SALT Report 1313 – A bill has been pre-filed in the Missouri House of Representatives that would authorize Missouri to enter into the Multistate Streamlined Sales and Use Tax Agreement, eliminates all state tax credits, phases in a flat income tax rate, and increases the sales and use tax by .25%.
Streamlined Sales and Use Tax Agreement
If enacted, the Director of the Department of Revenue would be required to enter into the multistate Streamlined Sales and Use Tax Agreement and the department would be required to establish the necessary rules to implement the compliance provisions of the agreement, effective January 1, 2014.
All tax credits would be eliminated after December 31, 2012, and any previously issued tax credit must be redeemed before January 1, 2015.
Income Tax Rates
Beginning January 1, 2013, the bill phases in a flat tax rate for individual income tax of 4.4% for tax year 2013, 4% for 2014, and 3.8% for 2015 and all subsequent tax years.
The corporate income rate is reduced from 6.25% to 5% for tax year 2013, 4% for tax year 2014, and 3.5% for 2015 and all subsequent tax years.
Sales Tax Rate
Beginning January 1, 2015, the bill increases the state sales and use tax rate by .25% for general revenue.
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