Sep 14, 2022

Lawmakers return to Jeff City to consider slashing state income tax rate

Posted Sep 14, 2022 1:22 PM

By BRENT MARTIN

St. Joseph Post

Missouri lawmakers return to Jefferson City for the annual veto session today and they prepare for a special legislative session in which they will consider tax issues.

Sen. Dan Hegeman of Cosby, the Senate Appropriations Committee chair, expects the special session to be productive.

“Well, certainly hope we can get the ag tax credits renewed with the longer time frame on them; six years rather than two years,” Hegeman tells KFEQ/St. Joseph Post. “And also, I think we’ll get some kind of a tax package put together to give people some of their tax dollars back.”

The governor called legislators back into special session to consider a cut to the state income tax rate and to reconsider agricultural tax credits they extended for two years, but the governor wants extended for six.

Hegeman says lawmakers will consider the governor’s call to cut the state income tax rate, but might have their own ideas.

“We’ve gotten an idea from the governor. I think the state House and the state Senate have ideas they’d like to explore,” Hegeman says.

State Rep. Brenda Shields of St. Joseph, a member of the House Budget Committee, agrees, saying she doesn’t expect the legislature to rubber stamp an income tax cut proposal outlined by the governor in the special session.

“I do not believe that the legislature will take up the governor’s plan as written,” Shields tells KFEQ/St. Joseph Post. “We will have our own plan. It might mirror the governor’s very much, but I think that we will have our own plan to introduce in both chambers.”

Shields hopes an agreement can be reached so the special session can be wrapped up quickly.

“So, our leadership teams from the House and the Senate are working right now,” Shields says. “I hope to come up with a plan that is going to be great for the legislature, will not cost the state a lot of money, and is best for Missourians.”

The governor delayed the start of the special session by a week, a clear sign that agreement had not been reached. Preliminary legislative steps necessary to begin a special session will be taken today.

Rep. Rusty Black of Chillicothe expects the House to get down to business next week.

“I’ve been talking to people back and forth and know that not every agreement’s been made yet,” Black tells KFEQ/St. Joseph Post. “But I think that the people in leadership in both those areas are working hard to come in with some kind of a decision, hopefully by the 21st.”

Black says the lack of agreement that led to the delay of the session didn’t surprise him.

“Where I work at, not everything’s pre-decided before it comes out and there’s an awful lot of people involved and everybody wants to be heard,” according to Black. “That’s part of the process.”

Gov. Parson wants the legislature to consider cutting the state income tax rate from 5.3% to 4.8%, arguing that the state economy has created a huge budget surplus. The General Fund has a balance of $1 billion.

The governor also vetoed the agriculture tax credit bills, because the General Assembly extended them for only two years. He says the ag tax credits must be extended for at least six years to be effective. Parson also says the legislature treated the ag tax credits differently that business tax credits that it extended for six years.