The Latest: Missouri Legislature passes income tax cut - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Missouri Legislature passes income tax cut

(Source: www.senate.mo.gov) (Source: www.senate.mo.gov)

JEFFERSON CITY, Mo. (AP) - The Latest on Missouri lawmakers' work on tax policy (all times local):

8:15 p.m.

Missouri lawmakers have passed an income tax cut for most Missourians.

House lawmakers voted 101-40 Thursday to give the measure final approval. If enacted, the bill would cut the top individual income tax rate from 5.9 percent to 5.5 percent in January 2019.

Individuals' income tax rate would gradually drop to 5.1 percent if the state meets revenue targets. Federal tax deductions would be scaled back to make up for the loss in revenue.

Fiscal estimates would put the price tag at $5.8 million once the measure is fully implemented in fiscal year 2023.

Still pending is a proposed corporate income tax rate cut from 6.25 percent to 3.9 percent. Lawmakers face a Friday deadline to pass legislation.

4 p.m.

Missouri lawmakers in a last-minute scramble are trying to cut corporate income taxes without blowing an estimated $52 million hole in the state budget.

At issue is a Senate tax plan to cut the corporate tax rate from 6.25 percent to 3.5 percent. To offset the revenue loss, the proposal would change how businesses can calculate their taxable income.

Earlier estimates projected the changes would mean close to $10 million more in revenue by fiscal year 2020.

But House Budget Committee Chairman Scott Fitzpatrick on Thursday said the Revenue Department made a $60 million mistake in its calculations. Revised estimates put the cost at more than $52 million.

The House instead voted for a 3.9 percent corporate tax rate Thursday, which Fitzpatrick said could cost as much as $15.4 million.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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