Tax bills advancing this week
March 31, 2022 - Although the pace of the legislative session is much, much slower than in previous years, tax bills continue to take steps - some advancing this week.
State and local tax (SALT) parity provisions would allow a Missouri income tax credit for taxes paid to other states by individuals through flow-through entities (such as S corporations and partnerships). This language is necessary due to the advent of special tax laws in other states that were established to allow individuals operating flow-through entities to maximize deduction of state and local income taxes paid on their federal income tax returns. Thanks to the hard work of Chuck Pierce on behalf of Associated Industries of Missouri and the MoCPAs, the SALT parity language has been added to several bills.
SB 807 (Hoskins) includes the SALT parity issue and received a final vote by the Senate today. That bill will now move to the House for further consideration. SB 1154 (Koenig) was also heard in the Senate Ways and Means Committee today and HB 2845 (Riley) was heard in the House Financial Institutions Committee last night. SB 931 (Koenig) also addresses the issue and is on the Senate calendar for consideration by the full Senate. As you can see, the provisions are being added to all moving tax vehicles in hopes of passing the language this year.
In other tax news, the Senate Ways and Means Committee today voted to advance SB 1067 (Hoskins) that would reduce the amount of revenue required to trigger income tax cuts from $150 million to $100 million more than the highest of the previous three years, potentially resulting in a faster reduction of the individual income tax. The Committee also voted to advance SB 1108 (Koenig), a bill that deals with property tax appeals.
We will continue to advise of these and other tax issues as the session progresses. The 2022 Legislative Session will end on Friday the 13th of May at 6:00 p.m.