Missouri households could see up to $1,000 in tax rebates if the latest version of the state’s budget is passed.
Lawmakers in Missouri passed a plan in May that set aside $500 million of the state’s general revenue with hopes of returning it to people as a one-time tax rebate. The plan, which was incorporated as part of the state’s 2023 budget, would give individual and married households one-time rebates depending on their financial circumstances if passed. However, the bill’s future appears uncertain despite bipartisan support in the state House and Senate.
ESSENTIAL WORKERS IN MINNESOTA CAN APPLY FOR UP TO $1,500 IN BONUS CHECKS
“I think that’s important that we recognize that these are working Missourians who have paid state income tax, of which we have an abundance,” House Budget Chairman Rep. Cody Smith, a Republican, said during the bill’s hearing. “And to me, the right thing to do in that scenario is to return it to them, especially in times of inflation and increased prices just for about everything these folks are buying.”
Smith and Senate Majority Caucus Chairman Dan Hegeman both gestured toward inflation and the rising cost of living as reasons for the rebate.
But it is unclear whether the proposed rebate will pass given Missouri Gov. Mike Parson’s concerns about the tax credit’s viability.
“We’ve cut taxes twice since I’ve been governor of the state of Missouri, and we cut them for everybody, and it’s fair for everybody, and it’s forever,” Parson, a Republican, said during a bill-signing ceremony on May 22. “I’m not for sure doing something right now just to be able to take $500 million and just be able to put it out there. And, really, what’s the accountability for that?”
There have also been concerns among Democrats about who will get the funding. State House Democrats spoke out against the credit, alleging that it does nothing for those who need the funding but don’t qualify due to not paying income taxes.
“I absolutely don’t think it’s appropriate for us to be giving this money out to other folks and not the third of Missourians that make the least,” said Democratic state Rep. Peter Merideth, according to STLPR.
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For a Missourian to be eligible for the proposed tax credit, he or she must have earned under $150,000 as an individual or under $300,000 as a married couple. Single filers should expect to get up to $500, while joint filers will get up to $1,000.
