SB 497 Reduces the top rate of tax on personal income over a period of years
Sponsor: Schmitt
LR Number: 4421S.05I Fiscal Note available
Committee: Ways and Means
Last Action: 1/16/2014 - Hearing Conducted S Ways and Means Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2014

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Current Bill Summary


SB 497 - The act modifies the individual income tax rate table. The maximum tax rate on personal income will be reduced to 5.5% for the 2015 calendar year. The maximum tax rate will then be reduced by an additional 1.5% over a period of years. No reduction will go into effect unless the net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue in any of the three fiscal years prior to such year by at least $100 million. The amount of the rate reduction will be calculated by taking the amount of net general revenue collected in the previous fiscal year and subtracting the highest amount of net general revenue collected in the three fiscal years prior to such year and dividing such number by $100 million. Then multiply that amount by 3/20% and subtract it from the top rate of tax in the previous calendar year. Once fully phased in, the top rate of tax on individual income will be four percent.

MIKE HAMMANN