HB1989 Summary

• Restructures Missouri individual income tax rates for tax years beginning January 1, 2016, replacing a progressive tax table with simplified brackets ranging from 1.5% on income under $2,000 to 9% on income over $50,000, with annual adjustments based on the Consumer Price Index.

• Eliminates the federal income tax deduction for individual taxpayers starting January 1, 2016, while maintaining the 50% deduction for corporate taxpayers through December 31, 2015.

• Creates a new tax credit for resident taxpayers beginning January 1, 2016, providing $200 credits for single/married filing separately filers under $30,000 AGI and scaled credits based on income brackets up to $50,000; similar structure for head of household/married filing jointly filers with AGI up to $80,000.

• Makes excess tax credits refundable if they exceed tax liability after other credits are applied.

• Requires voter approval via referendum election on the Tuesday following the first Monday in November 2014 for the bill to become effective.