Gov. Mike Parson addressed the August board meeting of the Association of Missouri Electric Cooperatives. He praised the co-ops for their work in not only bringing electricity to rural areas but also finding a way to provide broadband to rural people.
The purpose of the governor’s visit was in response to his vetoes of HB 2090 and HB 1720. He is planning a special session to pass permanent tax relief for all Missouri taxpayers and to extend the sunset on key agricultural tax credits. He especially wanted to visit with the co-op leaders to explain why he vetoed the ag bill.
HB 1720 established several new agricultural tax credit programs and re-authorized existing ones. However, the sunsets on the tax credits were only extended for two years. “I am asking the legislature to come back and fix it,” he said of the ag bill.
"These two-year extensions are problematic and reduce the benefit to Missouri farmers and business owners," Gov. Parson said. "Applicants often need a minimum of 24 months in order to secure the equity and private investment needed for projects. When a program is only guaranteed for a partial period of a project’s development, businesses are less likely to invest."
"This year the General Assembly authorized longer sunsets for a number of other tax credit programs, and as agriculture is Missouri's top economic driver, it's only right that we offer Missouri farm families — the foundation of our economy — with the same opportunities as others. We must extend these key agriculture tax credits for a minimum of six years," Gov. Parson said.
Gov. Parson also is proposing permanent tax relief for all taxpaying Missourians. He wants to provide permanent yearly savings to Missourians, as opposed to a one-time stimulus.
"I have always advocated for reducing Missourians' tax burden and support the spirit of this legislation, however, the reality is, we can do better for all Missouri taxpayers than HB2090, and I want to focus on a comprehensive and permanent tax reform package," Gov. Parson said.
"We have managed our state resources responsibly and our consistent investment in workforce development and infrastructure is providing a strong foundation for Missouri. Now is the time to take additional steps to help alleviate the strain on Missouri families. Permanent tax cuts that provide real relief to families, senior citizens, the working class, and small businesses every year is a better answer to the inflationary pressures we face, and we look forward to getting it done," Gov. Parson said.
“We have more revenue today than ever. If we don’t give it back to the people we will spend it,” he said, adding that the rate of 4.8% would be the lowest in state history. Under his plan, individual Missourians making less than $16,000 per year or couples making less than $32,000 would pay no state income tax.
Tenants of Governor Parson's proposed tax plan include reducing the individual income tax rate, increasing deductions and allowances for taxpayers, and further simplifying the tax code.
Governor Parson's special session plan for agriculture tax credits and related priorities includes: Extending the sunset on agriculture tax credits included in HB 1720 for a minimum of six years rather than two; Exempting certain agricultural equipment from state and local sales tax; and modifying the Family Farms Act to increase the number of small farmers that qualify for the program, and increasing the amount of loans available to the farmer.
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