Modifies provisions relating to the taxability of certain deferred compensation plans

SB 649 modifies Missouri law to exclude certain deferred compensation plans from state income tax. It specifically states that contributions to or payments from plans like salary reduction or cafeteria plans won't be taxed by Missouri if they weren't subject to state income tax when the contribution was made or payment was received. This directly affects Missouri residents and nonresidents who participate in these specific deferred compensation arrangements. The bill changes the tax treatment for these plans by removing them from the definition of taxable "salaries, wages, commissions and other compensation" under Missouri law.