HB 727 -- INCOME TAX DEDUCTION

SPONSOR: Smith (163)

COMMITTEE ACTION: Voted "Do Pass" by the Standing Committee on Emerging Issues by a vote of 14 to 0.

This bill provides an income tax deduction on the income received by any taxpayer for his or her services as a teacher or paraprofessional, as defined in the bill.

Beginning January 1, 2022, the deduction will be worth 25% of such income. The deduction will be increased each year at 25% increments of such income, ending at 100% on January 1, 2025.

The provisions of this bill sunsets six years after the effective date.

This bill is similar to HB 2736 (2020).

PROPONENTS: Supporters say that this bill offers a way to help teachers without providing a flat raise across the board. This proposal costs the state less money than the flat raise, but still helps teachers. The bill also helps teachers of both private and public schools who have relatively similar salaries despite different employers.

Testifying for the bill were Representative Smith; Missouri State Teachers Association; Missouri National Education Association; and Arnie C. Dienoff.

Scott McKellar provided written testimony in opposition.

Written testimony has been submitted for this bill. The full written testimony can be found under Testimony on the bill page on the House website.

Statutes affected:
Introduced (1562H.01): 143.1400