HCS HB 1145, 1359 & 1121 -- INCOME TAX DEDUCTION FOR LONG-TERM
CARE INSURANCE

SPONSOR:  Bruns (Portwood)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Senior
Citizen Advocacy by a vote of 8 to 0.

This substitute changes the laws regarding the long-term care
insurance tax deduction.  For taxable years beginning after
January 1, 2006, Missouri residents will be allowed to deduct
from their taxable income an amount equaling 100% of all
non-reimbursed amounts paid for qualified long-term care
insurance premiums to the extent the amounts are included in the
individual's adjusted gross income.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$2,736,000 in FY 2007, FY 2008, and FY 2009.  No impact on Other
State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the bills make expensive
long-term care more affordable for seniors and will help
alleviate the state's cost for providing the care.  The 100%
deduction provides a tax incentive for all Missouri citizens to
invest in long-term care insurance.

Testifying for HB 1145 were Representative Portwood; AARP; and
Missouri Association of Homes for the Aging.  Testifying for
HB 1359 was Representative Dethrow.  Testifying for HB 1121 were
Representative Wildberger; Silver Haired Legislature; AARP; and
Missouri Association of Independent Insurance Agents.

OPPONENTS:  There was no opposition voiced to the committee.

Alex Curchin, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am