May 15, 2014
Missouri Legislature Overrides Governor Nixon to Pass Tax Cut Bill

In this issue, we address important new Missouri tax changes that were passed on May 6, 2014 after the Missouri Legislature overruled Governor Jay Nixon’s veto. The legislation modifies the individual income tax rate table by reducing the top tax rate by one-half of a percent over a period of years, beginning in 2017. Each reduction to the rate will be by one-tenth of a percent. Once fully phased in, the top rate of tax on individual income will be five and one-half percent. This legislation also requires the tax brackets for individual income tax to be adjusted annually for inflation.

Additionally, the legislation creates an individual income tax deduction for flow-through business income from sole proprietorships, S corporations and partnerships that is reported on Schedule C or E of a Taxpayer's federal income tax return and sourced to Missouri.

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