Bill Text: MO HB1639 | 2012 | Regular Session | Comm Sub
Bill Title: Establishes the Broad-Based Tax Relief Act of 2012, reduces the tax on business income and corporate income, and changes the laws regarding the collection of money owed to the state
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2012-05-18 - Reported Do Pass (S) [HB1639 Detail]
Download: Missouri-2012-HB1639-Comm_Sub.html
SECOND REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 1639
96TH GENERAL ASSEMBLY
Reported from the Committee on Ways and Means and Fiscal Oversight, May 17, 2012, with recommendation that the Senate Committee Substitute do pass.
TERRY L. SPIELER, Secretary.
4535S.12C
AN ACT
To repeal section 143.071, RSMo, and to enact in lieu thereof two new sections relating to taxation.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 143.071, RSMo, is repealed and two new sections enacted in lieu thereof, to be known as sections 143.013 and 143.071, to read as follows:
143.013. 1. This act shall be known and may be cited as the "Broad-Based Tax Relief Act of 2012".
2. As used in this section, "business income" means income greater than zero arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations. "Business income" shall not include "compensation" as such term is defined under subsection 1 of article IV of section 32.200.
3. In the case of a small corporation described in section 143.471 or a partnership, computing the deduction allowed under subsection 4 of this section, taxpayers described in subdivisions (1) or (2) of this subsection shall be allowed such deduction apportioned in proportion to their share of ownership of the business on the last day of the taxpayer's tax period for which such deduction is being claimed when determining the Missouri adjusted gross income of:
(1) The shareholders of a small corporation as described in section 143.471;
(2) The partners in a partnership.
4. (1) In addition to all other modifications allowed by law, there shall be subtracted from the federal adjusted gross income of an individual taxpayer the amounts of business income as provided in this subsection to the extent included in federal adjusted gross income when determining the taxpayer's Missouri adjusted gross income.
(2) (a) For all tax years beginning on or after January 1, 2012, the percentage of the amount of business income to be subtracted under this subsection shall be determined as provided in this subdivision.
(b) The office of administration shall compare the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues, as reported by the department of revenue, received in the fiscal year ending on June 30, 2010, to the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues, as reported by the department of revenue, received in the fiscal year ending on June thirtieth of the tax year preceding the tax year for which the percentage of the amount of business income to be subtracted under this section is being determined under this section. Upon the completion of such comparison, the office of administration shall immediately report the results of such comparison to the director of the department of revenue.
(c) If, upon comparison of the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received as provided in this subdivision, the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June thirtieth of such preceding tax year are less than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, the percentage of the amount of business income that shall be subtracted under this subsection, if any, shall be the same as the immediately preceding tax year until such time the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received are equal to or greater than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, and the percentage of business income subtracted should increase as provided in paragraph (d) of this subdivision.
(d) a. In the first tax year for which the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, the percentage of the amount of business income that shall be subtracted under this subsection shall be ten percent.
b. In the second tax year for which the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, the percentage of the amount of business income that shall be subtracted under this subsection shall be twenty percent.
c. In the third tax year for which the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, the percentage of the amount of business income that shall be subtracted under this subsection shall be thirty percent.
d. In the fourth tax year for which the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, the percentage of the amount of business income that shall be subtracted under this subsection shall be forty percent.
e. In the fifth tax year for which the office of administration determines that the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010, and in each succeeding tax year, the percentage of the amount of business income that shall be subtracted under this subsection shall be fifty percent.
(e) Once an increase occurs in the percentage of the amount of business income to be subtracted under this subsection as provided in paragraph (d) of this subdivision, the percentage of the amount subtracted under this subsection shall not be decreased even if the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in any following fiscal year ending on June thirtieth of any following tax year are less than the sum of the Missouri net individual income tax revenues and the Missouri net corporate income tax revenues received in the fiscal year ending on June 30, 2010.
143.071. 1. For all tax years beginning before September 1, 1993, a tax is hereby imposed upon the Missouri taxable income of corporations in an amount equal to five percent of Missouri taxable income.
2. For all tax years beginning on or after September 1, 1993, but before December 31, 2011, a tax is hereby imposed upon the Missouri taxable income of corporations in an amount equal to six and one-fourth percent of Missouri taxable income.
3. (1) For each tax year beginning on or after January 1, 2012, the tax imposed upon the Missouri taxable income of corporations shall be in an amount as determined under this subsection.
(2) The office of administration shall compare the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues, as reported by the department of revenue, received in the fiscal year ending on June 30, 2010, to the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues, as reported by the department of revenue, received in the fiscal year ending on June thirtieth of the tax year preceding the tax year for which the amount of the tax imposed under this section is being determined under this section. Upon the completion of such comparison, the office of administration shall immediately report the results of such comparison to the director of the department of revenue.
(3) If, upon comparison of the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received as provided in this subsection, the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June thirtieth of such preceding tax year are less than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, the amount of the tax imposed under this subsection shall be at the same rate as the immediately preceding tax year until such time the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received are equal to or greater than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, and the amount of the tax imposed under this subsection should decrease as provided in subdivision (4) of this subsection.
(4) (a) In the first tax year for which the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, the amount of the tax imposed under this subsection shall decrease to an amount equal to five and five-eights percent of Missouri taxable income.
(b) In the second tax year for which the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, the amount of the tax imposed under this subsection shall decrease to an amount equal to five percent of Missouri taxable income.
(c) In the third tax year for which the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, the amount of the tax imposed under this subsection shall decrease to an amount equal to four and three-eighths percent of Missouri taxable income.
(d) In the fourth tax year for which the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, the amount of the tax imposed under this subsection shall decrease to an amount equal to three and three-fourths percent of Missouri taxable income.
(e) In the fifth tax year for which the office of administration determines that the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the preceding fiscal year ending on June thirtieth of such tax year are equal to or greater than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010, and for each succeeding tax year, the amount of the tax imposed under this subsection shall decrease to an amount equal to three and one-eighth percent of Missouri taxable income.
(5) Once a decrease occurs in the amount of the tax imposed under this subsection as provided in subdivision (4) of this subsection, the amount of the tax imposed under this subsection shall not increase even if the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in any following fiscal year ending on June thirtieth of any following tax year are less than the sum of the Missouri net corporate income tax revenues and the Missouri net individual income tax revenues received in the fiscal year ending on June 30, 2010.
