JEFFERSON CITY, Mo (Modified Press Release) – Missouri Governor Mike Parson announced Friday that he is calling a special session to pass permanent tax relief for all Missouri taxpayers and to extend the sunset on main agricultural tax credits.
Governor Parson’s special session includes:
- Extend sunset on farm tax credits included in HB 1720 for a minimum of six years instead of two;
- Exempt certain agricultural equipment from national and local sales tax; and
- Amend the Family Farms Act to increase the number of small farmers eligible for the program and increase the number of loans available to farmers.
Governor Parson is working with legislative leaders to identify a date for the call to the special session. Once a date is selected, additional details and proposed language for the bill will be released.
The governor also announced that he had vetoed several bills:
For those who were subject to tax in 2021, HB 2090 allowed one-time tax rebates of $500 for individuals earning less than $150,000 per year and rebates of $1,000 for joint filers earning less than $300,000 per year. Since tax liability rebates would be pro-rated due to program underfunding, no taxpayer would receive the maximum advertised rebate. Many Missouri workers, including low-income people, high-income people and vulnerable populations, have been excluded from this temporary relief measure entirely.
Springfield State Senator Lincoln Hough sponsored the legislation. He responded to the veto.
“I am disappointed that the governor has decided to veto what could have been a financial boost for countless hard-working Missourians across our state. When I first proposed this idea in February, I couldn’t imagine we would be where we are today with gas prices approaching $5 a gallon and food prices skyrocketing – and it’s only getting worse. Although the Governor’s actions are frustrating and disappointing, I am committed to doing everything I can to provide essential tax relief to every citizen of our great state. The people of Missouri are in trouble, and the citizens of our state shouldn’t have to choose between putting gas in their cars and putting food on their tables. I look forward to working with my colleagues in the General Assembly, as well as the Governor, to pass a tax cut in the near future that will allow the men and women of our state to keep more of their hard dollars. earned where they belong – in their wallet.
Governor Parson is proposing permanent tax relief for all Missouri taxpayers. As the country and Missouri grapple with record inflation, historically high gas prices and rising food prices, Governor Parson wants to provide permanent tax relief that allows Missourians to realize annual savings, as opposed to a one-time stimulus.
“I have always advocated for lower taxes for Missourians and support the spirit of this legislation, however, the reality is that we can do better for all Missouri taxpayers than HB2090, and I want to focus on a comprehensive and permanent tax reform package,” Governor Parson said.
“We have managed our state resources responsibly and our continued investment in workforce development and infrastructure provides a strong foundation for Missouri. Now is the time to take additional steps to help ease the pressure on Missouri families. Permanent tax cuts that provide real relief to families, seniors, the working class and small businesses every year are a better response to the inflationary pressures we face, and we look forward to it,” said Governor Parson.
Proponents of Governor Parson’s proposed tax plan include reducing the personal income tax rate, increasing deductions and allowances for taxpayers, and further simplifying the tax code.
HB 1720 established several new farm tax credit programs and reauthorized existing ones, however, tax credit sunsets were only extended for two years.
“These two-year extensions are problematic and reduce benefits for Missouri farmers and business owners,” Governor Parson said. “Applicants often need a minimum of 24 months to secure the equity and private investment needed for projects. When a program is only guaranteed for a partial period of a project’s development, companies are less likely to invest.
“This year, the General Assembly has authorized longer sunsets for a number of other tax credit programs, and since agriculture is Missouri’s primary economic driver, it’s only fair that we offer Missouri farm families – the foundation of our economy – the same opportunities as others. We need to extend these key farm tax credits for at least six years,” Governor Parson continued.
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