Last night, the House Economic Development Committee completed a hearing on both bills and passed only Senate Bill 7 out of committee. That bill was passed on the House floor today. Senate Bill 7 contains the Missouri Science and Innovation Reinvestment Act (MoSIRA) which will invest Missouri revenue into high-tech, high-paying jobs. HOWEVER, the MoSIRA bill is contingent on passage of the economic development bill, Senate Bill 8. A compromise between Senators and Representatives has not yet emerged on Senate Bill 8. That bill includes: COMPETE Missouri, St. Louis Aerotropolis legislation, data center tax incentives, and more. Since a compromise has not yet been found, the committee did not take any action on this bill.
Associated Industries of Missouri President Ray McCarty is in the Capitol today to monitor both sets of legislation. Included in McCarty’s priorities today is ensuring that the 2007 Manufacturing Inputs Exemption is not touched. A move by another business group drastically scaled back the 2007 provision and would have increased costs for Missouri manufacturers – the industry that has suffered the most job loss throughout the recession – into the millions of dollars per facility.
“We were successful in removing the section that would have narrowed the manufacturing inputs exemption from the most recent House version of the economic development bill,” McCarty said. “I believe we may have finally defeated this for good, but we will continue to monitor the situation and let you know if it creeps back into any future versions.”
State Tax Collection Bill
In addition to the economic development packages being heavily debated, Missouri legislators are considering legislation that will bring more revenue into the state’s coffers. A measure that would allow tax amnesty for Missouri companies behind on tax payments almost passed last year and the revenue generated from the bill was included in the state budgeting process. Ultimately the bill was one-day shy of passing.
Governor Nixon and legislative leaders agree that the bill is necessary and have included it in the list of priorities to discuss this special session. House Bill 2, sponsored by Representative Tom Flanigan (R-Carthage), is in the Senate Ways and Means Committee. A committee vote is expected at a hearing today at 1 p.m. AIM President McCarty is watching this bill as it progresses through both chambers and will keep the AIM Tax Committee informed of its progress (if your AIM member company would like to have your tax professional included on the AIM Tax Committee list, please contact AIM at 573-634-2246).