For several weeks now the members of the Missouri House of Representatives have anticipated the need to return to Jefferson City for a special session to make historic income tax cuts and extend key agriculture tax credit programs.
This week, Gov. Mike Parson officially issued the call for the extra session that is set to begin Tuesday, Sept. 6 at noon.
During the 2022 regular session, the members of the House and Senate passed legislation to provide tax relief to Missouri taxpayers and to extend the agriculture tax credit programs. However, Parson vetoed HB 2090, which would have provided substantive tax relief in the form of a one-time economic recovery tax credit for Missouri residents who paid personal income tax in the state for 2021. Parson said he prefers permanent tax relief. He also vetoed HB 1720, which was approved by the General Assembly to renew key programs that support and promote agriculture in the state for another two years. Parson said he prefers to extend the programs for six years.
In announcing the special session, Parson said, “My team and I have been working with our colleagues in the General Assembly and agriculture partners to formulate a plan to adequately extend our critical agriculture tax credit programs and pass the largest income tax cut in state history. Today, we believe we have that plan and are ready to call legislators back to Jefferson City to work on behalf of our farmers, ranchers, and business owners and provide lasting tax relief to every taxpaying Missourian.”
In response to the call, House Speaker Rob Vescovo and Majority Floor Leader Dean Plocher issued a joint statement saying, “The House made substantive tax relief for taxpayers and support for our agriculture industry top priorities during the regular session. We stand ready again to work on these issues and help Missouri families in these challenging times.”
The plan includes: Reducing the top individual income tax rate from 5.3 to 4.8%, a nearly 10% cut. Increasing the standard deduction for individuals by $2,000 and by $4,000 for married joint filers and eliminating the bottom income tax bracket.
This tax relief plan means significant savings for Missourians each year. Under this plan, a senior citizen making $20,000 per year would see a 100% decrease in tax liability; a single adult making $25,000 per year would see a 32% decrease in tax liability; a single mom with two kids making $35,000 per year would have a 21% decrease in tax liability; and a married couple making $125,000 per year would see their tax liability decreased by 11%.
Gov. Parson said, “Our tax cut proposal means that every taxpaying Missourian, no matter their background, income, or job description, will see a reduction in their tax liability. Every Missourian will earn their first $16,000 tax-free and married joint filers will earn their first $32,000 tax-free, resulting in significant savings for millions of Missourians. Our plan puts more of Missourians’ hard-earned dollars back in their pockets and aims to make it a little easier for families to put food on the table and gas in the car.”
This special session call also includes the extension and creation of several agriculture tax credit programs intended to help develop key areas of Missouri’s agricultural industry, the state’s top economic driver. The sunset for each program will be for a minimum of six years.
As of now, all of these ideas are proposals. I will follow up with another report on how the special session actually turned out and what legislation was actually passed.
If you have any questions regarding any state matters or legislation, please don’t hesitate to contact me via email at Darrell.Atchison@house.mo.gov or call 573-751-1066.
It is an honor to serve as your State Representative.
Atchison represents District 153, which includes Carter and Ripley counties and parts of Wayne and Butler counties.