Bill > HB1170

This bill modifies the definition of "salaries, wages, commissions, and other compensation" for local earnings tax purposes in Missouri. Specifically, the bill clarifies that contributions to deferred compensation plans, such as salary reduction plans or cafeteria plans, are not included in the definition of taxable compensation if those contributions are not subject to Missouri state income tax at the time they are made. The bill also adds a new provision that extends this exclusion to payments made under such plans if those payments are not subject to Missouri state income tax when received. This change impacts how local earnings taxes are calculated by effectively removing certain types of deferred compensation from the taxable income base. The bill aims to provide more clarity and specificity in how different forms of compensation are treated for local tax purposes, potentially offering some tax benefits for residents and non-residents who participate in deferred compensation arrangements.

https://house.mo.gov/Bill.aspx?bill=HB1170&year=2025&code=R