MO HB2290

Establishes a graduated income tax rate structure ranging from 1.5% on income up to $1,000 to 6% on income over $9,000, with the top rate eligible for reduction beginning in 2017.

Allows the top tax rate to decrease by 0.1% annually (minimum once per year) but not below 5.5%, only when net general revenue in the previous fiscal year exceeds the highest amount collected in the prior three fiscal years by at least $150 million.

Indexes income tax brackets annually to inflation beginning in 2017, based on Consumer Price Index measurements from September 1, 2014 through August 31, 2015.

Creates a deduction for individual business income (from Schedule C and Schedule E forms) starting at 5% in 2017, increasing by 5% annually up to a maximum of 25%, subject to the same $150 million revenue threshold requirement.

Increases personal exemption deductions by $500 for taxpayers with Missouri adjusted gross income less than $20,000, effective for tax years beginning January 1, 2017.

Requires voter approval at the November 4, 2014 election to become effective.