Struck = removed from the bill ยท
added = the amendment's new text.
SECOND5663H01.02H REGULARHB SESSION2945 HOUSEHouse BILL_____________________________________________________ NO.Amendment NO.____ Offered By _____________________________________ ___________________________________ AMEND House Bill No.
29452945, 103RDPage GENERAL8, ASSEMBLYSection INTRODUCED143.121, BYLine REPRESENTATIVE258, HARDWICK.by inserting after all of said section and line the following:
5663H.01I4 JOSEPH"143.183. ENGLER, Chief Clerk AN ACT To repeal sections 143.121 and 143.341, RSMo, and to enact in lieu thereof two new sections relating to income tax.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A.
Sections 143.121 and 143.341, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 143.121 and 143.341, to read as follows:
143.121.
TheAs Missouriused adjustedin grossthis incomesection, of a resident individual shall be the taxpayer'sfollowing federalterms adjustedmean: gross income subject to the modifications in this section.
(1) "Nonresident entertainer", a person residing or registered as a corporation outside this state who, for compensation, performs any vocal, instrumental, musical, comedy, dramatic, dance or other performance in this state before a live audience and any other person traveling with and performing services on behalf of a nonresident entertainer, including a nonresident entertainer who is paid compensation for providing entertainment as an independent contractor, a partnership that is paid compensation for entertainment provided by nonresident entertainers, a corporation that is paid compensation for entertainment provided by nonresident entertainers, or any other entity that is paid compensation for entertainment provided by nonresident entertainers;
(2) "Nonresident member of a professional athletic team", a professional athletic team member who resides outside this state, including any active player, any player on the disabled list if such player is in uniform on the day of the game at the site of the game, and any other person traveling with and performing services on behalf of a professional athletic team;
(3) "Personal service income", includes exhibition and regular season salaries and wages, guaranteed payments, strike benefits, deferred payments, severance pay, bonuses, and any other type of compensation paid to the nonresident entertainer or nonresident member of a professional athletic team, but does not include prizes, bonuses or incentive money received from competition in a livestock, equine or rodeo performance, exhibition or show;
(4) "Professional athletic team", includes, but is not limited to, any professional baseball, basketball, football, soccer and hockey team.
ThereAny person, venue, or entity who pays compensation to a nonresident entertainer shall bededuct addedand withhold from such compensation as a prepayment of tax an amount equal to two percent of the taxpayer'stotal federalcompensation adjustedif grossthe income:amount of compensation is in excess of three hundred dollars paid to the nonresident entertainer.
(1)For Thepurposes amount of anythis federalsection, incomethe taxterm refund"person, receivedvenue, foror aentity priorwho yearpays whichcompensation" resultedshall innot abe Missouriconstrued incometo taxinclude benefit.any person, venue, or entity that is exempt from taxation under 26 U.S.C.
TheSection amount501(c)(3), addedas pursuantamended, toand thisthat subdivisionpays shallan notAction includeTaken___________________________________________ anyDate amount__________________ ofPage a1 federalof income5 tax5663H01.02H refundamount attributable to a tax credit reducing a taxpayer's federal tax liability pursuant to Public Law 116-136 or 116-260, enacted by the 116thnonresident Unitedentertainer States Congress, for the taxentertainer's yearappearance beginningbut onreceives orno afterbenefit January 1, 2020, and ending on or before December 31, 2020, and deducted from Missourithe adjustedentertainer's grossappearance incomeother pursuantthan tothe sectionentertainer's 143.171.performance.
The3. amount added under this subdivision shall also not include any amount of a federal income tax refund attributable to a tax credit reducing a taxpayer's federal tax liability under any other federal law that provides direct economic impact payments to taxpayers to mitigate financial challenges related to the COVID-19 pandemic, and deducted from Missouri adjusted gross income under section 143.171;
(2)Any Interestperson, venue, or entity required to deduct and withhold tax pursuant to subsection 2 of this section shall, for each calendar quarter, on certainor governmentalbefore obligationsthe excludedlast fromday federalof grossthe incomemonth following the close of such calendar quarter, remit the taxes withheld in such form or return as prescribed by 26the U.S.C.director of revenue and pay over to the director of revenue or to a depository designated by the director of revenue the taxes so required to be deducted and withheld.
Section 103 of the Internal Revenue Code, as amended.
The previous sentence shall not apply to interest on obligations of the state of Missouri or any of its political EXPLANATION โ Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law.
Matter in bold-face type in the above bill is proposed language.
HB 2945 2 subdivisions or authorities and shall not apply to the interest described in subdivision (1) of subsection 3 of this section.
The amount added pursuant to this subdivision shall be reduced by the amounts applicable to such interest that would have been deductible in computing the taxable income of the taxpayer except only for the application of 26 U.S.C.
Section 265 of the Internal Revenue Code, as amended.
The reduction shall only be made if it is at least five hundred dollars;
(3) The amount of any deduction that is included in the computation of federal taxable income pursuant to 26 U.S.C.
Section 168 of the Internal Revenue Code as amended by the Job Creation and Worker Assistance Act of 2002 to the extent the amount deducted relates to property purchased on or after July 1, 2002, but before July 1, 2003, and to the extent the amount deducted exceeds the amount that would have been deductible pursuant to 26 U.S.C.
Section 168 of the Internal Revenue Code of 1986 as in effect on January 1, 2002;
(4) The amount of any deduction that is included in the computation of federal taxable income for net operating loss allowed by 26 U.S.C.
Section 172 of the Internal Revenue Code of 1986, as amended, other than the deduction allowed by 26 U.S.C.
Section 172(b)(1)(G) and 26 U.S.C.
Section 172(i) of the Internal Revenue Code of 1986, as amended, for a net operating loss the taxpayer claims in the tax year in which the net operating loss occurred or carries forward for a period of more than twenty years and carries backward for more than two years.
Any amount of net operating loss taken against federal taxable income but disallowed for Missouri income tax purposes pursuant to this subdivision after June 18, 2002, may be carried forward and taken against any income on the Missouri income tax return for a period of not more than twenty years from the year of the initial loss;
and (5) For nonresident individuals in all taxable years ending on or after December 31, 2006, the amount of any property taxes paid to another state or a political subdivision of another state for which a deduction was allowed on such nonresident's federal return in the taxable year unless such state, political subdivision of a state, or the District of Columbia allows a subtraction from income for property taxes paid to this state for purposes of calculating income for the income tax for such state, political subdivision of a state, or the District of Columbia;
(6) For all tax years beginning on or after January 1, 2018, any interest expense paid or accrued in a previous taxable year, but allowed as a deduction under 26 U.S.C.
Section 163, as amended, in the current taxable year by reason of the carryforward of disallowed business interest provisions of 26 U.S.C.
Section 163(j), as amended.
For the purposes of this subdivision, an interest expense is considered paid or accrued only in the first taxable year the deduction would have been allowable under 26 U.S.C.
Section 163, as amended, if the limitation under 26 U.S.C.
Section 163(j), as amended, did not exist.
HB 2945 3 3.
There shall be subtracted from the taxpayer's federal adjusted gross income the following amounts to the extent included in federal adjusted gross income:
(1) Interest received on deposits held at a federal reserve bank or interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission or instrumentality of the United States to the extent exempt from Missouri income taxes pursuant to the laws of the United States.
The amount subtracted pursuant to this subdivision shall be reduced by any interest on indebtedness incurred to carry the described obligations or securities and by any expenses incurred in the production of interest or dividend income described in this subdivision.
The reduction in the previous sentence shall only apply to the extent that such expenses including amortizable bond premiums are deducted in determining the taxpayer's federal adjusted gross income or included in the taxpayer's Missouri itemized deduction.
The reduction shall only be made if the expenses total at least five hundred dollars;
(2) The portion of any gain, from the sale or other disposition of property having a higher adjusted basis to the taxpayer for Missouri income tax purposes than for federal income tax purposes on December 31, 1972, that does not exceed such difference in basis.
If a gain is considered a long-term capital gain for federal income tax purposes, the modification shall be limited to one-half of such portion of the gain;
(3) The amount necessary to prevent the taxation pursuant to this chapter of any annuity or other amount of income or gain which was properly included in income or gain and was taxed pursuant to the laws of Missouri for a taxable year prior to January 1, 1973, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired the right to receive the income or gain, or to a trust or estate from which the taxpayer received the income or gain;
(4) Accumulation distributions received by a taxpayer as a beneficiary of a trust to the extent that the same are included in federal adjusted gross income;
(5) The amount of any state income tax refund for a prior year which was included in the federal adjusted gross income;
(6) The portion of capital gain specified in section 135.357 that would otherwise be included in federal adjusted gross income;
(7) The amount that would have been deducted in the computation of federal taxable income pursuant to 26 U.S.C.
Section 168 of the Internal Revenue Code as in effect on January 1, 2002, to the extent that amount relates to property purchased on or after July 1, 2002, but before July 1, 2003, and to the extent that amount exceeds the amount actually deducted pursuant to 26 U.S.C.
Section 168 of the Internal Revenue Code as amended by the Job Creation and Worker Assistance Act of 2002;
HB 2945 4 (8) For all tax years beginning on or after January 1, 2005, the amount of any income received for military service while the taxpayer serves in a combat zone which is included in federal adjusted gross income and not otherwise excluded therefrom.
As used in this section, "combat zone" means any area which the President of the United States by Executive Order designates as an area in which Armed Forces of the United States are or have engaged in combat.
Service is performed in a combat zone only if performed on or after the date designated by the President by Executive Order as the date of the commencing of combat activities in such zone, and on or before the date designated by the President by Executive Order as the date of the termination of combatant activities in such zone;
(9) For all tax years ending on or after July 1, 2002, with respect to qualified property that is sold or otherwise disposed of during a taxable year by a taxpayer and for which an additional modification was made under subdivision (3) of subsection 2 of this section, the amount by which additional modification made under subdivision (3) of subsection 2 of this section on qualified property has not been recovered through the additional subtractions provided in subdivision (7) of this subsection;
(10) For all tax years beginning on or after January 1, 2014, the amount of any income received as payment from any program which provides compensation to agricultural producers who have suffered a loss as the result of a disaster or emergency, including the:
(a) Livestock Forage Disaster Program;
(b) Livestock Indemnity Program;
(c) Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish;
(d) Emergency Conservation Program;
(e) Noninsured Crop Disaster Assistance Program;
(f) Pasture, Rangeland, Forage Pilot Insurance Program;
(g) Annual Forage Pilot Program;
(h) Livestock Risk Protection Insurance Plan;
(i) Livestock Gross Margin Insurance Plan;
(11) For all tax years beginning on or after January 1, 2018, any interest expense paid or accrued in the current taxable year, but not deducted as a result of the limitation imposed under 26 U.S.C.
Section 163(j), as amended.
For the purposes of this subdivision, an interest expense is considered paid or accrued only in the first taxable year the deduction would have been allowable under 26 U.S.C.
Section 163, as amended, if the limitation under 26 U.S.C.
Section 163(j), as amended, did not exist;
(12) One hundred percent of any retirement benefits received by any taxpayer as a result of the taxpayer's service in the Armed Forces of the United States, including reserve components and the National Guard of this state, as defined in 32 U.S.C.
Sections 101(3) and 109, and any other military force organized under the laws of this state;
HB 2945 5 (13) For all tax years beginning on or after January 1, 2022, one hundred percent of any federal, state, or local grant moneys received by the taxpayer if the grant money was disbursed for the express purpose of providing or expanding access to broadband internet to areas of the state deemed to be lacking such access;
(14) (a) For all tax years beginning on or after January 1, 2025, one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to tax pursuant to section 143.011;
[and] (b) For all tax years beginning on or after January first of the tax year following the tax year in which the top rate of tax imposed pursuant to section 143.011 is equal to or less than four and one-half percent, one hundred percent of all income reported as a capital gain for federal income tax purposes by an entity subject to tax pursuant to section 143.071;
and (c) For all tax years beginning on or after January 1, 2026, a capital gain shall include items of ordinary income for federal income tax purposes that, but for the application of 26 U.S.C.
Sections 1245 and 1250 of the Internal Revenue Code, as amended, would be treated as a capital gain;
and (15) For all tax years beginning on or after January 1, 2026, the portion of capital gain on the sale or exchange of specie, as that term is defined in section 408.010, that are otherwise included in the taxpayer's federal adjusted gross income.
ThereAny person, venue, or entity subject to this section shall be addedconsidered toan oremployer subtractedfor frompurposes theof taxpayer'ssection federal143.191, adjustedand grossshall incomebe thesubject taxpayer'sto shareall ofpenalties, theinterest, Missouriand fiduciaryadditions adjustmentto tax provided in sectionthis 143.351.chapter for failure to comply with this section.
There[Notwithstanding shallother beprovisions addedof this chapter to the contrary, the commissioner of administration, for all taxable years beginning on or subtractedafter fromJanuary the1, taxpayer's1999, federalbut adjustednone grossafter incomeDecember 31, 2030, shall annually estimate the modificationsamount providedof instate sectionincome 143.411.tax revenues collected pursuant to this chapter which are received from nonresident members of professional athletic teams and nonresident entertainers.
For fiscal year 2000, and for each subsequent fiscal year for a period of thirty-one years, sixty percent of the annual estimate of taxes generated from the nonresident entertainer and professional athletic team income tax shall be allocated annually to the Missouri arts council trust fund, and shall be transferred, subject to appropriations, from the general revenue fund to the Missouri arts council trust fund established in section 185.100 and any amount transferred shall be in addition to such agency's budget base for each fiscal year.
The director shall by rule establish the method of determining the portion of personal service income of such persons that is allocable to Missouri.
InNotwithstanding additionthe provisions of sections 186.050 to 186.067 to the modificationscontrary, tothe acommissioner taxpayer'sof federaladministration, adjustedfor grossall incometaxable inyears thisbeginning section,on toor calculateafter MissouriJanuary adjusted1, gross1999, incomebut therefor shallnone beafter subtractedDecember from31, the2030, taxpayer'sshall federalestimate adjustedannually grossthe amount of state income anytax gainrevenues recognizedcollected pursuant to 26this U.S.C.chapter which are received from nonresident members of professional athletic teams and nonresident entertainers.
SectionFor 1033fiscal year 2000, and for each subsequent fiscal year for a period of thethirty-one Internalyears, Revenueten Codepercent of 1986,the asannual amended,estimate arisingof taxes generated from compulsorythe ornonresident involuntaryentertainer conversionand ofprofessional propertyathletic asteam aincome resulttax ofshall condemnationbe orallocated annually to the imminenceMissouri thereof.humanities council trust fund, and shall be transferred, subject to appropriations, from the general revenue fund to the Missouri humanities council trust fund established in section 186.055 and any amount transferred shall be in addition to such agency's budget base for each fiscal year.
(1)Notwithstanding Asother usedprovisions inof thissection subsection,182.812 "qualifiedto healththe insurancecontrary, premium"the meanscommissioner theof amountadministration, paidfor duringall thetaxable taxyears yearbeginning byon suchor taxpayerafter forJanuary any1, insurance1999, policybut primarilyfor providingnone healthafter careDecember coverage31, for2030, theshall taxpayer,estimate annually the taxpayer'samount spouse,of orstate theincome taxpayer'stax dependents.revenues collected pursuant to this chapter which are received from nonresident members of professional athletic teams and nonresident entertainers.
(2)For Infiscal additionyear to2000, theand subtractionsfor ineach subsectionsubsequent 3fiscal year for Page 2 of this5 section,5663H01.02H onea hundredperiod of thirty-one years, ten percent of the amountannual estimate of qualifiedtaxes healthgenerated insurancefrom premiumsthe nonresident entertainer and professional athletic team income tax shall be subtractedallocated fromannually to the taxpayer'sMissouri federalstate adjustedlibrary grossnetworking incomefund, and shall be transferred, subject to appropriations, from the extentgeneral revenue fund to the amountsecretary paidof state for suchdistribution premiumsto ispublic includedlibraries for acquisition of library materials as established in federalsection taxable182.812 income.and any amount transferred shall be in addition to such agency's budget base for each fiscal year.
The8. taxpayer shall provide the department of revenue with proof of the amount of qualified health insurance premiums paid.
HBNotwithstanding 2945other 6provisions 8.of section 185.200 to the contrary, the commissioner of administration, for all taxable years beginning on or after January 1, 1999, but for none after December 31, 2030, shall estimate annually the amount of state income tax revenues collected pursuant to this chapter which are received from nonresident members of professional athletic teams and nonresident entertainers.
(1)For Beginningfiscal Januaryyear 1,2000, 2014,and infor additioneach tosubsequent thefiscal subtractionsyear providedfor ina thisperiod section,of onethirty-one hundredyears, ten percent of the costannual incurredestimate byof ataxes taxpayergenerated forfrom athe homenonresident energyentertainer auditand conductedprofessional byathletic anteam entityincome certifiedtax byshall be allocated annually to the departmentMissouri public television broadcasting corporation special fund, and shall be transferred, subject to appropriations, from the general revenue fund ] (1) Notwithstanding other provisions of naturalthis resourceschapter, undersection 182.812, section 640.153185.200, sections 186.050 to 186.067, or section 253.402 to the implementationcontrary, offor anyall energytax efficiencyyears recommendationsbeginning madeon inor suchafter anJanuary audit1, shall2027, beand subtractedending fromon theor taxpayer'sbefore federalDecember adjusted31, gross2060, incomeone tohundred thepercent extentof the amount paidof forstate anyincome suchtax activityrevenues iscollected includedunder inthis federalchapter taxablereceived income.from nonresident members of professional athletic teams and nonresident entertainers shall not be remitted to the general revenue fund of the state of Missouri.
TheSuch taxpayermoneys shall providebe thedeposited departmentinto ofthe revenuenonresident withentertainer aand summaryprofessional ofathletic anyteam recommendationsincome madetax infund aestablished qualifiedunder homethis energysubsection audit,for the namepurposes andprovided certificationunder number of the qualifiedprovisions home energy auditor who conducted the audit, and proof of the amount paid for any activities under this subsectionsection. for which a deduction is claimed.
The(2) taxpayerThere shallis alsohereby providecreated ain copythe ofstate treasury the summary"Nonresident ofEntertainer anyand recommendationsProfessional madeAthletic inTeam aIncome qualifiedTax homeFund", energywhich auditshall toconsist theof departmentmoneys ofcollected naturalunder resources.this section.
(2)The Atstate notreasurer time shall abe deductioncustodian claimedof underthe thisfund. subsection by an individual taxpayer or taxpayers filing combined returns exceed one thousand dollars per year for individual taxpayers or cumulatively exceed two thousand dollars per year for taxpayers filing combined returns.
(3)In Anyaccordance deductionwith claimedsections under30.170 thisand subsection30.180, shall be claimed for the taxstate yeartreasurer inmay whichapprove thedisbursements. qualified home energy audit was conducted or in which the implementation of the energy efficiency recommendations occurred.
IfThe implementationfund ofshall thebe energya efficiencydedicated recommendationsfund occurredand, duringupon moreappropriation, thanmoneys onein year,this thefund deductionshall may be claimedused insolely moreas than one year, subject to the limitations provided underin subdivision (2) of this subsection.section.
(4)Notwithstanding Athe deductionprovisions shallof notsection be33.080 claimedto forthe anycontrary, otherwise eligible activity under this subsection if such activity qualified for and received any rebatemoneys orremaining otherin incentivethe throughfund aat state-sponsoredthe energyend programof orthe throughbiennium anshall electricnot corporation,revert gasto corporation,the electriccredit cooperative,of orthe municipallygeneral ownedrevenue utility.fund.
9.The state treasurer shall invest moneys in the fund in the same manner as other funds are invested.
TheAny provisionsinterest ofand subsectionmoneys 8earned ofon thissuch sectioninvestments shall expirebe oncredited Decemberto 31,the 2020.fund.
10.(3) For the fiscal year beginning on or after July 1, 2027, and for each subsequent fiscal year beginning on or before December 31, 2060, the moneys collected under this section in the nonresident entertainer and professional athletic team income tax fund shall be allocated annually in the following percentages:
(1)(a) AsTo usedthe inMissouri thisarts subsection,council thetrust followingfund termsestablished mean:under section 185.100, sixty percent;
(a)Page "Beginning3 farmer",of a5 taxpayer5663H01.02H who:(b) To the Missouri humanities council trust fund established in section 186.055, ten percent;
a.(c) To the Missouri state library networking fund for the secretary of state to distribute to public libraries for acquisition of library materials as established in section 182.812, ten percent;
Has(d) filedTo atthe leastMissouri onepublic butbroadcasting notcorporation morespecial thanfund, ten Internalpercent; Revenue Service Schedule F (Form 1040) Profit or Loss From Farming forms since turning eighteen years of age;
b.and (e) To the Missouri department of natural resources Missouri historic preservation revolving fund established in section 253.402, ten percent.
Is(4) approvedThe forpercentages alisted beginningin farmersubdivision loan(3) throughof this subsection shall be transferred from the USDAnonresident Farmentertainer Serviceand Agencyprofessional Beginningathletic Farmerteam directincome ortax guaranteedfund loanto program;each fund listed in subdivision (3) of this subsection, and any amount transferred shall be in addition to each agency's budget base for each fiscal year.
c.(5) For the amounts allocated to the Missouri public television broadcasting corporation special fund[, and any amount transferred shall be in addition to such agency's budget base for each fiscal year;
Hasprovided, ahowever, farmingthat] operationtwenty-five thatpercent isof determinedsuch byallocation theshall departmentbe ofused agriculturefor grants to bepublic newradio productionstations agriculturewhich butwere isqualified by the principalcorporation operatorfor ofpublic abroadcasting farmas andof hasNovember substantial1, farming1996. knowledge;
orSuch d.grants shall be distributed to each of such public radio stations in this state after receipt of the station's certification of operating and programming expenses for the prior fiscal year.
HasCertification beenshall determinedconsist byof the departmentmost ofrecent agriculturefiscal toyear befinancial statement submitted by a qualifiedstation familyto member;the corporation for public broadcasting.
HBThe 2945grants 7shall (b)be "Farmdivided owner",into two categories, an individualannual whobasic ownsservice farmlandgrant and disposesan ofoperating orgrant. relinquishes use of all or some portion of such farmland as follows:
a.The basic service grant shall be equal to thirty-five percent of the total amount and shall be divided equally among the public radio stations receiving grants.
AThe saleremaining amount shall be distributed as an operating grant to athe beginningstations farmer;on the basis of the proportion that the total operating expenses of the individual station in the prior fiscal year bears to the aggregate total of operating expenses for the same fiscal year for all Missouri public radio stations which are receiving grants.
b.[9.
ANotwithstanding leaseother orprovisions rentalof agreementsection not253.402 exceedingto tenthe yearscontrary, withthe acommissioner of administration, for all taxable years beginning farmer;on or after January 1, 1999, but for none after December 31, 2030, shall estimate annually the amount of state income tax revenues collected pursuant to this chapter which are received from nonresident members of professional athletic teams and nonresident entertainers.
orFor c.fiscal year 2000, and for each subsequent fiscal year for a period of thirty-one years, ten percent of the annual estimate of taxes generated from the nonresident entertainer and professional athletic team income tax shall be allocated annually to the Missouri department of natural resources Missouri historic preservation revolving fund, and shall be transferred, subject to appropriations, from the general revenue fund to the Missouri department of natural resources Missouri historic preservation revolving fund established in section 253.402 and any amount transferred shall be in addition to such agency's budget base for each fiscal year.
APage crop-share4 arrangementof not5 exceeding5663H01.02H ten10.] years6. with a beginning farmer;
(c)The "Qualifieddirector familyshall member",by anrule individualestablish whothe ismethod relatedof todetermining a farm owner within the fourthportion degreeof bypersonal blood,service marriage,income orof adoptionsuch andpersons whothat is purchasingallocable orto leasingMissouri. or is in a crop-share arrangement for land from all or a portion of such farm owner's farming operation.
(2) (a) In addition to all other subtractions authorized in this section, a taxpayer who is a farm owner who sells all or a portion of such farmland to a beginning farmer may subtract from such taxpayer's Missouri adjusted gross income an amount to the extent included in federal adjusted gross income as provided in this subdivision.
(b) Subject to the limitations in paragraph (c) of this subdivision, the amount that may be subtracted shall be equal to the portion of capital gains received from the sale of such farmland that such taxpayer receives in the tax year for which such taxpayer subtracts such capital gain.
(c) A taxpayer may subtract the following amounts and percentages per tax year in total capital gains received from the sale of such farmland under this subdivision:
a.
For the first two million dollars received, one hundred percent;
b.
For the next one million dollars received, eighty percent;
c.
For the next one million dollars received, sixty percent;
d.
For the next one million dollars received, forty percent;
and e.
For the next one million dollars received, twenty percent.
(d) The department of revenue shall prepare an annual report reviewing the costs and benefits and containing statistical information regarding the subtraction of capital gains authorized under this subdivision for the previous tax year including, but not limited to, the total amount of all capital gains subtracted and the number of taxpayers subtracting such capital gains.
Such report shall be submitted before February first of each year to the committee on agriculture policy of the Missouri house of representatives and the committee on agriculture, food production and outdoor resources of the Missouri senate, or the successor committees.
(3) (a) In addition to all other subtractions authorized in this section, a taxpayer who is a farm owner who enters a lease or rental agreement for all or a portion of such farmland with a beginning farmer may subtract from such taxpayer's Missouri adjusted gross income an amount to the extent included in federal adjusted gross income as provided in this subdivision.
HB 2945 8 (b) Subject to the limitation in paragraph (c) of this subdivision, the amount that may be subtracted shall be equal to the portion of cash rent income received from the lease or rental of such farmland that such taxpayer receives in the tax year for which such taxpayer subtracts such income.
(c) No taxpayer shall subtract more than twenty-five thousand dollars per tax year in total cash rent income received from the lease or rental of such farmland under this subdivision.
(4) (a) In addition to all other subtractions authorized in this section, a taxpayer who is a farm owner who enters a crop-share arrangement on all or a portion of such farmland with a beginning farmer may subtract from such taxpayer's Missouri adjusted gross income an amount to the extent included in federal adjusted gross income as provided in this subdivision.
(b) Subject to the limitation in paragraph (c) of this subdivision, the amount that may be subtracted shall be equal to the portion of income received from the crop-share arrangement on such farmland that such taxpayer receives in the tax year for which such taxpayer subtracts such income.
(c) No taxpayer shall subtract more than twenty-five thousand dollars per tax year in total income received from the lease or rental of such farmland under this subdivision.
(5) The department of agriculture shall, by rule, establish a process to verify that a taxpayer is a beginning farmer for purposes of this section and shall provide verification to the beginning farmer and farm seller of such farmer's and seller's certification and qualification for the exemption provided in this subsection.
143.341.
1.
The Missouri taxable income of a resident estate or trust means its federal taxable income subject to the modifications in this section.
2.
There shall be subtracted the amount if any that the federal personal exemption deduction allowable to the estate or trust exceeds its federal taxable income without its personal exemption deduction.
3.
For all tax years beginning on or after January 1, 2026, there shall be subtracted that amount included in Missouri taxable income of the estate or trust that would not be included as Missouri taxable income if said estate or trust were considered a nonresident estate or trust as defined in section 143.371.
This subtraction shall only apply to the extent it is not a determinant of the federal distributable net income of the estate or trust.
4.
There shall be added or subtracted, as the case may be, the modifications described in sections 143.121 and 143.141, and there shall be subtracted the federal income tax deduction provided in section 143.171.
These additions and subtractions shall only apply to the extent that they are not determinants of the federal distributable net income of the estate or trust.
HB 2945 9 5.
There shall be added or subtracted, as the case may be, the share of the estate or trust in the fiduciary adjustment determined under section 143.351.
6.
For all tax years beginning on or after January 1, 2026, there shall be subtracted one hundred percent of all income reported as a capital gain for federal income tax purposes.
ForThis allsection taxshall yearsnot beginningbe onconstrued orto afterapply Januaryto 1,any 2026,person who makes a capitalpresentation gainfor shallprofessional includeor itemstechnical education purposes or to apply to any presentation that is part of ordinarya incomeseminar, forconference, federalconvention, incomeschool, taxor purposessimilar that,program butformat fordesigned theto applicationprovide ofprofessional 26or U.S.C.technical education.";
Sectionsand 12458 andFurther 1250amend ofsaid thebill, InternalPage Revenue9, Code,Section as143.341, amended,Line would24, beby treatedinserting asafter aall capitalof gain.said section and line the following:
"Section B.
The repeal and reenactment of section 143.183 of this act shall become effective on January 1, 2027.";
and Further amend said bill by amending the title, enacting clause, and intersectional references accordingly.
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