HB 366 -- TAXATION (Champion)

This bill:

(1)  Disallows a state income tax deduction for an annuity,
pension, or retirement allowance to the extent the amount is
excluded from the federal gross adjusted income or is otherwise
deducted from the calculation of state taxable income;

(2)  Authorizes a tax credit for 50% of contributions to
qualified unplanned pregnancy resource centers and to qualified
sexual violence crisis service centers.  Unplanned pregnancy
resource centers are nonresidential facilities that provide
assistance and support to women with crisis or unplanned
pregnancies and do not provide abortions or referrals for
abortion. Sexual violence crisis service centers are nonprofit
organizations which provide services to sexual violence victims,
their significant others, secondary victims, and the community
relating to rape, sexual assault, and sexual abuse.  The tax
credits authorized may be taken against income tax, corporate
franchise tax, insurance premium tax, financial institutions
tax, and express company tax liability.  The tax credit is not
refundable, but can be carried forward and claimed for up to 4
taxable years.  The maximum credit an individual taxpayer can
claim is $25,000 per year.  The minimum contribution must exceed
$100.  Contributions may be made in cash, stocks, bonds or other
marketable securities, or real property.  The statewide maximum
of tax credits that can be taken in any one year cannot exceed
$2 million for each program.  The bill provides for the
Department of Social Services to certify the unplanned pregnancy
resource centers and the tax credits and the Department of
Public Safety to certify the sexual violence crisis service
centers and the tax credits and to apportion the credits when
the applications for the credits exceed the statewide cap.  The
maximum credit an individual taxpayer can claim is $50,000 per
year for each program.  The minimum contribution must exceed
$100.  Contributions may be made in cash, stocks, bonds or other
marketable securities, or real property;

(3)  Creates an additional kind of new generation cooperative
agricultural project which qualifies for tax credits from the
Agricultural Product Utilization Tax Credit Fund.  A new
generation cooperative with an investment of $15 million or more
and employing at least 100 employees will be eligible for up to
$3 million in tax credits.  Beginning January 1, 2002, all new
members qualifying for tax credits for investing in new
generation cooperatives are to be domiciled in the state of
Missouri;

(4)  Changes the state individual income tax treatment of public
and private pension income received.  Under current law, public
source pension income received may be deducted from state income
tax on the first $6,000 of pension income received if the
taxpayer's adjusted gross income is less than $32,000 for
married taxpayers and less than $25,000 for single taxpayers.
Private source pension income received may be deducted on the
first $5,000 received if the taxpayer's adjusted gross income is
less than $32,000 for married taxpayers and less than $25,000
for single taxpayers.  After January 1, 2003, the bill will
allow the first $7,000 of all pension income received (both
public and private) to be deducted if the taxpayer's adjusted
gross income is less than $38,000 for married taxpayers and less
than $30,000 for single taxpayers;

(5)  Authorizes an individual income tax credit of up to $250
for instructional materials purchased by a teacher used in the
course of employment as a teacher.  The credit will apply to tax
year 2001 and thereafter;

(6)  Authorizes employers an income tax credit for paid leave
granted to employees to volunteer at a private, parochial, or
public school sponsored function with an educational purpose.
The employee must be attending a function of their biological,
adopted, step, or foster child or of a child for whom the
employee is the legal guardian.  The income tax credit for the
employer will be equal to 50% of the amount of federal minimum
wage for each hour of paid leave granted to an employee.  The
tax credit is refundable, and the maximum statewide credits
authorized cannot exceed $5 million.  The employer must submit
an application for the tax credit with the Department of Labor
and Industrial Relations and obtain a certificate of tax credit
prior to applying the credit to tax liability.  The department
will issue the tax credits in the order they are received;

(7)  Extends the time period for claiming the wood energy income
tax credit from 5 years to 10 years;

(8)  Allows a state individual income tax credit equal to a
percentage of any earned income tax credit claimed by the
taxpayer on the federal income tax return.  The percentage of
the federal credit allowed will be 0.5% for tax year 2002, 2.5%
for tax year 2004, 5% for tax year 2006, 7.5% for tax year 2008,
and 10% for tax year 2010 and thereafter.  Any amount of credit
which exceeds the taxpayer's liability in any tax year will be
refunded to the taxpayer or carried forward into future tax
years;

(9)  Allows an 80% tax credit to the owner of any recreational
facility with at least 6 baseball diamonds located in certain
counties of the third classification.  The annual cap on the tax
credit is $10,000; and

(10)  Repeals the Missouri Individual Training Account Program
administered by the Department of Economic Development.

The bill has an emergency clause.

FISCAL NOTE:  Estimated Net Cost to All State Funds of
$19,148,633 to $24,503,264 in FY 2002, $29,244,526 to
$32,553,898 in FY 2003, and $54,789,394 to $57,999,809 in FY
2004.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am