Vote to pass a bill that reduces income and corporate tax rates, increases the sales tax rate, and amends tax deduction laws.
Highlights:
Increases the state sales and use tax from 4 percent to the following (Sec. A):
4.1 percent during the calendar year 2014;
4.2 percent during the calendar year 2015;
4.3 percent during the calendar year 2016;
4.4 percent during the calendar year 2017; and
4.5 percent during the calendar year 2018, and all following calendar years.
Reduces the corporate income tax rate from 6.25 percent to the following (Sec. A):
6.1 percent for tax years beginning January 1, 2014;
5.95 percent for tax years beginning January 1, 2015;
5.8 percent for tax years beginning January 1, 2016;
5.65 percent for tax years beginning January 1, 2017; and
5.5 percent for tax years beginning January 1, 2018 and all following tax years.
Exempts the first $25,000 of corporate income from the corporate income tax (Sec. A).
Reduces state individual income tax rates and tax brackets including, but not limited to, the following (Sec. A):
6 percent on taxable income greater than $9,000 plus $315, for the year ending December 31, 2013;
5.85 percent on taxable income greater than $8,700 plus $299, beginning January 1, 2014;
5.7 percent on taxable income greater than $8,400 plus $282, beginning January 1, 2015;
5.55 percent on taxable income greater than $8,100 plus $266, beginning January 1, 2016;
5.4 percent on taxable income greater than $7,900 plus $255; beginning January 1, 2017; and
5.25 percent on taxable income greater than $7,600 plus $243, beginning January 1, 2018.
Authorizes an individual with an adjusted gross income of less than $20,000 to deduct $2,000 in addition to the existing $2,100 deduction on personal income taxes for all tax years beginning January 1, 2014 (Sec. A).
Authorizes an individual to deduct a percentage of his or her business income from the federal adjusted gross income when determining the Missouri adjusted gross income as follows (Sec. A):
10 percent of business income for the tax year beginning January 1, 2014;
20 percent of business income for the tax year beginning January 1, 2015;
30 percent of business income for the tax year beginning January 1, 2016;
40 percent of business income for the tax year beginning January 1, 2017; and
50 percent of business income for the tax year beginning January 1, 2018 and all following tax years.
Authorizes shareholders of small corporations and partners in partnerships to claim his or her share of ownership as a business income tax deduction (Sec. A).
Specifies that the conditions a vendor is considered to be conducting business activities within the state include, but are not limited to, the following conditions (Sec. A):
The vendor is referred potential customers through a link on the internet, a telemarketer, or an in-person presentation; and
The vendor had gross sales of over $10,000 during the previous 12 months to Missouri residents.