Missouri House members have voted to reject a tax plan that would increase property taxes for the best farms.
Property taxes for farms are based on the land's "productive value." Farms are divided into eight groups based on land quality, with the best in Grade 1 and the worst in Grade 8. The Missouri Tax Commission has recommended increasing productive values for the four highest grades.
The property tax changes for 2013 and 2014 take effect unless the Legislature approves a resolution to reject them. House members voted 117-39 on Tuesday to reject the tax proposal.
Missouri businessman Rex Sinquefield has donated $1.3 million to a committee that supports overhauling the state's tax code.
The committee Let Voters Decide backs a proposed ballot measure that would replace Missouri's income tax with a broader sales tax. Missouri Ethics Commission records show Sinquefield made the donation Monday. Campaign contributions of more than $5,000 must be reported within 48 hours.
Gov. Jay Nixon has signed legislation to gradually repeal a tax on some Missouri businesses.
The bill reduces Missouri's franchise tax rate over the next several years before repealing it altogether for the 2016 tax year. Nixon signed the measure Tuesday in Kansas City at Boulevard Brewing Co. He said repealing the measure will provide an incentive for companies to move to Missouri.
The state's franchise tax was levied in 1917 and applies to company assets such as buildings and inventory.