HB 1639 -- Broad-Based Tax Relief Act of 2012

Sponsor:  Nolte

This bill establishes the Broad-Based Tax Relief Act of 2012,
reduces the tax on corporate business income and business income
for sole proprietors, partners, and shareholders in S-
corporations, and decreases the amount of historic rehabilitation
tax credits.

BROAD-BASED TAX RELIEF ACT OF 2012

For the 2012 tax year, a business will be taxed on 90% of its
business income on the individual income tax, for 2013, it will
be taxed on 80%; for 2014, it will be taxed on 70%, and for 2015
and after, the amount of business income to tax will be
determined by the Office of Administration comparing the Missouri
net individual and corporation income tax revenue received in the
fiscal year ending on June 30, 2010, to the Missouri net
individual and corporation income tax revenues received in the
fiscal year ending on June 30 of the tax year before the tax year
of determination.  If the result of the comparison shows a
decrease from the 2010 year, the percentage of business income to
be taxed will be 70% until the time that the comparison shows the
revenues to be equal to or increased from 2010.  Once the
comparison shows the revenues to be equal to or increased,
business income will be taxed at 60% for the year following the
determination and 50% for each subsequent tax year.

CORPORATE INCOME TAXES

For the 2012 tax year, the corporate tax rate will be decreased
from 6.25% to 5.625%, for 2013, it will be 5%; for 2014, it will
be 4.375%, and for 2015 and after, the tax rate will be
determined by the Office of Administration comparing the Missouri
net individual and corporation income tax revenue received in the
fiscal year ending on June 30, 2010, to the Missouri net
individual and corporation income tax revenues received in the
fiscal year ending on June 30 of the tax year before the tax year
of determination.  If the result of the comparison shows a
decrease from the 2010 year, the corporate tax rate will remain
at 4.375% until the time that the comparison shows the revenues
to be equal to or increased from 2010.  Once the comparison shows
the revenues to be equal to or increased, the tax rate will be
3.75% for the year following the determination and 3.125% for
each subsequent tax year.

HISTORIC REHABILITATION TAX CREDITS

For fiscal years beginning on or after July 1, 2013, the
cumulative amount of tax credits authorized in each fiscal year
for the historic rehabilitation tax credit must be reduced by the
amount necessary to replace any lost revenue from the reduction
in individual and corporate business taxes.

Missouri House of Representatives
Last Updated March 2, 2012 at 5:48 pm