AIM’s Broad Based Tax Relief Act Hearing Held
March 21 – The House Committee on International Trade and Job Creation heard AIM’s bill HB 1639, sponsored by Committee Chairman Representative Jerry Nolte Wednesday evening. Rep. Nolte presented a committee substitute bill that will replace the original bill. Working with AIM President Ray McCarty, Rep. Nolte combined the following issues into the substitute bill:
The Broad Based Tax Relief Act of 2012 – Reduces the tax liability of every Missouri business. As long as income tax revenues for the previous fiscal year are at least as much as income tax revenues for FY 2010, business income taxes would be reduced by 10% in tax year 2012, 20% in 2013, 30% in 2014, 40% in 2015, and 50% in 2016. This is the main part of the bill, inspired by AIM member Bennett Packaging and drafted by AIM President Ray McCarty. The tax cut is the top tax legislative priority for AIM this year. This version does NOT pay for the tax cut out of the historic preservation tax credit. The tax cut is paid for through growth in state income tax revenues.
Amnesty for delinquent taxpayers, allowing taxpayers a limited window of time to register and pay all taxes due without penalties and interest.
Enhanced collection tools for the Missouri Department of Revenue to aid in delinquent tax collection (does not include additional “no tax due” statements that were in earlier versions).
AIM-drafted refund process changes, allowing taxpayers to seek refunds directly from the Missouri DOR when a third party vendor refuses or prefers not to participate in the refund process, and allowing tax cases to be held in abeyance, pending the outcome of a test case.
Clarification of the AIM Manufacturing Inputs Tax Exemption in section 144.054 to include maintenance, calibration, supplies, and clarifying food production is also included in the exemption.
Testifying in person for the bill were Ray McCarty, AIM President; AIM Board Member Gail Hinshaw, The Mountain Data Center; NFIB State Director Brad Jones; and other employer organizations. Also placed on record in support of the bill were AIM members Robert Lindstrom from Zephyr Manufacturing, and Tony Reinhart AIM Board Chairman representing Ford Motor Company. Only the NEA testified against the bill.
The committee asked good questions and seemed generally favorable toward the bill. Action should be taken on the bill next week. We will keep you posted of developments.