It won’t happen this year, but state Auditor Nicole Galloway says Missouri taxpayers could be due for special tax refund checks because a fee increase approved by the Legislature may exceed a revenue threshold set in 1996.
In a review of legislation enacted in 2016, Galloway found that revenue from new taxes and fees will not trigger refunds this year. One of the bills approved last year, however, could trigger the checks in the future because it doesn’t go into effect until 2018.
The Legislature could take steps to address the potential violation in the next year, which could eliminate the possibility that refund checks will be needed.
The potential for refunds stems from a 1980 referendum known as the Hancock Amendment. The law sets a cap based on a percentage of the growth in the personal income of state residents.
If revenue flowing into state coffers exceeds the limit, tax refunds are paid out. No such checks have been mailed since 1999, when the median refund for taxpayers was $21.
Read more: St. Louis Post-Dispatch