs 876, 771, 676 & 551 (2023) and is substantially similar to a provision in SS/SCS/SB 133 (2023), as amended, and HCS/HB 1141 (2023).

This act creates a state and local sales tax exemption for utilities, equipment, and materials used to generate or transmit electricity. A public utility realizing savings as a result of this exemption shall provide the Public Service Commission information on the amount of savings realized and shall include a statement that such savings will be passed through to the public utility's rate determined in the public utility's next general rate proceeding. (Section 144.058)

This provision is identical to a provision in SB 275 (2023) and SCS/HCS/HB 154 (2023), is substantially similar to SB 300 (2023), SB 246 (2021), SB 757 (2020), SB 467 (2019), HB 64 (2017), SB 784 (2016), SB 480 (2015), and HB 693 (2015), and is similar to HB 1511 (2018), HB 2255 (2014), and to a provision in CCS/HCS/SB 584 (2014).

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. (Sections 273.050 and 273.060)

This provision is identical to a provision in HS/HCS/HB 356 (2023).

JOSH NORBERG

HA #1 - ADDS A PROVISION MODIFYING THE SOURCES OF PROFIT FOR THE PURPOSES OF A BUSINESS INCOME DEDUCTION

HA #2 - ADDS A PROVISION AUTHORIZING AN INCOME TAX DEDUCTION FOR GRANT MONEY RECEIVED FOR THE PURPOSES OF PROVIDING OR EXPANDING ACCESS TO BROADBAND SERVICES

HA #3 - MODIFIES THE EFFECTIVE DATE FOR CHANGES MADE TO THE METHOD FOR ASSESSING MOTOR VEHICLES