HOUSE BILL NO. 1793 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE MURPHY.
4523H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 92.130, RSMo, and to enact in lieu thereof one new section relating to income exempt from earnings tax.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 92.130, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 92.130, to read as follows: 92.130. 1. The income received by any of the following shall not be taxable under 2 any tax ordinance enacted under the provisions of sections 92.110 to 92.200: 3 (1) Labor, agricultural or horticultural organizations; 4 (2) Mutual savings bank not having a capital stock represented by shares; 5 (3) Fraternal-beneficiary society, order or association, operating under the lodge 6 system or for the exclusive benefit of the members of a fraternity itself operating under the 7 lodge system, and providing for the payment of life, sick, accident or other benefits to the 8 members of such society, order, or association or their dependents; 9 (4) Domestic building and loan associations and credit unions without capital stock 10 organized and operated for mutual purposes and without profit; 11 (5) Cemetery company owned and operated exclusively for the benefit of its 12 members, unless said cemetery is operated for profit; 13 (6) Corporation or association organized and operated exclusively for religious, 14 charitable, scientific or educational purposes, no part of the net income of which inures to the 15 benefit of any private stockholder or individual;
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 1793 2
16 (7) Business league, chamber of commerce or board of trade not organized for profit 17 and no part of the net income of which inures to the benefit of any private stockholder or 18 individual; 19 (8) Civic league or organization not organized for profit but operated exclusively for 20 the promotion of social welfare; 21 (9) Club organized and operated exclusively for pleasure, recreation and other 22 nonprofitable purposes, no part of the net income of which inures to the benefit of any private 23 stockholder or member; 24 (10) Farmers or other mutual hail, cyclone or fire insurance company, mutual ditch or 25 irrigation company, mutual or cooperative telephone company, or like organization, the 26 income of which consists solely of assessments, dues and fees collected from members for the 27 sole purpose of meeting its expenses; 28 (11) Farmers, fruit growers or like association, organized and operated as a sales 29 agent for the purpose of marketing the products of its members and turning back to them the 30 proceeds of sales, less the necessary selling expenses, on the basis of the quantity of produce 31 furnished by them; 32 (12) Corporation or association organized for the exclusive purpose of holding title to 33 property, collecting income therefrom, and turning over the entire amount thereof, less 34 expenses, to an organization which itself is exempt from the tax imposed by chapter 143; 35 (13) Federal land banks and national farm loan associations, as provided in section 26 36 of an act of Congress approved July 17, 1916, entitled "An act to provide capital for 37 agricultural development, to create standard forms of investment based upon farm mortgage, 38 to equalize rates of interest upon farm loans, to furnish a market for United States bonds, to 39 create government depositaries and financial agents for the United States, and for other 40 purposes"; 41 (14) Joint stock land banks as to income derived from bonds or debentures or other 42 joint stock land banks or any federal land bank belonging to such joint stock land bank; 43 (15) Express companies which now pay an annual tax on their gross receipts in this 44 state and insurance companies which pay an annual tax on their gross premium receipts in this 45 state; 46 (16) Trusts created by an employer and employees as part of a stock bonus, pension 47 or profit-sharing plan, for the exclusive benefit of employees, to which contributions are 48 made by such employer or employees, or both, for the purpose of distributing to such 49 employees the earnings and principal of the fund accumulated by the trust in accordance with 50 such plan, or a trust consisting solely of one or more restricted retirement funds created for 51 one or more self-employed persons as part of a retirement plan for the exclusive benefit of 52 such self-employed person or persons, to which contributions are made by such self- HB 1793 3
53 employed person or persons, for the purpose of distributing to such self-employed person or 54 persons the earnings and principal of the fund accumulated by the trust in accordance with 55 such plan and the amount actually distributed, or made available to any distributee; [shall not 56 be taxable under any tax ordinance enacted pursuant to the provisions of sections 92.110 to 57 92.200] or 58 (17) All citizens who are low-income taxpayers as to any income received as 59 salaries, wages, commissions, and other compensation. The term "low-income 60 taxpayer" shall mean any individual who has an income at or below one hundred 61 fifty percent of the federal poverty level as such term is defined under section 208.750. 62 2. The following income shall be exempt, regardless of who receives it, from such 63 tax: 64 (1) The proceeds of life insurance policies paid to the individual beneficiaries upon 65 the death of the insured; 66 (2) The amount received by the insured as a return of premium or premiums paid by 67 him under life insurance or endowment contracts, either during the term or at the maturity of 68 the term mentioned in the contract or upon the surrender of the contract; 69 (3) Any amount received under workers' compensation acts, as compensation for 70 personal injuries or sickness, plus the amount of any damages received whether by suit or 71 agreement on account of such injuries or sickness, or through the war risk insurance act or 72 any law for the benefit or relief of injured or disabled members of the military or naval forces 73 of the United States; 74 (4) The value of property acquired by gift, bequest, devise or descent, but the income 75 from such property shall be included as income; 76 (5) Interest upon the obligations of this state or of any political subdivision thereof, or 77 upon the obligations of the United States or its possessions; 78 (6) Any income derived from any public utility performing functions of national 79 government or those incident to the state or any political subdivision thereof, or from the 80 exercise of any essential government function accruing to any state, territory or the District of 81 Columbia; provided, that whenever any state, territory or the District of Columbia, or any 82 political subdivision of a state or territory has, prior to the passage of chapter 143, entered in 83 good faith into a contract with any person or corporation the object and purpose of which is to 84 acquire, construct, operate or maintain a public utility, no tax shall be levied under the 85 provisions of chapter 143 upon the income derived from the operation of such public utility, 86 so far as the payment thereof will impose a loss or burden upon such state, territory or the 87 District of Columbia, or a political subdivision of this state; but this provision is not intended 88 to confer upon such person or corporation any financial gain or exemption or to relieve such 89 person or corporation from the payment of a tax as provided for in chapter 143 upon the part HB 1793 4
90 or portion of said income to which such person or corporation shall be entitled under such 91 contract. ✔
Statutes affected: