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Gov. Mike Parson announces special session on tax relief and ag tax credits


August 22, 2022 - During a press conference today, Governor Mike Parson announced a special session for the legislature to consider providing permanent tax relief in excess of $700 million for individuals and small businesses and to consider extending agricultural tax credits.


"My team and I have been working with our colleagues in the General Assembly and agriculture partners to formulate a plan to adequately extend our critical agriculture tax credit programs and pass the largest income tax cut in state history," Governor Parson said. "Today, we believe we have that plan and are ready to call legislators back to Jefferson City to get to work on behalf of our farmers, ranchers, and business owners and provide lasting tax relief to every taxpaying Missourian."


Tenets of Governor Parson's proposed tax plan include reducing the individual income tax rate, increasing the standard deduction, and further simplifying the tax code. Governor Parson's proposed plan includes:

  • Reducing the top individual income tax rate from 5.3 to 4.8 percent, a nearly 10 percent cut;

  • Increasing the standard deduction for individuals by $2,000 and by $4,000 for married joint filers; and,

  • Eliminating the bottom income tax bracket.

"More than 90% of Missouri businesses pay their business income taxes on the owner, partner or S corporation shareholder's return," said Ray McCarty, president and CEO of Associated Industries of Missouri. "That is why we originated the idea of a business income tax deduction that now provides a way to reduce business income on those individual's income tax returns and that is also why the governor's request to lower individual income tax rates is so important to Missouri businesses. We applaud Governor Parson for calling this special session and will work with the legislature on a bill that will provide meaningful and long-term tax relief for Missouri businesses and individuals," he said.


The special legislative session will start at noon on September 6 and will last until the legislature adjourns the special session. Gov. Parson said the initial bill would start in the Senate and contain both topics in one bill.


Governor Parson's special session call also includes the extension and creation of several agriculture tax credit programs intended to help develop key areas of Missouri's agricultural industry, the state's top economic driver. The sunset for each program will be for a minimum of six years. The call includes:

  • Extending the expiration of the meat processing facility investment tax credit;

  • Creating a tax credit program for retail dealers of higher ethanol blend fuels;

  • Creating a tax credit program for retail dealers of biodiesel;

  • Creating a tax credit program for Missouri biodiesel producers;

  • Creating a tax credit program for establishing or improving urban farming operations;

  • Extending the expiration of the Rolling Stock Tax Credit program;

  • Extending the expiration of the Agricultural Product Utilization Contributor Tax Credit;

  • Extending the expiration of the New Generation Cooperative Incentive Tax Credit;

  • Exempting utility vehicles for agriculture use from state and local sales and use taxes;

  • Creating the Specialty Agricultural Crops Act; and

  • Amending the Family Farms Act to modify the definition of "small farmer."

IMPORTANT:

If you would like to see Governor Parson and express your support for his tax cuts, consider attending one of the events this week in several locations around the state, all of which are open to the public:


Tuesday, August 23, 2022

St. Joseph: 2:50 - 3:35 p.m., Civic Center Park, 900-1200 Francis Street, St. Joseph, MO 64501

Kansas City: 4:30 - 5:15 p.m., Union Station Kansas City, 30 West Pershing Road, Kansas City, MO 64108

Wednesday, August 24, 2022

Bridgeton: 11:00 - 11:45 a.m., Davidson Logistics, 13930 Missouri Bottom Road, Bridgeton, MO 63044

Thursday, August 25, 2022

Columbia: 9:00 - 9:45 a.m.,The Center for Urban Agriculture, 1769 West Ash Street, Columbia, MO 65203

Kirksville: 3:30 - 4:15 p.m.,Truman State University Farm,1816 South Boundary Street, Kirksville, MO 63501

Friday, August 26, 2022

Springfield: 10:00 a.m. - 10:45 a.m., Darr Agriculture Center, 2401 South Kansas Expressway, Springfield, MO 65807


We will keep you posted of developments throughout the special legislative session.

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