Tax cut bills and other business friendly legislation moves forward in Missouri House
A Missouri House of Representatives committee this week sent two important tax cutting proposals a step closer to floor debate.
The House Ways and Means Committee Tuesday voted “Do Pass” on House Bill 1253 and House Bill 1295. The two bills now move on to the powerful House Rules Committee where they will be heard early in the week, setting both bills up for debate later in the coming week, or in the second full week of February.
House Bill 1253, sponsored by Rep. T.J. Berry (R-Kearney) would reduce Missouri’s corporation income rate beginning in the 2014 tax year if net individual and corporation income tax revenues are at least FY 2012 levels. Over five years of growth, the corporation income tax rate would be cut in half.
The bill also provides a 10%-50% business income deduction over the same period and subject to the same conditions as the corporation income tax rate cut.
FOR BOTH CUTS, if the employer has average payroll of at least 150% of county average wage, 50% tax cut is immediate.
“We are fully supportive of this legislation,” said AIM president Ray McCarty. “It provides equal tax benefit to ALL Missouri employers, regardless of size or type of organization and helps existing employers as it increases our ability to compete for new employers and the jobs they provide.”
House Bill 1295, sponsored by Rep. Andrew Koenig (R-Manchester), phases in a seven tenths percent cut in individual income tax rate over 7 years of $100m+ growth over highest of previous 3 years; phases in a 50% business income deduction over five years of such growth; and provides an additional personal exemption for taxpayers with less than $20,000 MAGI.
“These bills are moving fast by legislative standards, and it proves that House leadership is serious when they say tax cutting legislation is high on their list of priorities,” said McCarty. “We are pleased to see tax relief bills moving quickly in both the House and Senate.”
The same committee Tuesday also approved House Bill 1165, sponsored by Rep. Mike Kelley (R-Lamar). The bill adds graphing calculators to the list of school supplies that are exempt from sales taxes during the back-to-school tax holiday in August.
On Wednesday, the House International Trade Committee met in executive session for HB 1055, sponsored by Rep. Delus Johnson (R-St. Joseph). This legislation creates the Missouri International Business Advertising Fund consisting of appropriated moneys, contributions, grants, and bequests to be used solely to attract international businesses to Missouri. The fund must be used for advertising the benefits of relocating an international business to Missouri. The fund may also be used to promote its existence and purpose and to advertise in international business magazines or on social media sites or any search engine that receives international traffic. The fund must be administered and managed by the Missouri Small Business Technology and Development Center and its coordinator.
There was little discussion before the bill was voted “do pass-consent” 8-0. This legislation has been referred to the House Rules Committee.
The same committee also met in executive session for HB 1089, sponsored by Rep. John McCaherty (R-High Ridge). This legislation establishes the Bring Jobs Home Act, which authorizes a tax deduction for out-of-state businesses that relocate to Missouri.
A committee substitute was adopted which made a technical correction. The committee then voted “do pass” 8-0. This legislation has been referred to the House Rules Committee.
In the State Senate, the Committee on Commerce, Consumer Protection, Energy and Environment voted “Do Pass” on Senate Bill 529, sponsored by Sen. Wayne Wallingford (R-Cape Girardeau). This act modifies the Missouri Public Prompt Payment Act and the law relating to public works projects.