HB 567 -- Individual Income Tax

Sponsor:  Oxford

Beginning January 1, 2010, this bill changes the laws regarding
the Missouri individual income tax.  In its main provisions, the
bill:

(1)  Eliminates the deduction for federal income taxes paid which
is currently capped at $5,000 for a single taxpayer and $10,000
for a married couple;

(2)  Establishes a refundable tax credit of $150 per family
member including the taxpayer, the taxpayer's spouse, and the
taxpayer's dependents based on the taxpayer's Missouri adjusted
gross income.  A phase-out of the credit is established for
incomes between $30,000 and $50,000 for single or married filing
separately taxpayers and for incomes between $60,000 and $80,000
for married filing combined and head of household taxpayers.
Taxpayers with incomes greater than the phase-out amounts are not
eligible for the credit; and

(3)  Creates new income tax rates and brackets.  Currently, the
maximum rate is 6% for incomes greater than $9,000.  The new rate
maximum will be 9% for taxable incomes greater than $50,000.

The bill contains a referendum clause and will be submitted to
qualified voters in November 2010.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am