The bill proposes to repeal the existing section 92.130 of the Revised Statutes of Missouri and replace it with a new section that outlines specific types of income that are exempt from earnings tax under local tax ordinances. The new section specifies that income received by various organizations, such as labor unions, fraternal societies, mutual savings banks, and non-profit entities, will not be subject to earnings tax. Additionally, it includes provisions for income received by individuals in the form of salaries, wages, and commissions for work performed in the city, provided they are either employed by the state or meet the definition of public safety personnel. Furthermore, the bill clarifies that certain types of income, regardless of the recipient, are exempt from earnings tax. This includes proceeds from life insurance policies, returns of premiums, workers' compensation benefits, gifts, and interest on state or federal obligations. The bill aims to provide clarity on what constitutes taxable income and to ensure that specific groups and types of income are protected from local earnings tax, thereby promoting fairness and support for non-profit and public service entities.

Statutes affected:
Introduced (5409H.01): 92.130