Bill > SB381

This bill modifies Missouri's earnings tax regulations by creating a new section that establishes "earnings tax opportunity zones" in distressed communities. Specifically, the bill provides tax exemptions for all earnings and compensation related to work performed within these designated zones, effective January 1, 2026. The bill defines key terms such as "distressed community" and "opportunity zone cluster", drawing from existing statutory definitions and federal opportunity zone designations. Under the proposed legislation, residents working in these zones, as well as businesses operating within them, would be exempt from paying earnings taxes on salaries, wages, commissions, compensation, and net profits. Each distressed community imposing an earnings tax would be required to publish and maintain an updated map of these opportunity zones on their website and provide copies upon request. The bill includes one notable exception: earnings tax opportunity zones that include or overlap with the National Geospatial-Intelligence Agency (NGA) West campus located in a city not within a county would not qualify for these tax exemptions. The goal appears to be incentivizing economic development and investment in economically challenged areas by providing significant tax benefits.

Labor and Employment

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=224