Authorizes an income tax deduction for amounts paid towards tangible personal property taxes

SECOND REGULAR SESSION
HOUSE BILL NO. 2215
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE RIGGS.
4073H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 143, RSMo, by adding thereto one new section relating to an income tax
deduction for personal property taxes paid.
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 143.135, to read as follows:
143.135. 1. As used in this section, the following terms mean:
2 (1) "Deduction", an amount subtracted fr om a taxpayer's Missouri adjusted
3 gr oss income to determine the taxpayer's Missouri taxable income for a given tax year;
4 (2) "Qualified amount", for any qualified taxpayer in a given tax year , an
5 amount equal to one hundr ed perce nt of all Missouri tangible personal pro perty taxes
6 actually paid by the qualified taxpayer in a given tax year on all tangible personal
7 pr operty taxes owed by the taxpayer , exclusive of special assessments, penalties, inter est,
8 charges, fees, or other additional amounts. Only the amounts of such personal pr operty
9 taxes actually paid by the taxpayer shall qualify for the deduction and only if such
10 amounts are paid during the tax year for which this deduction is claimed;
11 (3) "Qualified taxpayer", any individual with an income tax liability under
12 chapter 143, excluding the withholding tax imposed by sections 143.191 to 143.265, who
13 accrued tangible personal pr operty taxes and actually paid such taxes.
14 2. For all tax years beginning on or after January 1, 2027, in addition to all other
15 deductions and modifications allowed by law , a qualified taxpayer shall be allowed a
16 deduction fr om the taxpayer's Missouri adjusted gross income in an amount equal to
17 the taxpayer's qualified amount or the taxpayer may elect to take such amount as an
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.
18 itemized deduction on his or her state income tax ret urn. No deduction shall be claimed
19 under this section for the amount of tangible personal pro perty tax that has been or is
20 used in obtaining a state tax cred it, exemption, subtraction, or a differ ent deduction.
21 3. The department of rev enue shall pr omulgate all necessary rules and
22 r egulations for the administration of this section including, but not limited to, rules
23 r elating to the verification of a taxpayer's qualified amount. Any rule or portion of a
24 rule, as that term is defined in section 536.010, that is crea ted under the authority
25 delegated in this section shall become effective only if it complies with and is subject to
26 all of the pr ovisions of chapter 536 and, if applicable, section 536.028. This section and
27 chapter 536 are nonseverable and if any of the powers vested with the general assembly
28 pursuant to chapter 536 to revi ew , to delay the effective date, or to disappr ove and annul
29 a rule are subsequently held unconstitutional, then the grant of rulemaking authority
30 and any rule prop osed or adopted after August 28, 2026, shall be invalid and void.
31 4. Under section 23.253 of the Missouri sunset act:
32 (1) The prov isions of the new pr ogram authorized under this section shall sunset
33 six years after the effective date of this section unless reauthori zed by an act of the
34 general assembly; and
35 (2) This section shall terminate on September first of the calendar year
36 immediately following the calendar year in which the prog ram authorized under this
37 section is sunset.
✔
HB 2215 2