Governor’s Tax Committee Issues Final Report, Recommends Reform of Missouri’s Tax Credit Programs
On Jan. 25, shortly after taking office, Missouri’s new governor created the Governor’s Committee on Simple, Fair and Low Taxes to evaluate our state tax policies and tax credit programs and provide detailed recommendations for reform. The 10-member committee was charged with finding out whether reforming our broken tax credit system could fund tax rate cuts for all Missourians. I was honored to be invited by the governor to join the committee, which also included seven current and former lawmakers, the governor’s policy director and the director of the Department of Revenue. We released our findings on June 30.
To help ensure Missourians throughout the state had the opportunity to express their thoughts and ideas, the committee held town hall meetings in Maryville, Hannibal, Cape Girardeau and Springfield. We also sought insight from the public and subject matter experts at public hearings and via written comment.
The committee’s chief recommendations include: subjecting underperforming tax credits to the appropriations process; converting the Low-Income Housing Tax Credit program into a low-interest loan program for affordable construction; converting the State Historic Preservation Tax Credit and the Brownfield Redevelopment programs into a new State Rehabilitation Tax Credit program, with an annual cap of $50 million; and having the director of revenue repeal all outdated or inapplicable regulations, create a statewide tax advisory committee and present candidates to the governor for the appointment of a taxpayer advocate.
Although more comprehensive tax reform is needed, this report is a great first step, and I’m proud of the work we’ve accomplished. This process has not only been informative, but it’s also produced some very specific, practical solutions. I look forward to working with my fellow lawmakers as we hopefully turn the committee’s ideas on tax credit reform into real action.
As always, please feel free to call, email, or write with your ideas or concerns. My Capitol office number is (573) 751-1415, my email is dan.hegeman@senate.mo.gov and my mailing address is Room 332, State Capitol Building, Jefferson City, MO 65101.
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