Senate Passes Tax Cut Bill, Both Chambers Pass Agriculture Tax Credit

On Wednesday, the Missouri House and Senate both advanced similar bills for rural tax incentives, a priority of Governor Mike Parson’s special session. The House failed to reach a two-thirds vote, which would have allowed the governor to immediately sign the bill into law. The House and Senate will now have to take up and try to pass the other chamber’s version. Meanwhile, an income tax cut bill has passed the Senate and is on its way to the House. The $1 billion proposal would cut the income tax rate from 5.3% to 4.95% beginning in 2023. Under the proposed legislation, additional cuts could be made in the future, if certain revenue growth is met. Governor Parson asked lawmakers to cut the income tax rate down to 4.8% at a cost of $700 million, which would be paid by the state’s record general revenue surplus.