State Sen. Dave Schatz (R-Sullivan) will lead next week’s effort to override Gov. Jay Nixon’s (D) veto of a bill, SB 641, which would create an income tax deduction for payments received as part of a program to compensate ag producers who suffer losses due to disasters or emergencies.
While Nixon estimates the bill’s fiscal impact at about $51 million, Schatz says he believes the number is closer to $12 million, citing a University of Missouri study.
In his veto message, Nixon said he could not support exempting the payments for income tax purposes and “certainly not doing so retroactively”. Under Schatz’s bill, the deduction would be available for all tax years beginning on or after January 1, 2014.
Nixon also describes the bill as “poor fiscal policy”, saying that because the FY 2017 budget “fails to account for the reduction of revenue that would result from Senate Bill 641, executive action will be necessary to balance the budget if this bill were to become law.”
Schatz says he believes the veto will be overridden. An override requires a two-thirds vote in the Missouri House and Senate.
Read more: Missourinet