HCS SCS SB 3, 8 & 9 -- FEDERAL INCOME TAX DEDUCTION

SPONSOR:  Gibbons (Kennedy, Hegeman)

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 Loss 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 bill will avoid a tax
increase through state taxation of the federal advance refund
and credit resulting from the passage of the Economic Growth and
Tax Relief Reconciliation Act of 2001 by Congress.

Testifying for the bill were Senator Gibbons; Missouri Chamber
of Commerce; and Department of Revenue.

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