HUGE TAX BREAK FOR CANADIAN COMPANY PASSES

After substantially scaling it back, the General Assembly on May 7 finally approved a massive tax break to entice a Canadian airplane manufacturer to locate in Kansas City. The package of $240 million over eight years is far less than the $880 million over 22 years originally sought.

The tax incentive bill, HB 2393, is to encourage Bombardier Aerospace to build a $400 million assembly plant near Kansas City International Airport that would be expected to employ 2,100 people. However, passage of the measure, which awaits Gov. Matt Blunt’s signature, is no guarantee the company will put its plant in Missouri. The company has expressed its preference is to build the facility near its headquarters in Montreal, Quebec.

CHAMBERS REACT DIFFERENTLY TO MASSIVE TAX BREAK

While the House of Representatives endorsed giving up to $880 million in tax breaks over 22 years to a Canadian airplane manufacturer, a similar bill remains stalled in the Senate after several days of debate. The legislation is a key part of the state’s effort to convince Bombardier Aerospace to build passenger jets in Kansas City.

The House gave preliminary approval to its bill on April 15. Supporters of the bill say the positive impact on Missouri’s economy if Bombardier were to locate here is worth the cost of what is likely the largest package of tax breaks the state has ever offered for a single project. However, Bombardier has stated its first preference is to build the planes in its home country. Opponents say the offer is overly generous and would subject the state to substantial financial risk. The bills are HB 2393 and SB 1234.

BILL WOULD FORCE LAWMAKERS TO DISCLOSE TAX BREAKS

The House Elections Committee on March 4 held a public hearing on legislation to require lawmakers to publicly disclose any state tax credits received by themselves, their spouses or their children. Under HB 1674, such tax breaks would be listed on the personal financial disclosure reports that lawmakers already must file with the Missouri Ethics Commission.
State Rep. Shannon Cooper, R-Clinton, said he got the idea for the bill after it came to light that several Missouri lawmakers have received tax credits, mostly for ethanol plant investments, and weren’t required to disclosure that fact. The Missourinet reported that Cooper doesn’t mind lawmakers getting tax credits but opposes them doing so secretly

Committee Action for the week of Feb. 25th

Special Committee on Family Services heard HB 1831 which would change the laws regarding consent requirements for obtaining an abortion and creates the crime of coercing an abortion.


The Special Committee on Tax Reform passed HB 1773, which would authorize an income tax dependency exemption for stillborn children.

Special Committee on Government Affairs heard HB 1440, which would require certain public officials to receive training regarding open meetings, open records and public information laws.

House Committee Considers Federal Income Tax Deduction Legislation. Listen to the audio.

House Transportation Committee Considers Plan to Increase Highway Funding

HOUSE APPROVES ECONOMIC DEVOLOPMENT, BRIDGE BILLS

Meeting in a special legislative session called by the governor, the House of Representatives on Aug. 23 approved economic development legislation to provide select businesses with more than $66 million a year in taxpayer subsidies. The House also approved a bill to allow the Missouri Department of Transportation to finalize a contract to repair 800 of the state’s worst bridges over the next five years.

During debate on both bills, majority Republicans refused to allow consider any changes not pre-approved by Gov. Matt Blunt. Both measures now head to the Senate. The special session is expected to wrap up by Aug. 31 with an estimated cost to taxpayers of up to $200,000.

SPECIAL LEGISLATIVE SESSION SLATED FOR AUG. 20

House Speaker Rod Jetton’s office confirmed on Aug. 9 that Gov. Matt Blunt will call a special legislative session beginning Aug. 20. The session will be limited to passing a scaled-back version of economic development legislation that Blunt vetoed in July and changing state law to allow the Missouri Department of Transportation to finalize a contract to repair 800 of the state’s worst bridges over the next five years.

House Democrats urged the governor to expand the call to include legislation to fix a flaw in state overtime statutes that is causing budget problems for police and fire departments. The Senate passed such a bill in the regular session, but House Republican leaders blocked it in the lower chamber.

Blunt was expected to issue the formal special session call on Aug. 9 but postponed doing so.

SPECIAL SESSION POSSIBLE AS BLUNT VETOES ECO DEVO BILL

In a surprise move, Gov. Matt Blunt on July 6 vetoed an omnibus economic development bill that would have cost the state at least $200 million a year and perhaps substantially more. The governor’s action could prompt a special legislative session in September to pass a scaled-back version on the bill.

The governor originally proposed HB 327 to expand the amount of tax credits available under the Quality Jobs program the General Assembly enacted in 2005. The legislature, in particular the Senate, loaded up the bill with all manner of additional tax breaks for various special interests, including $100 million over several years for a single St. Louis-area developer.

In addition to the cost, Blunt cited numerous flaws in the bill among his reasons for vetoing it and said many of the proposed tax breaks would have done little to improve the state’s economy. Blunt said he’s willing to call a special session on the issue if legislative leaders agree on a package that costs $50 million to $70 million. House Speaker Rod Jetton, R-Marble Hill, seemed cool to the idea in telling The Associated Press: “I would vote to override that veto.” An override, however, appears unlikely. “I am not interested in overriding the governor,” Senate President Tem Michael Gibbons, R-Kirkwood, said.

BLUNT SIGNS SOCIAL SECURITY TAX CUT

Gov. Matt Blunt on July 5 signed a bill into law that expands the exemption on Social Security benefits from state income taxes. The bill will gradually be phased in costing the state an estimated $27 million in lost revenue in the first year and $154 million a year once fully effective in 2012.

Under the previous law, individuals with incomes under $25,000 a year and married couples earning less than $32,000 a year – the bulk of Missouri senior citizens – didn’t pay state taxes on Social Security benefits. HB 444 raises the exemption threshold to $85,000 for an individual and $100,000 for couples.

Another part of the bill increases taxes on those who own property in another state by repealing a provision of Missouri’s tax code that allowed people to deduct property taxes paid to another state from their Missouri taxable income. Eliminating the deduction is estimated to bring in $11 million a year for the state.

MASSIVE TAX BREAKS CLEAR LEGISLATURE

The House of Representatives on May 10 gave final approval to a massive package of tax breaks that will cost the state at least $103 million a year in lost revenue. HB 327 was sent to the governor following a week-long stalemate between the House and Senate over the cost.

The bill originally expanded credits available for Gov. Matt Blunt’s Quality Jobs program, which was created in 2005. The bill quickly was loaded up with other tax breaks, including those for land developers, ranchers, alternative fuel vehicles and movie producers. The expectation was that many of the breaks would be removed from a compromise version of the bill to make it more affordable. However, that didn’t occur.

One provision providing up to $12 million a year in breaks -- $100 million total over several years – appears to be targeted for a single developer, Paul McKee Jr. of St. Charles County. Since January, McKee has given $20,000 to Blunt, $10,000 to Lt. Gov. Peter Kinder and $3,188 to Senate President Pro Tem Michael Gibbons, according to The Associated Press.

The bill also eliminates the crime of ticket scalping, the practice of reselling tickets to concerts and sporting events at a price higher than face value. That provision was sought by Ticketmaster, a client of the governor’s lobbyist brother, Andy Blunt. To prevent scalpers from snatching up large quantities of tickets before the public has an opportunity to buy them at the normal price, the bill prohibits people from buying more than 20 tickets at a time. The way the provision is worded, however, apparently prohibits Missouri’s professional sports teams from selling season tickets, which typically come in large blocks.
http://www.house.mo.gov/bills071/bills/hb327.htm