SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
94TH GENERAL ASSEMBLY
Reported from the Special Committee on Tax Reform March 6, 2008 with recommendation that House Committee Substitute for House Bill No. 1644 Do Pass. Referred to the Committee on Rules pursuant to Rule 25(21)(f).
D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal sections 143.071 and 143.171, RSMo, and to enact in lieu thereof two new sections relating to income taxes.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 143.071 and 143.171, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 143.071 and 143.171, to read as follows:
143.071. 1. For all tax years beginning before September 1, 1993, a tax is hereby imposed upon the Missouri taxable income of corporations in an amount equal to five percent of Missouri taxable income.
2. For all tax years beginning on or after September 1, 1993, and ending on or before December 31, 2008, a tax is hereby imposed upon the Missouri taxable income of corporations in an amount equal to six and one-fourth percent of Missouri taxable income. For the tax year beginning on January 1, 2009, the tax imposed upon the Missouri taxable income of corporations shall be equal to five percent of Missouri taxable income. For the tax year beginning on January 1, 2010, the tax imposed upon the Missouri taxable income of corporations shall be equal to three and three-fourths percent of Missouri taxable income. For the tax year beginning on January 1, 2011, the tax imposed upon the Missouri taxable income of corporations shall be equal to two and one-half percent of Missouri taxable income. For the tax year beginning on January 1, 2012, the tax imposed upon the Missouri taxable income of corporations shall be equal to one and one-fourth percent of Missouri taxable income. For all tax years beginning on or after January 1, 2013, no tax shall be imposed upon the Missouri taxable income of corporations.
143.171. 1. [For all tax years beginning before January 1, 1994, for an individual taxpayer and for all tax years beginning before September 1, 1993, for a corporate taxpayer, the taxpayer shall be allowed a deduction for his federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils).
2.] For all tax years beginning on or after January 1, 1994, but ending on December 31, 2008, an individual taxpayer shall be allowed a deduction for [his] the taxpayer's federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed, not to exceed five thousand dollars on a single taxpayer's return or ten thousand dollars on a combined return, after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils).
2. (1) As used in this subsection, the term "deduction limit" means:
(a) Five thousand dollars for taxpayers with a filing status of single, head of household, qualifying widow(er), or married filing separately;
(b) Ten thousand dollars for taxpayers with a filing status of married filing combined.
(2) For all taxable years beginning on or after January 1, 2009, but ending on December 31, 2012, an individual taxpayer shall be allowed a deduction for the taxpayer's federal income tax liability under chapter 1 of the Internal Revenue Code of 1986, as amended, for the same taxable year for which the Missouri return is being filed, after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages) as amended, section 27 (tax of foreign country and United States possessions) as amended, and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils) as amended.
(3) The deduction amount shall be equal to the amount of the taxpayer's federal income tax liability that does not exceed the deduction limit. If the taxpayer's federal income tax liability exceeds the deduction limit, the deduction amount for the taxpayer's federal tax liability in excess of the deduction limit shall be the following percentages of the taxpayer's federal income tax liability in the taxable year for which the deduction is made:
(a) For the taxable year beginning on January 1, 2009, twenty percent;
(b) For the taxable year beginning on January 1, 2010, forty percent;
(c) For the taxable year beginning on January 1, 2011, sixty percent;
(d) For the taxable year beginning on January 1, 2012, eighty percent.
For all taxable years beginning on or after January 1, 2013, the deduction amount shall be equal to the amount of the individual's federal income tax liability after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages) as amended, section 27 (tax of foreign country and United States possessions) as amended, and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils) as amended, in the taxable year for which the deduction is made.
3. For all tax years beginning on or after September 1, 1993, but ending on or before December 31, 2008, a corporate taxpayer shall be allowed a deduction for fifty percent of its federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels and lubricating oils). For all taxable years beginning on or after January 1, 2009, the amount of the deduction allowed under this subsection shall be the following percentages of the corporate taxpayer's federal income tax liability under chapter 1 of the Internal Revenue Code of 1986, as amended, for the same taxable year for which the Missouri return is filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code of 1986 by section 31 (tax withheld on wages) as amended, section 27 (tax of foreign country and United States possessions) as amended, and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils) as amended:
(1) For the taxable year beginning in 2009, sixty percent;
(2) For the taxable year beginning in 2010, seventy percent;
(3) For the taxable year beginning in 2011, eighty percent;
(4) For the taxable year beginning in 2012, ninety percent; and
(5) For all taxable years beginning on or after January 1, 2013, one hundred percent.
4. If a federal income tax liability for a tax year prior to the applicability of sections 143.011 to 143.996 for which [he] the taxpayer was not previously entitled to a Missouri deduction is later paid or accrued, [he] the taxpayer may deduct the federal tax in the later year to the extent it would have been deductible if paid or accrued in the prior year.
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