Signed by Governor Mike Parson

Vote Smart's Synopsis:

Vote to amend and pass a bill that exempts federal government stimulus checks from taxable income by the state of Missouri.

Highlights:

• Requires county assessors to prove that their valuation does not exceed the true market value for any property whose assessed valuation increased at least 15 percent from the previous assessment unless the increase is due to new construction or improvement (Sec. 138.060).

• Exempts any amount of a federal income tax refund attributable to a tax credit reducing a taxpayer’s federal tax liability pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act for the tax year beginning on or after January 1, 2020, and ending on or before December 31, 2020, and deducted from Missouri adjusted gross income, from being added to the taxpayer’s federal adjusted gross income (Sec. 143.121).

• Prohibits the amount of any tax credits reducing a taxpayer’s federal tax liability pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act for the tax year beginning on or after January 1, 2020, and ending on or before December 31, 2020, from being considered in determining a taxpayer’s federal tax liability (Sec. 143.171).

• Defines “federal adjustment” as a change to an item or amount determined under the Internal Revenue Code that is used by a taxpayer to compute Missouri individual or corporate income tax owed (Sec. 143.425).

• Requires a taxpayer to report and pay any Missouri tax due with respect to final federal adjustments arising from an audit or other action by the IRS or reported by the taxpayer on a timely filed amended federal income tax return, except in the case of final federal adjustments that are reported and, if applicable, on the basis of which Missouri income tax is paid by a partnership and its partners using the specified procedures within this section (Sec. 143.425).

• Specifies that the provisions of this section will apply to any adjustments to a taxpayer’s federal taxable income or federal adjusted gross income with a final determination date occurring on or after January 1, 2021 (Sec. 143.425).

• Defines “specified terrorist victim” as any decedent who dies (Sec. 143.991):

• As a result of wounds or injury incurred as a result of the terrorist attacks against the United States on September 11, 2001; or

• As a result of illness incurred as a result of an attack involving anthrax occurring on or after September 11, 2001, and before January 1, 2002.

• Exempts the tax imposed pursuant to this chapter from applying to a specified terrorist victim (Sec. 143.991):

• With respect to the taxable year in which falls the date of death; and

• With respect to any prior taxable year in the period beginning with the last taxable year ending before the taxable year in which the wounds or injury were incurred from an attack.

Full Bill Text