Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that authorizes an income tax deduction for capital gains in Missouri.

Highlights:

• Repeals the previous section and enacts a new section relating to an income tax deduction for capital gains in Missouri (Sec. 143.121). 

• Establishes modifications to taxpayer’s federal adjusted gross income, including, but not limited to, the following additions to income (Sec. 143.121):

• Federal income tax received for a prior year if it resulted in a Missouri income tax benefit, except federal income tax used to mitigate financial challenges related to COVID-19;

• Interest on certain governmental obligations;

• Deductions related to property purchases;

• Property taxes paid to another state; or

• Any interest expense paid or accrued in a previous taxable year. 

• Establishes modifications to taxpayer’s federal adjusted gross income, including, but not limited to, the following subtractions to income (Sec. 143.121):

• Interest from government bonds and Federal Reserve deposits;

• Income received for military service while the taxpayer serves in a combat zone;

• Retirement benefits received by any taxpayer as a result of their military service, and now additionally,

• 100% of all income reported as capital gain for federal income tax purposes.

• Specifies that the provisions of this bill regarding income tax deductions for capital gains shall apply to all tax years beginning on or after January 1, 2025 (Sec. 143.121). 

• Requires the Department of Revenue to prepare an annual report reviewing the costs and benefits of the subtraction of capital gains authorized under the provisions of this bill (Sec. 143.121). 

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 143.121).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that authorizes an income tax deduction for capital gains in Missouri.

Highlights:

• Repeals the previous section and enacts a new section relating to an income tax deduction for capital gains in Missouri (Sec. 143.121). 

• Establishes modifications to taxpayer’s federal adjusted gross income, including, but not limited to, the following additions to income (Sec. 143.121):

• Federal income tax received for a prior year if it resulted in a Missouri income tax benefit, except federal income tax used to mitigate financial challenges related to COVID-19;

• Interest on certain governmental obligations;

• Deductions related to property purchases;

• Property taxes paid to another state; or

• Any interest expense paid or accrued in a previous taxable year. 

• Establishes modifications to taxpayer’s federal adjusted gross income, including, but not limited to, the following subtractions to income (Sec. 143.121):

• Interest from government bonds and Federal Reserve deposits;

• Income received for military service while the taxpayer serves in a combat zone;

• Retirement benefits received by any taxpayer as a result of their military service, and now additionally,

• 100% of all income reported as capital gain for federal income tax purposes.

• Specifies that the provisions of this bill regarding income tax deductions for capital gains shall apply to all tax years beginning on or after January 1, 2025 (Sec. 143.121). 

• Requires the Department of Revenue to prepare an annual report reviewing the costs and benefits of the subtraction of capital gains authorized under the provisions of this bill (Sec. 143.121). 

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 143.121).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes an income tax deduction for capital gains in Missouri.

Highlights:

• Repeals the previous section and enacts a new section relating to an income tax deduction for capital gains in Missouri (Sec. 143.121). 

• Establishes modifications to taxpayer’s federal adjusted gross income, including, but not limited to, the following additions to income (Sec. 143.121):

• Federal income tax received for a prior year if it resulted in a Missouri income tax benefit, except federal income tax used to mitigate financial challenges related to COVID-19;

• Interest on certain governmental obligations;

• Deductions related to property purchases;

• Property taxes paid to another state; or

• Any interest expense paid or accrued in a previous taxable year. 

• Establishes modifications to taxpayer’s federal adjusted gross income, including, but not limited to, the following subtractions to income (Sec. 143.121):

• Interest from government bonds and Federal Reserve deposits;

• Income received for military service while the taxpayer serves in a combat zone;

• Retirement benefits received by any taxpayer as a result of their military service, and now additionally,

• 100% of all income reported as capital gain for federal income tax purposes.

• Specifies that the provisions of this bill regarding income tax deductions for capital gains shall apply to all tax years beginning on or after January 1, 2025 (Sec. 143.121). 

• Requires the Department of Revenue to prepare an annual report reviewing the costs and benefits of the subtraction of capital gains authorized under the provisions of this bill (Sec. 143.121). 

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 143.121).

Full Bill Text