Missouri Senate Committee hears SB 625 and SB 667
The Missouri Senate Ways and Means Committee heard several bills Tuesday, including SB 625 and SB 667.
SB 625 seeks to fix the over-reach of the Missouri Supreme Court regarding sales and use tax exemptions for equipment used to provide data processing and telecommunications services. Associated Industries of Missouri has tried to correct this problem since the original decision in April, 2016. Although SB 625 only addresses part of the problem by allowing a specific exemption for equipment used to provide telecommunications services, AIM supported the bill as a partial solution in a hearing this week. AIM is working with all allies to form a comprehensive bill that will fully reset the judicial landscape as it existed prior to the decision in the April, 2016 case.
AIM also testified in support of SB 667, a bill that would increase the amount of the personal income taxes cut and the business income deduction in current law. Under this plan, the current cuts would be doubled, meaning that in each year the trigger is met, the top rate will be reduced by 0.2 percent. The top rate will continue to be reduced until it is lowered to 5 percent.
For the business income deductions, each year that the trigger is met, the deduction amount will be increased by 10 percent. Once fully phased in, individual taxpayers may deduct up to 50% of their business income.
“The cuts in SB 667 are cuts that we originally proposed before compromises were made to get a bill passed,” said Ray McCarty, president and CEO of Associated Industries of Missouri.