On October 5, 2022, Governor Parson signed into law Missouri SCS Senate Bills 3 & 5. Below are some of the highlights of this legislation.
- Individual Income Tax Rate Reduction - The final deal reduces the top individual income tax rate from its current 5.3% to 4.95% in 2023, followed by another future cut that would bring it down to 4.8% and a series of "triggers" that would continue to lower the top rate by .1% annually if the state meets set revenue thresholds. Once the plan is fully implemented, the top individual income tax rate will be 4.5%, lower than all of Missouri's neighboring states.
- Personal Exemption - For all tax years beginning on or after January 1, 2023, this act also exempts the first $1,000 of income from taxation, up from $100.
The Governor also signed HB 3 which includes modification/extension of existing and creation of several new agricultural tax credit programs, including but not limited to:
- Extending the expiration of the meat processing facility investment tax credit;
- Creating a tax credit program for Missouri retail dealers of higher ethanol blend fuels;
- Creating a tax credit program for Missouri retail dealers of biodiesel;
- Creating a tax credit program for Missouri biodiesel producers;
- Creating a tax credit program for establishing or improving urban farming operations;
- Extending the expiration of the Rolling Stock Tax Credit program;
- Extending the expiration of the Agricultural Product Utilization Contributor Tax Credit;
- Extending the expiration of the New Generation Cooperative Incentive Tax Credit;
- Extending the Wood Energy Tax Credit program;
- Exempting utility vehicles for agriculture use from state and local sales and use taxes
UHY Advisors' has State and Local tax professionals to help you assess and quantify the impact to these various changes. Please contact Jack Rodriguez or Paul Yoder using the form on this page if you have questions or would like to discuss these changes and the opportunities they present.