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Lobbyist Money Help  

Senate Passes Tax Cut Bill

March 03, 1998
By: Tristin Yeager
State Capital Bureau

JEFFERSON CITY - Elderly Missouri property owners could be in line for $22 million in tax credits under a bill passed by the state Senate on Tuesday.

The bill would expand the property tax circuit breaker law by lowering the age and increasing the income range required to receive the tax credits.

Under the bill, property owners between ages 60-65 whose income is less than $10,500 would receive $750 in tax credits. Those whose income is between $10,500 and $20,000 would receive between $1 and $750.

Current law gives tax credits to property owners 65 years of age and older whose income is less than $15,000.

The bill would also require the Department of Revenue notify eligible taxpayers who do not apply for the tax credits.

Missouri citizens who do not pay income tax would be able to submit the Missouri Property Tax Credit form to receive tax credits for property taxes.

Sponsor of the bill northwest Missouri Senator Sidney Johnson D-Agency said the bill accomplishes two things.

"One, by expanding this we bring more publicity to it and more people take advantage of it," Johnson said. "Missouri is taking in more money than we can spend according to the Hancock amendment. Since we have excess money this is one of the ways which we choose to try and give some back."

Johnson addressed concerns that the bill only assists property owners.

"There will be several types of tax cuts this session," Johnson said. "But we think the circuit breaker we have is effective, we think we can make it more effective and it's really important because most of these people are on fixed incomes."

The bill is one step in meeting the tax cut initiative set forth by Gov. Mel Carnahan in his State of the State address.

The Senate passed the bill with a vote of 32-0, although some republicans argue the tax cut is not big enough. The bill is headed to the House to be assigned to committee.