SCS/HB 1159 - The act makes several changes in Missouri's tax laws.

SENIOR CITIZENS - The act broadens eligibility for senior citizens property tax relief (circuit breaker) to exclude the first $18,000 in retirement income, thereby allowing more senior citizens to qualify. The act also requires the Department of Revenue to notify senior citizens who might be eligible for the tax credit on prescription drugs of their potential eligibility. This provision of the act was drawn from SB 743.

Under current law, pension income has been excluded from taxation in $1,000 per year increments since January 1, 1998, and extending through January 1, 2002, when the first $6,000 would be excluded from taxation. This act excludes the first $12,000 in person income from taxation for single filers with an income of less than $25,000 ($32,000, if married).

EARNED INCOME TAX CREDIT - Missouri residents who are eligible for the federal earned income tax credit shall be allowed a credit against their Missouri taxes equal to one and one-fourth percent of the federal credit. The credit must be filed when the individual files a return and the Department is required to notify those potentially eligibility of that potential eligibility.
DAVID VALENTINE