HB 757 -- Taxation

Co-Sponsors:  Jetton, Sutherland, Hunter, Cooper (120)

This bill makes various changes related to taxation.

The bill eliminates the taking of various tax credits against tax
liability beginning in tax year 2010.  These tax credits are:
Neighborhood Assistance tax credit; Missouri Development Finance
Board tax credits; Circuit Breaker tax credit; New Business
Facility tax credit; New or Expanded Business Facility tax
credit; Wood Energy tax credit; Special Needs Adoption tax
credit; Sponsorship and Mentoring Program tax credit; Missouri
Low-income Housing tax credit; Missouri Small Businesses and
Community Banks tax credit; Youth Opportunities and Violence
Prevention tax credit; Distressed Communities tax credits; Small
Business ADA tax credit; Certified Capital Companies tax credit;
Domestic Violence Centers tax credit; Maternity Home tax credit;
Wine and Grape Production tax credit; Film Production Project tax
credit; S Corporations Bank and Franchise tax credits; Higher
Education Scholarship Program tax credit; Advantage Missouri
Program tax credit; New Jobs Training Program tax credit; Family
Development Account Program tax credit; Historic Structures
Rehabilitation tax credits; Dry Fire Hydrant tax credit;
Innovation Centers tax credit; New Generation Cooperative tax
credits; Brownfield Redevelopment tax credit; Small Business
Incubator Program tax credit; Missouri New Enterprise Creation
tax credit; Qualified Research Expenses tax credit; Missouri
Individual Training Account Program tax credit; Mature Worker
Child Care Program tax credit; and Shared Care tax credit.

The bill creates a flat tax for individual income taxpayers at
the rate of 4% on taxable income beginning with tax year 2004.
Personal exemptions will increase from $2,100 to $10,000 for
single taxpayers; from $4,200 to $20,000 for joint taxpayers;
from $2,100 to $15,000 for heads of household; and from $4,200 to
$20,000 for surviving spouses.  Most deductions for individual
taxpayers are eliminated.

The bill reduces the Missouri corporation income tax rate from
6.25% to 4.25% in tax year 2005, from 4.25% to 2.25% in tax year
2007, and from 2.25% to zero in tax year 2008.

The bill also decouples from the federal Internal Revenue Code by
setting the reference to the Internal Revenue Code in current law
as being the code as it stands on January 1, 2009, and also
requires all lottery and other gaming winnings to be included in
Missouri nonresident adjusted gross income when the winnings are
from a Missouri source.

The bill contains an emergency clause for the portion of the bill
relating to the flat tax for individual income taxpayers.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am