Bill > HB2561

This bill modifies the existing Missouri law regarding income exempt from earnings tax by expanding the categories of income that are not taxable under city tax ordinances. The bill adds two new significant exemptions: first, income earned by state employees or public safety personnel (as defined in section 173.2655) as salaries, wages, commissions, and other compensation for work performed in their official duties within the city will now be exempt from earnings tax. The bill maintains the existing extensive list of tax-exempt organizations and income sources, which includes nonprofit entities like labor organizations, religious and charitable groups, mutual insurance companies, farmers' associations, and various types of financial institutions. Additionally, the bill preserves existing exemptions for specific types of income such as life insurance proceeds, workers' compensation payments, gifts and inheritances, interest on government obligations, and income from public utilities performing essential government functions. The modifications aim to provide broader tax relief for certain categories of workers and organizations, potentially reducing the tax burden for state employees and public safety personnel working in Missouri cities.

https://house.mo.gov/Bill.aspx?bill=HB2561&year=2026&code=R