Text of MO HB 1332 (2023)

FIRST REGULAR SESSION HOUSE BILL NO. 1332 102ND GENERAL ASSEMBLY INTRODUCED BY REPRESENTATIVE SPARKS. 2583H.02I DANA RADEMAN MILLER, Chief Clerk AN ACT To repeal section 143.011, RSMo, and to enact in lieu thereof two new sections relating to taxation. Be it enacted by the General Assembly of the state of Missouri, as follows: Section A. Section 143.011, RSMo, is repealed and two new sections enacted in lieu 2 thereof, to be known as sections 143.011 and 146.200, to read as follows: 143.011. 1. A tax is hereby imposed for every taxable year on the Missouri taxable 2 income of every resident. The tax shall be determined by applying the tax table or the rate 3 provided in section 143.021, which is based upon the following rates: 4 If the Missouri taxable income is: The tax is: 5 Not over $1,000.00 1 1/2% of the Missouri taxable income 6 Over $1,000 but not over $2,000 $15 plus 2% of excess over $1,000 7 Over $2,000 but not over $3,000 $35 plus 2 1/2% of excess over $2,000 8 Over $3,000 but not over $4,000 $60 plus 3% of excess over $3,000 9 Over $4,000 but not over $5,000 $90 plus 3 1/2% of excess over $4,000 10 Over $5,000 but not over $6,000 $125 plus 4% of excess over $5,000 11 Over $6,000 but not over $7,000 $165 plus 4 1/2% of excess over $6,000 12 Over $7,000 but not over $8,000 $210 plus 5% of excess over $7,000 13 Over $8,000 but not over $9,000 $260 plus 5 1/2% of excess over $8,000 14 Over $9,000 $315 plus 6% of excess over $9,000 EXPLANATION — 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. 15 2. (1) Notwithstanding the provisions of subsection 1 of this section to the contrary, 16 beginning with the 2023 calendar year, the top rate of tax pursuant to subsection 1 of this 17 section shall be four and ninety-five hundredths percent. 18 (2) The modification of tax rates made pursuant to this subsection shall apply only to 19 tax years that begin on or after January 1, 2023. 20 (3) The director of the department of revenue shall, by rule, adjust the tax table 21 provided in subsection 1 of this section to effectuate the provisions of this subsection. The 22 top remaining rate of tax shall apply to all income in excess of seven thousand dollars, as 23 adjusted pursuant to subsection 5 of this section. 24 3. (1) In addition to the rate reduction under subsection 2 of this section, beginning 25 with the 2024 calendar year, the top rate of tax under subsection 1 of this section may be 26 reduced by fifteen hundredths of a percent. A reduction in the rate of tax shall take effect on 27 January first of a calendar year and such reduced rates shall continue in effect until the next 28 reduction occurs. 29 (2) A reduction in the rate of tax shall only occur if the amount of net general revenue 30 collected in the previous fiscal year exceeds the highest amount of net general revenue 31 collected in any of the three fiscal years prior to such fiscal year by at least one hundred 32 seventy-five million dollars. 33 (3) Any modification of tax rates under this subsection shall only apply to tax years 34 that begin on or after a modification takes effect. 35 (4) The director of the department of revenue shall, by rule, adjust the tax tables under 36 subsection 1 of this section to effectuate the provisions of this subsection. 37 4. (1) In addition to the rate reductions under subsections 2 and 3 of this section, 38 beginning with the calendar year immediately following the calendar year in which a 39 reduction is made pursuant to subsection 3 of this section, the top rate of tax under subsection 40 1 of this section may be further reduced over a period of years. Each reduction in the top rate 41 of tax shall be by one-tenth of a percent and no more than one reduction shall occur in a 42 calendar year. No more than three reductions shall be made under this subsection. 43 Reductions in the rate of tax shall take effect on January first of a calendar year and such 44 reduced rates shall continue in effect until the next reduction occurs. 45 (2) (a) A reduction in the rate of tax shall only occur if: 46 a. The amount of net general revenue collected in the previous fiscal year exceeds the 47 highest amount of net general revenue collected in any of the three fiscal years prior to such 48 fiscal year by at least two hundred million dollars; and 49 b. The amount of net general revenue collected in the previous fiscal year exceeds the 50 amount of net general revenue collected in the fiscal year five years prior, adjusted annually 51 by the percentage increase in inflation over the preceding five fiscal years. HB 1332 2 52 (b) The amount of net general revenue collected required by subparagraph a. of 53 paragraph (a) of this subdivision in order to make a reduction pursuant to this subsection shall 54 be adjusted annually by the percent increase in inflation beginning with January 2, 2023. 55 (3) Any modification of tax rates under this subsection shall only apply to tax years 56 that begin on or after a modification takes effect. 57 (4) The director of the department of revenue shall, by rule, adjust the tax tables under 58 subsection 1 of this section to effectuate the provisions of this subsection. The bracket for 59 income subject to the top rate of tax shall be eliminated once the top rate of tax has been 60 reduced below the rate applicable to such bracket, and the top remaining rate of tax shall 61 apply to all income in excess of the income in the second highest remaining income bracket. 62 5. (1) In addition to the rate reductions pursuant to subsections 2 to 4 of this 63 section, beginning with the 2024 calendar year, the top rate of tax pursuant to subsection 64 1 of this section may be reduced by seventeen-hundredths of one percent. Such 65 reduction in the rate of tax shall take effect on January first of a calendar year. 66 (2) A reduction in the rate of tax under this subsection shall only occur if one or 67 more institutions is subject to the tax imposed on the endowments of institutions of 68 higher education pursuant to section 146.200. 69 (3) The modification of tax rates under this subsection shall only apply to tax 70 years that begin on or after the date the modification takes effect. 71 (4) The director of the department of revenue shall, by rule, adjust the tax tables 72 under subsection 1 of this section to effectuate the provisions of this subsection. 73 6. Beginning with the 2017 calendar year, the brackets of Missouri taxable income 74 identified in subsection 1 of this section shall be adjusted annually by the percent increase in 75 inflation. The director shall publish such brackets annually beginning on or after October 1, 76 2016. Modifications to the brackets shall take effect on January first of each calendar year 77 and shall apply to tax years beginning on or after the effective date of the new brackets. 78 [6.] 7. As used in this section, the following terms mean: 79 (1) "CPI", the Consumer Price Index for All Urban Consumers for the United States 80 as reported by the Bureau of Labor Statistics, or its successor index; 81 (2) "CPI for the preceding calendar year", the average of the CPI as of the close of the 82 twelve-month period ending on August thirty-first of such calendar year; 83 (3) "Net general revenue collected", all revenue deposited into the general revenue 84 fund, less refunds and revenues originally deposited into the general revenue fund but 85 designated by law for a specific distribution or transfer to another state fund; 86 (4) "Percent increase in inflation", the percentage, if any, by which the CPI for the 87 preceding calendar year exceeds the CPI for the year beginning September 1, 2014, and 88 ending August 31, 2015. HB 1332 3 146.200. 1. As used in this section, the following terms shall mean: 2 (1) "Biological sex", the biological indication of male or female in the context of 3 reproductive potential or capacity, such as sex chromosomes, naturally occurring sex 4 hormones, gonads, and nonambiguous internal and external genitalia present at birth, 5 without regard to an individual's psychological, chosen, or subjective experience of 6 gender; 7 (2) "Cross-sex hormones": 8 (a) Testosterone or other androgens given to biological sex females in amounts 9 that are larger or more potent than would normally occur naturally in healthy biological 10 sex females; and 11 (b) Estrogen given to biological sex males in amounts that are larger or more 12 potent than would normally occur naturally in healthy biological sex males; 13 (3) "Endowment", a permanent fund held by an institution of higher education 14 that: 15 (a) Consists of property, cash, cash equivalents, stocks, bonds, or any other 16 marketable security; 17 (b) Is used for purposes indicated by donors to such fund or for other purposes 18 related to the mission of the institution of higher education; and 19 (c) Attempts to maintain and grow the principal of such fund, while annually 20 disbursing all or part of investment earnings generated by the fund; 21 (4) "Gender", the psychological, behavioral, social, and cultural aspects of being 22 male or female; 23 (5) "Gender reassignment surgery", any medical or surgical service that seeks to 24 surgically alter or remove healthy physical or anatomical characteristics or features that 25 are typical for the individual's biological sex in order to instill or create physiological or 26 anatomical characteristics that resemble a sex different from the individual's biological 27 sex, including, but not limited to, genital or nongenital gender reassignment surgery 28 performed for the purpose of assisting an individual with a gender transition; 29 (6) "Gender transition", the process in which an individual transitions from 30 identifying with and living as a gender that corresponds to his or her biological sex to 31 identifying and living as a gender different from his or her biological sex, and may 32 involve social, legal, or physical changes; 33 (7) "Gender transition procedures": 34 (a) Any medical or surgical service, including, but not limited to, physician's 35 services, inpatient and outpatient hospital services, or prescribed drugs, related to 36 gender transition that seeks to: HB 1332 4 37 a. Alter or remove physical or anatomical characteristics or features that are 38 typical for the individual's biological sex; or 39 b. Instill or create physiological or anatomical characteristics that resemble a sex 40 different from the individual's biological sex, including, but not limited to: 41 (i) Medical services that provide puberty-blocking drugs, cross-sex hormones, or 42 other mechanisms to promote the development of feminizing or masculinizing features 43 in the opposite biological sex; or 44 (ii) Genital or nongenital gender reassignment surgery performed for the 45 purpose of assisting an individual with a gender transition; 46 (b) The term "gender transition procedures" shall not include: 47 a. Services to individuals born with a medically-verifiable disorder of sex 48 development, including, but not limited to, an individual with external biological sex 49 characteristics that are irresolvably ambiguous, such as those born with 46,XX 50 chromosomes with virilization, 46,XY chromosomes with undervirilization, or having 51 both ovarian and testicular tissue; 52 b. Services provided when a physician has otherwise diagnosed an individual 53 with a disorder of sex development and determined through genetic or biochemical 54 testing that the individual does not have normal sex chromosome structure, sex steroid 55 hormone production, or sex steroid hormone action; 56 c. The treatment of any infection, injury, disease, or disorder that has been 57 caused by or exacerbated by the performance of gender transition procedures 58 regardless of whether the gender transition procedure was performed in accordance 59 with state and federal law; or 60 d. Any procedure undertaken because the individual suffers from a physical 61 disorder, physical injury, or physical illness that would, as certified by a physician, place 62 the individual in imminent danger of death or impairment of a major bodily function 63 unless surgery is performed; 64 (8) "Genital gender reassignment surgery", a medical procedure performed for 65 the purpose of assisting an individual with a gender transition, including, but not limited 66 to: 67 (a) Surgical procedures such as penectomy, orchiectomy, vaginoplasty, 68 clitoroplasty, or vulvoplasty for biologically male patients or hysterectomy or 69 ovariectomy for biologically female patients; 70 (b) Reconstruction of the fixed part of the urethra with or without a 71 metoidioplasty; or 72 (c) Phalloplasty, vaginectomy, scrotoplasty, or implantation of erection or 73 testicular prostheses for biologically female patients; HB 1332 5 74 (9) "Nongenital gender reassignment surgery", medical procedures performed 75 for the purpose of assisting an individual with a gender transition, including, but not 76 limited to: 77 (a) Surgical procedures for biologically male patients, such as augmentation 78 mammoplasty, facial feminization surgery, liposuction, lipofilling, voice surgery, thyroid 79 cartilage reduction, gluteal augmentation, hair reconstruction, or various aesthetic 80 procedures; or 81 (b) Surgical procedures for biologically female patients, such as subcutaneous 82 mastectomy, voice surgery, liposuction, lipofilling, pectoral implants, or various 83 aesthetic procedures; 84 (10) "Physician", an individual who is licensed under chapter 334; 85 (11) "Puberty-blocking drugs", gonadotropin-releasing hormone analogues or 86 other synthetic drugs used in biological sex males to stop luteinizing hormone secretion 87 and therefore testosterone secretion, or synthetic drugs used in biological sex females 88 that stop the production of estrogens and progesterone, when used to delay or suppress 89 pubertal development in children for the purpose of assisting an individual with a 90 gender transition; 91 (12) "Qualifying institution of higher education", an institution of higher 92 education that: 93 (a) Is affiliated with, or provides medical faculty to, any abortion facility, as such 94 term is defined in section 188.015; 95 (b) Offers specific medical residencies or fellowships that offer training in 96 performing or inducing abortions; 97 (c) Supports in any manner any abortion facility where abortions are performed 98 or induced when not necessary to save the life of the mother; or 99 (d) Performs gender transition procedures on minor children or offers specific 100 training in performing gender transition procedures on minor children. 101 2. For all tax years beginning on or after January 1, 2024, a tax is hereby 102 imposed for every tax year on the endowment of a qualifying institution of higher 103 education at a rate of five percent of the aggregate fair market value of the assets of such 104 endowment. 105 3. Revenues generated by the tax imposed under this section shall be deposited 106 in the general revenue fund. 107 4. The department of revenue shall promulgate rules to implement the 108 provisions of this section. Any rule or portion of a rule, as that term is defined in section 109 536.010, that is created under the authority delegated in this section shall become 110 effective only if it complies with and is subject to all of the provisions of chapter 536 and, HB 1332 6 111 if applicable, section 536.028. This section and chapter 536 are nonseverable, and if any 112 of the powers vested with the general assembly under chapter 536 to review, to delay the 113 effective date, or to disapprove and annul a rule are subsequently held unconstitutional, 114 then the grant of rulemaking authority and any rule proposed or adopted after August 115 28, 2023, shall be invalid and void. ✔ HB 1332 7