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SECOND REGULAR SESSION
HOUSE BILL NO. 1921
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE MURRA Y .
5026H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 143, RSMo, by adding thereto one new section relating to an income tax
subtraction for labor or ganization dues.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 143, RSMo, is amended by adding thereto one new section, to be
2 known as section 143.129, to read as follows:
143.129. 1. This section shall be known and may be cited as the "Missouri
2 W orker Dues T ax Fairness Act".
3 2. As used in this section, the following terms mean:
4 (1) "Labor organization", the same meaning as such term is defined under
5 section 130.01 1 and shall include any bona fide labor union, trade union, or employee
6 association reco gnized under federal or state labor law;
7 (2) "Qualified amount", in a given tax year , the total amount of union dues paid
8 by a taxpayer or withheld fr om wages on behalf of a taxpayer for the purpose of paying
9 any portion of the taxpayer's union dues to a labor organization of which the taxpayer is
10 a member in the tax year for which the subtraction is applied;
11 (3) "T axpayer", any individual with an income tax liability and subject to the
12 Missouri income tax imposed under this chapter;
13 (4) "Union dues", regu lar payments req uired for membership in a labor
14 organization, including initiation fees and assessments, that ar e directly rel ated to
15 r epresent ation, collective bargaining, contract administration, grievance proced ures, or
16 other lawful activities of the labor organization but excluding political contributions,
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 independent expenditures , or amounts used for lobbying as such term is defined under
18 section 105.470.
19 3. For all tax years beginning on or after January 1, 2027, ther e shall be
20 subtracted fr om Missouri adjusted gro ss income, determined under section 143.121, a
21 maximum of an amount equal to one hundred percen t of a taxpayer's qualified amount
22 of union dues paid in the tax year , but not to exceed the limitation pr ovided under
23 subsection 4 of this section, to the extent that such amounts are included in the
24 taxpayer's federal adjusted gross income and not otherwise deducted or excluded fr om
25 the taxpayer's federal adjusted gross income in the calculation of Missouri taxable
26 income.
27 4. The subtraction allowed under this section shall not exceed two thousand
28 dollars per taxpayer per tax year for individual taxpayers or cumulatively exceed four
29 thousand dollars per tax year for taxpayers filing combined ret urns.
30 5. A taxpayer shall maintain documentation of proo f of the qualified amount of
31 union dues paid. The department of rev enue may r equir e taxpayers claiming the
32 subtraction under this section to maintain and submit documentation of such proof,
33 including pay-stub deductions, canceled checks, or statements issued by the labor
34 organization.
35 6. The department may pr omulgate all necessary rules and r egulations for the
36 administration of this section. Any rule or portion of a rule, as that term is defined in
37 section 536.010, that is crea ted under the authority delegated in this section shall
38 become effective only if it complies with and is subject to all of the provi sions of chapter
39 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
40 and if any of the powers vested with the general assembly pursuant to chapter 536 to
41 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
42 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
43 adopted after August 28, 2026, shall be invalid and void.
✔
HB 1921 2