Missouri legislature passes income tax cut as legislative session winds down

Tax Graphic

Several proposals were introduced earlier in the legislative session that offered differing versions to massively overhaul the Missouri tax system and now, the Missouri legislature has passed an income tax reduction.

 

 

The various plans came on the heels of a federal tax package passed by Congress in late 2017. What the state legislature settled on going into the final day of the session is a much more stripped down and straightforward income tax reduction.

The rate would be sliced from 5.9% to 5.5.% beginning next year. It would gradually be reduced to 5.1% if the state meets targets for income tax growth. The final product started as a far-reaching tax blueprint from Republican Representative Elijah Haahr of Springfield which passed the House in mid-April. The simple income tax cut that emerged from the Senate came on a largely party-line vote Tuesday night with the Republican supermajority prevailing.

The House gave its final approval Thursday on a similar tally mostly on party lines 101-40. The income tax cut, which will now head to the governor’s desk, essentially speeds up a gradual reduction lawmakers passed in 2014.