Bill > SB151

This bill modifies Missouri's tax code, primarily focusing on gradual income tax rate reductions and changes to tax brackets, contingent on specific revenue conditions. For individual income taxes, the bill introduces a phased reduction of the top tax rate from 6% to 4.95% starting in 2023, with potential further reductions of 0.15% in 2024 and up to three additional 0.1% reductions in subsequent years. These rate reductions can only occur if net general revenue exceeds certain historical benchmarks by specific amounts. The bill also adjusts income tax brackets to be annually indexed to inflation and modifies the federal income tax deduction, offering a tiered deduction percentage based on gross income levels. For corporate taxes, the bill reduces the corporate tax rate to 4% and establishes a mechanism for potential future reductions based on surplus revenue. Importantly, these changes are contingent upon voter approval of a constitutional amendment that would eliminate the Missouri personal income tax, establish a surplus revenue fund, and cap state sales taxes at 4%. The bill aims to provide tax relief while ensuring fiscal stability through careful revenue triggers and gradual tax rate adjustments.

Labor and Employment

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=329