July 11, 2022
Missouri’s new state fiscal year (FY2023) began on July 1, 2022. During the weeks prior, Gov. Mike Parson signed 44 bills total and vetoed line items in some of the operating budget bills and in House Bill 3020 which contains numerous projects funded by American Rescue Plan Act (ARPA) federal funds.
On July 1, Gov. Parson announced his vetoes of House Bill 1720, a bill establishing several new agricultural tax credit programs and re-authorizing existing ones, and House Bill 2090, a bill that would provide one-time tax rebates to some Missourians who had tax liability in 2021.
After his announcement of the vetoes, the Governor said he plans to call a Special Session of the General Assembly to pass permanent tax relief for all Missouri taxpayers and to extend the sunsets on key agricultural tax credits.
The ag tax credits in HB 1720 (Pollitt, R-Sedalia) were only re-authorized for two years. The Governor’s plan for agriculture tax credits and related priorities includes extending the sunset on agriculture tax credits included in HB 1720 for a minimum of six years rather than two; exempting certain agricultural equipment from state and local sales taxes; and, modifying the Family Farms Act to increase the number of small farmers who qualify for the program, and increasing the amount of loans available to the farmer.
Instead of the tax rebates in HB 2090 (Smith, R-Carthage), the Governor is proposing permanent tax relief for all taxpaying Missourians. His proposed tax plan includes reducing the individual income tax rate; increasing deductions and allowances for taxpayers; and further simplifying the tax code.
When the Special Session will be called is not certain but may be held during the annual Veto Session in mid-September. Another current complication is the House of Representatives’ chamber is being recarpeted and desks in the chamber have been removed. The renovations should be finished in time for the Veto Session.
Upcoming Dates of Interest:
August 2, 2022 – Missouri Primary Election
August 28, 2022 – Date Most Legislation Takes Effect (unless another date is specified)
September 14, 2022 – Veto Session
November 8, 2022 – Missouri General Election
December 1, 2022 – Pre-filing of Bills for 2023 Legislative Session
January 4, 2023 – First Day of 2023 Legislative Session
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