House Approves Bills Targeting STL City Police, Earnings Tax
The Republican-controlled Missouri House of Representatives has approved two bills targeting Democratic-run St. Louis city – one to strip the city of control over its police department and another to prohibit it from imposing its local earnings tax on people who work remotely from outside the city for city-based companies. House Bill 1481 seeks to undo a 2012 statewide vote in which 63.9 percent of Missouri voters approved ending state control of the St. Louis police department, which was put in place in 1861 as part of the pro- secession state government’s attempt to suppress the strongly Union city and its black population. The bill would put the department back under the control of a five-person board consisting of four members appointed by the governor plus the city’s mayor. The House passed it on March 28th by a vote of 109-36-3. House Bill 1516 would prevent the city from levying its 1 percent local earnings tax on remote workers who live outside the city, a practice that is currently being litigated. It cleared the House on a 100-47 vote. Both bills, which now advance to the Senate, are sponsored by Republican lawmakers who don’t live in the city.
Lawmakers Seek to Fix Property Tax Credit Passed Last Year
Some recently enacted county ordinances providing a property tax credit to eligible senior citizens could be invalidated under legislation the Missouri House of Representatives approved March 28th that would modify a new law enacted last year authorizing such ordinances. The House sent the measure to the Senate on a vote of 141-2, with six members voting present. Last year’s legislation, Senate Bill 190, authorizes each county to determine whether to grant senior citizens who own and occupy their homes an annual tax credit that essentially would freeze their property taxes. However, the bill excluded some older homeowners from eligibility. In addition, some county ordinances limited the benefit to less wealthy homeowners or excluded property taxes owed to other local governments, such as school and fire districts, from the credit. House Bill 2432 clarifies that all homeowners age 62 or older are entitled to the credit. It also bars counties from imposing a means tests on eligibility or protecting schools and other local governments from losing revenue. Because existing ordinances that do so would conflict with HB 2432 if it became law, a court could strike them down if challenged. A
county whose ordinance was invalidated could enact another one that
complied with the changes. However, since providing the credit is
optional on the part of counties, they wouldn’t be required to do so. In
some counties, the restrictions were intended to overcome position,
and the ordinances might not have passed otherwise. But under both the existing law and proposed changes, voters can seek to put the issue on the countywide ballot through a petition process. House Committee Passes $50 billion State Operating Budget With limited discussion on the contents, the House Budget Committee on March
25 approved its version of a roughly $50 billion state operating budget
for the 2025 fiscal year – a plan that slashes about $1.9 billion in spending authority from the proposed budget Republican Gov. Mike Parson presented lawmakers in January. The full House of Representatives is slated to begin debating the budget bills April 2nd. Historically, the process of vetting budget bills in committee usually took several days, although in recent years pushing the bills through in a single 10-to 12-hour stretch has become more common. This year, however, House Budget Committee Chairman Cody Smith, R-Carthage, allowed only about three hours of discussion. As a result, lawmakers had little time to ask questions about the numerous changes Smith made to the governor’s proposal or offer amendments. Minority Democrats on the committee said allowing so little time examine the plan’s details amounted to bad government and poor oversight of taxpayers’ money. Among Smith changes were to cut appropriations for the state’s Medicaid program by about $575 million and allow a much smaller increase for public colleges and universities than recommended by the governor. Smith did add $727.5 million not requested by the governor for rebuilding Interstate 44, along with a number of pet projects pushed by Republican lawmakers. Once the budget bills clear the House, the process will move to the Senate, which is expected to undo many of Smith’s spending cuts. Lawmakers face a May 10th constitutional deadline for sending a completed budget to the governor. The new fiscal year begins July 1st.
House Votes to Eliminate State’s Corporate Income Tax
The Republican-controlled House of Representatives voted 100-50 on March 27th to eliminate Missouri’s corporate income tax as of 2028, a move that would cost the state an estimated $884.39 million a year in lost revenue and make it substantially harder to fund basic government operations. Lawmakers have already slashed the corporate income tax rate by more than one-third in recent years, reducing it from a high of 6.5 percent to its current 4 percent. House Bill 2274 calls for cutting the tax by one percentage point annually starting on Jan. 1st, 2025, until the tax is zeroed out as of Jan. 1st, 2028. The bill now advances to the Senate.
House Advances Missouri CROWN Act to the Senate
Without opposition, the Missouri House of Representatives approved legislation to prohibit hairstyle-based discrimination by educational institutions that receive state funding. The bill advanced to the Senate by a final tally of 144-0, with one member voting present. Dubbed the Creating a Respectful and Open World for Natural Hair Act, or CROWN Act, House Bill 1900 is aimed at preventing discrimination based on hairstyles common to certain races cultures or ethnicities. It is sponsored by state Rep. Raychel Proudie, D-Ferguson.
Proposed Constitutional Change Would Cap Assessment Hikes
The assessed value of owner-occupied residential property could increase by no more than 2 percent during a reassessment cycle under a proposed constitutional amendment the Missouri House of Representatives approved March 28 on a vote of 104-19, with 23 lawmakers voting present. If the Senate also approves it, the measure automatically would go on the Nov. 5th statewide ballot for voter approval. House Joint Resolution 78 is intended to limit sharp increases in property taxes caused by rising property values. The 2-percent cap could be exceeded to account for new construction or improvements to a particular property.”
Marty Joe Murray, Jr 