HCS HB 5, 1 & 2 -- FEDERAL INCOME TAX DEDUCTION

SPONSOR:  Kennedy

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 14 to 0.

This substitute exempts from state individual income tax any
federal income tax advanced refund or subsequent credit in lieu
of an advanced refund received by a taxpayer under section
6428(e) of the Internal Revenue Code.  (The section pertains to
tax year 2001.)

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$33,687,672 in FY 2002, $0 in FY 2003, and $0 in FY 2004.

PROPONENTS:  Supporters say that the additional deduction will
help individual taxpayers pay necessary bills and will also help
"jump-start" the economy by increasing retail sales.
Individuals may also consider donating all or a portion of their
advanced payment or Missouri deduction amount to charity.

Testifying for the bills were Representatives Kennedy, Froelker,
Secrest, and Hegeman; and Missouri Chamber of Commerce.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

Missouri House of Representatives
Last Updated October 19, 2001 at 4:30 pm