Still unclear whether Missouri taxpayers, businesses will see a small tax cut
Missouri residents and businesses may see a small tax cut in the coming months due to the state bringing in a little more income than expected during the fiscal year that ended Friday.
But there’s nothing official, as Gov. Eric Greitens’ administration said Wednesday it’s still reviewing numbers released by the state budget office.
Those showed Missouri collected about $230 million dollars more in taxes, fees and other income during the 2017 fiscal year — more than the $150 million dollar increase required to trigger the tax reduction.
If put in place, taxpayers would see their income tax rate drop by one-tenth of one percent, from 6 percent to 5.9 percent. The state Budget Office hasn’t calculated what the impact would be on the average taxpayer, or how much income the state government would lose.
The General Assembly approved the tax cut package in 2014, but it had not gone into effect earlier because the state’s income increases have been too low.
Greitens already temporarily cut about $250 million from the current fiscal year’s budget, things that could be restored if the state’s finances improve. His office has yet to say whether the possible tax cuts were taken into account.