Senate approves perfection of bill to clarify military pay tax exemption for National Guard duty

The Senate adopted the Senate committee substitute for Senate Bill 163 on a voice vote and declared the measure perfected and ordered it printed. The bill’s sponsor, identified on the floor as the senator from the 20 third, told senators the change is a technical clarification to Missouri’s military income tax exemption to ensure that state emergency duty (SED) pay and state active duty (SAD) pay for National Guard members are exempt from state income tax.

Sponsor statement and committee action: The senator said the underlying law intended to exempt military income, but the text “overlooked” state emergency duty and state active duty pay. The sponsor said the change is both a measure of appreciation and a recruiting tool for the National Guard; the bill passed out of the Veterans and Military Affairs Committee unanimously before floor action.

Floor process: The senator moved adoption of the Senate committee substitute for SB163, and the chamber approved the motion by voice vote. The sponsor confirmed the substitute includes a clarifying change to an effective date and provides a clearer definition of SED and SAD after questions from the Department of Revenue (DOR). The sponsor renewed motions that the bill be declared perfected and ordered printed; the chair announced the bill was perfected and ordered printed.

Why it matters: The substitute narrows a drafting gap identified in existing statute so that members of Missouri’s National Guard do not pay state income tax on certain types of duty pay; the transcript records no fiscal estimate discussed on the floor and a supporting committee report.

What’s next: With the bill perfected and ordered printed, it will proceed through required legislative steps toward final passage.