Bill > SB1240

This bill proposes to gradually eliminate the individual income tax in Missouri by first reducing tax rates and then completely removing the tax for tax years beginning on or after January 1, 2027. Currently, Missouri has a progressive income tax system with rates ranging from 1.5% to 6% depending on income levels. The bill initially reduces the top tax rate to 4.95% for the 2023 tax year and allows for potential additional reductions of 0.15% in subsequent years, contingent upon the state's net general revenue exceeding certain thresholds. Specifically, a rate reduction can only occur if net general revenue in the previous fiscal year is at least $175 million higher than the highest revenue collected in the three preceding fiscal years. The bill also includes provisions for annually adjusting income tax brackets based on inflation, as measured by the Consumer Price Index (CPI). Ultimately, the legislation aims to completely eliminate the individual income tax for all tax years beginning on or after January 1, 2027, which would significantly change Missouri's tax structure and potentially impact state revenue and public services.

Labor and Employment

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=607