Greetings from Jefferson City. Spring is finally here and it is great to feel the weather get warmer. The turkeys are gobbling all over the state and I was happy to see that Youth Season this year was very productive. The right to hunt and bear arms is one our most cherished rights as Americans. After working all last week on the budget, it was nice to be alone in the woods and have some time to relax and be at one with nature. One of the things I thought about was how we could possibly spend Billions of dollars on so many things but not help out those who are actually putting money into the system rather than just taking it out. Fortunately, this week we were able to do something about that with HB 3021, Tax Relief for Missouri Taxpayers.
HB 3021, Tax Relief for Missouri Taxpayers
Missourians who pay income tax are one-step closer to receiving substantive relief from their income tax burden. The Missouri House of Representatives this week approved legislation to create a one-time economic recovery tax credit for Missouri residents who paid personal income tax in the state for 2021.
The chairman of the House Budget Committee, who sponsors the bill, told his colleagues the plan came into being when he looked at the numbers following the House giving approval to the state budget. Despite the fact, the House approved the largest budget in the state’s history; the state still had billions of dollars left in its coffers. The sponsor told his colleagues, “This is an attempt to offset some of the tax burden for those state income taxpayers at a time where I think that they could use the money much better than the state government can.”
He added, “It’s a simple notion. We’re going to create a tax credit that would send a billion dollars back to taxpayers and offset their state income tax liability.”
HB 3021 will appropriate $1 billion from the state’s General Revenue Fund to fund a one-time economic recovery non-refundable tax credit. Under the plan, anyone filing an individual Missouri personal income tax return would receive a credit equal to their tax liability up to $500. Married couples filing jointly would receive up to a $1,000 credit. The credit is limited to individuals who were a Missouri resident for the entire tax year. The vice-chairman of the House Budget Committee spoke in support of the proposal. He noted the budget plan approved by the House provides an immense amount of support for low-income Missourians, but said, “you know who we haven’t so much talked about, but here we’re talking about them here today in House Bill 3021, is that working Missourian – that man or woman working two, three jobs. There’s not been a lot of relief for them and here it is today. That’s why I’m so excited to support it.”
The chairman of the Budget Committee agreed that the budget approved by the House is “addressing the needs of low-income Missourians on a scale that we have never done before. It’s an unprecedented scale.” In reference to HB 3021, he said, “This is a bill that would essentially give state revenues back to those that paid state revenues into the state treasury. We are in a situation where we have excess revenues in the state treasury, and to me that means it’s time to give some of those dollars back to those that paid it in, especially when they are facing challenges due to inflation and various economic factors.”
The bill now moves to the Senate for consideration. It must receive approval from both chambers by Friday, May 6, which is the deadline for all appropriations bills.
As always, please feel free to contact us when you need any help with government. God bless and Hope you had a wonderful Easter.
