MO SB1285

Establishes Missouri's top individual income tax rate at 4.95% beginning with the 2023 calendar year, replacing the previous graduated rate structure that topped out at 6% on income over $9,000

Allows an additional 0.15% reduction in the top tax rate starting in 2024 if net general revenue exceeds the highest of the prior three fiscal years by at least $175 million

Permits up to three further reductions of 0.1% each in subsequent years if net general revenue exceeds the prior three-year high by $200 million and exceeds inflation-adjusted revenue from five years prior

Requires the Director of the Department of Revenue to adjust tax tables by rule to implement rate changes and annually adjust income brackets for inflation beginning in 2017

Applies the top tax rate to all income exceeding $7,000 (as adjusted for inflation), with rate reductions taking effect on January 1st of qualifying calendar years