HCS HBs 311 & 406 -- STATE INCOME TAX

SPONSOR:  Green

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 12 to 2.

This substitute increases the state income tax deduction for
dependents from $400 to $800.  This provision will become
effective January 1, 1996.

The substitute also allows a state income tax deduction for
certain private pensions of up to $2,000 for tax year 1997, up
to $4,000 for tax year 1998, and up to $6,000 for tax year 1999
and thereafter.  The deduction will be allowed to taxpayers with
Missouri adjusted gross income of less than $25,000 for single
taxpayers, $32,000 for married taxpayers filing a combined
return, and $16,000 for married taxpayers filing separate
returns.  This provision will become effective January 1, 1997.

FISCAL NOTE:  Fiscal note not available at time of printing.

PROPONENTS:  Supporters say that the private pension deduction
was promised during passage of the government pension
deduction.  This provision would fulfill that promise.

Testifying for the original bill were Representative Green; and
Taxpayer's Research Institute of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Research Analyst

HB 311 -- State Income Tax

Sponsor:  Green

This bill expands the limited state income tax deduction for
government pensions, annuities, or retirement allowances to
privately funded annuities, pensions, or retirement allowances
to all Missouri taxpayers within the statutorily imposed $6,000
limit.

This bill will become effective January 1, 1996, and applies to
all taxable years beginning after December 31, 1995.