Bill > SB27

This bill modifies Missouri's state income tax structure and introduces a new tax on endowments of certain higher education institutions. The income tax changes include a gradual reduction of the top tax rate, starting with a reduction to 4.95% in 2023, with potential further reductions in subsequent years contingent on specific net general revenue growth thresholds. The bill allows for potential tax rate reductions of 0.15% in 2024, potentially down to 4.8%, with additional potential reductions of 0.1% in following years, not to exceed three total reductions. These rate reductions can only occur if net general revenue meets certain excess collection benchmarks compared to previous fiscal years. Additionally, the bill introduces a new 1.9% tax on endowments of higher education institutions that are affiliated with abortion facilities or provide medical training related to abortion, effective January 1, 2026. The new endowment tax would apply to the aggregate fair market value of the institution's endowment assets, with revenues deposited into the state's general revenue fund. The bill also includes provisions for annually adjusting income tax brackets based on inflation, ensuring that tax brackets keep pace with economic changes.

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https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=492