March 4, 2021 - Today, the Missouri Senate Ways and Means Committee, chaired by Sen. Andrew Koenig, approved four bills dealing with various tax issues impacting employers.
SB 245, sponsored by Sen. Bob Onder, would double the step-by-step reductions in individual income tax rate and double the business income deduction that is allowed under our tax cut bill we passed into law by overriding a veto from then-Gov. Jay Nixon. When completely phased in, the business income deduction could reach 50% and the rate cuts would be enacted in .2% increments instead of the current .1% increment. Both require state revenues to exceed a threshold amount, a feature that virtually pays for the reductions as they are made.
SB 313, sponsored by Sen. Bill Eigel, would provide an additional cut of the top individual income tax rate for each $100 million in which net general revenue exceeds a baseline of $10.3 billion. This baseline is increased by $100 million each year. There is no maximum total reduction that may be made under the bill.
SB 351, sponsored by Sen. Andrew Koenig, adjusts the monthly sales tax due dates to be the last day of the following month rather than the 20th day of the following month. There is no fiscal note associated with the bill, but it removes an inconvenience in sales tax return filing.
Finally, SJR 4, a constitutional amendment proposed by Sen. Andrew Koenig, would set a maximum income tax rate in the Missouri Constitution of 5.9%. The amendment would also constitutionally allow the legislature to impose a sales and use tax on subscriptions, licenses for digital products, and online purchases. The measure would require approval by voters statewide.