HB 1221 -- Supplemental Income Tax for School Funding

Sponsor:  Shields

This bill creates an option for school districts to submit to
their voters a supplemental income tax of up to 1% of Missouri
taxable income to reduce reliance on property taxes for school
funding.  The supplemental income tax would become effective
January 1 following its approval.  The statutes governing state
income tax will apply, and employers will withhold the
supplemental income tax as prescribed by existing statute.  The
Department of Revenue will adjust tax materials as necessary to
administer the tax, promulgate necessary rules, and distribute to
the school district the revenue generated from residents of the
district.  For each district that adopts a supplemental income
tax, the Department of Elementary and Secondary Education will
calculate a property tax rate that is the equivalent of the
revenue generated by the supplemental income tax and include the
equivalent rate as an addition to the district's operating levy
for the purposes of calculating state aid.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:00 am