Bill Summary: HB 1253 & 1297

• Establishes the "Broad-Based Tax Relief Act of 2014" allowing individual taxpayers to deduct a percentage of business income from federal adjusted gross income when calculating Missouri adjusted gross income, starting January 1, 2014.

• Creates a variable deduction for business income (10%, 20%, 30%, 40%, or 50%) that increases only when combined Missouri individual and corporate income tax revenues equal or exceed fiscal year 2012 levels, based on comparison to prior fiscal years.

• Reduces the corporate income tax rate from 6.25% to gradually decrease from 5.625% down to 3.125% based on the same revenue benchmark triggers, with reductions occurring once per year and never reversing.

• Allows businesses where average payroll exceeds 150% of county average wage to claim a 50% business income deduction (individuals) or 3.125% corporate tax rate (corporations) regardless of revenue benchmarks.

• Requires corresponding and proportional reductions to sales and use tax rates (sections 148.030, 148.140, and 148.620) whenever corporate income tax rates are reduced.