HOUSE BILL NO. 2247 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE WOLFIN.
5138H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 143.011, RSMo, and to enact in lieu thereof one new section relating to income tax.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 143.011, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 143.011, to read as follows: 143.011. 1. A tax is hereby imposed for every [taxable] tax year on the Missouri 2 taxable income of every resident. The tax shall be determined by applying the tax table or the 3 rate provided in section 143.021, which is based upon the following rates: 4 If the Missouri taxable income The tax is: 5 is: 6 Not over $1,000.00 1 1/2% of the Missouri taxable income 7 Over $1,000 but not over $15 plus 2% of excess over $1,000 8 $2,000 9 Over $2,000 but not over $35 plus 2 1/2% of excess over $2,000 10 $3,000 11 Over $3,000 but not over $60 plus 3% of excess over $3,000 12 $4,000 13 Over $4,000 but not over $90 plus 3 1/2% of excess over $4,000 14 $5,000 15 Over $5,000 but not over $125 plus 4% of excess over $5,000 16 $6,000
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 2247 2
17 Over $6,000 but not over $165 plus 4 1/2% of excess over $6,000 18 $7,000 19 Over $7,000 but not over $210 plus 5% of excess over $7,000 20 $8,000 21 Over $8,000 but not over $260 plus 5 1/2% of excess over $8,000 22 $9,000 23 Over $9,000 $315 plus 6% of excess over $9,000 24 2. (1) Notwithstanding the provisions of subsection 1 of this section to the contrary, 25 beginning with the 2023 calendar year, the top rate of tax pursuant to subsection 1 of this 26 section shall be four and ninety-five hundredths percent. 27 (2) The modification of tax rates made pursuant to this subsection shall apply only to 28 tax years that begin on or after January 1, 2023. 29 (3) The director of the department of revenue shall, by rule, adjust the tax table 30 provided in subsection 1 of this section to effectuate the provisions of this subsection. The 31 top remaining rate of tax shall apply to all income in excess of seven thousand dollars, as 32 adjusted pursuant to subsection 5 of this section. 33 3. (1) In addition to the rate reduction under subsection 2 of this section, beginning 34 with the 2024 calendar year, the top rate of tax under subsection 1 of this section may be 35 reduced by fifteen hundredths of a percent. A reduction in the rate of tax shall take effect on 36 January first of a calendar year and such reduced rates shall continue in effect until the next 37 reduction occurs. 38 (2) A reduction in the rate of tax shall only occur if the amount of net general revenue 39 collected in the previous fiscal year exceeds the highest amount of net general revenue 40 collected in any of the three fiscal years prior to such fiscal year by at least one hundred 41 seventy-five million dollars. 42 (3) Any modification of tax rates under this subsection shall only apply to tax years 43 that begin on or after a modification takes effect. 44 (4) The director of the department of revenue shall, by rule, adjust the tax tables under 45 subsection 1 of this section to effectuate the provisions of this subsection. 46 4. (1) In addition to the rate reductions under subsections 2 and 3 of this section, 47 beginning with the calendar year immediately following the calendar year in which a 48 reduction is made pursuant to subsection 3 of this section, the top rate of tax under subsection 49 1 of this section may be further reduced over a period of years. Each reduction in the top rate 50 of tax shall be by one-tenth of a percent and no more than one reduction shall occur in a 51 calendar year. No more than three reductions shall be made under this subsection. HB 2247 3
52 Reductions in the rate of tax shall take effect on January first of a calendar year and such 53 reduced rates shall continue in effect until the next reduction occurs. 54 (2) (a) A reduction in the rate of tax shall only occur if: 55 a. The amount of net general revenue collected in the previous fiscal year exceeds the 56 highest amount of net general revenue collected in any of the three fiscal years prior to such 57 fiscal year by at least two hundred million dollars; and 58 b. The amount of net general revenue collected in the previous fiscal year exceeds the 59 amount of net general revenue collected in the fiscal year five years prior, adjusted annually 60 by the percentage increase in inflation over the preceding five fiscal years. 61 (b) The amount of net general revenue collected required by subparagraph a. of 62 paragraph (a) of this subdivision in order to make a reduction pursuant to this subsection shall 63 be adjusted annually by the percent increase in inflation beginning with January 2, 2023. 64 (3) Any modification of tax rates under this subsection shall only apply to tax years 65 that begin on or after a modification takes effect. 66 (4) The director of the department of revenue shall, by rule, adjust the tax tables under 67 subsection 1 of this section to effectuate the provisions of this subsection. The bracket for 68 income subject to the top rate of tax shall be eliminated once the top rate of tax has been 69 reduced below the rate applicable to such bracket, and the top remaining rate of tax shall 70 apply to all income in excess of the income in the second highest remaining income bracket. 71 5. Beginning with the 2017 calendar year, the brackets of Missouri taxable income 72 identified in subsection 1 of this section shall be adjusted annually by the percent increase in 73 inflation. The director shall publish such brackets annually beginning on or after October 1, 74 2016. Modifications to the brackets shall take effect on January first of each calendar year 75 and shall apply to tax years beginning on or after the effective date of the new brackets. 76 6. As used in this section, the following terms mean: 77 (1) "CPI", the Consumer Price Index for All Urban Consumers for the United States 78 as reported by the Bureau of Labor Statistics, or its successor index; 79 (2) "CPI for the preceding calendar year", the average of the CPI as of the close of the 80 twelve-month period ending on August thirty-first of such calendar year; 81 (3) "Net general revenue collected", all revenue deposited into the general revenue 82 fund, less refunds and revenues originally deposited into the general revenue fund but 83 designated by law for a specific distribution or transfer to another state fund; 84 (4) "Percent increase in inflation", the percentage, if any, by which the CPI for the 85 preceding calendar year exceeds the CPI for the year beginning September 1, 2014, and 86 ending August 31, 2015. 87 7. (1) In addition to the rate reductions under subsections 2, 3, and 4 of this 88 section, for all calendar years beginning on and after January 1, 2027, and ending on or HB 2247 4
89 before December 31, 2036, the percentage of the rates of personal income tax imposed 90 under subsection 1 of this section shall be reduced annually each calendar year by one- 91 eleventh of the total percent of each rate of tax imposed upon each tax bracket as of 92 December 31, 2026. For all calendar years beginning on or after January 1, 2037, the 93 rates of tax shall be reduced to zero, there shall be no Missouri personal income tax 94 imposed under this section, and such tax shall be eliminated. 95 (2) Modifications of the personal income tax rates under the provisions of this 96 subsection shall take effect on January first of a calendar year, shall apply only to tax 97 years that begin on or after a modification takes effect, and shall continue in effect until 98 the next reduction occurs. 99 (3) The department of revenue shall, by rule and by posting on the department's 100 website, adjust and publish the tax tables under subsection 1 of this section to effectuate 101 the provisions of this subsection. ✔
Statutes affected: