HOUSE BILL NO. 1703 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE CHRISTENSEN.
4742H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 143.175, RSMo, and to enact in lieu thereof one new section relating to an income tax deduction for certain military pay.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 143.175, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 143.175, to read as follows: 143.175. 1. For all tax years beginning on or after January 1, 2020, for purposes of 2 calculating the Missouri taxable income as required under section 143.011, a percentage of 3 the income received by any person as salary or compensation: 4 (1) In performance of inactive duty for training (IDT) of the National Guard or annual 5 training status (AT) of the National Guard; 6 (2) In reserve components of the Armed Forces of the United States; [or] 7 (3) For all tax years beginning on or after January 1, 2025, in the form of a bonus 8 from the National Guard or a reserve component of the United States Armed Forces for 9 joining, reenlisting, or for any other reason; 10 11 and to the extent that such income is included in the federal adjusted gross income, may be 12 deducted from the taxpayer's Missouri adjusted gross income to determine such taxpayer's 13 Missouri taxable income. If such person files a combined return with a spouse, a percentage 14 of any military income received while engaging in the performance of National Guard or 15 reserve military duty may be deducted from their Missouri combined adjusted gross income. 16 Such military income shall be deducted as follows:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1703 2
17 (a) For the tax year beginning on or after January 1, 2020, twenty percent of such 18 military income; 19 (b) For the tax year beginning on or after January 1, 2021, forty percent of such 20 military income; 21 (c) For the tax year beginning on or after January 1, 2022, sixty percent of such 22 income; 23 (d) For the tax year beginning on or after January 1, 2023, eighty percent of such 24 income; 25 (e) For all tax years beginning on January 1, 2024, and thereafter, one hundred 26 percent of such income. 27 2. Notwithstanding the provisions of this section or any other provision of law to the 28 contrary, for all tax years beginning on or after January 1, 2027, the deduction authorized 29 by this section shall [not] apply to compensation received while engaging in civilian federal 30 service, including civil service positions requiring the wearing of military uniform and 31 military affiliation. ✔
Statutes affected: