Missouri – Tax Cut Bill Veto Override Fails

SALT Report 2989 – The Missouri House of Representatives failed to override Governor Jay Nixon’s veto of House Bill 253. The Bill contained provisions that would have changed the laws regarding the streamlined sales and use tax agreement, the community development district tax, income tax, sales and use taxes, nexus, and the transportation development tax.

The Governor initially vetoed the Bill claiming that it contained too many flaws; for example it would have raised the cost of prescription drugs and college textbooks while creating a hole in the state budget.

If the Bill had passed, it would have:

  • Decreased the corporate income tax rate to 3.25%
  • Decreased the personal income tax rate to 5.5%
  • Added new income tax deductions and exemptions
  • Modified the use tax nexus provisions
  • Added click-through and affiliate nexus provisions
  • Offered a 50% tax cut for businesses that “pass through” their income to the owner’s personal return
  • Required the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement, and
  • Created a general tax amnesty

Because the House of Representatives fell short of the 2/3 majority vote needed for an override, it will not be considered by the Senate.  However, Legislative leaders said they would continue pushing for a tax cut bill next year, which they hope will stimulate economic development and make Missouri more competitive with out-of-state businesses.

For Further Information

Governor Nixon’s Statement – House Bill 253: Costs Too Much, Helps Too Little

Missouri General Assembly – House Bill 253


https://saltcpa.com/ https://validate.saltcert.com/# https://saltcert.com/forms/