Missouri Governor Michael L. Parson has officially called for a special session to cut income taxes and extend agriculture tax credit programs. (News Release, Office of Missouri Governor Michael L. Parson, 08/22/2022.)
Income taxes. 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 the following: reducing the top individual income tax rate from 5.3% to 4.8%; increasing the standard deduction by $2,000 for individuals and by $4,000 for married joint filers; and eliminating the bottom income tax bracket.
Agriculture tax credits. The General Assembly also will consider the extension and creation of several agriculture tax credit programs. The sunset for each program would be for a minimum of six years. The plans include (1) extending the expiration of the Meat Processing Facility Investment Tax Credit, the Rolling Stock Tax Credit Program, the Agricultural Product Utilization Contributor Tax Credit, and the New Generation Cooperative Incentive Tax Credit; (2) creating tax credit programs for retail dealers of higher ethanol blend fuels, retail dealers of biodiesel, and Missouri biodiesel producers; (3) creating a tax credit program for establishing or improving urban farming operations; (4) exempting utility vehicles for agriculture use from state and local sales and use taxes; (5) creating the Specialty Agricultural Crops Act; and (6) amending the Family Farms Act to modify the definition of “small farmer.”
Special session consideration. The General Assembly will meet on September 6, 2022, to begin consideration of the governor’s proposed legislation.
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