Associated Industries of Missouri president Ray McCarty says the 2014 session of the Missouri legislature will go down in history as one of the most important ever for Missouri businesses and taxpayers.
Not only did the legislature stand strong in overriding the governor’s veto of Senate Bill 509, but they followed that triumph up with important legislation that changed the burden of proof in tax disputes to the Department of Revenue, provided state tax exemptions on transmission and distribution of electricity and cancer treatment items, allowed interstate businesses to take advantage of all three choices of determining how much income is taxed in Missouri, continued the Shared Work program, and made important changes to the unemployment system.
“We can say this legislative session, we won many victories for Missouri businesses,” said McCarty. “The legislative leadership promised us before the beginning of the session that we would get down to business this session, and they came through on their promises.”
McCarty thanked and applauded the efforts of Senate President Pro Tem Tom Dempsey, Speaker of the House Tim Jones, Senate President Pro Tem Tom Dempsey, House Majority Floor Leader John Diehl, Senate Majority Floor Leader Ron Richard, House Speaker Pro Tem Denny Hoskins, Senate Ways and Means Chairman Sen. Will Kraus, House Ways and Means Chairman Rep. Andrew Koenig, Senator Bob Dixon and Reps. T.J. Berry and Eric Burlison for their efforts in carrying important legislation through the twists and turns of the legislative process.
“We saw during this session what true leadership is all about,” said McCarty. “These senators and representatives worked tirelessly on behalf of their constituents, both individuals and businesses, and Missouri is a better place today because of them.”
Of course, the 2014 session will go down in history as the first to reduce income taxes since the 1920’s. The business income tax deduction passed in Senate Bill 509 was the brainchild of McCarty and AIM. The deduction will help more than 95 percent of Missouri businesses. State services are protected because the tax cuts and deductions are paid for through growth in state revenues beginning in 2017.
“With the passage of the tax cut alone, I can say this was truly an historic session of the Missouri General Assembly,” said McCarty. “But to continue to pass bill after bill to make the Department of Revenue more responsive to taxpayers, to take away burdensome taxes and regulations, to act quickly to keep important programs in place, legislative action this session has been bold and decisive.”
Other successes of the session include HJR 72 that reigns in the power of the governor to withhold state revenues for political gain. SB 584 includes language to help establish data centers that has been 7 years in the making. Senate Bill 584, passed in the final moments of the legislative session also included:
Clean-up language to ensure the Department of Revenue charges sales tax on admissions to entrainment, not businesses that offer athletic training, or dance lessons, or other services.
Apportionment language that allows service industries to be able to use any of the three modes of tax formulas used to determine in-state sales for tax purposes.
The Associated Industries version of concise data center tax incentive language.
Language that shifts the burden of proof in tax dispute cases to the Department of Revenue.
Boat motor fuel tax exemption on fuel purchased from a marina.
A tax exemption on the sale of used manufactured homes.
Tax exemptions on cancer treatment drugs and devices.
Tax exemptions for the transmission and distribution of electricity within the state’s borders.
Language that allows retailers to advertise that a price includes state sales taxes.
Language that ensures the Department of Revenue gives tax refunds to deserving taxpayers with a minimum of hassle.