Modifies provisions governing income exempt from earnings tax
HB115 repeals and reenacts Missouri Revised Statute section 92.130, which governs categories of income exempt from municipal earnings taxes. The bill preserves a long list of existing exemptions for certain nonprofit, mutual, cooperative, agricultural, religious, charitable, educational, and other organizations, as well as specific types of income such as life insurance proceeds, workers’ compensation, gifts and inheritances, and interest on government obligations. It also continues to exempt income received by low-income taxpayers from salaries, wages, commissions, and other compensation, defining a low-income taxpayer as an individual at or below 150% of the federal poverty level.
The measure’s practical effect is to restate and update the statutory framework for earnings-tax exemptions without creating a new tax. By reenacting the section in full, it clarifies which entities and income streams are outside the scope of local earnings taxes authorized under sections 92.110 to 92.200, and it preserves the existing exemption for low-income earners. The bill primarily affects municipalities that levy earnings taxes, as well as taxpayers and organizations that qualify for the listed exemptions.
The available legislative context shows no recorded committee debate or votes, so there is no documented formal opposition or support in the provided materials. Based on the bill’s subject matter, the general sentiment appears neutral to favorable, since the proposal is framed as a technical or clarifying update to existing exemption law rather than a major policy change.
The main point of potential contention is the scope of the low-income taxpayer exemption and, more broadly, the continued breadth of earnings-tax exemptions for nonprofit and cooperative entities. Any debate would likely center on whether the exemption structure is too expansive for municipal revenue needs or whether it appropriately protects low-income residents and mission-driven organizations from local taxation.
HB115 would amend Missouri’s earnings-tax exemption statute, section 92.130, by repealing the current section and replacing it with a new version that continues and restates exemptions from municipal earnings taxes. It affects local tax administration in cities authorized to impose earnings taxes under sections 92.110 to 92.200, and it preserves exemptions for specified organizations and categories of income, including a low-income wage exemption tied to 150% of the federal poverty level.
No votes or committee transcripts are provided, so there is no direct evidence of support or opposition in the record supplied. The bill appears to be a largely technical restatement of existing law, which suggests a generally neutral or favorable reception, especially because it preserves exemptions rather than imposing new tax burdens.
The most likely areas of contention are the low-income taxpayer exemption and the breadth of exemptions for nonprofits, mutuals, cooperatives, and other entities. Critics could argue that these exemptions reduce municipal revenue or create uneven tax treatment, while supporters would emphasize relief for low-income residents and protection for charitable, religious, educational, and mutual-benefit organizations.