Bill > SB236

This bill reduces Missouri's top income tax rate through a phased approach. Initially, in 2023, the top tax rate will be reduced to 4.95%. Starting in 2024, the state can further reduce the top tax rate by 0.15% if net general revenue exceeds the highest amount collected in the previous three fiscal years by at least $175 million. Subsequently, the bill allows for additional reductions of 0.1% per year, up to four total reductions, contingent on more stringent revenue growth conditions. Each rate reduction would take effect on January 1st of the respective year and would apply to all taxable income above $7,000. The bill also includes provisions for annually adjusting income tax brackets based on inflation, using the Consumer Price Index (CPI) as a measurement. The director of the department of revenue is required to adjust tax tables to implement these changes, ensuring that the tax brackets and rates are updated accordingly. This approach provides a mechanism for gradual tax rate reduction while tying the reductions to specific state revenue performance metrics.

Labor and Employment

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=428