Cutting Taxes and Helping Farmers
A couple of weeks ago, I updated you on the extra legislative session called by the governor. We wrapped the session up this week, so I want to let you know how it turned out. I’m happy to say there’s good news. We passed the largest income tax cut in state history and renewed a variety of truly important agricultural incentives.
Missouri is currently sitting on the largest budget surplus in state history. Unemployment is at an all-time low and money continues to flow into the state’s bank account. In my opinion, it’s a great time to give taxpayers a break. Senate Bill 3, which the governor signed into law this week, will cut Missouri’s individual state income tax rate from the current 5.3% down to 4.95% beginning in 2023. The Office of Administration’s Budget and Planning Division says this should save Missouri taxpayers about $300 million next year. But that’s not all. If state revenues continue to grow – and we expect they will – the tax rate will fall even more. The legislation we approved includes a series of revenue-based triggers that could eventually lower the state income tax rate to 4.5%. If all the triggers are reached, we’ll save taxpayers about $700 million. This legislation will allow Missouri wage earners to keep more of their hard-earned money, all in a measured and responsible way.
Also during the extra session, both the Senate and the House passed nearly identical bills to support agriculture in Missouri, but House Bill 3 was the one that crossed the finish line. The legislation renews several important tax credit programs that had either lapsed, or were nearing their expiration dates. Among the programs extended for the next six years are incentives for specialty crop producers and new generation cooperatives, a tax credit to help meat processing plants expand and another that rewards sawmills and other timber processors who convert sawdust and scrap into wood energy. In addition, the bill includes new programs to support biodiesel and ethanol producers and support for urban farms. The bill also expands eligibility for a loan program benefiting small family farms. These are all good programs that make Missouri agriculture stronger. I’m glad we took care of Missouri’s No. 1 industry with passage of this bill.
With the conclusion of the extra session, legislative activity is probably done for 2022. Like most of my Senate colleagues, I’ll spend the rest of the year meeting with folks in the district, listening to your concerns and getting ready for the start of the 102nd General Assembly in January. It feels like that’s a long way off, but pre-filing of bills starts in less than two months, so it won’t be long and everything will start up again. In the meantime, if you need help with anything relating to state government, please contact may office and we’ll try to help.
Contact Me
I always appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-2459. You may write me at Holly Thompson Rehder, Missouri Senate, State Capitol, Rm 433, Jefferson City, MO 65101, send an email to Holly.Rehder@senate.mo.gov or visit www.senate.mo.gov/Rehder.