To repeal sections 143.111 and 143.161, RSMo 1994, relating to state income tax, and to enact in lieu thereof three new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Sections 143.111 and 143.161, RSMo 1994, are repealed and three new sections enacted in lieu thereof, to be known as sections 143.111, 143.122 and 143.161, to read as follows:

143.111. The Missouri taxable income of a resident shall be his Missouri adjusted gross income less:

(1) either[:] the Missouri standard deduction or the Missouri itemized deduction[,] ;

(2) the Missouri deduction for personal exemptions[,];

(3) the Missouri deduction for dependency exemptions[,];

(4) the deduction for federal income taxes provided in section 143.171[,]; and

(5) the deduction for tuition or attendance fees provided in section 143.122.

143.122. In addition to the amounts to be subtracted from his federal adjusted gross income to determine his Missouri adjusted gross income under the provisions of section 143.121, there shall be subtracted the amount the taxpayer has paid to others for each dependent in grades nine through twelve, for tuition or attendance fees for or on behalf of each dependent in attending a secondary school situated in Missouri, up to a maximum of two thousand five hundred dollars for each dependent.< p> 143.161. 1. For all tax years beginning before January 1, 1997, a resident may deduct four hundred dollars for each dependent for whom he is entitled to a dependency exemption deduction for federal income tax purposes.

2. For all tax years beginning on or after January 1, 1997, a resident may deduct eight hundred dollars for each dependent for whom he is entitled to a dependency exemption deduction for federal income tax purposes.

[2.] 3. A resident who qualifies as an unmarried head of household or as a surviving spouse for federal income tax purposes may deduct an additional eight hundred dollars.