SCS HCS HB 82 -- INCOME TAX EXEMPTION FOR CERTAIN RETIREMENT
BENEFITS

This bill changes the laws regarding income tax exemptions for
certain retirement benefits.  In its main provisions, the bill:

(1)  Specifies that the "maximum Social Security benefit
available" will mean $32,500 for the tax year beginning
January 1, 2007, and for each subsequent tax year, the amount
will increase by the percentage increase in the federal Consumer
Price Index;

(2)  Removes the requirement that a taxpayer be at least 62 years
of age to be eligible for the publicly funded retirement benefit
income tax exemption;

(3)  Changes the limitation requirement for a publicly funded
retirement benefit when a taxpayer receives both Social Security
and publicly funded retirement benefits from the total amount of
Social Security benefits not included in Missouri adjusted gross
income to only the amount exempted under Section 143.125, RSMo;
and

(4)  Authorizes, beginning January 1, 2010, an income tax
deduction from a taxpayer's Missouri adjusted gross income for
15% of any military retirement income, regardless of age or
income.  The tax deduction rate will increase by 15% annually
until January 1, 2016, when it is fully phased in and all
military retirement income will be deductible.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:23 am