MO HB2729

Removes the $150 million threshold requirement for triggering income tax rate reductions, allowing the top tax rate to decrease by 0.1% annually whenever net general revenue exceeds the highest amount collected in any of the prior three fiscal years

Maintains the existing graduated income tax structure with rates ranging from 1.5% on income up to $1,000 to 6% on income over $9,000, with a floor preventing the top rate from dropping below 5.5%

Removes the $150 million threshold for increasing the business income deduction, allowing the percentage subtracted from federal adjusted gross income to rise by 5% annually (up to 25% maximum) under the same revenue growth trigger

Requires annual inflation adjustments to income tax brackets beginning in 2017, based on the Consumer Price Index for All Urban Consumers

Applies to individual taxpayers, S corporation shareholders, and partnership partners, with business income deductions apportioned according to ownership share reported on Schedule K-1