SB 748 -- NONRESIDENT TAXABLE INCOME CALCULATIONS

SPONSOR:  Ridgeway (LeVota)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Tax Reform by a vote of 7 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.

The bill contains an emergency clause.

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.  The bill will save Kansas City area residents an
estimated $5 million.  Kansas City needs to act as one town even
when in two states.  The amendment last year was aimed at
Illinois and creates an unnecessary barrier to these efforts that
would be alleviated by the tax reciprocity in the bill.  This is
about equalization across state lines, and passage of the bill
will re-establish a fair and equitable tax structure with all
surrounding states.

Testifying for the bill were Senator Ridgeway; Greater Kansas
City Chamber of Commerce; and Kansas City Civic Council.

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 3:12 pm