Tag: Peter Merideth

House bills would help Missourians with vehicle taxation, stem temp tag ‘abuse’

      The House passed two bills this week that will help Missourians regarding the taxes they pay on vehicles.  One would address a years-old issue regarding temporary license tags.  The other would stem the hiking of property taxes on vehicles that are getting older with increasing mileage. 

Representative Michael O’Donnell (Photo: Tim Bommel, Missouri House Communications)

      House Bill 415 could at last cut off the displaying by drivers of expired temporary tags – something that has been an issue in Missouri for years.   It would require dealerships to collect sales tax at the time of a vehicle purchase, either as a lump sum or by rolling the tax into the financed amount.  House Bill 713 would lay out how vehicles’ assessed valuations would be determined, replacing a system that has allowed property tax increases in the last two years. 

      St. Louis Republican Michael O’Donnell carries HB 415, which he says is the latest step in addressing the temporary tag issue.  Under previous action by the General Assembly a new computer system is coming to the Department of Revenue that will allow the collection of sales tax by dealers.  This bill would allow for its use beginning in January.

      “There is no other thing that you purchase where you have to go someplace else to pay the sales tax.  You buy a pen, you pay the sales tax at that point.  [If this bill becomes law] you’re going to buy your car and you’re going to pay the sales tax when you buy it,” said O’Donnell. 

He said the bill could also make car and truck purchases easier for Missourians by addressing what can now be a significant up-front cost. 

      “[It would] allow for the sales tax, if you’re interested, if you’re financing, to roll the sales tax into the financing if you would like that.  For a lot of folks that becomes a more reasonable proposition because writing a check for $2,000 to pay the sales tax is a lot more difficult than adding $30 to your payments every month.”

      Bipartisan backing gave the bill a 155-1 vote on its way to the Senate.  Democrats including Peter Merideth (St. Louis) said it would be a fix that is “important,” and “overdue.”

      “I actually hear more from constituents about this than many other things, strangely – about the expired tags, and frequently have to have the conversation with them that the main problem in Missouri is that we aren’t requiring dealers to collect the sales tax at the time of sale,” said Merideth.  “So folks, either intentionally or not intentionally find themselves not getting their taxes paid and their licenses ready.”

      O’Donnell said the passage of this legislation could eliminate “90%” of “temp tag abuse” in Missouri, and noted that 47 other states already allow dealers to collect tax at the time of the sale.

Representative Roger Reedy (Photo: Tim Bommel, Missouri House Communications)

      The sponsor of HB 713, Rodger Reedy (R-Windsor) explained that each year Missouri assessors use the October edition of the National Automobile Dealers’ Association (NADA) Used Car Guide to determine the values of the vehicles on which Missourians pay property taxes.  HB 713 would replace that with a system that begins with the original suggested retail price (MSRP) of each vehicle from when it was new, and apply a depreciation schedule for each year of its age up to 15 years.  After that its value would be assessed at one-tenth of one percent.

      Reedy said the old system’s flaws were made obvious in the wake of the COVID pandemic. 

“In 2021 and ’22, due to used care values going up, our constituents and citizens had higher tax assessments and therefore paid higher taxes,” said Reedy.  “When those values went up, there’s no provision for rollbacks on personal property, and when that happened our taxpayers just got a taxing increase and I’ve talked to several members [who have said] that that’s been a really big issue as they’ve talked to their constituents.”

He called the bill a, “taxpayer protection act.  If there’s nothing else we can do, we can protect our taxpayers from unjustly having to pay more taxes on a vehicle that’s a year older that has more mileage.  I just don’t think it’s right to do that to our taxpayers.”

      That measure advanced to the Senate on the strength of a 150-0 vote.

House members push for lesser tax on feminine hygiene products, diapers

      Nine bills filed in the Missouri House would reduce or eliminate the taxes paid on diapers, and most of those would also apply to feminine hygiene products.  The bipartisan group of legislators backing them say such a change would help some among the Missourians who most need relief, especially during this period of increased inflation. 

Representative Maggie Nurrenbern (Photo: Tim Bommel, Missouri House Communications)

      The rate at which these products are taxed is sometimes referred to as a “luxury tax.”  That is the rate at which most products in Missouri are taxed.  Food is taxed at a decreased rate, and some of the proposals would set the levy on those products to that rate.  Others would make them exempt from the sales tax altogether.

      Several of the bills’ sponsors said there is no reason to keep taxing these things at the greater rate.

      “It’s ludicrous … these are not luxury items.  These are items that you need to exist and function in society, period,” said Kansas City Democrat Maggie Nurrenbern. 

      Similar bills have been offered for several years but have fallen short of becoming law.  Among their most fervent and consistent backers have been diaper banks.  Data released last year by the National Diaper Bank Network placed the annual cost of diapers at nearly $1,000 per infant.

“Over time for the average family, the average parent that’s buying diapers for their child over the course of the first three or four years that will add up,” said Representative Mark Sharp (D-Kansas City) of the tax on those diaper purchases.  “The least we can do at the state level is make sure that we’re taking care of the average person, the everyday person who’s just trying to make it and make sure that their child has adequate diapers [and we should] make sure that our older folks have the stuff they need as well.”

Representative Phil Christofanelli (Photo: Tim Bommel, Missouri House Communications)

      Republican Phil Christofanelli (R-St. Peters), sponsoring the proposal for the second straight year, said he thinks part of what has held it up in the past has been that it would significantly reduce revenue, particularly for local governments, “But I think this one’s important, particularly in our time of inflation, where the basic necessities for so many working families are incredibly high and we want to be a culture that encourages stable families and child rearing and a vibrant family culture and this is part of that, make sure that families can afford the necessities of raising kids.”

      Representative Peter Merideth (D-St. Louis) has for years sat on the House Budget Committee.  He said the state could afford this change.

“I do think that we can make it work with lowering the food tax and that the impact it will have on people is worth it, regardless.  If it means we have to adjust revenue elsewhere to make up for it I would support that too.”

      Merideth’s version of the bill would extend such changes to other necessities, such as, “Toothpaste, deodorant, soap, shampoo, but I do exempt sort of luxury cosmetic-type products.  So I think, again, the basic necessities, people just shouldn’t be paying taxes on them.”

Representative Peter Merideth (Photo: Tim Bommel, Missouri House Communications)

      In addition to this issue, St. Louis Representative Jo Doll (D) also proposes in House Bill 408 that public charter, middle- and high schools provide feminine hygiene products free to students.  She said that wouldn’t just be for students who can’t afford them, it’s about the mental health of young girls dealing with what might still be a new experience.

      “You might have them in your bathroom at home and all of a sudden you’re at school and you need one and you don’t want to have to go ask your math teacher, or the nurse, even, for a tampon.  There’s a huge mental health factor in just security that you always have those products available.”

      Regarding those who struggle to afford those products, Doll said, “We know that girls who can’t afford feminine hygiene products don’t go to school during that time and so this would just give them access to products that they may not be able to afford.”

Representative Jo Doll (Photo: Tim Bommel, Missouri House Communications)

      She adds, “They’re not optional and the lack of being able to afford them causes all kinds of issues for, whether it’s working mothers or school age girls.”

      The House sponsors and co-sponsors of those bills include a bipartisan group of 12 Democrats and four Republicans.  None of those bills have been referred to a committee.

      In the Senate three such measures have been filed.  Two of those, filed by Republicans, have been approved by a committee in that chamber.

The bills that have been filed are:

HB 114 (Sharp), HB 126 (Nurrenburn), HB 145 (Doll), HB 290 (Patty Lewis), HB 351 (Christofanelli), HB 381 (Rasheen Aldridge, Jr.), HB 744 (Stephanie Hein), HB 1053 (Barbara Phifer), and HB 1136 (Merideth)

Rep. Doll’s legislation to require schools to provide feminine hygiene products to students at no cost is HB 408.

Income tax cut, reform likely topics in expected special session

      A tax break for most Missourians and a restructuring of the state’s income tax brackets will likely be considered by legislators in a special session that Governor Mike Parson (R) is expected to soon call.

Representatives Peter Merideth (left) and Cody Smith (Photo: Tim Bommel, Missouri House Communications)

      That’s according to House Budget Committee Chairman Cody Smith (R-Carthage), who says he’s looking forward to seeing what the Governor outlines in a plan to be aimed at helping Missourians facing high prices and high inflation.  The top Democrat on the Budget Committee, Peter Merideth (D-St. Louis), says he wants a plan that goes beyond changing income taxes, so that all Missourians would be helped; not only those who pay that.

      Governor Parson earlier this month vetoed a proposed $500-million tax rebate plan sent to him by legislators in May, saying he prefers a permanent tax cut.  He has said he will call for a special session of the legislature to consider that cut. 

      Smith, who spearheaded that tax rebate plan as the best proposal thought possible at the time, said he would also prefer a permanent cut.  He spoke to Parson on Tuesday to get a better idea of what the governor might propose.

      “We are busy now collaborating with the senate and the governor himself to try to find a starting point and then from that point the legislature will take over and will hopefully put forth a good product, at the end of the day, for the governor to sign,” said Smith.  “It’s important that we try to keep this simple and try to make it as impactful to as many Missourians as possible.  I think the income tax is the best way to do that, and trying to simplify the tax code in the process I think is also a worthy goal.”

      Merideth said he and fellow Democrats were glad that the rebate plan was vetoed, but he’s concerned that a cut to the income tax won’t help the Missourians who need help the most. 

      “A third of Missourians don’t make enough money to pay [the income tax], and those are, of course, the third of Missourians that are having the hardest time right now, so if all we’re focused on is a tax cut on income, that’s not really a big help for people,” said Merideth. 

“That said, our income tax brackets are completely out of date.  We haven’t had updated brackets in like 100 years.  Democrats have actually long advocated for updating those to a more progressive tax rate structure.  Now, we have yet to see what that proposal’s going to look like but there’s a path that we could get on board with,” he added.  “Democrats are generally supportive of relief for those that make the least and generally resistant to relief for those that are doing just fine, at the expense of our long-term budget.”

      Smith agrees that the state’s brackets are outdated and should be revised, if not eliminated, and doing so would help all income earners.

      “Our highest tax bracket in Missouri is for anyone that makes over $9,000 annually.  At one time that was a considerable amount of money … but now most folks who work at all generally make more than $9,000 per year … so we [would be] helping lower income folks by addressing that top line number.  Additionally I think we can take a look at some of the tax brackets on the lower end and see if we can reconfigure those or eliminate those entirely so that folks on the lower end of the income spectrum won’t pay taxes up to a certain amount.  That would provide relief on those lower income folks.”

Merideth thinks permanently cutting the income tax right now is not a good idea.  He said the state is in a great position with revenue right now, but the next time there’s a downturn, cuts made now could put the state in a bad position. 

The governor has expressed confidence that Missouri’s good fortune will continue, and Smith agrees. 

      “I would guess that we may have a general revenue surplus in excess of $2-billion by the time we come back to the next legislative session and that is just unprecedented … we’ve got federal money set aside for Medicaid, we’ve got general revenue dollars sitting in the state’s treasury for all purposes, and I think there’s never been a better time to cut taxes and still be able to protect the priorities that we have in the budget,” said Smith.  “I think we’re probably looking at 3 to 5 years where we are very well situated even after a tax cut.”

      Smith said while the state is enjoying increased revenues and never-before-seen surpluses, Missourians are dealing with high inflation, high gas prices, and other factors that are causing many to struggle.  He said this is the right time for the legislature to do something to help.

      “Rather than issue stimulus checks, which is talked about in Washington from time-to-time, certainly we’ve seen that … I believe the best way to combat things like inflation is let [Missourians] keep more of their own money,” said Smith. 

      Merideth said he and other Democrats would also like to see the legislature talk about things besides the income tax, such as eliminating taxes on groceries and other essentials.   

      The governor has said he is also planning to have the legislature consider six-year extensions to tax credits under the Missouri Agriculture and Small Business Development Authority.  He vetoed a bill that would have extended them by two years.

      Dates for a special session have not been set. 

K-12 education gets big wins in proposed FY 2023 budget

      Missouri schools and teachers would receive a number of boosts in the state spending plan approved last week by the legislature; a state budget that is one of the largest ever.  The final total proposed to go to K-12 schools exceeds $10-billion.

Representative Rusty Black (Photo: Tim Bommel, Missouri House Communications)

“It is making an unprecedented investment in K-12 education in the State of Missouri and it is doing that in a couple different ways,” said House Budget Committee Chairman Cody Smith (R-Carthage).

      The top Democrat on the budget committee, Peter Merideth (D-St. Louis), said, “[This budget proposal] is moving us back in the direction of showing that we as a state, we as a legislature, value K-12 education.”

      More than $21-million was included to boost base teacher pay by $13,000 a year, to $38,000.  The plan is a state/local split, with districts covering 30-percent of the cost for that increase. 

      Another $37-million would restart the Career Ladder program, which rewards experienced teachers for taking on extra responsibilities and professional development opportunities. 

      Representative Ingrid Burnett (D-Kansas City), a former teacher, school counselor and principal, said she was glad to see the state resume funding career ladder, a program that she often took advantage of during her career. 

      “I found it really helpful.  It was part of our family budget.  It was how we paid for things like the summer vacation or braces for the children,” said Burnett.

      Rusty Black (R-Chillicothe), who chairs the subcommittee on education appropriations and also worked as a teacher for 32 years, also appreciated the career ladder funding.

Representative Ingrid Burnett (Photo: Tim Bommel, Missouri House Communications)

      “As somebody that received that once, I think there’s value in that for our students, not just teachers.  Students get something out of those extra hours that are spent with them trying to make their lives better.”

      School bussing would also see an increase over the current fiscal year’s budget.

      “There’s an additional $214-million appropriated there and that is, again, an unprecedented level of funding in that regard,” said Smith.

      Merideth spoke for many Democrats in praising that increase.

“Something that we’ve been funding at below 40-percent for the last number of years we’re finally funding at 100-percent.  That’s another 200-plus million dollars going to our schools for their transportation costs,” said Merideth, who said this could lead to additional boosts in faculty pay.  “The fact that we’re fully funding school transportation is going to give schools some flexibility to be able to provide the local match they need and to give raises elsewhere.”

      Black, who was an agriculture teacher throughout his career, was excited by proposed increases to match programs to benefit career technical schools.  Local districts could upgrade equipment or facilities if they come up with 25-percent or 50-percent of the cost.

      Black said this would, “Help students with up-to-date equipment to [be able to] leave school and go into the workforce and see something that’s not 30, 40 years old in the shop at school, and get into a place and oh, it’s got a computer attached to it.”

      Burnett said she was glad to see this level of support proposed for Missouri K-12 education.  She said past years, when less money was appropriated, were like when she was teaching and would be confronted by an angry parent. 

“If the administration doesn’t have your back, you can’t understand that until the administration doesn’t have your back … to help mediate the situation.  To give you support on how to engage with the parent in a way that was not going to be escalating … when the administration is not getting that from the state, it’s the same.  You just feel like you’re out there on an island.”

      Black and other lawmakers stressed that much of the funding in the spending plan comes from non-recurring sources, like federal stimulus and COVID response.  Part of the challenge in appropriating that money is in finding targets that will give schools the best chance of long-term benefit, rather than supporting programs that might go unfunded in future years when those funding sources aren’t available.

Representatives Peter Merideth (left, seated) and Cody Smith (Photo: Tim Bommel, Missouri House Communications)

“We just hope the people at the local level making those decisions are doing a good job making those decisions, spending this money that we have one-time to help reduce future costs so that those long-term items maybe with their local budgets, they can do a good job with,” said Black.  “One-time doesn’t automatically mean that it’s not going to be there next year, it’s just not making the guarantee to people that it’s going to be there.  Honestly in my years of dealing with government before this, there is no guarantee.  From year-to-year it’s a new budget and people making decisions at the local level, they know that too.”  

      The Fiscal Year 2023 budget would also provide grants or reimbursements of up to $1,500 to parents and guardians to cover tutoring and other services meant to catch up K-12s students who fell behind due to the COVID pandemic, and would provide pay increases to providers of the Parents as Teachers and First Steps programs.

      That spending plan is now before Governor Mike Parson (R).  If he approves it, it would take effect July 1.