SECOND REGULAR SESSION

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NOS. 1145, 1359 & 1121

93RD GENERAL ASSEMBLY

                  Reported from the Committee on Senior Citizen Advocacy February 14, 2006, with recommendation that the House Committee Substitute for House Bill Nos. 1145, 1359 & 1121 Do Pass. Referred to the Committee on Rules pursuant to Rule 25(26)(f).

STEPHEN S. DAVIS, Chief Clerk

3429L.02C

AN ACT

To repeal section 135.096, RSMo, and to enact in lieu thereof one new section relating to an income tax deduction for long-term care insurance premiums.

Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Section 135.096, RSMo, is repealed and one new section enacted in lieu thereof, to be known as section 135.096, to read as follows:

            135.096. 1. In order to promote personal financial responsibility for long-term health care in this state, for all taxable years beginning after December 31, 1999, but ending on or before December 31, 2005, a resident individual may deduct from such individual's Missouri taxable income an amount equal to fifty percent of all nonreimbursed amounts paid by such individual for qualified long-term care insurance premiums to the extent such amounts are [not] included in the individual's [itemized deductions] taxable income. For all taxable years beginning on or after January 1, 2006, a resident individual may deduct from such individual's Missouri taxable income an amount equal to one hundred percent of all nonreimbursed amounts paid by such individual for qualified long-term care insurance premiums to the extent such amounts are included in the individual's taxable income. A married individual filing a Missouri income tax return separately from his or her spouse shall be allowed to make a deduction pursuant to this section in an amount equal to the proportion of such individual's payment of all qualified long-term care insurance premiums. The director of the department of revenue shall place a line on all Missouri individual income tax returns for the deduction created by this section.

            2. For purposes of this section, "qualified long-term care insurance" means any policy which meets or exceeds the provisions of sections 376.1100 to 376.1118, RSMo, and the rules and regulations promulgated pursuant to such sections for long-term care insurance.

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