Missouri General Assembly overwhelming approves agricultural tax credits
During a special session, lawmakers also passed legislation last week that cuts Missouri’s income tax. Both bills now head to Gov. Mike Parson’s desk, where he is expected to sign them.
Missouri’s special session centered around taxation is over.
The state Senate passed an agricultural tax credit bill on Tuesday that includes incentives for meat processing, urban farming and purchases of farm equipment. The bill passed 26-3 and now heads to Gov. Mike Parson’s desk, where he is expected to sign it.
“I support this legislation because I recognize that the agriculture industry touches every Missourian’s life,” said Sen. Lauren Arthur, D-Kansas City. “It is appropriate for the state to intervene in some ways to support our farmers and our agricultural industry.”
In some respects, the agricultural tax credit bill was much less controversial than the other item on the special session agenda — an income tax cut that passed last week. The agricultural tax credit received bipartisan support during the regular session, but Parson, among other reasons, didn’t like how some of the incentives were only in place for two years.
Still, the legislation didn’t receive universal praise on Tuesday.
Sen. Mike Moon, R-Lawrence County, questioned whether it was fair to provide tax credits based on someone's vocation. He unsuccessfully sought to attach an amendment that would have barred agricultural entities that foreign companies control from receiving incentives.
“That’s great for the recipient,” Moon said. “But how about the parent who is raising children without help? How about the business operator who is being taxed and has no relief?”
While she voted for the bill, Arthur criticized the decision to pursue a tax cut as shortsighted — especially when she’s heard from constituents that a lack of available and affordable child care is a more pressing concern.
“This is sort of a weird economic moment,” Arthur said. “There are different kinds of problems. And often, I get a little frustrated that the only solution is tax cuts. So if we have inflation, the solution is tax cuts. If we have a recession, the answer is tax cuts. If we have any number of economic issues, the go-to solution is tax cuts.”
Republicans, including Parson, have contended it makes sense to cut the state’s income tax when there’s a massive surplus and more money coming to the state from a federal infrastructure bill. Democrats, though, argue that the benefit for working-class Missourians will be relatively small, while the impact on funding core state services could be much greater.
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