By Ray McCarty, President/CEO, Associated Industries of Missouri
September 21, 2022 - The Missouri Senate today approved SCS SB's 3 & 5, sponsored by Sens. Hough and Koenig and handled on the floor by Sen. Hough, with a vote of 24-4.
The bill in its present form would provide an immediate reduction in the individual income tax rate from the current rate of 5.2% to 4.95% in calendar year 2023, a likely reduction to 4.8% in calendar year 2024 (provided certain revenue requirements are met), and an additional reduction in future years based on increased revenues that could result in a tax rate as low as 4.5%.
The bill was passed with an emergency clause. If the final version of the bill includes the emergency clause, the bill would be effective upon Governor Parson's signature.
"Associated Industries of Missouri is proud to have led the effort to provide permanent tax relief for Missouri businesses," said McCarty. "We commend Governor Mike Parson for calling the special session and the Senate for compromising on a bill they could move quickly through the process. It is our hope the Missouri House leadership will act in a similar manner and we are able to wrap up this special session with a huge win for all individual taxpayers and the 95% of Missouri businesses that report their business income taxes on their individual returns," he said.
The Missouri House is expected to have hearings and floor debate on the bill next week. We will keep you posted on the bill's progress.