JEFFERSON CITY, Mo. – The Missouri legislature accomplished one of Gov. Mike Parson’s main goals of the special session this week by passing an income tax cut.
The House passed Senate Bill 3 Thursday with a comfortable 98-32 vote, reducing Missouri’s top income tax rate from 5.3% to 4.95% beginning in 2023. When Parson called the special session, he made it well-known that his primary objectives were to reduce the income tax and extend agricultural tax credits.
“We are thrilled that the General Assembly has answered our call to cut Missourians’ taxes and return some of their hard-earned dollars,” Parson said in a statement. “We called this special session to pass and extend critical support to our agriculture industry and reduce Missourians’ income tax burden, and that’s exactly what we are accomplishing.”
During the 2022 legislative session, the General Assembly passed a one-time tax credit to help ease Missourians’ tax burden. However, Parson vetoed that bill because he believed it did not apply to enough people and only offered temporary help. Then began his well-stated goal to deliver tax relief to Missourians for years to come.
“Today’s action will provide real relief to taxpaying Missourians,” Parson continued. “Relief that is even more critical now as Missouri families face rising grocery bills, high gas prices, and record inflation. This bill means our administration will have cut Missourians’ income tax rate by almost a full percentage point or a nearly 15 percent decrease. Next week, we look forward to progress being made on the agriculture bill, so we can sign both pieces of legislation into law.”
There are also provisions in the bill to reduce the tax rate by 0.15%, and then by an additional tenth of a percent if the state meets certain net general revenue requirements. Parson is expected to sign the bill in the coming weeks.
State Rep. Cody Smith, R-Carthage, is the chair of the budget committee and has been a main proponent of passing tax relief since the beginning of this year’s legislative session.
“You can’t tell the whole story without acknowledging that we are helping those with little income in many ways and in ways that are unprecedented,” Smith said. “And this bill is for the folks that are paying for all of that. They’re paying taxes to be redirected to people who may be downtrodden, less fortunate or low income for a variety of reasons.”
Americans for Prosperity – Missouri State Director Jeremy Cady praised Parson, Smith and the legislature’s work on passing the tax relief and called the bill “a major win for everyday Missourians.”
“As the Show-Me State faces significant inflation and skyrocketing grocery prices, cutting the state income tax will provide much-needed relief and will keep more money in the pockets of hardworking Missourians,” Cady said. “Their collaboration, tireless effort, and leadership does not go unnoticed and will benefit Missourians during this trying time and into the future.”