Week of January 15, 2024

Beginning Conversations

Greetings! I hope you enjoyed the holiday. The work continues here in the General Assembly as Senate Bills are heard in committees this week and discussions on necessary changes begin.

The Economic Development and Tax Policy Committee, which I chair, heard three bills this week. The first was Senate Bill 756 which aims to stabilize property taxes for senior citizens. Then both Senate Bill 733 as well as my own Senate Bill 725 were heard. Both of these bills aim to provide property tax cuts during a time when inflation has continued to put a strain on Missouri families. 

Current tax law says that personal property like cars, boats, planes, or farming equipment should be assessed at 33% of its value. This new bill requires that percentage be reduced every year based on how much revenue is produced for the state from real property like houses and land. If a political subdivision, such as a city or county, normally gets funding from personal property tax they will be able to receive compensation from the state for any loss of revenue this reduction might cause. However, since the tax cut will be equal to the tax growth on real property, funding should stay the same. It is a massive win if funding can be held where it is while simultaneously easing the tax burden on Missourians’ personal property.

This week Senate Bill 748, which impacts ongoing federal reimbursement allowances (FRA), was heard in the Appropriations Committee. FRA assists in funding a variety of medical organizations in the state. This bill removes the 2024 sunset provision included in the law, a provision which in the past has simply been extended. While I understand it may seem like an unnecessary step to require legislators to extend this law every few years, it also helps ensure that discussion regularly take place regarding our use of taxpayer dollars and whether those funds are going to the proper resources. For example, I believe tighter wording is necessary to restrict the use of funds from going to organizations that support abortions or affiliates of such organizations. 

In the past, we have put these kinds of restrictions in the bills that make up our state operating budget and had done so for years. However, in 2020 the Missouri Supreme Court ruled that such language could not be included in budget bills and that it would need to be addressed in statute. I believe this FRA bill is now the best place to implement these regulations. For this reason I was the lone vote against the SB 748 when it passed out of the committee on a vote of 12 to 1. It will now be heard by the full Senate. I am sure much more discussion is to come and I am hopeful we can add wording to keep taxpayer dollars, state and federal, in the right hands. 

In the meantime, I will continue to work to get my bills through committees and keep you updated on the progress we are making in the General Assembly.

As always, I appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at 573-751-4302. You may also email me at denny.hoskins@senate.mo.gov.