The 2016 legislative session began on Jan. 6, and the Legislature is already moving at a fast pace. I am beginning this session with a focus on tax-related issues, including fighting tax increases and monitoring the Department of Revenue’s (DOR) tax administration practices.
The State Tax Commission reassesses agricultural land for property tax purposes every two years. On Dec. 29, the commission issued its recommendation of a 5 percent tax increase to go into effect in 2017. In response, I am sponsoring Senate Concurrent Resolution 51 to reject the commission’s proposal. Property taxes on agricultural land were just raised last year, commodity prices are low and the effects of the recent devastating flooding on farmland will likely be significant. Raising taxes again at this time will only serve to further harm Missouri’s farmers.
The Joint Committee on Tax Policy, established by statute, was reconvened this week for the first time since 2010. The committee has the authority to study nearly all aspects of Missouri’s tax policy, including the fairness and equity of administration practices and the economic impact of the tax code, as well as review the various state agencies responsible for implementing tax policies.
I was honored to be elected chairman of the Joint Committee on Tax Policy. This committee, along with my duties as chairman of the Senate Ways and Means Committee, will be a valuable tool to continue to push against the DOR’s overreach and any unfair administration practices.
At its first meeting, the committee conducted a review of the DOR Sales and Use Tax Audit in order to ensure the department is implementing necessary corrections the audit brought to light. For example, the auditor’s report revealed that the DOR had not been returning bonds held from businesses for sales tax compliance as required by state law. The department laid out plans to correct this in response to the auditor’s recommendation. The committee reviewed an update on the progress of these corrections in order to ensure they are being implemented effectively and in a timely manner. This legislative oversight of an executive department is critical to ensuring the DOR treats taxpayers fairly.
Locke and Smith Award
The Locke and Smith Foundation issues an annual award honoring the two Missouri legislators whose voting records are most in alignment with constitutional principles. The foundation, which was established to honor John Locke’s and Adam Smith’s legacies in modern governing, evaluates each piece of legislation on a constitutional scoring guide. The foundation presents its annual award to the senator and representative who most often vote for principles of liberty and free market economics. After earning the award for the past three years, I am honored to be a finalist in the running for the 2015 session’s award.
Please feel free to contact me with any questions or concerns at any time. We look forward to hearing your comments and suggestions, and will try to answer any questions you may have. You can reach us by phone at 573-751-1464, or e-mail at will.kraus@senate.mo.gov.
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