Over objections from Gov. Jay Nixon, the Missouri Senate has passed a tax overhaul that would cut income taxes by hundreds of millions of dollars annually for residents and businesses. It would also boost sales taxes.
The legislation is promoted by supporters as the most dramatic change to Missouri’s tax policies in decades. It’s prompted by a desire to compete with sweeping income tax cuts in Kansas.
The Missouri Senate has passed a wide-ranging tax credit bill that drastically lowers the caps on Historic Preservation and Low Income Housing programs. It would cap Historic Preservation incentives at $50 million a year, instead of the current $140 million, and Low Income Housing incentives would be capped at $55 million a year, instead of the current $190 million.
The bill is now in the hands of the Missouri House, where Speaker Tim Jones has indicated that he and other House leaders don’t like the drastic cuts.
The Missouri Senate spent several hours Tuesday night working on a wide-ranging tax credit bill, which they gave first-round approval to around 3:20 Wednesday morning. The Senate bill would drastically cut incentives for Historic Preservation and low income housing.
Historic Preservation tax credits would be capped at $45 million a year, instead of the current $140 million, and low income Housing incentives would be capped at $50 million a year.
The bill is sponsored by Republican Senator Eric Schmitt of St. Louis County.