The decrease, scheduled to begin with taxes paid in 2018 because state revenues hit their designated trigger amount, is part of a law that was passed in 2014. Next year, Missouri’s top personal income tax rate will decrease from 6 percent to 5.9 percent and continue dropping to 5.5 percent over the next five years. A new deduction—25 percent on business income reported on individual returns—will also be implemented. This is especially good news for small businesses structured as pass-through entities, who pay their business taxes at the personal rate.
Additionally, there is more good news out of Jefferson City.
First, Gov. Greitens signed Senate Bill 43, legislation that brings Missouri law in line with 38 other states that use the federal rules as a guideline in discrimination cases. NFIB/MO State Director Brad Jones met with the governor personally to discuss this bill’s impact on small business. It caps compensatory and punitive damages according to federal law, replaces “contributing factor” with “motivating factor” on claims of discrimination, and allows for a summary judgment mechanism to determine if a case needs to go to trial—which is less costly than paying for a full trial, which can sink a small business financially.
Second, Greitens is allowing House Bills 1193 and 1194 to go into law. These bills prohibit municipalities from having a higher minimum wage than that set by the state, reversing the wage hike that went into effect in St. Louis following the state Supreme Court’s ruling earlier this year.
Finally, you have a chance to let the Department of Labor know about any current regulations that are ineffective, too costly, or overly burdensome. The DOL is seeking comments until Aug. 31 as part of Greitens’ call for state agencies to review all rules and separate red tape from sound regulations. You can submit comments online or attend a public hearing:
Aug. 4, 1 p.m.: 3315 W. Truman Blvd., Jefferson City, MO
Aug. 24, 1 p.m.: 111 N. Seventh St., St. Louis, MO