MO SB509

Establishes a progressive tax rate structure on Missouri taxable income ranging from 1.5% on income under $1,000 to a top rate of 6% on income over $9,000.

Allows the top income tax rate to be reduced by one-tenth of 1 percent annually beginning in 2017, with a minimum floor of 5.5%, if prior fiscal year net general revenue exceeds the highest of the previous three fiscal years by at least $150 million.

Requires annual adjustment of income tax brackets beginning in 2017 based on inflation using the Consumer Price Index, with adjustments published by October 1 and effective January 1 each year.

Creates a new business income deduction for individual taxpayers, starting at 5% in 2017 and increasing by 5% annually up to a maximum of 25%, contingent on the $150 million net general revenue threshold.

Provides an additional personal exemption deduction of $500 per person for tax years beginning in 2017 for residents with Missouri adjusted gross income under $20,000.