Governor Parson Signs Largest Income Tax Cut in State History into Law

JEFFERSON CITY — Today, during a press conference and ceremony at the State Capitol, Governor Mike Parson signed SBs 3 & 5 and HB 3 into law. Both pieces of legislation are a result of the special session Governor Parson called to pass historic income tax cuts and extend key agriculture tax credits for a minimum of six years.

"Missouri's elected officials have been hard at work at the State Capitol to pass critical support for farmers and ranchers and the largest income tax cut in state history for all taxpaying Missourians," Governor Parson said. "This summer, we engaged stakeholders, representatives, and senators. We went to them, met them where they were, and formulated a concrete path ahead. Today, on the successful conclusion of our special session, we are proud to sign two historical pieces of legislation into law."

SBs 3 & 5 reduces Missourians' income tax liability by making several changes to income tax laws in the state of Missouri, including:

-Reducing the top individual income tax rate from 5.2 to 4.95 percent, resulting in the majority of taxpaying Missourians seeing an approximately five percent decrease in their tax liability;
-Eliminating the bottom income tax bracket, allowing Missourians to earn their first $1000 tax free;
-Allowing an additional .15 percent top income tax rate reduction to 4.8 percent when net general revenues increase by $175 million;
-Eliminating income taxes for individuals making less than $13,000 a year and couples making less than $26,000; and
-Allowing three additional .1 percent top income tax rate reductions in future years when net general revenue increases by $200 million, adjusted for inflation.

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