HB 637 -- Individual Income Taxes

Sponsor:  Oxford

Beginning January 1, 2012, this bill changes the laws regarding
the Missouri individual income tax.  In its main provisions, the
bill:

(1)  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;

(2)  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; and

(3)  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.  A
taxpayer with an income greater than the phase-out amount is not
eligible for the credit.

The bill contains a referendum clause and will be submitted to
qualified voters in November 2011.

Missouri House of Representatives
96th General Assembly, 1st Regular Session
Last Updated August 9, 2011 at 1:23 pm