|SB 0437||Establishes flat individual income tax rate|
|LR Number:||S1939.01I||Fiscal Note:||1939-01|
|Committee:||Ways and Means|
|Last Action:||03/23/99 - Hearing Conducted S Ways & Means Committee||Journal page:|
|Effective Date:||January 1, 2000|
SB 437 - This act changes current income tax law by imposing on individuals a flat state income tax rate of four percent. Deductions from federal adjusted gross income allowed in determining Missouri taxable income are limited to the personal exemption, dependency exemption and any adjustments for tax-free bonds and railroad retirement benefits.
A resident taxpayer is allowed a personal exemption of $10,000 and an equivalent amount for his or her spouse. A head of household is allowed a personal exemption of $15,000, and a surviving spouse is allowed a personal exemption of $20,000. Dependency exemptions are $2,000.
The act specifies positive and negative modifications to federal adjusted gross income, as well as the income taxation of non-residents, part-year residents, and non-resident partners of partnerships.
The act has an effective date of January 1, 2000, and
applies to all taxable years after December 31, 1999.