The General Assembly of the State of Missouri has recently passed legislation that exempts from
the City of Kansas City, Missouri's earnings tax "any contributions to any deferred compensation
plans, such as but not limited to, any salary reduction plans, cafeteria plans or any other similar
plans deferring the receipt of compensation by a resident or non-resident if such contribution is
not subject to Missouri state income tax at the time such contribution is made". The savings
and retirement plans which have been identified by the Payroll Services team as exempt are: KPERS
(both regular and buy back amounts), VTSA, TSA (both regular and phased deductions), and Deferred
Compensation (457DEF).
The new exemption is effective for all wages earned after August 27, 1997 (ie; the payroll period beginning
August 24, 1997 and ending September 6, 1997, paid September 18, 1997).
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