Corporate Franchise Tax Elimination Sent to Gov. Nixon

On Wednesday, the Missouri House of Representatives voted to “Truly Agree and Finally Pass” Senate Bill 19 to cap and eliminate Missouri’s Corporate Franchise Tax. The Corporate Franchise Tax is the longest-standing example of double taxation in Missouri tax law.

“Senate Bill 19 will greatly promote business growth in Missouri,” said AIM President Ray McCarty. “The 2010 cap on the Corporate Franchise Tax and its five-year phase-out will allow existing Missouri businesses the ability to expand or move out-state assets to the Show Me State. AIM would like to thank the bill sponsors, Senator Eric Schmitt (R-St. Louis County) and Representative Jerry Nolte (R-Gladstone), and the General Assembly for their support of this Fix the Six priority. We now look to Governor Nixon’s support and cooperation on this pro-business issue.”

In 2009, Missouri modified its franchise tax threshold from $1 million to $10 million starting in January 2010. This provision effectively exempted 12,000 Missouri corporations from the franchise tax burden. While many pro-business programs have passed in previous legislative sessions and benefited business, most of them have targeted certain types of businesses or those creating certain types of jobs. Senate Bill 19’s final approval will provide tax relief to every Missouri corporation.

Second injury fund tax increase brought up briefly on senate floor, receives hearing in House of representatives

On Monday this week, AIM President Ray McCarty addressed the House of Representatives’ Committee on Workforce Development and Workplace Safety to stress AIM’s opposition to House Bill 893, sponsored by Rep. Todd Richardson (R-Poplar Bluff). The bill, similar to Senator Rob Mayer’s Senate Bill 420, would increase the surcharge paid by employers toward the Second Injury Fund which pays employees for non-work related injuries. 

On Wednesday afternoon, Associated Industries of Missouri along with the Associated Builders and Contractors, Associated General Contractors, Missouri Grocers Association, Missouri Retailers Association, and the National Federation of Independent Businesses distributed a legislative alert. It is customary to bring a bill up for debate and to discuss the issue for at least a few minutes; however the Senate brought up Senate Bill 420 and immediately laid it over to the Senate Informal Calendar where the bill may discussed later.

AIM and the other business groups listed above have stressed that the business community does not want a tax increase to pay for the broken Second Injury Fund system.  The Missouri Chamber of Commerce, AFL-CIO, Missouri Association of Trail Attorneys, and the Missouri Merchants and Manufacturers Association have supported the issue to continue paying for non-work related injuries.  

Senate passes employee paycheck protection act

On Thursday, the Senate passed Senate Bill 202 (Sen. Crowell, R-Cape Girardeau) which prohibits labor unions from withholding fees from paychecks for the purpose of political contributions. The legislation, often referred to as the Paycheck Protection Act, has been debated for several years, but has hit stalemate in the Missouri Senate. The language this year sends the issue to the voters and would still allow unions to withhold money from union members’ paychecks as long as the employee authorizes the union to do so.

The language is restricted to public employee unions and would require the employee to also specify the amount to be used for political contributions. The employee also has the ability to direct their donations to the political committees of their choosing.   

Second chance for missouri unemployment benefit extension 

Senators debated the extension of unemployment benefits contained within House Bill 163 late into Thursday. Earlier this session, a group of conservative senators filibustered the initiative in an effort to send a message to Congress that it is important to control overspending. Wednesday evening, those senators held a press conference discussing options that may convince them to vote for the unemployment benefit extension, and on Thursday, those legislators did come to an agreement that involves reducing the amount of benefits from 26 times the weekly benefit amount to 20 times the benefit amount.

The bill also takes care of one of the priorities of the Missouri Department of Labor and Industrial Relations by restricting payment to unemployed Missourians that have outstanding overpayments. Associated Industries of Missouri has supported this language in the past three legislative sessions, but the bill has never made it through the whole legislative processes. The provision will ensure that Missouri’s Unemployment Fund payments will be going to those Missourians who truly deserve payment.

MANUFACTURING JOBS ACT passes house

The House took up and passed House Bill 264.  HB 264, sponsored by Representative Jerry Nolte (R-Gladstone), changes the laws regarding the Manufacturing Jobs Act.  The House voted 152-1 with Representative Nick Marshall (R-Platte City) being the only “No” vote.  This legislation has been reported to the Senate and has already been reported to the Senate Jobs and Economic Development Committee.

house passes congressional redistricting bill to senate

The House passed recommendations from the Redistricting Committee this week. The committee, chaired by Rep. John Diehl (R-Town and Country), delivered House Bill 193 to the House floor last week. The measure was debated and a few amendments were introduced. Most of the controversy came from Kansas City suburban legislators who argued they did not want to be represented by K.C. Democrat Congressman Emanual Cleaver. St. Louis and Jefferson County Democrat legislators argued similarly against the bill which has Congresswoman JoAnn Emerson and Congressman Blaine Luetkemeyer representing parts of Jefferson County. Ultimately, the bill was approved with no amendments approved. The measure now moves to the Senate for approval where the bill has already been referred to the Senate Redistricting Committee.