Bill > HB3324

This bill modifies Missouri's income tax law by expanding the definition of "taxpayer" to include various business structures and by introducing new subtractions from adjusted gross income for certain farmers. Specifically, it allows farm owners who sell farmland to a "beginning farmer" (defined as someone who has filed a limited number of farming tax forms, is approved for a USDA beginning farmer loan, or is a qualified family member) to subtract a percentage of the capital gains received from the sale, with higher percentages applied to the first two million dollars received. Additionally, farm owners who lease or enter into crop-share arrangements with beginning farmers can subtract up to $25,000 annually from their income derived from these agreements. The bill also requires the Department of Agriculture to establish a process for verifying beginning farmer status and for the Department of Revenue to report annually on the costs and benefits of these capital gain subtractions.

https://house.mo.gov/Bill.aspx?bill=HB3324&year=2026&code=R