Sen. Andrew Koenig’s Capitol Report for Sept. 15, 2022

Lawmakers Back in Session for Historic Tax Cuts

Lawmakers have returned to the State Capitol not only for the annual veto session, but an extra legislative session. The governor called the extra session for two purposes, to cut our state’s top income tax rate and extend several agricultural tax credits.

During the regular session, the Legislature passed a tax rebate program, returning $500 to qualifying individuals and $1,000 to families. The governor vetoed this legislation, citing flaws in the bill and his desire to create more beneficial, lasting tax cuts for all Missourians, not just those who qualified for the one-time rebate program.

In what he calls “the largest income tax cut in state history,” the governor has proposed lowering the top income tax rate from 5.3% to 4.8%, raising the standard deduction by $2,000 for individuals and $4,000 for families and eliminating the lowest tax bracket. To safeguard even more of taxpayers’ hard-earned income, his proposal will exclude the first $16,000 in income for individuals and $32,000 for families from taxation. Based on our state’s current tax structure, initial estimates indicate substantial income tax savings for all Missourians, regardless of earnings.

During the regular session, the governor also vetoed legislation pertaining to several agricultural tax credit programs because he felt the proposed two-year sunset date in the original legislation wasn’t enough time, and he’s now asking lawmakers to extend the expiration date for some of them to six or more years. These extensions include the Meat Processing Facility Investment Tax Credit, the Rolling Stock Tax Credit, the Agricultural Product Utilization Contributor Tax Credit and the New Generation Cooperative Incentive Tax Credit. The governor’s plan also recommends four new tax credit programs for ethanol retail dealers, biodiesel retailers, biodiesel producers and urban farming operations. I am not in favor of expanding these tax credit programs.

As a staunch supporter of reducing taxes, including income and personal property taxes, I am optimistic my colleagues and I will reach an agreement and pass a significant tax cut. For years I have been fighting to lower taxes for hardworking Missourians. This is why I fully support efforts to lower the tax rate for all Missourians. With record inflation, and rising gas and food prices, it’s the least we can do at the state level to provide some relief to Missouri families.

In 2021, I did not support Senate Bill 262, which increased the state’s gas tax by 2.5 cents per gallon per year through 2025, but at least it included a provision allowing Missourians to get a refund of the additional taxes paid. The first rebate cycle is rapidly approaching (all forms must be postmarked by Sept. 30 to qualify for a refund), so click here to submit Form 4923-H if you want to file a claim.