143.011. 1. A tax is hereby imposed for every taxable year on the Missouri taxable income of every resident. The tax shall be determined by applying the tax table or the rate provided in section 143.021, which is based upon the following rates:
If the Missouri taxable income is: The tax is:
Not over $1,000.00 . . . . . . . . . . 1 1/2% of the Missouri
Over $1,000 but not over $2,000 $15 plus 2% of excess
Over $2,000 but not over $3,000 $35 plus 2 1/2% of excess
Over $3,000 but not over $4,000 $60 plus 3% of excess
Over $4,000 but not over $5,000 $90 plus 3 1/2% of excess
Over $5,000 but not over $6,000 $125 plus 4% of excess
Over $6,000 but not over $7,000 $165 plus 4 1/2% of
excess over $6,000
Over $7,000 but not over $8,000 $210 plus 5% of excess
Over $8,000 but not over $9,000 $260 plus 5 1/2% of
excess over $8,000
Over $9,000 . . . . . . . . . . . . . $315 plus 6% of excess
2. (1) Beginning with the 2017 calendar year, the top rate of tax under subsection 1 of this section may be reduced over a period of years. Each reduction in the top rate of tax shall be by one-tenth of a percent and no more than one reduction shall occur in a calendar year. The top rate of tax shall not be reduced below five and one-half percent. Reductions in the rate of tax shall take effect on January first of a calendar year and such reduced rates shall continue in effect until the next reduction occurs.
(2) A reduction in the rate of tax shall only occur if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least one hundred fifty million dollars.
(3) Any modification of tax rates under this subsection shall only apply to tax years that begin on or after a modification takes effect.
(4) The director of the department of revenue shall, by rule, adjust the tax tables under subsection 1 of this section to effectuate the provisions of this subsection. The bracket for income subject to the top rate of tax shall be eliminated once the top rate of tax has been reduced to five and one-half of a percent.
3. Beginning with the 2017 calendar year, the brackets of Missouri taxable income identified in subsection 1 of this section shall be adjusted annually by the percent increase in inflation. The director shall publish such brackets annually beginning on or after October 1, 2016. Modifications to the brackets shall take effect on January first of each calendar year and shall apply to tax years beginning on or after the effective date of the new brackets.
4. As used in this section, the following terms mean:
(1) "CPI", the Consumer Price Index for All Urban Consumers for the United States as reported by the Bureau of Labor Statistics, or its successor index;
(2) "CPI for the preceding calendar year", the average of the CPI as of the close of the twelve month period ending on August thirty-first of such calendar year;
(3) "Percent increase in inflation", the percentage, if any, by which the CPI for the preceding calendar year exceeds the CPI for the year beginning September 1, 2014, and ending August 31, 2015.
(L. 1972 S.B. 549, A.L. 2014 S.B. 509 & 496)
*S.B. 509 & 496 was vetoed 5-01-14. The veto was overridden on 5-06-14.
Missouri General Assembly