Now that the Missouri General Assembly has passed the state budget and overhauled the taxing structure, legislators have only five days left to pass bills on the business advocates’ priority list.
The lingering legislation includes a $1.2 billion bonding initiative, HJR 14, to pay for capital improvements; tax credit legislation, HB 698, that the Missouri Chamber of Commerce and Industry calls a top priority; and a bill, SB112, that would extend the Missouri New Markets Development Program, which provides low-cost loans and equity investments for existing companies with plans to expand.
Another significant measure, SJR 16, would let voters decide whether to use revenue from a one-cent sales tax increase over the next 10 years to pay for improvements to the transportation system.
The Senate also might consider legislation passed by the House last week, SB 114, that would make it more difficult for alcohol suppliers to sever their relationships with distributors by deeming those relationships as “franchises.”
The state budget package sent to Gov. Jay Nixon includes a $65 million increase to the state’s basic K-12 education funding model, a $25 million increase for colleges and universities, an across-the-board pay increase for state employees and increased reimbursements for Medicaid providers.
HB 253, legislation cutting personal income, corporate and business taxes, also moved ahead to the governor. The proposal would reduce personal income taxes by a half of a point and corporate income tax from 6.25 percent to 3.25 percent, phased in over 10 years. Ten percent of the business income reported on individual tax returns could be deducted beginning in January, and that deduction would increase 10 percentage points annually until it reaches 50 percent. To raise tax revenue, the bill also requires the state to join a compact with other states to collect voluntary tax payments from online retailers that sell products to Missourians.
The Senate also might consider legislation passed by the House last week that would make it more difficult for alcohol suppliers to sever their relationships with distributors by deeming those relationships as “franchises.”