JEFFERSON CITY, Mo. – The Department of Revenue (DOR) refunded taxpayers much more quickly in 2016 than years past, but that might not be a good thing in the long run for Missouri taxpayers.
June 2016 saw 104 percent increase in general revenue refunds over June 2015. Because the 2016 fiscal year ends in June, accelerating the refunds could be intended to depress revenue growth, said Sen. Will Kraus (R-Lee’s Summit).
“While it is a good thing to get Missourians their tax refunds quickly, it is my belief that the governor expedited the process solely to prevent the statewide tax cut from going into effect,” Kraus said. “Sending refunds at a much quicker pace than past years created the perception of slow revenue growth, conveniently allowing us to miss the mark needed for the tax cut.”
Kraus sponsored Senate Bill 509 in 2014, which will decrease the state income tax rate from 6 percent to 5.5 percent, phasing in over several years. The rate will decrease by one-tenth of a percent each year the state’s revenue collection exceeds that of the three previous years by at least $150 million. The Legislature overrode the governor’s veto of Senate Bill 509 in 2014.
The tax cut was designed to help all Missourians keep more money in their pockets, Kraus said.
“It’s no coincidence that revenue growth has been on track to meet the $150 million increase threshold, and then revenues take a sharp dip the last month of the fiscal year,” Kraus said. “The governor is manipulating revenues to prevent hardworking Missourians from seeing an income tax cut.”
