News

Ag groups take wait-and-see stance on Missouri income tax elimination plan

Missouri voters will decide in August whether to phase out and eventually eliminate the state’s income tax, and several state ag groups tell Brownfield they are taking a neutral or wait-and-see approach to the proposal.

Garrett Hawkins with Missouri Farm Bureau says there are mixed thoughts among the organization’s farmer members about the phase out.

“I hear a lot of interest from some, and I hear concern about others, because of questions,” says Hawkins. “Not so much that they wouldn’t be interested in an overhaul at the state level, but it’s the question of how it would be replaced and recognizing that there’s a lot of conversation yet to come.”

There are concerns replacing the state’s income tax revenue would require higher sales taxes or expanding sales taxes to items that are currently exempt.

Kurtis Gregory, a state senator in Missouri, says there won’t be sales tax on ag, real estate or health care.

“The governor has made that very clear as he’s talked about it. That was made very clear through floor debate. At the end of the day, the message I leave people with is do you want to choose where and how to spend your money, or do you want to take a cut off the top?”

Missouri Governor Mike Kehoe tells Brownfield he’s looking forward to getting the issue in front of voters.

“I ran on that. I told Missourians we’d have a plan to offer them and we’re excited to let people take a look at that.”

The phase out of state income tax is amendment five on the August ballot. Hawkins says if voters approve the phase out, MOFB would like to see a few things happen.

“We’ve got to protect existing ag sales tax exemptions that have been in place and make sure the services that we used in agriculture would not be subject to tax as well,” says Hawkins.

Hawkins says state lawmakers have a five-year window to develop revenue sources offsetting the repeal, and it would be an incremental phase out.

The Missouri Corn Growers Association, Missouri Cattlemen’s Association and Missouri Soybean Association have told Brownfield they don’t have a stance or policy on the issue, and they’re watching to see what voters decide this summer.

Hear Brownfield’s interview with Garrett Hawkins.

Hear Brownfield’s interview with Kurtis Gregory.

Hear Brownfield’s interview with Governor Mike Kehoe.