Special Session Planned to Provide Tax Relief and Support Agriculture
Dear Citizens: For several weeks now the members of the Missouri House of Representatives have anticipated the need to return to Jefferson City for a special session to make historic income tax cuts and extend key agriculture tax credit programs. Gov. Mike Parson has officially issued the call for the extra session that is set to begin Tuesday, September 6 at noon.
During the 2022 regular session the members of the House and Senate passed legislation to provide tax relief to Missouri taxpayers, and to extend the agriculture tax credit programs. However, Parson vetoed HB 2090, which would have provided substantive tax relief in the form of a one-time economic recovery tax credit for Missouri residents who paid personal income tax in the state for 2021. Parson said he prefers permanent tax relief. He also vetoed HB 1720, which was approved by the General Assembly to renew key programs that support and promote agriculture in the state for another two years. Parson said he prefers to extend the programs for six years.
In announcing the special session, Parson said, “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. 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.”
In response to the call, House Speaker Rob Vescovo and Majority Floor Leader Dean Plocher issued a joint statement saying, “The House made substantive tax relief for taxpayers and support for our agriculture industry top priorities during the regular session. We stand ready to again work on these issues to help Missouri families in these challenging times.”
As Parson made his announcement, he also revealed details of his proposed tax cut. His plan includes reducing the individual income tax rate, increasing the standard deduction, and further simplifying the tax code. The plan includes:
- Reducing the top individual income tax rate from 5.3 to 4.8 percent, a nearly 10 percent 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 said his tax relief plan means significant savings for Missourians each year. Under his plan, a senior citizen making $20,000 per year would see a 100 percent decrease in tax liability; a single adult making $25,000 per year would see a 32 percent decrease in tax liability; a single mom with two kids making $35,000 per year would have a 21 percent decrease in tax liability; and a married couple making $125,000 per year would see their tax liability decreased by 11 percent.
Gov. Parson said, “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. 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.”
Parson’s special session call also 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.
State Legislators have been meeting with Governor Parson around the state in preparation for special session. For more information, contact Representative Patricia Pike at Patricia.Pike@house.mo.gov or call
573-751-5388.
