Governor Parson has now set a special session for September in the hopes of passing historic tax cuts and agriculture tax credits.
In a release Monday, the Governor issued an official call for the special session that would lower the individual income tax by half a percent, and extend agricultural tax credits by another six years.
According to Parson, the income tax rate would be lowered from 5.3% to 4.8%. There would also be a stipulation raising standard deductions for single and married filers.
The full statement from the Governor’s Office can be read below:
Today, during a press conference at the State Capitol, Governor Mike Parson announced that he has issued the official call for a special session to make historic income tax cuts and extend key agriculture tax credit programs for a minimum of six years. The General Assembly will meet in Jefferson City on September 6, 2022, at 12 p.m. to begin consideration of Governor Parson’s proposed legislation.
“My team and I have been working with our colleagues in the General Assembly and agriculture partners to formulate a plan to adequately extend our critical agriculture tax credit programs and pass the largest income tax cut in state history,” Governor Parson said. “Today, we believe we have that plan and are ready to call legislators back to Jefferson City to get to work on behalf of our farmers, ranchers, and business owners and provide lasting tax relief to every taxpaying Missourian.”
Tenets of Governor Parson’s proposed tax plan include reducing the individual income tax rate, increasing the standard deduction, and further simplifying the tax code. Governor Parson’s proposed plan includes:
- Reducing the top individual income tax rate from 5.3 to 4.8 percent, a nearly 10 percent cut;
- Increasing the standard deduction for individuals by $2,000 and by $4,000 for married joint filers; and
- Eliminating the bottom income tax bracket.
Governor Parson’s tax relief plan means significant savings for Missourians each year. Below are a few scenarios that estimate state income tax savings for Missourians of different backgrounds, based on the State’s tax structure:
- Senior making $20,000 per year – 100 percent decrease in tax liability;
- Single adult making $25,000 per year – 32 percent decrease in tax liability;
- Single mom with two kids making $35,000 per year – 21 percent decrease in tax liability; and
- Married couple making $125,000 per year – 11 percent decrease in tax liability.
“Our tax cut proposal means that every taxpaying Missourian, no matter their background, income, or job description, will see a reduction in their tax liability,” Governor Parson said. “Every Missourian will earn their first $16,000 tax free and married joint filers will earn their first $32,000 tax free, resulting in significant savings for millions of Missourians. Our plan puts more of Missourians’ hard-earned dollars back in their pockets and aims to make it a little easier for families to put food on the table and gas in the car.”
Governor Parson’s special session call also includes the extension and creation of several agriculture tax credit programs intended to help develop key areas of Missouri’s agricultural industry, the state’s top economic driver. The sunset for each program will be for a minimum of six years. The call includes:
- Extending the expiration of the meat processing facility investment tax credit;
- Creating a tax credit program for retail dealers of higher ethanol blend fuels;
- Creating a tax credit program for retail dealers of biodiesel;
- Creating a tax credit program for Missouri biodiesel producers;
- Creating a tax credit program for establishing or improving urban farming operations;
- Extending the expiration of the Rolling Stock Tax Credit program;
- Extending the expiration of the Agricultural Product Utilization Contributor Tax Credit;
- Extending the expiration of the New Generation Cooperative Incentive Tax Credit;
- Exempting utility vehicles for agriculture use from state and local sales and use taxes;
- Creating the Specialty Agricultural Crops Act; and
- Amending the Family Farms Act to modify the definition of small farmer.
