Missouri lawmakers will be returning to Jefferson City in the near future with the goal of passing a permanent income tax cut.
Gov. Mike Parson on Friday called for a special session to pass tax relief after he vetoed a bill authorizing a one-time, nonrefundable income tax credit.
Parson said some of the changes proposed during the special session will include reducing the individual income tax rate and increasing the standard deduction. Also, the first $16,000 of income for single filers and $32,000 for joint filers would be exempt from state income taxes.
Citing high inflation and rising gas prices, Parson spoke on the need for a more concrete solution than the proposed one-time credit.
“In Missouri, we want to provide permanent tax cuts for permanent relief, not temporary stimulus,” Parson said.
Under legislation passed by lawmakers, some Missourians who paid state income taxes this year would have automatically qualified for a tax credit equal to the amount they paid up to $500 for individual tax filers or $1,000 for those filing jointly. There was an income cap of $150,000 for individuals or $300,000 for couples.
But Parson vetoed both the credit and the $500 million allocated in the budget to pay for the credits. He said many Missourians would have received less than they were owed or even no relief.
“Due to the temporary program being underfunded, some Missourians would have received somewhere between $100 and $200, while many others would have received nothing,” Parson said.
In addition to passing a tax cut during the special session, Parson wants lawmakers to extend the expiration date for some agriculture tax credits the legislature passed this session.
The original bill had a sunset date of two years. Parson vetoed the bill, saying that length of time was too short and instead is advocating for a minimum expiration date of six years.
“Business owners and producers often need a minimum of 24 months in order to secure the equity and private investments needed for projects, let alone the additional years needed to actually complete the projects,” Parson said.
The governor expressed frustration that the legislature passed longer extensions for other programs, while only offering a two-year extension for agriculture.
“Agriculture in Missouri is the top economic driver. It's only right that we provide Missouri farmers and ranch families the foundation of the economy with the same opportunities provided in these other programs,” Parson said.
No date for the special session has been set, but Parson said he hopes to have the tax cut in place by Jan. 1.
In addition to two other vetoes, Parson signed eight more bills into law, finishing his work for this year’s general session.
Bills signed Friday include establishing a list of rights for sexual assault survivors in the state, creating a reading intervention program in schools and establishing a prison nursery program.
Not including signing a record $47.5 billion operating budget, Parson signed 37 pieces of legislation into law.
Follow Sarah Kellogg on Twitter: @sarahkkellogg
