HB 940 -- Missouri Individual Income Flat Tax Act

Sponsor:  Robb

This bill establishes the Missouri Individual Income Flat Tax Act
for tax years beginning on or after January 1, 2006.  A flat tax
is created on an individual's income at a rate of 4% and replaces
most additions and subtractions from the Missouri adjusted gross
income with an adjustment for tax-free bond interest over $500
and a larger personal deduction of $10,000 per taxpayer; $20,000
for a combined return; $15,000 for a head of household; and
$20,000 for a surviving spouse.  A resident can also deduct
$5,000 for each dependent.

The bill eliminates tax credits for individuals and provides both
nonresident and partnership allocation and computation of
Missouri individual income tax liability.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm