Bill > HB814

This bill establishes the "Missouri Business Tax Adjustment Act", which creates a graduated income tax structure for businesses based on their annual net revenue. Under the proposed law, businesses would be taxed at different rates depending on their net revenue: entities with over $10 million in annual net revenue would pay a 7% income tax, those with $1-10 million would pay 5%, those with $500,000-$1 million would pay 3.5%, and small businesses with less than $500,000 in net revenue would continue to be taxed at their current rates. The bill creates a new "Missouri Business Tax Fund" and mandates that the tax revenue be allocated as follows: 40% to public education, 30% to infrastructure projects, 20% to healthcare programs, and 10% to a small business development fund. The bill would only take effect if approved by voters in the November 2026 election. Key terms are defined in the bill, including "business entity" (which broadly covers various types of business organizations) and "net revenue" (total annual revenue after allowable deductions). Importantly, the bill preserves existing tax credits and deductions for businesses and allows the Department of Revenue to create necessary implementing regulations.

https://house.mo.gov/Bill.aspx?bill=HB814&year=2025&code=R