The bill seeks to repeal and replace section 143.121 of the Missouri Revised Statutes, introducing significant modifications to the calculation of Missouri adjusted gross income for resident individuals. Key changes include the addition of specific amounts to federal adjusted gross income, such as federal income tax refunds that provided a Missouri tax benefit, interest on certain governmental obligations, and deductions for net operating losses. For nonresident individuals, property taxes paid to another state can be included in their income unless that state allows a subtraction for property taxes paid to Missouri. Furthermore, the bill introduces several subtractions from federal adjusted gross income, including interest from federal reserve bank deposits, certain capital gains, and military service income. A notable provision exempts the first $25,000 of bonus pay received by employees from state income tax for tax years beginning on or after January 1, 2027. The bill also allows taxpayers to subtract qualified health insurance premiums and capital gains from farmland sales, with specific limits based on the amounts received. Additionally, a verification process for beginning farmers is established to ensure eligibility for these tax benefits, aiming to provide tax relief and clarity for Missouri taxpayers.

Statutes affected:
Introduced (4631H.01): 143.121