HB 1967 Summary

• Reduces Missouri state income tax rates annually starting January 1, 2015, if revenue projections remain substantially equal to or greater than prior year collections, with rates rounded to nearest one-tenth of one percent.

• Eliminates state sales tax on food sales effective January 1, 2015, though local jurisdictions may continue to impose sales tax on food.

• Recalculates all county and local sales tax rates by September 1, 2014, to maintain revenue equivalency with prior five-year averages while accounting for inflation, with rates effective January 1, 2015.

• Caps cumulative state and local sales tax rate at 10 percent beginning January 1, 2015, unless exceeded due to newly calculated local rates.

• Consolidates and simplifies various tax exemptions and definitions in Missouri's sales and use tax code, including exemptions for professional services, utilities, medical equipment, educational services, and manufacturing materials.