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SB 617 - This act modifies several provisions relating to taxation. INCOME TAX - Current law provides for a reduction in the top rate of income tax over a period of years from 6% to 5.5%, with each cut becoming effective if net general revenue collections meet a certain trigger. Beginning in the 2019 calendar year, this act provides that the top two and bottom four rates of tax shall be eliminated, with a top remaining tax rate reduced to 4.8% for all income over $7,000, and a bottom remaining tax rate of 3.5% for all income not over $5,000. In each subsequent calendar year, the rates of tax for each remaining income bracket shall be reduced by 0.1% if net general revenue collections in the fiscal year equal or exceed the net general revenue collections from the previous fiscal year. Each rate shall not be reduced more than once per calendar year, and the Director of Revenue shall adjust the tax tables as provided in the act. Each income bracket shall be eliminated once the rate for such bracket is reduced to 0%. (Section 143.011) This act decouples the Missouri standard income tax deduction from the federal standard deduction, and sets the amount of the deduction at the 2016 tax year levels. (Section 143.131) This act also repeals the Missouri income tax deduction for a taxpayer's federal income tax liability. (Section 143.171) SALES TAXES ALLOWANCE Current law allows a vendor to retain 2% of the amount of sales tax due to the state if the vendor remits the tax due on or before the due date. This act repeals such allowance. (Sections 144.140 and 144.710) MOTOR FUEL TAX For all calendar years beginning on or after January 1, 2019, this act increases the rate of motor fuel tax from $0.17/gallon to $0.23/gallon. (Section 142.803) This provision is substantially similar to HB 995 (2015), HB 1168 (2015), and to a provision contained in HCS/SS/SB 623 (2016), and is similar to HB 1581 (2016) and to a provision contained in HB 992 (2017), HB 993 (2017), SS/SB 540 (2015), HB 738 (2015), HB 1360 (2015). LOW INCOME HOUSING TAX CREDIT This act implements a cap of $135 million on the amount of tax credits that may be authorized in a given fiscal year under the Missouri Low-Income Housing Tax Credit program. This provision is similar to a provision contained in SCS/SBs 285 & 17 (2017). This act also prohibits the issuance of tax credits for the 4% credit for projects financed through tax-exempt bond issuance. (Section 135.352) TAX CREDIT CAP This act implements a cap of $425 million on the aggregate amount of all tax credits that may be authorized in a given fiscal year. (Section 135.007) This provision is substantially similar to SB 39 (2017), SB 615 (2016), and SB 507 (2015). STREAMLINED SALES AND USE TAX AGREEMENT This act requires the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement (SSUTA). The state shall be represented by four delegates in meetings with other states regarding the Agreement. One delegate shall be appointed by the Governor, one shall be a member of the General Assembly appointed by the President Pro Tem of the Senate, one shall be a member of the General Assembly appointed by the Speaker of the House of Representatives, and one shall be the Director of the Department of Revenue or his or her designee. These delegates shall report annually to the General Assembly regarding the agreement. (Section 32.070) This provision is substantially similar to a provision contained in SCS/SB 105 (2017), SCS/SB 795 (2016), HB 726 (2015), HB 727 (2015), HCS/HB 1356 (2013), HB 500 (2013), HB 422 (2013), HB 521 (2013), and HB 579 (2013). FANTASY SPORTS OPERATOR FEES This act reduces the annual operation fee for fantasy sports contest operators from 11.5% to 6%. (Section 313.935) JOSHUA NORBERG
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