HOUSE BILL NOS. 444, 217, 225, 239, 243, 297, 402 & 172




                  Reported from the Special Committee on Tax Reform, February 6, 2007 with recommendation that House Committee Substitute for House Bill Nos. 444, 217, 225, 239, 243, 297, 402 & 172 Do Pass. Referred to the Committee on Rules pursuant to Rule 25(21)(f).





To amend chapter 143, RSMo, by adding thereto one new section relating to an income tax deduction.

Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Chapter 143, RSMo, is amended by adding thereto one new section, to be known as section 143.125, to read as follows:

            143.125. 1. As used in this section, the following terms mean:

            (1) "Benefits", any Social Security benefits, Social Security disability benefits, or benefits received by the taxpayer from a public retirement system or any other retirement system if such taxpayer is not subject to full Social Security coverage as a result of participation in the public retirement system or other retirement system;

            (2) "Taxpayer", any resident individual who is sixty-five years of age or older.

            2. For all taxable years beginning on or after January 1, 2007, any taxpayer shall be allowed to subtract from the taxpayer's Missouri adjusted gross income to determine Missouri taxable income an amount equal to the amount of any benefits received by the taxpayer and that are included in federal adjusted gross income under Section 86 of the Internal Revenue Code of 1986, as amended.

            3. The director of the department of revenue may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2007, shall be invalid and void.