On May 6, 2014, the Missouri legislature voted to override the governor's veto of Senate Bill 509, giving Missouri taxpayers a personal tax reduction for the first time since the 1920's.
The bill reduces personal income taxes on a couple of fronts:
- Lower income individuals will receive an expanded personal exemption
- The graduated tax brackets will be adjusted by a CPI index
- Higher income individuals may see the top tax bracket reduce from 6% to 5.5%
- Missouri business income may be reduced by 25%, phased-in over a period of several years
The reductions are triggered by state revenue exceeding the highest net general revenue collected from the three prior fiscal years by $150 million. The general concept is, if state revenues grow by $150 million, then taxpayers receive a tax reduction.
These changes will first impact the calendar 2017 tax year.
For more information about Senate Bill 509, please click here.
If you have any questions, please contact RubinBrown.
Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.
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