Bill > SB1285

This bill modifies Missouri's income tax structure by implementing a phased reduction of the state's top income tax rate over several years, contingent on specific revenue growth conditions. The bill establishes a new tax rate table with rates ranging from 1.5% to 6% for different income brackets, and introduces a mechanism to gradually lower the top tax rate. Starting in 2023, the top tax rate will be reduced to 4.95%, and potentially further reduced to 4.8% in 2024 if net general revenue exceeds the previous three fiscal years by at least $175 million. Additional reductions of one-tenth of a percent can occur in subsequent years if net general revenue increases by at least $200 million and meets specific inflation-adjusted criteria. The bill also includes provisions for annually adjusting income tax brackets based on the Consumer Price Index (CPI), ensuring that tax brackets keep pace with inflation. These changes are designed to provide tax relief for Missouri residents while maintaining fiscal responsibility by linking rate reductions to state revenue performance. The tax rate modifications will apply to tax years beginning on or after January 1 of the respective calendar years.

Labor and Employment

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=414