FIRST REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
94TH GENERAL ASSEMBLY
Reported from the Special Committee on Tax Reform February 8, 2007 with recommendation that House Committee Substitute for House Bill Nos. 636, 308 & 173 Do Pass. Referred to the Committee on Rules pursuant to Rule 25(21)(f).
Reported from the Committee on Rules February 13, 2007 with recommendation that the House Committee Substitute Do Pass, with no time limit for debate on Perfection.
Taken up for Perfection February 27, 2007. House Committee Substitute ordered Perfected and printed, as amended.
D. ADAM CRUMBLISS, Chief Clerk
To amend chapter 135, RSMo, by adding thereto one new section relating to a tax credit for military retirement benefits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto one new section, to be known as section 135.631, to read as follows:
135.631. 1. As used in this section, the following terms mean:
(1) "Military retirement benefits", any military retirement benefits included in federal adjusted gross income and not otherwise excluded therefrom;
(2) "Tax credit", a credit against the tax otherwise due under chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo;
(3) "Taxpayer", any individual subject to the tax imposed in chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo.
2. For all taxable years beginning on or after January 1, 2007, a taxpayer shall be allowed a tax credit for military retirement benefits received by the taxpayer. The tax credit amount shall be equal to the amount of state income tax otherwise due for military retirement benefits received in the taxable year for which the credit is claimed. If the amount of the tax credit exceeds the amount of the taxpayer's state tax liability for the tax year for which the credit is claimed, the difference shall be refunded to taxpayers with an income not exceeding 150% of the federal poverty level. No tax credit granted under this section shall be transferred, sold, or assigned.
3. The department of revenue may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2007, shall be invalid and void.