A Different Strategy for Manufacturing in Missouri
The special legislative session starts Monday in Jefferson City. I am very excited that one of the bills being considered is Rep. John Diehl’s proposal to amend how counties charge the commercial surcharge property tax. Instead of handing out additional tax credits, here is a perfect opportunity to lower taxes for all businesses, including the Ford Plant in Claycomo, which paid more than $80,000 in surcharge taxes alone in 2009. This legislation would:
- Make it easier for counties to lower the surcharge if they want.
- Require the surcharge to roll back like all other real property taxes.
- Sunset the entire tax in five years.
Counties would be able to adjust to the sunsetting of the tax without unduly putting the burden on residents by adopting the St. Louis County system of setting different rates for different property classifications. First, they would have to adopt that system, and legislation might be required to reopen that option. These surcharge changes would be terrific for the economies of Missouri’s larger counties, and I am excited that they will again be considered in special session.
