Missouri State Auditor Nicole Galloway releases review of state tax credit programs
JEFFERSON CITY, Mo. (KY3/Edited News Release) - Missouri State Auditor Nicole Galloway released a review of state tax credit programs Thursday.
The review is required by state law. It compiles tax credit redemptions over the past five years and future obligations. Tax credits are generally a dollar-for-dollar reduction in the amount of state taxes otherwise due from taxpayers.
During fiscal years 2017 through 2021, tax credits were authorized, issued, or redeemed through 58 different tax credit programs. Taxpayers redeemed $2.9 billion in tax credits during this period. The review also found that, as of June 30, 2020, another $2.8 billion in tax credits were authorized, but unredeemed.
According to the auditor’s office, tax credit programs have reduced individual income tax collections by $1.148 billion from fiscal years 2017 through 2020. Total redemptions of tax credits have continued to increase. Redemptions in 2021 exceeded $600 million for only the second time in state history. The majority of tax credit redemptions over the past five years have reduced individual income and withholding taxes.
The top five tax credit programs in terms of total redemptions during the review period were: Senior Citizen Property Tax, Missouri Works, Missouri Quality Jobs, Low Income Housing, and Historic Preservation. Some tax credits have extended carry forward provisions, which allow tax credits that have been authorized or issued in prior years to be redeemed over a long period of time.
For a closer look at the review, CLICK HERE.
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