Bill > SB1575

This bill modifies Missouri's capital gains tax provisions by repealing and reenacting sections 143.121 and 143.341 of the Revised Statutes of Missouri (RSMo). Key changes include the subtraction of 100% of capital gains income for individuals for tax years beginning on or after January 1, 2025, and for entities for tax years following a reduction in the top income tax rate to 4.5% or less. Additionally, for tax years beginning on or after January 1, 2026, the bill expands the definition of capital gains to include certain ordinary income items that would otherwise be treated as capital gains under specific federal tax code sections (26 U.S.C. Sections 1245 and 1250), and it also allows for the subtraction of capital gains on the sale or exchange of "specie" (defined elsewhere as precious metals or coins). For estates and trusts, beginning January 1, 2026, the bill also allows for the subtraction of 100% of capital gains income and includes the same expanded definition of capital gains as for individuals and entities. These changes aim to adjust how capital gains are taxed in Missouri, potentially reducing the tax burden on certain types of investment income.

Labor and Employment

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=1584510