Gov. Matt Blunt on July 5 signed a bill into law that expands the exemption on Social Security benefits from state income taxes. The bill will gradually be phased in costing the state an estimated $27 million in lost revenue in the first year and $154 million a year once fully effective in 2012.
Under the previous law, individuals with incomes under $25,000 a year and married couples earning less than $32,000 a year – the bulk of Missouri senior citizens – didn’t pay state taxes on Social Security benefits. HB 444 raises the exemption threshold to $85,000 for an individual and $100,000 for couples.
Another part of the bill increases taxes on those who own property in another state by repealing a provision of Missouri’s tax code that allowed people to deduct property taxes paid to another state from their Missouri taxable income. Eliminating the deduction is estimated to bring in $11 million a year for the state.
Under the previous law, individuals with incomes under $25,000 a year and married couples earning less than $32,000 a year – the bulk of Missouri senior citizens – didn’t pay state taxes on Social Security benefits. HB 444 raises the exemption threshold to $85,000 for an individual and $100,000 for couples.
Another part of the bill increases taxes on those who own property in another state by repealing a provision of Missouri’s tax code that allowed people to deduct property taxes paid to another state from their Missouri taxable income. Eliminating the deduction is estimated to bring in $11 million a year for the state.
No comments:
Post a Comment