Updating Our Outdated Tax Code and
Highlighting the 2014 Revenue Reports

Missouri currently operates with a tax code that is more than 40 years old. It is severely in need of reconstruction. Senate Bill 15 was filed this year in an effort to modify provisions relating to taxation.

If successful in the General Assembly, it would also create a Study Commission on State Tax Policy. The Commission would include members of the Joint Committee on Tax Policy as well as members of the public who are experienced in the field of taxation. They will examine Missouri’s tax system and provide recommendations for improving weaknesses and creating a system that benefits the taxpayer and our economy, while achieving funding levels for important services.

The Missouri Legislature holds certain responsibilities in order to ensure a clear and effective tax policy is available in order for the system to efficiently function. With our state severely lacking funding for transportation systems, education programs and local governments, it’s imperative we provide a tax code that reinforces sound fiscal policy to fulfill our priorities.

Missouri’s tax code has not undergone a detailed or proficient review since 1968, and it’s long overdue we look into some of our state’s tax policies. Senate Bill 15 was debated on the Senate floor this week and perfected. Although the Senate gave its first round approval, SB 15 will need to go through one more vote before moving to the House.

Budget Basics

The state has released the January 2015 General Revenue Report, and with this report the 2015 fiscal year-to-date net general revenue collections. The state budget director announced this week the revenue collections increased from $4.57 billion last year to $4.80 billion this year, accounting for a 4.9 percent increase. January alone showed a 4.1 percent revenue increase this year.

It seems Missouri is on the road to success already this year. As revenue for Missourians gradually increases and unemployment rates drop, people are able to get out of the house more and help Missouri build a stronger economy through consumer spending.

I was pleased to see the Governor finally release funding for the Cyber Crimes Task Force that I spoke about in my last report.  This money will be put to good use protecting our children from online predators.  In addition, the Governor released his funding hold on $8 million for Missouri Veteran’s Homes, five hundred thousand dollars for services for victims of sexual assault, and five hundred thousand dollars for sheltered workshops. In total, the Governor released holds on $21.5 million in funding for various budget items. 

Legislative officials have told us that there is money available for further budget items that are currently being withheld.  Therefore, I hope that continuing revenue growth will prompt the Governor to release more withheld items that were approved by last year’s General Assembly.