HB 1824 Summary

• Establishes streamlined sales and use tax agreement with other states to simplify tax administration, with Missouri represented by four delegates (one appointed by governor, one by senate president pro tempore, one by house speaker, and the director of revenue)

• Caps total tax credits authorized in any fiscal year at $425 million and limits low-income housing tax credits to $135 million annually starting July 1, 2019 (eliminating tax credits for projects financed through tax-exempt bonds after that date)

• Increases motor fuel tax from 17 cents to 23 cents per gallon effective January 1, 2019, and establishes phased tax increases for alternative fuels (compressed natural gas, liquefied natural gas, and propane) from 5 cents to 17 cents per gallon equivalent by 2025

• Changes individual income tax brackets effective January 1, 2019, with a flat 3.5% rate on income under $5,000 and establishes conditions for future rate reductions based on net general revenue collections

• Modifies Missouri standard deductions to fixed amounts ($6,300 for single filers, $12,600 for married filing jointly, $9,300 for head of household) and changes fantasy sports licensing fees from 11.5% to 6% of net revenue effective January 1, 2019