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EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1203
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR SCHNELTING.
4343S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.073, 137.115, 143.011, 143.031, 143.131, 143.175, and 143.177, RSMo,
and to enact in lieu thereof eight new sections relating to taxation.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.073, 137.115, 143.011, 143.031, 1
143.131, 143.175, and 143.177, RSMo, are repealed and eight new 2
sections enacted in lieu thereof, to be known as sections 3
137.067, 137.073, 137.115, 143.011, 143.031, 143.131, 143.175, 4
and 143.512, to read as follows:5
137.067. Notwithstanding any other provision of law to 1
the contrary, any ballot measure seeking approval to add, 2
change, or modify a tax on real property shall express the 3
effect of the proposed change within the ballot language in 4
terms of the change in real dollars owed per one hundred 5
thousand dollars of a property's market valuation. 6
137.073. 1. As used in this section, the following 1
terms mean: 2
(1) "General reassessment", changes in value, entered 3
in the assessor's books, of a substantial portion of the 4
parcels of real property within a county resulting wholly or 5
partly from reappraisal of value or other actions of the 6
assessor or county equalization body or ordered by the state 7
tax commission or any court; 8
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(2) "Tax rate", "rate", or "rate of levy", singular or 9
plural, includes the tax rate for each purpose of taxation 10
of property a taxing authority is authorized to levy without 11
a vote and any tax rate authorized by election, including 12
bond interest and sinking fund; 13
(3) "Tax rate ceiling", a tax rate as revised by the 14
taxing authority to comply with the provisions of this 15
section or when a court has determined the tax rate; except 16
that, other provisions of law to the contrary 17
notwithstanding, a school district may levy the operating 18
levy for school purposes required for the current year 19
pursuant to subsection 2 of section 163.021, less all 20
adjustments required pursuant to Article X, Section 22 of 21
the Missouri Constitution, if such tax rate does not exceed 22
the highest tax rate in effect subsequent to the 1980 tax 23
year. This is the maximum tax rate that may be levied, 24
unless a higher tax rate ceiling is approved by voters of 25
the political subdivision as provided in this section; 26
(4) "Tax revenue", when referring to the previous 27
year, means the actual receipts from ad valorem levies on 28
all classes of property, including state-assessed property, 29
in the immediately preceding fiscal year of the political 30
subdivision, plus an allowance for taxes billed but not 31
collected in the fiscal year and plus an additional 32
allowance for the revenue which would have been collected 33
from property which was annexed by such political 34
subdivision but which was not previously used in determining 35
tax revenue pursuant to this section. The term "tax 36
revenue" shall not include any receipts from ad valorem 37
levies on any property of a railroad corporation or a public 38
utility, as these terms are defined in section 386.020, 39
which were assessed by the assessor of a county or city in 40
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the previous year but are assessed by the state tax 41
commission in the current year. All school districts and 42
those counties levying sales taxes pursuant to chapter 67 43
shall include in the calculation of tax revenue an amount 44
equivalent to that by which they reduced property tax levies 45
as a result of sales tax pursuant to section 67.505 and 46
section 164.013 [or as excess home dock city or county fees 47
as provided in subsection 4 of section 313.820] in the 48
immediately preceding fiscal year but not including any 49
amount calculated to adjust for prior years. For purposes 50
of political subdivisions which were authorized to levy a 51
tax in the prior year but which did not levy such tax or 52
levied a reduced rate, the term "tax revenue", as used in 53
relation to the revision of tax levies mandated by law, 54
shall mean the revenues equal to the amount that would have 55
been available if the voluntary rate reduction had not been 56
made. 57
2. (1) Whenever changes in assessed valuation are 58
entered in the assessor's books for any personal property, 59
in the aggregate, or for any subclass of real property as 60
such subclasses are established in Section 4(b) of Article X 61
of the Missouri Constitution and defined in section 137.016, 62
the county clerk in all counties and the assessor of St. 63
Louis City shall notify each political subdivision wholly or 64
partially within the county or St. Louis City of the change 65
in valuation of each subclass of real property, 66
individually, and personal property, in the aggregate, 67
exclusive of new construction and improvements. All 68
political subdivisions shall immediately revise the 69
applicable rates of levy for each purpose for each subclass 70
of real property, individually, and personal property, in 71
the aggregate, for which taxes are levied to the extent 72
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necessary to produce from all taxable property, exclusive of 73
new construction and improvements, substantially the same 74
amount of tax revenue as was produced in the previous year 75
for each subclass of real property, individually, and 76
personal property, in the aggregate, except that the rate 77
shall not exceed the greater of the most recent voter- 78
approved rate or the most recent voter-approved rate as 79
adjusted under subdivision (2) of subsection 5 of this 80
section. 81
(2) Any political subdivision that has received 82
approval from voters for a tax increase after August 27, 83
2008, may levy a rate to collect substantially the same 84
amount of tax revenue as the amount of revenue that would 85
have been derived by applying the voter-approved increased 86
tax rate ceiling to the total assessed valuation of the 87
political subdivision as most recently certified by the city 88
or county clerk on or before the date of the election in 89
which such increase is approved, increased by the percentage 90
increase in the consumer price index, as provided by law, 91
except that the rate shall not exceed the greater of the 92
most recent voter-approved rate or the most recent voter- 93
approved rate as adjusted under subdivision (2) of 94
subsection 5 of this section. Such tax revenue shall not 95
include any receipts from ad valorem levies on any real 96
property which was assessed by the assessor of a county or 97
city in such previous year but is assessed by the assessor 98
of a county or city in the current year in a different 99
subclass of real property. 100
(3) Where the taxing authority is a school district 101
for the purposes of revising the applicable rates of levy 102
for each subclass of real property, the tax revenues from 103
state-assessed railroad and utility property shall be 104
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apportioned and attributed to each subclass of real property 105
based on the percentage of the total assessed valuation of 106
the county that each subclass of real property represents in 107
the current [taxable] tax year. 108
(4) As provided in Section 22 of Article X of the 109
constitution, a political subdivision may also revise each 110
levy to allow for inflationary assessment growth occurring 111
within the political subdivision. The inflationary growth 112
factor for any such subclass of real property or personal 113
property shall be limited to the actual assessment growth in 114
such subclass or class, exclusive of new construction and 115
improvements, and exclusive of the assessed value on any 116
real property which was assessed by the assessor of a county 117
or city in the current year in a different subclass of real 118
property, but not to exceed the [consumer price index or 119
five percent, whichever is lower] lesser of: 120
(a) The consumer price index; or 121
(b) The following percentage: 122
a. For revisions under this subsection occurring 123
before January 1, 2027, five percent; or 124
b. For revisions under this subsection occurring on or 125
after January 1, 2027, three percent. 126
(5) Should the tax revenue of a political subdivision 127
from the various tax rates determined in this subsection be 128
different than the tax revenue that would have been 129
determined from a single tax rate as calculated pursuant to 130
the method of calculation in this subsection prior to 131
January 1, 2003, then the political subdivision shall revise 132
the tax rates of those subclasses of real property, 133
individually, and/or personal property, in the aggregate, in 134
which there is a tax rate reduction, pursuant to the 135
provisions of this subsection. Such revision shall yield an 136
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amount equal to such difference and shall be apportioned 137
among such subclasses of real property, individually, and/or 138
personal property, in the aggregate, based on the relative 139
assessed valuation of the class or subclasses of property 140
experiencing a tax rate reduction. Such revision in the tax 141
rates of each class or subclass shall be made by computing 142
the percentage of current year adjusted assessed valuation 143
of each class or subclass with a tax rate reduction to the 144
total current year adjusted assessed valuation of the class 145
or subclasses with a tax rate reduction, multiplying the 146
resulting percentages by the revenue difference between the 147
single rate calculation and the calculations pursuant to 148
this subsection and dividing by the respective adjusted 149
current year assessed valuation of each class or subclass to 150
determine the adjustment to the rate to be levied upon each 151
class or subclass of property. The adjustment computed 152
herein shall be multiplied by one hundred, rounded to four 153
decimals in the manner provided in this subsection, and 154
added to the initial rate computed for each class or 155
subclass of property. 156
(6) For school districts that levy separate tax rates 157
on each subclass of real property and personal property in 158
the aggregate, if voters approved a ballot before January 1, 159
2011, that presented separate stated tax rates to be applied 160
to the different subclasses of real property and personal 161
property in the aggregate, or increases the separate rates 162
that may be levied on the different subclasses of real 163
property and personal property in the aggregate by different 164
amounts, the tax rate that shall be used for the single tax 165
rate calculation shall be a blended rate, calculated in the 166
manner provided under subdivision (1) of subsection 6 of 167
this section. 168
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(7) Notwithstanding any provision of this subsection 169
to the contrary, no revision to the rate of levy for 170
personal property shall cause such levy to increase over the 171
levy for personal property from the prior year. 172
3. (1) Where the taxing authority is a school 173
district, it shall be required to revise the rates of levy 174
to the extent necessary to produce from all taxable 175
property, including state-assessed railroad and utility 176
property, which shall be separately estimated in addition to 177
other data required in complying with section 164.011, 178
substantially the amount of tax revenue permitted in this 179
section. In the year following tax rate reduction, the tax 180
rate ceiling may be adjusted to offset such district's 181
reduction in the apportionment of state school moneys due to 182
its reduced tax rate. However, in the event any school 183
district, in calculating a tax rate ceiling pursuant to this 184
section, requiring the estimating of effects of state- 185
assessed railroad and utility valuation or loss of state 186
aid, discovers that the estimates used result in receipt of 187
excess revenues, which would have required a lower rate if 188
the actual information had been known, the school district 189
shall reduce the tax rate ceiling in the following year to 190
compensate for the excess receipts, and the recalculated 191
rate shall become the tax rate ceiling for purposes of this 192
section. 193
(2) For any political subdivision which experiences a 194
reduction in the amount of assessed valuation relating to a 195
prior year, due to decisions of the state tax commission or 196
a court pursuant to sections 138.430 to 138.433, or due to 197
clerical errors or corrections in the calculation or 198
recordation of any assessed valuation: 199
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(a) Such political subdivision may revise the tax rate 200
ceiling for each purpose it levies taxes to compensate for 201
the reduction in assessed value occurring after the 202
political subdivision calculated the tax rate ceiling for 203
the particular subclass of real property or for personal 204
property, in the aggregate, in a prior year. Such revision 205
by the political subdivision shall be made at the time of 206
the next calculation of the tax rate for the particular 207
subclass of real property or for personal property, in the 208
aggregate, after the reduction in assessed valuation has 209
been determined and shall be calculated in a manner that 210
results in the revised tax rate ceiling being the same as it 211
would have been had the corrected or finalized assessment 212
been available at the time of the prior calculation; 213
(b) In addition, for up to three years following the 214
determination of the reduction in assessed valuation as a 215
result of circumstances defined in this subdivision, such 216
political subdivision may levy a tax rate for each purpose 217
it levies taxes above the revised tax rate ceiling provided 218
in paragraph (a) of this subdivision to recoup any revenues 219
it was entitled to receive had the corrected or finalized 220
assessment been available at the time of the prior 221
calculation. 222
4. (1) In order to implement the provisions of this 223
section and Section 22 of Article X of the Constitution of 224
Missouri, the term improvements shall apply to both real and 225
personal property. In order to determine the value of new 226
construction and improvements, each county assessor shall 227
maintain a record of real property valuations in such a 228
manner as to identify each year the increase in valuation 229
for each political subdivision in the county as a result of 230
new construction and improvements. The value of new 231
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construction and improvements shall include the additional 232
assessed value of all improvements or additions to real 233
property which were begun after and were not part of the 234
prior year's assessment, except that the additional assessed 235
value of all improvements or additions to real property 236
which had been totally or partially exempt from ad valorem 237
taxes pursuant to sections 99.800 to 99.865, sections 238
135.200 to 135.255, and section 353.110 shall be included in 239
the value of new construction and improvements when the 240
property becomes totally or partially subject to assessment 241
and payment of all ad valorem taxes. The aggregate increase 242
in valuation of personal property for the current year over 243
that of the previous year is the equivalent of the new 244
construction and improvements factor for personal property. 245
Beginning January 1, 2027, any increase in the aggregate 246
valuation of personal property for the current year over 247
that of the previous year shall not be counted as new 248
construction. Notwithstanding any opt-out implemented 249
pursuant to subsection 14 of section 137.115, the assessor 250
shall certify the amount of new construction and 251
improvements and the amount of assessed value on any real 252
property which was assessed by the assessor of a county or 253
city in such previous year but is assessed by the assessor 254
of a county or city in the current year in a different 255
subclass of real property separately for each of the three 256
subclasses of real property for each political subdivision 257
to the county clerk in order that political subdivisions 258
shall have this information for the purpose of calculating 259
tax rates pursuant to this section and Section 22, Article 260
X, Constitution of Missouri. In addition, the state tax 261
commission shall certify each year to each county clerk the 262
increase in the general price level as measured by the 263
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Consumer Price Index for All Urban Consumers for the United 264
States, or its successor publications, as defined and 265
officially reported by the United States Department of 266
Labor, or its successor agency. The state tax commission 267
shall certify the increase in such index on the latest 268
twelve-month basis available on February first of each year 269
over the immediately preceding prior twelve-month period in 270
order that political subdivisions shall have this 271
information available in setting their tax rates according 272
to law and Section 22 of Article X of the Constitution of 273
Missouri. For purposes of implementing the provisions of 274
this section and Section 22 of Article X of the Missouri 275
Constitution, the term "property" means all taxable 276
property, including state-assessed property. 277
(2) Each political subdivision required to revise 278
rates of levy pursuant to this section or Section 22 of 279
Article X of the Constitution of Missouri shall calculate 280
each tax rate it is authorized to levy and, in establishing 281
each tax rate, shall consider each provision for tax rate 282
revision provided in this section and Section 22 of Article 283
X of the Constitution of Missouri, separately and without 284
regard to annual tax rate reductions provided in section 285
67.505 and section 164.013. Each political subdivision 286
shall set each tax rate it is authorized to levy using the 287
calculation that produces the lowest tax rate ceiling. It 288
is further the intent of the general assembly, pursuant to 289
the authority of Section 10(c) of Article X of the 290
Constitution of Missouri, that the provisions of such 291
section be applicable to tax rate revisions mandated 292
pursuant to Section 22 of Article X of the Constitution of 293
Missouri as to reestablishing tax rates as revised in 294
subsequent years, enforcement provisions, and other 295
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provisions not in conflict with Section 22 of Article X of 296
the Constitution of Missouri. Annual tax rate reductions 297
provided in section 67.505 and section 164.013 shall be 298
applied to the tax rate as established pursuant to this 299
section and Section 22 of Article X of the Constitution of 300
Missouri, unless otherwise provided by law. 301
5. (1) In all political subdivisions, the tax rate 302
ceiling established pursuant to this section shall not be 303
increased unless approved by a vote of the people. Approval 304
of the higher tax rate shall be by at least a majority of 305
votes cast. When a proposed higher tax rate requires 306
approval by more than a simple majority pursuant to any 307
provision of law or the constitution, the tax rate increase 308
must receive approval by at least the majority required. 309
(2) When voters approve an increase in the tax rate, 310
the amount of the increase shall be added to the tax rate 311
ceiling as calculated pursuant to this section to the extent 312
the total rate does not exceed any maximum rate prescribed 313
by law. If a ballot question presents a stated tax rate for 314
approval rather than describing the amount of increase in 315
the question, the stated tax rate approved shall be adjusted 316
as provided in this section and, so adjusted, shall be the 317
current tax rate ceiling. The increased tax rate ceiling as 318
approved shall be adjusted such that when applied to the 319
current total assessed valuation of the political 320
subdivision, excluding new construction and improvements 321
since the date of the election approving such increase, the 322
revenue derived from the adjusted tax rate ceiling is equal 323
to the sum of: the amount of revenue which would have been 324
derived by applying the voter-approved increased tax rate 325
ceiling to total assessed valuation of the political 326
subdivision, as most recently certified by the city or 327
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county clerk on or before the date of the election in which 328
such increase is approved, increased by the percentage 329
increase in the consumer price index, as provided by law. 330
Such adjusted tax rate ceiling may be applied to the total 331
assessed valuation of the political subdivision at the 332
setting of the next tax rate. If a ballot question presents 333
a phased-in tax rate increase, upon voter approval, each tax 334
rate increase shall be adjusted in the manner prescribed in 335
this section to yield the sum of: the amount of revenue 336
that would be derived by applying such voter-approved 337
increased rate to the total assessed valuation, as most 338
recently certified by the city or county clerk on or before 339
the date of the election in which such increase was 340
approved, increased by the percentage increase in the 341
consumer price index, as provided by law, from the date of 342
the election to the time of such increase and, so adjusted, 343
shall be the current tax rate ceiling. 344
(3) The governing body of any political subdivision 345
may levy a tax rate lower than its tax rate ceiling and may, 346
in a nonreassessment year, increase that lowered tax rate to 347
a level not exceeding the tax rate ceiling without voter 348
approval in the manner provided under subdivision (4) of 349
this subsection. Nothing in this section shall be construed 350
as prohibiting a political subdivision from voluntarily 351
levying a tax rate lower than that which is required under 352
the provisions of this section or from seeking voter 353
approval of a reduction to such political subdivision's tax 354
rate ceiling. 355
(4) In a year of general reassessment, a governing 356
body whose tax rate is lower than its tax rate ceiling shall 357
revise its tax rate pursuant to the provisions of subsection 358
4 of this section as if its tax rate was at the tax rate 359
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ceiling. In a year following general reassessment, if such 360
governing body intends to increase its tax rate, the 361
governing body shall conduct a public hearing, and in a 362
public meeting it shall adopt an ordinance, resolution, or 363
policy statement justifying its action prior to setting and 364
certifying its tax rate. The provisions of this subdivision 365
shall not apply to any political subdivision which levies a 366
tax rate lower than its tax rate ceiling solely due to a 367
reduction required by law resulting from sales tax 368
collections. The provisions of this subdivision shall not 369
apply to any political subdivision which has received voter 370
approval for an increase to its tax rate ceiling subsequent 371
to setting its most recent tax rate. 372
6. (1) For the purposes of calculating state aid for 373
public schools pursuant to section 163.031, each taxing 374
authority which is a school district shall determine its 375
proposed tax rate as a blended rate of the classes or 376
subclasses of property. Such blended rate shall be 377
calculated by first determining the total tax revenue of the 378
property within the jurisdiction of the taxing authority, 379
which amount shall be equal to the sum of the products of 380
multiplying the assessed valuation of each class and 381
subclass of property by the corresponding tax rate for such 382
class or subclass, then dividing the total tax revenue by 383
the total assessed valuation of the same jurisdiction, and 384
then multiplying the resulting quotient by a factor of one 385
hundred. Where the taxing authority is a school district, 386
such blended rate shall also be used by such school district 387
for calculating revenue from state-assessed railroad and 388
utility property as defined in chapter 151 and for 389
apportioning the tax rate by purpose. 390
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(2) Each taxing authority proposing to levy a tax rate 391
in any year shall notify the clerk of the county commission 392
in the county or counties where the tax rate applies of its 393
tax rate ceiling and its proposed tax rate. Each taxing 394
authority shall express its proposed tax rate in a fraction 395
equal to the nearest one-tenth of a cent, unless its 396
proposed tax rate is in excess of one dollar, then one/one- 397
hundredth of a cent. If a taxing authority shall round to 398
one/one-hundredth of a cent, it shall round up a fraction 399
greater than or equal to five/one-thousandth of one cent to 400
the next higher one/one-hundredth of a cent; if a taxing 401
authority shall round to one-tenth of a cent, it shall round 402
up a fraction greater than or equal to five/one-hundredths 403
of a cent to the next higher one-tenth of a cent. Any 404
taxing authority levying a property tax rate shall provide 405
data, in such form as shall be prescribed by the state 406
auditor by rule, substantiating such tax rate complies with 407
Missouri law. All forms for the calculation of rates 408
pursuant to this section shall be promulgated as a rule and 409
shall not be incorporated by reference. The state auditor 410
shall promulgate rules for any and all forms for the 411
calculation of rates pursuant to this section which do not 412
currently exist in rule form or that have been incorporated 413
by reference. In addition, each taxing authority proposing 414
to levy a tax rate for debt service shall provide data, in 415
such form as shall be prescribed by the state auditor by 416
rule, substantiating the tax rate for debt service complies 417
with Missouri law. A tax rate proposed for annual debt 418
service requirements will be prima facie valid if, after 419
making the payment for which the tax was levied, bonds 420
remain outstanding and the debt fund reserves do not exceed 421
the following year's payments. The county clerk shall keep 422
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on file and available for public inspection all such 423
information for a period of three years. The clerk shall, 424
within three days of receipt, forward a copy of the notice 425
of a taxing authority's tax rate ceiling and proposed tax 426
rate and any substantiating data to the state auditor. The 427
state auditor shall, within fifteen days of the date of 428
receipt, examine such information and return to the county 429
clerk his or her findings as to compliance of the tax rate 430
ceiling with this section and as to compliance of any 431
proposed tax rate for debt service with Missouri law. If 432
the state auditor believes that a taxing authority's 433
proposed tax rate does not comply with Missouri law, then 434
the state auditor's findings shall include a recalculated 435
tax rate, and the state auditor may request a taxing 436
authority to submit documentation supporting such taxing 437
authority's proposed tax rate. The county clerk shall 438
immediately forward a copy of the auditor's findings to the 439
taxing authority and shall file a copy of the findings with 440
the information received from the taxing authority. The 441
taxing authority shall have fifteen days from the date of 442
receipt from the county clerk of the state auditor's 443
findings and any request for supporting documentation to 444
accept or reject in writing the rate change certified by the 445
state auditor and to submit all requested information to the 446
state auditor. A copy of the taxing authority's acceptance 447
or rejection and any information submitted to the state 448
auditor shall also be mailed to the county clerk. If a 449
taxing authority rejects a rate change certified by the 450
state auditor and the state auditor does not receive 451
supporting information which justifies the taxing 452
authority's original or any subsequent proposed tax rate, 453
then the state auditor shall refer the perceived violations 454
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of such taxing authority to the attorney general's office 455
and the attorney general is authorized to obtain injunctive 456
relief to prevent the taxing authority from levying a 457
violative tax rate. 458
(3) In the event that the taxing authority incorrectly 459
completes the forms created and promulgated under 460
subdivision (2) of this subsection, or makes a clerical 461
error, the taxing authority may submit amended forms with an 462
explanation for the needed changes. If such amended forms 463
are filed under regulations prescribed by the state auditor, 464
the state auditor shall take into consideration such amended 465
forms for the purposes of this subsection. 466
7. No tax rate shall be extended on the tax rolls by 467
the county clerk unless the political subdivision has 468
complied with the foregoing provisions of this section. 469
8. Whenever a taxpayer has cause to believe that a 470
taxing authority has not complied with the provisions of 471
this section, the taxpayer may make a formal complaint with 472
the prosecuting attorney of the county. Where the 473
prosecuting attorney fails to bring an action within ten 474
days of the filing of the complaint, the taxpayer may bring 475
a civil action pursuant to this section and institute an 476
action as representative of a class of all taxpayers within 477
a taxing authority if the class is so numerous that joinder 478
of all members is impracticable, if there are questions of 479
law or fact common to the class, if the claims or defenses 480
of the representative parties are typical of the claims or 481
defenses of the class, and if the representative parties 482
will fairly and adequately protect the interests of the 483
class. In any class action maintained pursuant to this 484
section, the court may direct to the members of the class a 485
notice to be published at least once each week for four 486
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consecutive weeks in a newspaper of general circulation 487
published in the county where the civil action is commenced 488
and in other counties within the jurisdiction of a taxing 489
authority. The notice shall advise each member that the 490
court will exclude him or her from the class if he or she so 491
requests by a specified date, that the judgment, whether 492
favorable or not, will include all members who do not 493
request exclusion, and that any member who does not request 494
exclusion may, if he or she desires, enter an appearance. 495
In any class action brought pursuant to this section, the 496
court, in addition to the relief requested, shall assess 497
against the taxing authority found to be in violation of 498
this section the reasonable costs of bringing the action, 499
including reasonable attorney's fees, provided no attorney's 500
fees shall be awarded any attorney or association of 501
attorneys who receive public funds from any source for their 502
services. Any action brought pursuant to this section shall 503
be set for hearing as soon as practicable after the cause is 504
at issue. 505
9. If in any action, including a class action, the 506
court issues an order requiring a taxing authority to revise 507
the tax rates as provided in this section or enjoins a 508
taxing authority from the collection of a tax because of its 509
failure to revise the rate of levy as provided in this 510
section, any taxpayer paying his or her taxes when an 511
improper rate is applied has erroneously paid his or her 512
taxes in part, whether or not the taxes are paid under 513
protest as provided in section 139.031 or otherwise 514
contested. The part of the taxes paid erroneously is the 515
difference in the amount produced by the original levy and 516
the amount produced by the revised levy. The township or 517
county collector of taxes or the collector of taxes in any 518
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city shall refund the amount of the tax erroneously paid. 519
The taxing authority refusing to revise the rate of levy as 520
provided in this section shall make available to the 521
collector all funds necessary to make refunds pursuant to 522
this subsection. No taxpayer shall receive any interest on 523
any money erroneously paid by him or her pursuant to this 524
subsection. Effective in the 1994 tax year, nothing in this 525
section shall be construed to require a taxing authority to 526
refund any tax erroneously paid prior to or during the third 527
tax year preceding the current tax year. 528
10. Any rule or portion of a rule, as that term is 529
defined in section 536.010, that is created under the 530
authority delegated in this section shall become effective 531
only if it complies with and is subject to all of the 532
provisions of chapter 536 and, if applicable, section 533
536.028. This section and chapter 536 are nonseverable and 534
if any of the powers vested with the general assembly 535
pursuant to chapter 536 to review, to delay the effective 536
date, or to disapprove and annul a rule are subsequently 537
held unconstitutional, then the grant of rulemaking 538
authority and any rule proposed or adopted after August 28, 539
2004, shall be invalid and void. 540
137.115. 1. All other laws to the contrary 1
notwithstanding, the assessor or the assessor's deputies in 2
all counties of this state including the City of St. Louis 3
shall annually make a list of all real and tangible personal 4
property taxable in the assessor's city, county, town or 5
district. Except as otherwise provided in subsection 3 of 6
this section and section 137.078, for all calendar years 7
ending on or before December 31, 2026, the assessor shall 8
annually assess all personal property at thirty-three and 9
one-third percent of its true value in money as of January 10
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first of each calendar year. Except as otherwise provided 11
in subsection 3 of this section and section 137.078, for all 12
calendar years beginning on or after January 1, 2027, the 13
assessor shall annually assess all personal property at 14
thirty-two percent of its true value in money as of January 15
first of each calendar year. The assessor shall annually 16
assess all real property, including any new construction and 17
improvements to real property, and possessory interests in 18
real property at the percent of its true value in money set 19
in subsection 5 of this section. The true value in money of 20
any possessory interest in real property in subclass (3), 21
where such real property is on or lies within the ultimate 22
airport boundary as shown by a federal airport layout plan, 23
as defined by 14 CFR 151.5, of a commercial airport having a 24
FAR Part 139 certification and owned by a political 25
subdivision, shall be the otherwise applicable true value in 26
money of any such possessory interest in real property, less 27
the total dollar amount of costs paid by a party, other than 28
the political subdivision, towards any new construction or 29
improvements on such real property completed after January 30
1, 2008, and which are included in the above-mentioned 31
possessory interest, regardless of the year in which such 32
costs were incurred or whether such costs were considered in 33
any prior year. The assessor shall annually assess all real 34
property in the following manner: new assessed values shall 35
be determined as of January first of each odd-numbered year 36
and shall be entered in the assessor's books; those same 37
assessed values shall apply in the following even-numbered 38
year, except for new construction and property improvements 39
which shall be valued as though they had been completed as 40
of January first of the preceding odd-numbered year. The 41
assessor may call at the office, place of doing business, or 42
SB 1203 20
residence of each person required by this chapter to list 43
property, and require the person to make a correct statement 44
of all taxable tangible personal property owned by the 45
person or under his or her care, charge or management, 46
taxable in the county. On or before January first of each 47
even-numbered year, the assessor shall prepare and submit a 48
two-year assessment maintenance plan to the county governing 49
body and the state tax commission for their respective 50
approval or modification. The county governing body shall 51
approve and forward such plan or its alternative to the plan 52
to the state tax commission by February first. If the 53
county governing body fails to forward the plan or its 54
alternative to the plan to the state tax commission by 55
February first, the assessor's plan shall be considered 56
approved by the county governing body. If the state tax 57
commission fails to approve a plan and if the state tax 58
commission and the assessor and the governing body of the 59
county involved are unable to resolve the differences, in 60
order to receive state cost-share funds outlined in section 61
137.750, the county or the assessor shall petition the 62
administrative hearing commission, by May first, to decide 63
all matters in dispute regarding the assessment maintenance 64
plan. Upon agreement of the parties, the matter may be 65
stayed while the parties proceed with mediation or 66
arbitration upon terms agreed to by the parties. The final 67
decision of the administrative hearing commission shall be 68
subject to judicial review in the circuit court of the 69
county involved. In the event a valuation of subclass (1) 70
real property within any county with a charter form of 71
government, or within a city not within a county, is made by 72
a computer, computer-assisted method or a computer program, 73
the burden of proof, supported by clear, convincing and 74
SB 1203 21
cogent evidence to sustain such valuation, shall be on the 75
assessor at any hearing or appeal. In any such county, 76
unless the assessor proves otherwise, there shall be a 77
presumption that the assessment was made by a computer, 78
computer-assisted method or a computer program. Such 79
evidence shall include, but shall not be limited to, the 80
following: 81
(1) The findings of the assessor based on an appraisal 82
of the property by generally accepted appraisal techniques; 83
and 84
(2) The purchase prices from sales of at least three 85
comparable properties and the address or location thereof. 86
As used in this subdivision, the word "comparable" means 87
that: 88
(a) Such sale was closed at a date relevant to the 89
property valuation; and 90
(b) Such properties are not more than one mile from 91
the site of the disputed property, except where no similar 92
properties exist within one mile of the disputed property, 93
the nearest comparable property shall be used. Such 94
property shall be within five hundred square feet in size of 95
the disputed property, and resemble the disputed property in 96
age, floor plan, number of rooms, and other relevant 97
characteristics. 98
2. Assessors in each county of this state and the City 99
of St. Louis may send personal property assessment forms 100
through the mail. 101
3. The following items of personal property shall each 102
constitute separate subclasses of tangible personal property 103
and shall be assessed and valued for the purposes of 104
taxation at the following percentages of their true value in 105
money: 106
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(1) Grain and other agricultural crops in an 107
unmanufactured condition, one-half of one percent; 108
(2) Livestock, twelve percent; 109
(3) Farm machinery, twelve percent; 110
(4) Motor vehicles which are eligible for registration 111
as and are registered as historic motor vehicles pursuant to 112
section 301.131 and aircraft which are at least twenty-five 113
years old and which are used solely for noncommercial 114
purposes and are operated less than two hundred hours per 115
year or aircraft that are home built from a kit, five 116
percent; 117
(5) Poultry, twelve percent; 118
(6) Tools and equipment used for pollution control and 119
tools and equipment used in retooling for the purpose of 120
introducing new product lines or used for making 121
improvements to existing products by any company which is 122
located in a state enterprise zone and which is identified 123
by any standard industrial classification number cited in 124
subdivision (7) of section 135.200, twenty-five percent; and 125
(7) Solar panels, racking systems, inverters, and 126
related solar equipment, components, materials, and supplies 127
installed in connection with solar photovoltaic energy 128
systems, as described in subdivision (46) of subsection 2 of 129
section 144.030, that were constructed and producing solar 130
energy prior to August 9, 2022, five percent. 131
4. The person listing the property shall enter a true 132
and correct statement of the property, in a printed blank 133
prepared for that purpose. The statement, after being 134
filled out, shall be signed and either affirmed or sworn to 135
as provided in section 137.155. The list shall then be 136
delivered to the assessor. 137
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5. (1) All subclasses of real property, as such 138
subclasses are established in Section 4(b) of Article X of 139
the Missouri Constitution and defined in section 137.016, 140
shall be assessed at the following percentages of true value: 141
(a) For real property in subclass (1), nineteen 142
percent; 143
(b) For real property in subclass (2), twelve percent; 144
and 145
(c) For real property in subclass (3), thirty-two 146
percent. 147
(2) A taxpayer may apply to the county assessor, or, 148
if not located within a county, then the assessor of such 149
city, for the reclassification of such taxpayer's real 150
property if the use or purpose of such real property is 151
changed after such property is assessed under the provisions 152
of this chapter. If the assessor determines that such 153
property shall be reclassified, he or she shall determine 154
the assessment under this subsection based on the percentage 155
of the tax year that such property was classified in each 156
subclassification. 157
6. Manufactured homes, as defined in section 700.010, 158
which are actually used as dwelling units shall be assessed 159
at the same percentage of true value as residential real 160
property for the purpose of taxation. The percentage of 161
assessment of true value for such manufactured homes shall 162
be the same as for residential real property. If the county 163
collector cannot identify or find the manufactured home when 164
attempting to attach the manufactured home for payment of 165
taxes owed by the manufactured home owner, the county 166
collector may request the county commission to have the 167
manufactured home removed from the tax books, and such 168
request shall be granted within thirty days after the 169
SB 1203 24
request is made; however, the removal from the tax books 170
does not remove the tax lien on the manufactured home if it 171
is later identified or found. For purposes of this section, 172
a manufactured home located in a manufactured home rental 173
park, rental community or on real estate not owned by the 174
manufactured home owner shall be considered personal 175
property. For purposes of this section, a manufactured home 176
located on real estate owned by the manufactured home owner 177
may be considered real property. 178
7. Each manufactured home assessed shall be considered 179
a parcel for the purpose of reimbursement pursuant to 180
section 137.750, unless the manufactured home is deemed to 181
be real estate as defined in subsection 7 of section 442.015 182
and assessed as a realty improvement to the existing real 183
estate parcel. 184
8. Any amount of tax due and owing based on the 185
assessment of a manufactured home shall be included on the 186
personal property tax statement of the manufactured home 187
owner unless the manufactured home is deemed to be real 188
estate as defined in subsection 7 of section 442.015, in 189
which case the amount of tax due and owing on the assessment 190
of the manufactured home as a realty improvement to the 191
existing real estate parcel shall be included on the real 192
property tax statement of the real estate owner. 193
9. The assessor of each county and each city not 194
within a county shall use a nationally recognized automotive 195
trade publication such as the National Automobile Dealers' 196
Association Official Used Car Guide, Kelley Blue Book, 197
Edmunds, or other similar publication as the recommended 198
guide of information for determining the true value of motor 199
vehicles described in such publication. The state tax 200
commission shall select and make available to all assessors 201
SB 1203 25
which publication shall be used. The assessor of each 202
county and each city not within a county shall use the trade- 203
in value published in the current October issue of the 204
publication selected by the state tax commission. The 205
assessor shall not use a value that is greater than the 206
average trade-in value in determining the true value of the 207
motor vehicle without performing a physical inspection of 208
the motor vehicle. For vehicles two years old or newer from 209
a vehicle's model year, the assessor may use a value other 210
than average without performing a physical inspection of the 211
motor vehicle. In the absence of a listing for a particular 212
motor vehicle in such publication, the assessor shall use 213
such information or publications that, in the assessor's 214
judgment, will fairly estimate the true value in money of 215
the motor vehicle. For motor vehicles with a true value of 216
less than fifty thousand dollars as of January 1, 2025, the 217
assessor shall not assess such motor vehicle for an amount 218
greater than such motor vehicle was assessed in the previous 219
year, provided that such motor vehicle was properly assessed 220
in the previous year. 221
10. Before the assessor may increase the assessed 222
valuation of any parcel of subclass (1) real property by 223
more than fifteen percent since the last assessment, 224
excluding increases due to new construction or improvements, 225
the assessor shall conduct a physical inspection of such 226
property. 227
11. If a physical inspection is required, pursuant to 228
subsection 10 of this section, the assessor shall notify the 229
property owner of that fact in writing and shall provide the 230
owner clear written notice of the owner's rights relating to 231
the physical inspection. If a physical inspection is 232
required, the property owner may request that an interior 233
SB 1203 26
inspection be performed during the physical inspection. The 234
owner shall have no less than thirty days to notify the 235
assessor of a request for an interior physical inspection. 236
12. A physical inspection, as required by subsection 237
10 of this section, shall include, but not be limited to, an 238
on-site personal observation and review of all exterior 239
portions of the land and any buildings and improvements to 240
which the inspector has or may reasonably and lawfully gain 241
external access, and shall include an observation and review 242
of the interior of any buildings or improvements on the 243
property upon the timely request of the owner pursuant to 244
subsection 11 of this section. Mere observation of the 245
property via a drive-by inspection or the like shall not be 246
considered sufficient to constitute a physical inspection as 247
required by this section. 248
13. A county or city collector may accept credit cards 249
as proper form of payment of outstanding property tax or 250
license due. No county or city collector may charge 251
surcharge for payment by credit card which exceeds the fee 252
or surcharge charged by the credit card bank, processor, or 253
issuer for its service. A county or city collector may 254
accept payment by electronic transfers of funds in payment 255
of any tax or license and charge the person making such 256
payment a fee equal to the fee charged the county by the 257
bank, processor, or issuer of such electronic payment. 258
14. Any county or city not within a county in this 259
state may, by an affirmative vote of the governing body of 260
such county, opt out of the provisions of this section and 261
sections 137.073, 138.060, and 138.100 as enacted by house 262
bill no. 1150 of the ninety-first general assembly, second 263
regular session and section 137.073 as modified by house 264
committee substitute for senate substitute for senate 265
SB 1203 27
committee substitute for senate bill no. 960, ninety-second 266
general assembly, second regular session, for the next year 267
of the general reassessment, prior to January first of any 268
year. No county or city not within a county shall exercise 269
this opt-out provision after implementing the provisions of 270
this section and sections 137.073, 138.060, and 138.100 as 271
enacted by house bill no. 1150 of the ninety-first general 272
assembly, second regular session and section 137.073 as 273
modified by house committee substitute for senate substitute 274
for senate committee substitute for senate bill no. 960, 275
ninety-second general assembly, second regular session, in a 276
year of general reassessment. For the purposes of applying 277
the provisions of this subsection, a political subdivision 278
contained within two or more counties where at least one of 279
such counties has opted out and at least one of such 280
counties has not opted out shall calculate a single tax rate 281
as in effect prior to the enactment of house bill no. 1150 282
of the ninety-first general assembly, second regular 283
session. A governing body of a city not within a county or 284
a county that has opted out under the provisions of this 285
subsection may choose to implement the provisions of this 286
section and sections 137.073, 138.060, and 138.100 as 287
enacted by house bill no. 1150 of the ninety-first general 288
assembly, second regular session, and section 137.073 as 289
modified by house committee substitute for senate substitute 290
for senate committee substitute for senate bill no. 960, 291
ninety-second general assembly, second regular session, for 292
the next year of general reassessment, by an affirmative 293
vote of the governing body prior to December thirty-first of 294
any year. 295
15. The governing body of any city of the third 296
classification with more than twenty-six thousand three 297
SB 1203 28
hundred but fewer than twenty-six thousand seven hundred 298
inhabitants located in any county that has exercised its 299
authority to opt out under subsection 14 of this section may 300
levy separate and differing tax rates for real and personal 301
property only if such city bills and collects its own 302
property taxes or satisfies the entire cost of the billing 303
and collection of such separate and differing tax rates. 304
Such separate and differing rates shall not exceed such 305
city's tax rate ceiling. 306
16. Any portion of real property that is available as 307
reserve for strip, surface, or coal mining for minerals for 308
purposes of excavation for future use or sale to others that 309
has not been bonded and permitted under chapter 444 shall be 310
assessed based upon how the real property is currently being 311
used. Any information provided to a county assessor, state 312
tax commission, state agency, or political subdivision 313
responsible for the administration of tax policies shall, in 314
the performance of its duties, make available all books, 315
records, and information requested, except such books, 316
records, and information as are by law declared confidential 317
in nature, including individually identifiable information 318
regarding a specific taxpayer or taxpayer's mine property. 319
For purposes of this subsection, "mine property" shall mean 320
all real property that is in use or readily available as a 321
reserve for strip, surface, or coal mining for minerals for 322
purposes of excavation for current or future use or sale to 323
others that has been bonded and permitted under chapter 444. 324
143.011. 1. For all tax years beginning on or before 1
December 31, 2026, a tax is hereby imposed for every 2
[taxable] tax year on the Missouri taxable income of every 3
resident. The tax shall be determined by applying the tax 4
SB 1203 29
table or the rate provided in section 143.021, which is 5
based upon the following rates: 6
2. (1) Notwithstanding the provisions of subsection 1 29
of this section to the contrary, beginning with the 2023 30
calendar year, but ending on or before December 31, 2026, 31
the top rate of tax pursuant to subsection 1 of this section 32
shall be four and ninety-five hundredths percent. 33
7
8
If the Missouri
taxable income is:
The tax is:
9
10
Not over $1,000.00 1 1/2% of the Missouri
taxable income
11
12
Over $1,000 but not
over $2,000
$15 plus 2% of excess over
$1,000
13
14
Over $2,000 but not
over $3,000
$35 plus 2 1/2% of excess
over $2,000
15
16
Over $3,000 but not
over $4,000
$60 plus 3% of excess over
$3,000
17
18
Over $4,000 but not
over $5,000
$90 plus 3 1/2% of excess
over $4,000
19
20
Over $5,000 but not
over $6,000
$125 plus 4% of excess over
$5,000
21
22
Over $6,000 but not
over $7,000
$165 plus 4 1/2% of excess
over $6,000
23
24
Over $7,000 but not
over $8,000
$210 plus 5% of excess over
$7,000
25
26
Over $8,000 but not
over $9,000
$260 plus 5 1/2% of excess
over $8,000
27
28
Over $9,000 $315 plus 6% of excess over
$9,000
SB 1203 30
(2) The modification of tax rates made pursuant to 34
this subsection shall apply only to tax years that begin on 35
or after January 1, 2023 but before January 1, 2027. 36
(3) The director of the department of revenue shall, 37
by rule, adjust the tax table provided in subsection 1 of 38
this section to effectuate the provisions of this 39
subsection. The top remaining rate of tax shall apply to 40
all income in excess of seven thousand dollars, as adjusted 41
pursuant to subsection 5 of this section. 42
3. (1) For all tax years beginning on or after 43
January 1, 2027, a tax is hereby imposed for every tax year 44
on the Missouri taxable income of every resident of this 45
state at a rate of four and seven-tenths percent, or the top 46
rate of tax as in effect on January 1, 2027, whichever is 47
less. The tax shall be determined by the application of the 48
income provisions provided under section 143.021. 49
(2) Any modification of the tax rate under this 50
subsection shall apply only to tax years that begin on or 51
after a modification takes effect. 52
(3) The department of revenue shall, by rule and by 53
posting on the department's website, adjust the appropriate 54
tax rate to effectuate the provisions of this subsection. 55
4. (1) In addition to the rate [reduction] 56
established under [subsection] subsections 2 and 3 of this 57
section, beginning with the [2024] 2027 calendar year, the 58
[top] rate of tax under subsection [1] 3 of this section may 59
be reduced by [fifteen hundredths] one-tenth of [a] one 60
percent. No more than ten reductions shall be made under 61
this subsection. A reduction in the rate of tax shall take 62
effect on January first of a calendar year and such reduced 63
rates shall continue in effect until the next reduction 64
occurs. 65
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(2) A reduction in the rate of tax shall only occur if 66
the amount of net general revenue collected in the previous 67
fiscal year exceeds the highest amount of net general 68
revenue collected in any of the three fiscal years prior to 69
such fiscal year by at least one hundred seventy-five 70
million dollars. 71
(3) Any modification of tax rates under this 72
subsection shall only apply to tax years that begin on or 73
after a modification takes effect. 74
(4) The director of the department of revenue shall, 75
by rule, adjust the tax [tables] rate under subsection [1] 3 76
of this section to effectuate the provisions of this 77
subsection. 78
[4.] 5. (1) In addition to the rate reductions under 79
subsections 2, 3, and [3] 4 of this section, beginning with 80
the calendar year immediately following the calendar year in 81
which a reduction is made pursuant to subsection [3] 4 of 82
this section, the top rate of tax under subsection 1 of this 83
section may be further reduced over a period of years. Each 84
reduction in the top rate of tax shall be by one-tenth of a 85
percent and no more than one reduction shall occur in a 86
calendar year. No more than three reductions shall be made 87
under this subsection. Reductions in the rate of tax shall 88
take effect on January first of a calendar year and such 89
reduced rates shall continue in effect until the next 90
reduction occurs. 91
(2) (a) A reduction in the rate of tax shall only 92
occur if: 93
a. The amount of net general revenue collected in the 94
previous fiscal year exceeds the highest amount of net 95
general revenue collected in any of the three fiscal years 96
SB 1203 32
prior to such fiscal year by at least two hundred million 97
dollars; and 98
b. The amount of net general revenue collected in the 99
previous fiscal year exceeds the amount of net general 100
revenue collected in the fiscal year five years prior, 101
adjusted annually by the percentage increase in inflation 102
over the preceding five fiscal years. 103
(b) The amount of net general revenue collected 104
required by subparagraph a. of paragraph (a) of this 105
subdivision in order to make a reduction pursuant to this 106
subsection shall be adjusted annually by the percent 107
increase in inflation beginning with January 2, 2023. 108
(3) Any modification of tax rates under this 109
subsection shall only apply to tax years that begin on or 110
after a modification takes effect. 111
(4) The director of the department of revenue shall, 112
by rule, adjust the tax tables under subsection 1 of this 113
section to effectuate the provisions of this subsection. 114
The bracket for income subject to the top rate of tax shall 115
be eliminated once the top rate of tax has been reduced 116
below the rate applicable to such bracket, and the top 117
remaining rate of tax shall apply to all income in excess of 118
the income in the second highest remaining income bracket. 119
[5.] 6. Beginning with the 2017 calendar year, and 120
ending on or before December 31, 2026, the brackets of 121
Missouri taxable income identified in subsection 1 of this 122
section shall be adjusted annually by the percent increase 123
in inflation. The director shall publish such brackets 124
annually beginning on or after October 1, 2016. 125
Modifications to the brackets shall take effect on January 126
first of each calendar year and shall apply to tax years 127
beginning on or after the effective date of the new brackets. 128
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[6.] 7. As used in this section, the following terms 129
mean: 130
(1) "CPI", the Consumer Price Index for All Urban 131
Consumers for the United States as reported by the Bureau of 132
Labor Statistics, or its successor index; 133
(2) "CPI for the preceding calendar year", the average 134
of the CPI as of the close of the twelve-month period ending 135
on August thirty-first of such calendar year; 136
(3) "Net general revenue collected", all revenue 137
deposited into the general revenue fund, less refunds and 138
revenues originally deposited into the general revenue fund 139
but designated by law for a specific distribution or 140
transfer to another state fund; 141
(4) "Percent increase in inflation", the percentage, 142
if any, by which the CPI for the preceding calendar year 143
exceeds the CPI for the year beginning September 1, 2014, 144
and ending August 31, 2015. 145
143.031. 1. A husband and wife who file a joint 1
federal income tax return shall file a combined return. A 2
husband and wife who do not file a joint federal income tax 3
return shall not file a combined return. 4
2. The Missouri combined taxable income on a combined 5
return shall include all of the income and deductions of the 6
husband and wife. For all tax years ending on or before 7
December 31, 2026, the Missouri taxable income of each 8
spouse shall be an amount that is the same proportion of 9
their Missouri combined taxable income as the Missouri 10
adjusted gross income of that spouse bears to their Missouri 11
combined adjusted gross income. For all tax years beginning 12
on or after January 1, 2027, there shall be one column for 13
the calculation of total Missouri combined adjusted gross 14
income on a Missouri income tax return. 15
SB 1203 34
3. The tax of each spouse shall be determined by the 16
application of either section 143.021 or section 143.041 17
depending upon whether such spouse is a resident or 18
nonresident. Their Missouri combined tax shall be the sum 19
of the tax applicable to each spouse. 20
143.131. 1. The Missouri standard deduction may be 1
deducted in determining Missouri taxable income of a 2
resident individual unless the taxpayer or his spouse has 3
elected to itemize his deduction as provided in section 4
143.141. 5
2. (1) For all tax years ending on or before December 6
31, 2026, the Missouri standard deduction shall be the 7
allowable federal standard deduction. 8
(2) For all tax years beginning on or after January 1, 9
2027, the Missouri standard deduction shall be the allowable 10
federal standard deduction plus four thousand dollars. 11
143.175. 1. For all tax years beginning on or after 1
January 1, 2020, for purposes of calculating the Missouri 2
taxable income as required under section 143.011, a 3
percentage of the income received by any person as salary or 4
compensation: 5
(1) In performance of inactive duty for training (IDT) 6
of the National Guard or annual training status (AT) of the 7
National Guard; 8
(2) In reserve components of the Armed Forces of the 9
United States; [or] 10
(3) For all tax years beginning on or after January 1, 11
2025, in the form of a bonus from the National Guard or a 12
reserve component of the United States Armed Forces for 13
joining, reenlisting, or for any other reason; or 14
(4) For all tax years beginning on or after January 1, 15
2027, in performance of state-funded military orders of the 16
SB 1203 35
National Guard, commonly known as state active duty (SAD) or 17
state emergency duty (SED); 18
and to the extent that such income is included in the 19
federal adjusted gross income, may be deducted from the 20
taxpayer's Missouri adjusted gross income to determine such 21
taxpayer's Missouri taxable income. If such person files a 22
combined return with a spouse, a percentage of any military 23
income received while engaging in the performance of 24
National Guard or reserve military duty may be deducted from 25
their Missouri combined adjusted gross income. Such 26
military income shall be deducted as follows: 27
(a) For the tax year beginning on or after January 1, 28
2020, twenty percent of such military income; 29
(b) For the tax year beginning on or after January 1, 30
2021, forty percent of such military income; 31
(c) For the tax year beginning on or after January 1, 32
2022, sixty percent of such income; 33
(d) For the tax year beginning on or after January 1, 34
2023, eighty percent of such income; 35
(e) For all tax years beginning on January 1, 2024, 36
and thereafter, one hundred percent of such income. 37
2. Notwithstanding the provisions of this section or 38
any other provision of law to the contrary, the deduction 39
authorized by this section shall not apply to compensation 40
received while engaging in civilian federal service, 41
including civil service positions requiring the wearing of 42
military uniform and military affiliation. 43
143.512. In the event a taxpayer is denied part or all 1
of a tax credit for which the taxpayer has qualified 2
pursuant to any provision of law due to lack of available 3
funds, and such denial causes a balance-due notice to be 4
SB 1203 36
generated by the department of revenue or any other 5
redeeming agency, a taxpayer shall not be held liable for 6
any penalty or interest on such balance due, provided the 7
balance is paid or approved payment arrangements have been 8
made within sixty days from the notice of denial. Any 9
payments not timely made pursuant to this section shall be 10
subject to penalty and interest pursuant to this chapter. 11
[143.177. 1. This section shall be known 1
and may be cited as the "Missouri Working Family 2
Tax Credit Act". 3
2. For purposes of this section, the 4
following terms shall mean: 5
(1) "Department", the department of 6
revenue; 7
(2) "Eligible taxpayer", a resident 8
individual with a filing status of single, head 9
of household, widowed, or married filing 10
combined who is subject to the tax imposed under 11
this chapter, excluding withholding tax imposed 12
under sections 143.191 to 143.265, and who is 13
allowed a federal earned income tax credit under 14
26 U.S.C. Section 32, as amended; 15
(3) "Tax credit", a credit against the tax 16
otherwise due under this chapter, excluding 17
withholding tax imposed under sections 143.191 18
to 143.265. 19
3. (1) Beginning with the 2023 calendar 20
year, an eligible taxpayer shall be allowed a 21
tax credit in an amount equal to a percentage of 22
the amount such taxpayer would receive under the 23
federal earned income tax credit as such credit 24
existed under 26 U.S.C. Section 32 as of January 25
1, 2021, as provided pursuant to subdivision (2) 26
of this subsection. The tax credit allowed by 27
this section shall be claimed by such taxpayer 28
at the time such taxpayer files a return and 29
shall be applied against the income tax 30
liability imposed by this chapter after 31
reduction for all other credits allowed 32
thereon. If the amount of the credit exceeds 33
the tax liability, the difference shall not be 34
SB 1203 37
refunded to the taxpayer and shall not be 35
carried forward to any subsequent tax year. 36
(2) Subject to the provisions of 37
subdivision (3) of this subsection, the 38
percentage of the federal earned income tax 39
credit to be allowed as a tax credit pursuant to 40
subdivision (1) of this subsection shall be ten 41
percent, which may be increased to twenty 42
percent subject to the provisions of subdivision 43
(3) of this subsection. The maximum percentage 44
that may be claimed as a tax credit pursuant to 45
this section shall be twenty percent of the 46
federal earned income tax credit that may be 47
claimed by such taxpayer. Any increase in the 48
percentage that may be claimed as a tax credit 49
shall take effect on January first of a calendar 50
year and such percentage shall continue in 51
effect until the next percentage increase 52
occurs. An increase shall only apply to tax 53
years that begin on or after the increase takes 54
effect. 55
(3) The initial percentage to be claimed 56
as a tax credit and any increase in the 57
percentage that may be claimed pursuant to 58
subdivision (2) of this subsection shall only 59
occur if the amount of net general revenue 60
collected in the previous fiscal year exceeds 61
the highest amount of net general revenue 62
collected in any of the three fiscal years prior 63
to such fiscal year by at least one hundred 64
fifty million dollars. 65
4. Notwithstanding the provisions of 66
section 32.057 to the contrary, the department 67
shall determine whether any taxpayer filing a 68
report or return with the department who did not 69
apply for the credit authorized under this 70
section may qualify for the credit and, if so, 71
determines a taxpayer may qualify for the 72
credit, shall notify such taxpayer of his or her 73
potential eligibility. In making a 74
determination of eligibility under this section, 75
the department shall use any appropriate and 76
available data including, but not limited to, 77
data available from the Internal Revenue 78
SB 1203 38
Service, the U.S. Department of Treasury, and 79
state income tax returns from previous tax years. 80
5. The department shall prepare an annual 81
report containing statistical information 82
regarding the tax credits issued under this 83
section for the previous tax year, including the 84
total amount of revenue expended, the number of 85
credits claimed, and the average value of the 86
credits issued to taxpayers whose earned income 87
falls within various income ranges determined by 88
the department. 89
6. The director of the department may 90
promulgate rules and regulations to administer 91
the provisions of this section. Any rule or 92
portion of a rule, as that term is defined in 93
section 536.010, that is created under the 94
authority delegated in this section shall become 95
effective only if it complies with and is 96
subject to all of the provisions of chapter 536 97
and, if applicable, section 536.028. This 98
section and chapter 536 are nonseverable and if 99
any of the powers vested with the general 100
assembly pursuant to chapter 536 to review, to 101
delay the effective date, or to disapprove and 102
annul a rule are subsequently held 103
unconstitutional, then the grant of rulemaking 104
authority and any rule proposed or adopted after 105
January 1, 2023, shall be invalid and void. 106
7. Tax credits authorized under this 107
section shall not be subject to the requirements 108
of sections 135.800 to 135.830.] 109
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