During a media conference at the State Capitol, Governor Parson announced that he is planning a special session to pass permanent tax relief for all Missouri taxpayers and to extend the sunset on key agricultural tax credits.
Parson vetoed HB 1720 established several new agricultural tax credit programs and re-authorized existing ones; however, the sunsets on the tax credits were only extended for two years.
"These two-year extensions are problematic and reduce the benefit to Missouri farmers and business owners," Parson said. "Applicants often need a minimum of 24 months in order to secure the equity and private investment needed for projects. When a program is only guaranteed for a partial period of a projects development, businesses are less likely to invest."
"This year the General Assembly authorized longer sunsets for a number of other tax credit programs, and as agriculture is Missouri's top economic driver, it's only right that we offer Missouri farm families - the foundation of our economy - with the same opportunities as others. We must extend these key agriculture tax credits for a minimum of six years," Parson continued.
Parson's special session plan for agriculture tax credits and related priorities includes:
- Extending the sunset on agriculture tax credits included in HB 1720 for a minimum of six years rather than two;
- Exempting certain agricultural equipment from state and local sales tax; and
- Modifying the Family Farms Act to increase the number of small farmers that qualify for the program, and increasing the amount of loans available to the farmer.
"We support the Governor's call to fully extend these agricultural tax credits that are critical for our state's agriculture industry, ensuring it maintains pace with competing industries and the needs of Missourians," said Senator Jason Bean and Representative Brad Pollitt. "The goal has always been to provide longer extensions for these tax credits. Last session began with an Ag bill that extended these credits for six years but ended with support for two years. While it was certainly our priority to address this in next year's session, we respect the Governor for calling us back to finish the job and support Missouri's number one industry. The important issues in this bill have not changed, and we remain committed to working to address the needs of agricultural communities across the state."
Both permanent tax relief and agriculture tax credits subjects will be addressed during a special session later this year. Parson is currently working with legislative leaders to identify a date for the special session call.
Once a date is selected, additional details and proposed bill language will be released.
The Missouri Department of Agriculture thanked the Governor for his support of agriculture, the state's top economic driver. His decision today shows a long-term commitment to rural communities and the agribusinesses that will benefit from a more realistic term for the value-added tax programs under the Missouri Agricultural and Small Business Development Authority.
"A two-year term for the MASBDA value-added agriculture tax credit programs was going to be a barrier for Missouri businesses and rural communities," said Missouri Agriculture Director Chris Chinn. "Thank you to Governor Parson for recognizing the impact a short-term solution would create and instead seeing the economic growth that will result from long-term opportunities. We appreciate the Governor's leadership and support of the agriculture industry and look forward to the results a Special Session will provide for rural Missouri."
Categories: Missouri, Business