June 28, 2016 – The Missouri Times reports Rep. Scott Fitzpatrick has noted the odd timing of accelerated refunds – right before the end of the fiscal year. That could mean there may be no tax cut for Missouri taxpayers, including business taxpayers, after all – at least not this year.
You will recall AIM fought for and passed an income tax cut for all taxpayers, including business taxpayers. That law required an increase of $150 million in net general revenue over the highest amount of net general revenue in the previous three fiscal years. Governor Nixon vetoed the measure and we were successful in overriding his veto. 2017 is the first year the tax cut could be effective.
Accelerating refunds lowers state net general revenues right before the end of the fiscal year, which is tomorrow, June 30. Whether this turns out to nix the tax cut or not will be known when the Office of Administration releases the 2016 fiscal year revenue report.
Here is the article in the Missouri Times. Thanks to Rep. Fitzpatrick for understanding the budget process and alerting taxpayers to this potential tax cut dodge.