During a press conference on Aug. 22 at the State Capitol, Gov. Mike Parson of Missouri, announced he has issued the official call for a special session to make historic income tax cuts and extend key agriculture tax credit programs for a minimum of six years.
The General Assembly will meet in Jefferson City at noon Sept. 6 to begin consideration of Parson’s proposed legislation.
"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," Parson said in a news release. "Today, we believe we have that plan and are ready to call legislators back to Jefferson City to get to work on behalf of our farmers, ranchers, and business owners and provide lasting tax relief to every taxpaying Missourian."
Parson’s special session call 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. The call includes:
• Extending the expiration of the meat processing facility investment tax credit;
• Creating a tax credit program for retail dealers of higher ethanol blend fuels;
• Creating a tax credit program for retail dealers of biodiesel;
• Creating a tax credit program for Missouri biodiesel producers;
• Creating a tax credit program for establishing or improving urban farming operations;
• Extending the expiration of the Rolling Stock Tax Credit program;
• Extending the expiration of the Agricultural Product Utilization Contributor Tax Credit;
• Extending the expiration of the New Generation Cooperative Incentive Tax Credit;
• Exempting utility vehicles for agriculture use from state and local sales and use taxes;
• Creating the Specialty Agricultural Crops Act; and
• Amending the Family Farms Act to modify the definition of small farmer.
The following collaborative statement is provided on behalf of the Missouri Agribusiness Association, Missouri Cattlemen’s Association, Missouri Corn Growers Association, Missouri Farm Bureau Federation, Missouri Forest Products Association, Missouri Pork Association, and Missouri Soybean Association.
“Following Gov. Parson’s call for a special session, Missouri’s commodity groups and agribusiness associations are committed to working with elected officials to fully extend agriculture and rural tax credits for a minimum of six years needed in business development.
“For over two decades, tax credit programs housed in the Missouri Department of Agriculture have helped local butchers and meat processors expand, grow the reach of farmer-owned cooperatives, and build the foundation for Missouri’s renewable fuel industry. It is supporting local jobs by spurring investments in value-added processing facilities. This helps keep more of the benefits of Missouri agriculture in rural communities in nearly every corner of our state.
“It is easy to recite how agriculture is Missouri’s top economic driver. However, words are nothing without action. We support Gov. Parson’s call for a special session to continue making smart investments today that will pay dividends and build this state’s economic base for decades to come.”
Proposed tax plan
Tenets of Parson’s proposed tax plan include reducing the individual income tax rate, increasing the standard deduction, and further simplifying the tax code. Parson’s proposed 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.
Parson’s tax relief plan means significant savings for Missourians each year. Below are a few scenarios that estimate state income tax savings for Missourians of different backgrounds, based on the state’s tax structure:
• Senior making $20,000 per year—100% decrease in tax liability;
• Single adult making $25,000 per year—32% decrease in tax liability;
• Single mom with two kids making $35,000 per year—21% decrease in tax liability; and
• Married couple making $125,000 per year—11% decrease in tax liability.
"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," Parson said. "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."
