HB 1661 -- NONRESIDENT TAXABLE INCOME CALCULATIONS

SPONSOR:  LeVota

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Tax Reform by a vote of 9 to 0.

This bill exempts property taxes paid by certain nonresident
taxpayers from being added-back to their adjusted gross income if
the other state does not require a similar add-back of Missouri's
property taxes.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$5,800,000 to $7,300,000 in FY 2009, FY 2010, and FY 2011.  No
impact on Other State Funds in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that it is important to exempt the
property tax add-back for nonresidents when another state does
not require the same add-back of Missouri's property taxes.  The
State of Kansas has similar legislation ready for floor action
which will increase taxes for Missouri residents who work in
Kansas.  This bill will save Kansas City area residents an
estimated $5 million.  Missourians may decide to move to Kansas
without this bill.  Kansas City competes with other large cities
and would like to have economic growth.  Kansas City needs to act
as one town even when in two states.  The amendment last year
creates an unnecessary barrier to these efforts that would be
alleviated by the bill.  This is about equalization across state
lines.  Taxation based on state residency is not good tax policy.
Passage of the bill will re-establish a fair and equitable tax
structure with all surrounding states.

Testifying for the bill were Representative LeVota; Greater
Kansas City Chamber of Commerce; and Americans for Prosperity and
Foundation.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm