WORK OPPORTUNITY TAX CREDIT

For all tax years beginning on or after January 1, 2025, this act authorizes a taxpayer to claim a tax credit for wages paid by the taxpayer during the tax year to an individual who is in a targeted group, as such term is defined for the federal work opportunity tax credit, and who is employed in the state. The amount of the tax credit shall be the lesser of one hundred percent of the federal work opportunity tax credit claimed for the tax year by the taxpayer or the taxpayer's state income tax liability for the tax year. A nonprofit organization with no state income tax liability may retain withholding tax for such employees in the amount of the tax credit such organization would have be authorized to claim.

Tax credits authorized by the act shall not be refundable or carried forward, and shall not be transferred, sold, or assigned.

This act shall sunset on December 31, 2030, unless reauthorized by the General Assembly. (Section 135.465)

This provision is identical to SB 720 (2023), is substantially similar to HB 2473 (2024) and HB 1345 (2023), and to a provision in HCS/SS/SCS/SB 92 (2023), as amended, and is similar to a provision in HCS/SS/SCS/SB 912 (2024).

PERSONAL PROPERTY TAX ASSESSMENTS

Current law requires that personal property be assessed at 33.3% of its true value in money. This act requires political subdivisions to annually reduce such percentage such that the amount by which the revenue generated by taxes levied on such personal property is reduced is substantially equal to one hundred percent of the growth in revenue generated by real property assessment growth, as defined in the act. Annual reductions shall be made until December 31, 2073. Thereafter, the percentage of true value in money at which personal property is assessed shall be equal to the percentage in effect on December 31, 2073.

Subject to appropriations, a political subdivision that receives less than the allowable amount of total real and personal property tax revenues shall be eligible for reimbursement from the state in an amount equal to the amount by which such revenues are below the allowable amount. (Section 137.115)

This provision is identical to SB 725 (2024) and SB 733 (2024), and is substantially similar to SS/SCS/SB 8 (2023) and SB 493 (2023), and to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), SS/SCS/SB 133 (2023), as amended, HCS/SS/SB 143 (2023), HCS/SB 247 (2023), and SCS/HCS#2/HB 713 (2023).

CORPORATE INCOME TAXES

Current law imposes a tax on the Missouri taxable income of corporations at a rate of 4%. Beginning with the 2025 calendar year, this act reduces such rate of tax to 3.75%. Beginning with the 2026 calendar year, this act allows for three additional potential 0.5% reductions, for an eventual rate of 2.25%. Such additional reductions shall only occur if the amount of corporate income tax revenue collections for the immediately preceding fiscal year exceeds the highest amount of corporate income tax revenue collections from any fiscal year prior to the immediately preceding fiscal year by at least $50 million. (Section 143.071)

This provision is identical to SB 823 (2024) and SS/SCS/SBs 93 & 135 (2023), and is similar to SB 1029 (2024), HB 1131 (2023), SB 701 (2022) , SB 393 (2021), and HB 2239 (2020), and to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HCS/SS/SB 143 (2023), SCS/HCS#2/HB 713 (2023), HCS/HBs 816 & 660 (2023), and SB 18 (2022 First Extraordinary Session).

JOSH NORBERG