SB 858 Summary

• Establishes a graduated income tax rate structure ranging from 1.5% on income not over $1,000 to 6% on income over $9,000, with rates applied to specific income brackets.

• Allows the top tax rate to be reduced by one-tenth of a percent per year beginning in 2015, with a floor of 5%, only if net general revenue in the previous fiscal year exceeds the highest amount from the prior three fiscal years by at least $100 million.

• Creates a new business income deduction allowing taxpayers to subtract a percentage of business income (starting at 10% in 2015, increasing by 10% increments annually, capped at 50%), available to sole proprietors, small corporation shareholders, and partnership members if revenue growth conditions are met.

• Increases personal exemption deductions for tax years beginning January 1, 2015 and later by $1,000 per individual and $1,000 per spouse for residents with Missouri adjusted gross income under $20,000.

• Submits the act to voters for approval or rejection at an election held on the first Tuesday after the first Monday in November 2014, becoming effective only upon majority voter approval.