Missouri Gov. Parson calls for special session on tax relief; vetoes several bills
JEFFERSON CITY, Mo (Edited News Release) - Missouri Governor Mike Parson announced Friday he is calling a special session to pass permanent tax relief for all Missouri taxpayers and to extend the sunset on key agricultural tax credits.
Governor Parson’s special session includes:
- Extending the sunset on agriculture tax credits included in HB 1720 for a minimum of six years rather than two;
- Exempting certain agricultural equipment from state and local sales tax; and
- Modifying the Family Farms Act to increase the number of small farmers that qualify for the program, and increasing the number of loans available to the farmer.
Governor Parson is working with legislative leaders to identify a date for the special session call. Once a date is selected, additional details and proposed bill language will be released.
The governor also announced he vetoed several pieces of legislation:
For those who had tax liability in 2021, HB 2090 authorized one-time $500 tax rebates for individuals making less $150,000 per year and $1,000 rebates for joint filers making less than $300,000 per year. Since the rebates on tax liability would be pro-rated due to the program being underfunded, no taxpayer would receive the advertised maximum rebate. Many working Missourians, including low-income earners, high-income earners, and vulnerable populations, were left out of this temporary relief measure entirely.
Springfield State Senator Lincoln Hough sponsored the legislation. He responded to the veto.
“I am disappointed the governor decided to veto what could have been a financial shot in the arm for countless hardworking Missourians throughout our state. When I first proposed this idea back in February, I couldn’t imagine we would be where we are today with gas prices nearing $5 a gallon and skyrocketing food prices — and it’s only getting worse. While the governor’s actions are frustrating and disappointing, I am committed to doing everything I can to provide critical tax relief to every citizen of our great state. Missourians are struggling, and the citizens of our state shouldn’t have to choose between putting gas in their car 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 allows the men and women of our state to keep more of their hard-earned dollars where they belong — in their pocketbook.”
Governor Parson is proposing permanent tax relief for all taxpaying Missourians. As the nation and Missouri face record inflation, historically high gas prices, and rising food costs, Governor Parson wants to provide permanent tax relief that provides yearly savings to Missourians, as opposed to a one-time stimulus.
“I have always advocated for reducing Missourians’ tax burden and support the spirit of this legislation, however, the reality is, 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 consistent investment in workforce development and infrastructure is providing a strong foundation for Missouri. Now is the time to take additional steps to help alleviate the strain on Missouri families. Permanent tax cuts that provide real relief to families, senior citizens, the working class, and small businesses every year is a better answer to the inflationary pressures we face, and we look forward to getting it done,” Governor Parson said.
Tenants of Governor Parson’s proposed tax plan include reducing the individual income tax rate, increasing deductions and allowances for taxpayers, and further simplifying the tax code.
HB 1720 established several new agricultural tax credit programs and re-authorized existing ones, however, the sunsets on the tax credits were only extended for two years.
“These two-year extensions are problematic and reduce the benefit to Missouri farmers and business owners,” Governor Parson said. “Applicants often need a minimum of 24 months in order to secure the equity and private investment needed for projects. When a program is only guaranteed for a partial period of a projects development, businesses are less likely to invest.”
“This year the General Assembly authorized longer sunsets for a number of other tax credit programs, and as agriculture is Missouri’s top economic driver, it’s only right that we offer Missouri farm families - the foundation of our economy - with the same opportunities as others. We must extend these key agriculture tax credits for a minimum of six years,” Governor Parson continued.
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