MO HB2073

Allows the top Missouri income tax rate to be reduced incrementally from 6% down to a minimum of 5.3%, with reductions of 0.1% per year only when prior fiscal year general revenue exceeds the highest of the three preceding years by at least $150 million.

Creates a new business income deduction allowing individual taxpayers to subtract a percentage of Missouri source business income (starting at 10% for tax year 2015), increasing by 10% annually up to a maximum 50% deduction, contingent on $100 million annual revenue growth.

Provides an additional $1,000 personal exemption deduction for residents with Missouri adjusted gross income under $20,000 (for themselves and spouses meeting the income threshold) for tax years beginning January 1, 2015 and later.

Requires that 40% of net general revenue growth from tax rate reductions be deposited into the school district trust fund and 20% designated for higher education funding until the foundation formula is fully funded.

Modifies employer withholding return requirements by increasing the annual filing threshold from $20 to $100 for employers with less than $100 in quarterly withholding across the preceding four quarters.