This week my colleagues and I in the Senate saw debate regarding three different tax bills that range from $620 million in tax cuts, to what is being called the “fitness center tax,” and an exemption in sales tax for certain vehicles. This week I was also officially appointed to be one of the first-ever freshmen chair of a Senate committee.

Senate Bill 509, sponsored by Sen. Will Kraus, R-Lee’s Summit, would cut the individual income tax rate from 6 percent to 5.5 percent and phase in a 25 percent deduction on a person’s business income.  The changes would not take effect until 2017. Two previous versions of this bill were blocked, and many speculate the governor will also veto this legislation. It now moves to the House for its consideration. The House has already passed its own version of tax cuts, and that legislation, House Bill 1253, was heard by the Senate Ways and Means Committee this week.

Senate Bill 584 has largely been called the fitness center or exercise tax bill. This legislation, sponsored by Sen. Bob Dixon, R- Springfield, will prevent state sales tax from being collected on dues or fees paid to certain not-for-profit fitness and exercise centers, gymnastic and dance studios, and other similar establishments.

I do not believe it was ever the intention of the Legislature to collect such a tax, however, these types of business have been asked to pay this tax after courts interpreted that entertainment taxes should be collected from these businesses. I agree with Sen. Dixon that fitness centers are not used for entertainment purposes.

Senate Bill 693, sponsored by Sen. Mike Parson, R-Bolivar, was sent to the House of Representatives this week and was first read. This measure would exempt any vehicle that is 10 years old or older and is being re-sold for less than $15,000, from paying sales tax. The exception is made for vehicles over $15,000 to make certain the tax exempt status applies to used cars that will be used for transportation and not classic collector automobiles that can cost more than a typical passenger car.

Appointed as Committee Chair

I would also like to announce that I have been named chairman of the Senate Governmental Accountability and Fiscal Oversight Committee. I am one of the first freshman senators to be appointed as a committee chair, and I am honored by the confidence Senate leadership has in my abilities. I look forward to my work on the committee.

Capitol Guests

On April 1, Child Advocacy Day, we had quite a few visitors including: Brenda Smith, director of child and family development from Missouri State University, along with several of her students; two directors from Three Rivers College, Cabool eight graders; Farm Bureau Youth Leadership members from throughout the district, and Summersville R-II students.