May 22, 2012

You are here: Home / Archives for Taxes

Research: Missouri losing hundreds of millions in sales taxes (AUDIO)

May 1, 2012 By

New research suggests Missouri fails to collect enough sales taxes each year to finance the budgets of eight state agencies

The study estimates Missouri loses about $468 million every year because it does not collect taxes on internet sales–and that’s just for internet merchants outside our borders. 

That’s more money than Governor Nixon recommend the state spend on the elected officials, legislators, and state judges combined (about $380 million).  It’s three times the revenue department’s proposed budget of $145 million; eleven times more than the agriculture department budget of about $40 million; more than triple Nixon’s proposed conservation budget ($146 million). It’s one third more than the combined budgets of the Revenue, Agriculture, Labor, and Conservation Departments, which totaled $343 million in Nixon’s January budget recommendations.   .   

The study has been done by University of Missouri professor David Valentine, who was the head of state senate research for 24 years. It estimates the state will miss out on $1.4 bilion in possible tax income in the next three years. 

The study has been released as lawmakers consider what programs to cut because of lack of state tax collections. 

Seven of our eight neighboring states have joined the 24-state streamlined sales tax compact that does collect internet sales taxes.  Missouri lawmakers have shown little interest in being the 25th state.  They’re waiting for Congress to do something and a federal internet sales tax does not appear very high on the congressional radar although Senator Blunt is co-sponsoring a bill that lets states enter the Streamlined Sales and Use Tax Agreement or create their own system.  The bill would give states more enforcement powers to increase collections.

 AUDIO: Valentine interview approx 17:00

 

Filed Under: Business, Featured, Finance, Human Interest, News, Taxes

New business tax cut proposed (AUDIO)

April 5, 2012 By

While some legislators meeting in capitol offices trying to find a way to plug a $500 million hole in the state budget, a state senator is trying to make a case for a $100-200-million  tax cut.

The legislature cut the corporate franchise tax last year, a five-year phase-out that will mean 87-million fewer dollars to finance state programs and services. Now Kirkwood Senator Eric Schmitt wants to phase in a 25 percent small business income tax deduction..

That brings Senator Joe Keaveny out of his chair to ask, “That’s going to cut another $200 million out of the budget?”   “If you assume no growth,” responds Schmitt, who says the cut is actually smaller, perhaps by as much as one-half or more. …

Schmitt says business would expand and hire more people if they could keep more of their money.  “Everything we do makes Missouri more competitive,” he says.             

But Keaveny wonders how much more competitive Missouri can get—and at whose expense, nothing Missouri already is rated in some studies in the top ten states in the country in business competitiveness.. “In order to make that next step up, how much is it going to cost?  How much is $200 million gong to get us,” he asks.  

Schmitt has set his bill aside to try to work out some things with another senator who has his doubts, too.

AUDIO: debate 20:46

Filed Under: Business, Economy, Featured, News, Taxes

New way to tax vehicles advances (AUDIO)

March 7, 2012 By

The way county assessors set values for our vehicles could be changing—and taxpayers might be given some new tools to protest those values. 

State law requires county assessors to use the National Automobile Dealers Association price guide to determine the value of our vehicles.  But assessors say the association is charging unreasonable fees for access to that information.

The state senate has tentatively approved a plan letting assessors and the state tax commission negotiate with several guide publishing companies, then settle on one guide to use for each assessment.  Jefferson City Senator Mike Kehoe, a former car dealer, says the guides can differ widely, depending on how they gather their information and how often the information is updated. .

 He says the guides won’t differ much on common, mass-produced popular models. But they can vary considerably on specialty or small-production number vehicles.

The proposed law change lets the tax commission approve four national pricing guides for consumers to use and says that if the vehicle owner finds a lower value than the assessor’s figure, the assessor has to go with the lower valuation.

The senate could send the bill to the House this week.

 AUDIO: Senate debate 15:45

Filed Under: Featured, Human Interest, News, Taxes, Transportation

Legislature vetoes farmland tax increase (AUDIO)

March 1, 2012 By

The state tax commission’s recommendation that the productive value of the four best qualities of Missouri farm land be increased by eight percent for the next two taxable years has been overridden by the Missouri legislature.

Missouri farmland, unlike residential and commercial property, is taxed on the basis of its productive value.  The state tax commission reviews the rate every two years.  The legislature has the power to override the recommendation and has refused to let any increases go into effect since the mid-90s.

The House rejected the proposal last week.  Today the senate followed suit although several urban senators questioned the fairness of the system. 

AUDIO: Senate debate 59:20

 

Filed Under: Agriculture, Economy, Featured, Legislature, News, Taxes

Legislature asked to block land value increase (AUDIO)

February 13, 2012 By

Proposed increases in the productive value of the est 35 percent of Missouri’s farmland appear likely to be rejected by the legislature for another two years.

Agriculture land is assessed on the basis of its productive value, unlike regular property valuations. Every two years the state tax commission recommends values on eight grades of soils. But the legislature can pass resolutions blocking the increses.

The commission has recommended eight percent increases in the top four categories of farmland. The valuations are still below what they were thirty years ago.

Opponents say this is a bad time to increase taxes by 29-cents an acre on the state’s most productive land.

The legislature has to act to deny the increases within sixty calendar days after the start of the legislative session. The resolutions have to be passed by March 4th or the higher rates go into effect for the tax years 2013 and 2014.

Filed Under: Agriculture, Featured, News, Taxes
« Older Posts
Newer Posts »