To the Constituents of the 125th and new 126th District,

We returned to Jefferson City again this week to take up Veto Session and the Special Session that was called by the Governor for a tax cut.  The House passed the Agriculture Tax Credits bill, which will be very beneficial to many agriculture businesses that create jobs and income throughout Missouri. It sounds like the Senate will pass this as well, which is a win for the state of Missouri. The Senate passed a tax cut bill and we will take that up next week in the House for debate and discussion. There are lots of ramifications of a tax cut bill, so lots of debate will transpire in this as we discuss it. It’s been an interesting special session and veto session, but I feel like good things are happening for Missouri. 

House Advances Measure to Support Missouri Farmers (HB 3)

Lawmakers returned to the State Capitol building this week to give their support to legislation that will support and promote key areas of Missouri’s agriculture industry. House members approved HB 3 as part of the special legislative session called by Gov. Mike Parson.

The bill approved this week by the House extends and creates several agriculture tax credit programs. The sunset for each program would be for a minimum of six years. If approved by both chambers and signed into law by the governor, the bill would:

• Extend the expiration of the meat processing facility investment tax credit;

• Create a tax credit program for retail dealers of higher ethanol blend fuels;

• Create a tax credit program for retail dealers of biodiesel;

• Create a tax credit program for Missouri biodiesel producers;

• Create a tax credit program for establishing or improving urban farming operations;

• Extend the expiration of the Rolling Stock Tax Credit program;

• Extend the expiration of the Agricultural Product Utilization Contributor Tax Credit;

• Extend the expiration of the New Generation Cooperative Incentive Tax Credit;

• Exempt utility vehicles for agriculture use from state and local sales and use taxes;

• Create the Specialty Agricultural Crops Act; and

• Amend the Family Farms Act to modify the definition of small farmer.

The bill’s sponsor said, “This bill is tailored right now towards family farms and smaller businesses.” He noted agriculture is a self-sufficient industry but could use assistance now because of rising interest rates, greatly increased input costs, and drought conditions in some parts of the state. He said, “The stars are lining up as they did in the late 70s and early 80s in what was considered the worst economic crisis since the Great Depression for agriculture.”

The bill approved by the House contains all of the provisions called for by Gov. Parson. The House did add an additional four provisions that technically fall outside the governor’s call. The four provisions pertain to land surveys, commercial log trucking, anhydrous ammonia, and the state’s soybean producer’s assessment. Lawmakers believe the governor will expand the special session call to allow the four additional provisions.

The bill’s sponsor said it has a price tag of $40 million for an agriculture industry that generates $94 billion in economic activity. He noted that agriculture is one of the state’s top revenue producers and that one out of every 10 jobs in Missouri is related to the agriculture industry.

The sponsor concluded by saying, “There’s good stuff in here. I think it gives small businesses, the small farms, an opportunity to compete in the arena with the big farms and the big businesses. I would ask that people really think about this and do what’s best for the small business farmers in our state.”

The bill now moves to the Senate for consideration. The Senate sent identical legislation (SB 8) to the House this week. The two chambers will work on the bills next week with the hope of sending one or both of them to the governor to be signed into law.

Senate Sends Tax Cut Plan to House (SB 3)

The members of the Missouri Senate also met this week to work on a tax cut plan that will allow Missourians to keep more of their hard-earned dollars. The tax cut was called for by Gov. Mike Parson, who asked legislators to help Missourians keep more of their hard-earned dollars.

The plan approved by the Senate would reduce the state’s top tax rate to 4.95 percent. It would also add four future reductions that would be triggered by revenue growth. If fully implemented, the Senate plan would make the top tax rate 4.5 percent. The Senate bill does not increase the standard deduction as requested by Gov. Parson with his special session call.

The bill now moves to the House where members will have the opportunity to pass the bill in its current form or make changes that will require further negotiation with the Senate. The House is expected to take the bill up next week.

I am honored to serve as your Representative in the Missouri House. If at any time, you have questions, concerns or ideas regarding state government, please feel free to contact me at 573-751-4065 or Jim.Kalberloh@house.mo.gov.

State Representative Jim Kalberloh