News from the South - Missouri News Feed
Plan to shift from income tax to sales tax advances to Missouri Senate
Plan to shift from income tax to sales tax advances to Missouri Senate
by Rudi Keller, Missouri Independent
February 19, 2025
A plan to make Missouri dependent on sales tax for general revenue by eliminating the income tax is heading to the state Senate for debate after a party-line committee vote on Wednesday.
Two proposals — one to immediately change the state income tax to a flat tax of 4% and another a proposed constitutional amendment to allow the transition to sales taxes for revenue — make up the package intended to keep Republicans’ campaign promise to eliminate the state income tax.
If the constitutional amendment passes, it would put the income tax on the path to elimination.
The fiscal note for the flat-tax bill forecasts an immediate reduction in state revenues of about $661 million and projects it will be 2067 or later before the income tax disappears.
The two proposals were each approved Wednesday on a 5-2 vote in the Senate Economic and Workforce Development Committee, with all Republicans in support and Democrats opposed.
Democratic state Sen. Barbara Washington of Kansas City said she’s worried about the impact of the immediate tax cut.
“I don’t see a clear plan as to how we make this money up,” Washington said.
Missouri House votes on party lines to eliminate income tax on capital gains
The income tax is a tax on productivity, and shifting taxes to other areas will help the economy, said Republican state Sen. Ben Brown of Washington, chairman of the committee and sponsor of the two bills.
“That has a more negative impact in our society than taxes in other areas,” Brown said of the income tax.
The top marginal rate for Missouri’s income tax has declined from 6% in 2015 to 4.7% this year under a design to slowly cut it as revenue increases that began with legislation passed in 2014.
Two future tax cuts, to a 4.5% rate, are already in state law and will take effect if general revenue growth hits targets.
Income tax remains the single largest portion of state general revenue, with the individual income tax contributing 65% and the corporate income tax about 7% of the $13.4 billion received in fiscal 2024.
The tax cut bill passed in 2014 also began indexing state tax brackets, which had not been changed since the 1930s, for inflation. The top tax rate applies to taxable income of more than $8,900, which is about $23,500 in total income when the standard deduction is included.
The tie between the two measures takes effect after the switch to a flat tax and a statewide vote.
The constitutional proposal, intended to be on a ballot by November 2026, would create a mechanism for limiting the growth in state spending and directing revenue in excess of the cap to a special fund dedicated to income tax reduction.
When the special fund holds at least $120 million, the state income tax rate would be cut by one-tenth of a percentage point. In years when the reduction is authorized, every additional $60 million in the fund would add a rate cut of one-twentieth of a percentage point.
If both conditions were met for the first reduction, the rate would fall from 4% to 3.85%.
While every Republican on the committee voted for the measures, at least one showed he’s nervous about the key revenue-raising portion of the proposal — an expanded sales tax.
State Sen. Kurtis Gregory of Marshall said he couldn’t go along with any proposal that repealed sales tax exemptions enjoyed by farmers. Farmers don’t pay sales tax on fertilizer, fuel for farm vehicles and a host of other products.
“I don’t know where that sales tax rate is going to end up, but I’m just instantly looking at some of this and folks are going to be seeing a $50 to maybe $60 an acre increase in cost of production of row crops,” Gregory said.
The constitutional amendment does not directly repeal any sales tax exemption, Brown said.
“I don’t see anything that would be impacted one way or another by this bill,” he said.
It does repeal a 2016 initiative, placed on the ballot by Missouri Realtors, that barred lawmakers from imposing sales tax on any market transaction “that was not subject to sales, use or similar transaction-based tax on January 1, 2015.”
Along with preventing any effort to tax services such as mechanic’s labor or tax accounting, the amendment protected from repeal exemptions to the sales tax on tangible goods in law at the time, such as prescription drugs and the general revenue portion of sales tax on groceries.
Retail sales in Missouri are taxed at 4.225% for state purposes — 3% for general revenue, 1% for public schools, 0.125% for the Department of Conservation and 0.1% for state parks and soil conservation. Local option sales taxes are in addition to the state tax and push the total rate in some areas above 10%.
Brown’s proposal would allow a state tax of up to 4% — 3.775% for general revenue and schools plus the conservation and parks taxes. The tax would be applied to “all sellers for the privilege of selling tangible personal property or rendering taxable services at retail in this state” and take effect with the signing of a bill expanding sales tax to items exempted prior to Jan. 1, 2015.
The constitutional amendment does target one service with a special, higher tax. Lobbying firms would be required to pay a 6% sales tax on top of the general sales tax of up to 4%.
Missouri Realtors, who have shown substantial financial strength in campaigns, will oppose any effort to weaken the provisions added to the constitution in 2016, said Bobbi Howe, president of the Realtors
“Adding new taxes to services Missourians use every day,” Howe said, “is not sound policy and it unfairly impacts those least able to pay.”
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Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: info@missouriindependent.com.
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News from the South - Missouri News Feed
Former deputy alleges St. Louis sheriff made him roll dice to keep his job
SUMMARY: Former St. Louis Sheriff’s Deputy Tony Kirchner is taking legal action after alleging that his fate within the department hinged on a roll of the dice. He released audio recordings purportedly of Sheriff Jack instructing him to roll a seven with golden dice, threatening the denial of his leave request otherwise. Kirchner managed to roll a seven on his second attempt, after which the sheriff reportedly accepted the outcome and left the room. These allegations follow reports of deputy misconduct, including an incident involving the jailing of a commissioner who tried to question an inmate linked to a reported rape. Kirchner, who claims he was terminated, plans to file a discrimination lawsuit.
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St. Louis Sheriff Alfred Montgomery finds himself at the center of four scandals after less than two months on the job.
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News from the South - Missouri News Feed
Bill extending statute of limitations for child sex abuse survivors clears Missouri House
Bill extending statute of limitations for child sex abuse survivors clears Missouri House
by Clara Bates, Missouri Independent
February 20, 2025
The Missouri House on Thursday approved a proposal to extend the civil statute of limitations for survivors of childhood sexual abuse.
Filed by state Rep. Brian Seitz, a Republican from Branson, the bill would extend the amount of time survivors have to file civil action against a perpetrator. Survivors would have until age 41 to file civil action, rather than age 31.
Seitz’s bill was inspired by sexual abuse allegations at Kanakuk Kamps, in the Branson area.
The legislation that contained Seitz’s bill passed out of the House on Thursday 92 to 42, with 24 voting present. The opposition, from Democrats and Republicans alike, was due to parts of the bill unrelated to the childhood sexual abuse piece.
It now heads to the Senate for consideration.
In 2023, the bill didn’t receive a vote in the House until May, when session was nearly over, and never got to a committee hearing in the Senate. Last year, the bill never came to a vote in the House.
Seitz’s bill hasn’t had a committee hearing this year but was passed out of committee unanimously in the last two years.
Opposition in previous years has come primarily from insurance companies raising concerns about being exposed to liability.
The legislation was tacked on as an amendment to another bill filed by state Rep. Matthew Overcast, a Republican from Ava.
“This amendment is not the perfect fix,” Seitz said during debate on the House floor earlier this week. “It’s a start. And it gives victims time and hope…I ask this body to, once again, in a bipartisan manner, do what’s right and help those who were harmed as children.”
Personal injury claims
The underlying bill relates to statutes of limitations for personal injury claims, which are governed by a separate legal framework than childhood sexual abuse claims.
Overcast’s bill reduces Missouri’s statute of limitations for personal injury claims from five years down to two years, meaning individuals would have less time to file a lawsuit after an injury.
Overcast said it would help the state compete economically and help small businesses protect themselves against frivolous lawsuits.
“It’s good, sound legal policy,” Overcast said Thursday. “It promotes the economic viability of our state, puts us in a place to compete with our neighboring border states who are well below our current five year statute of limitations.”
Missouri’s statute of limitations for personal injury claims is higher than all but two states, Maine and North Dakota.
Opponents said the change would stymie access to justice for those who are injured and seeking redress.
“This is designed to protect insurance companies, not you,” said state Rep. David Tyson Smith, a Democrat from Columbia. “If you get injured, you need that time, five years is not overly generous.”
Several lawmakers said they support the amendment to extend the statute of limitations for childhood sex abuse survivors but not the underlying bill to reduce the statute of limitations for personal injury.
“The problem I have with this is the amendment is so good,” Smith said. “I may have to vote ‘present’ on this because of the great amendment that’s on this.
“And I know that, probably, there’s a strategy behind that.”
The bill was heard immediately after the House approved legislation to protect a pesticide maker from charges that it didn’t warn customers that one of its most popular products causes cancer, which state Rep. Raychel Proudie pointed out.
“When someone hurts you, you should certainly be able to seek justice. Justice is something that we should be entitled to,” said Proudie, a Ferguson Democrat. “Reducing that here is kind of breathtaking.”
State Rep. Michael Davis, a Republican from Belton, said the two components of the bill are inconsistent.
“I’m wondering, how can it be both that it’s good to lower the statute of limitations for personal injury,” he said, “but it’s also, on the other side, good to be doubling the statute of limitations for the child offenses, which do not start running until they become an adult?”
Overcast replied that he doesn’t “see them both in the same lens.”
“I’m looking at this through economic vitality for the state perspective,” Overcast said, adding that lowering the statute of limitations for personal injury claims will incentivize people to bring claims earlier.
“We’re trying to pass smart policy in this state that allows businesses to grow without burdening access to justice, and this bill does that,” Overcast said.
When state Democratic state Rep. LaKeySha Bosley asked Seitz whether there were other possible avenues for his bill, he said “this may be the last time this year.”
Seitz urged members to vote for the bill and said once it is in the Senate’s hands, “it will be changed in some way, hopefully making it more palatable for all sides.”
He added: “Let us not make perfect the enemy of the good. This is the vehicle in which we can give these adult children a chance.”
Child sex abuse survivors
According to the nonprofit child protection advocacy group Child USA, Missouri is currently one of 18 states with the age cap set at 34 years old or younger — which the group ranks as the worst states in terms of statutes of limitations for child sex abuse survivors.
At Seitz’s bill’s initial hearing in 2023, former Kanakuk Kamps camper Evan Hoffpauir testified about the impact of Missouri’s statute of limitations on him.
For more than a decade, Hoffpauir believed the camp director who sexually abused him at the Branson-area Kanakuk Kamps had acted alone.
As a child growing up in Branson, he was involved with Kanakuk’s youth ministries, and said he was abused by Kanakuk director Pete Newman from 1999 to 2003. Newman pleaded guilty in 2010 to seven counts of sexual abuse, and the prosecutor said Newman’s victim count might be in the hundreds.
Newman is currently serving two life sentences plus 30 years in prison.
Kanakuk leadership maintains that they had no advanced knowledge of his behavior, and Newman was a “master of deception.”
Initially, Hoffpauir believed them.
“[Leadership] stated they fired Newman as soon as they were aware of his abusive behaviors, and that he acted alone,” Hoffpauir said at that hearing. “And I believed this narrative for over a decade.”
But when he came to believe camp leadership was responsible, too, it was too late: But by the time new evidence was uncovered through national media investigations, Hoffpauir was too old to file a civil suit against the camp and its leadership.
“As I sought out legal action in an effort to hold my enablers accountable, I was crushed to find out I was a few years past Missouri’s statute of limitations,” Hoffpauir said.
“The law was telling me there was nothing to be done about it,” he added, “and the clock had run out on me.”
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Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: info@missouriindependent.com.
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News from the South - Missouri News Feed
New paid sick leave requirement targeted by Missouri Republicans
New paid sick leave requirement targeted by Missouri Republicans
by Rudi Keller, Missouri Independent
February 20, 2025
Worries that “slackers” may take advantage of Missouri’s new law requiring most employers to give workers paid sick leave isn’t a good enough reason to repeal it, a Democratic lawmaker said Wednesday.
In November, voters overwhelmingly approved an initiative petition called Proposition A that requires employers with business receipts greater than $500,000 a year to provide at least one hour of paid leave for every 30 hours worked. Employers with fewer than 15 workers must allow workers to use at least 40 hours per year, with larger employers mandated to allow at least 56 hours.
During a House committee hearing Wednesday, Democratic state Rep. Steve Butz of St. Louis challenged Republican state Rep. Sherri Gallick to back up her argument that employees can’t be trusted to use paid sick leave only for the reasons allowed by the law.
“Under the mandated sick leave, potential abuse is nearly impossible to address,” Gallick, a Republican from Belton, told the House Commerce Committee. “Employers cannot ask an employee why they were absent, leaving them vulnerable to lawsuits for merely inquiring.”
Only workers employed under a fixed-term contract are exempt from Missouri’s at-will employment rules.
While the mandate created in Proposition A prohibits employers from firing workers who use the leave, Missouri law doesn’t require employers to give any reason for discharging a worker.
“My hunch is, if you’re a slacker, you’ve been calling in sick already, and this is an at-will state, and I’ve already fired you,” said Butz, who owns an insurance agency.
Proposition A also increased the state minimum wage. It was set at $13.75 on Jan. 1 and will increase to $15 an hour on Jan. 1, 2026. After that, it will be adjusted for inflation, as it has been since 2007.
Gallick is sponsoring a bill to repeal the paid leave law, delay the $15 minimum wage to 2028 and repeal the provision indexing it to inflation.
Gallick’s bill, as proposed, would have delayed implementation of the paid leave provisions from May 1 to Jan. 1. During the hearing, she presented a substitute with all the provisions she wants to enact.
That change brought some questioning from fellow Republicans who wanted to know why she didn’t include all the things she wanted in the bill when it was filed.
“Was this House committee substitute your original intent?” asked Rep. Don Mayhew, a Republican from Crocker.
“Yes,” Gallick replied.
“Then why didn’t you just do that bill instead of this bill that changes a few dates?” Mayhew asked.
Gallick said she filed it to get it in line for a hearing, then listened to businesses in her district to determine what was most important to them.
“That is why I kind of had a kind of a vague bill in the beginning,” Gallick said.
Mayhew said he doesn’t oppose some of the changes but wasn’t pleased with the way it was delivered.
“I’ve never seen one to be this big of a difference between the filed bill and the House committee substitute,” Mayhew said.
Gallick’s bill is one of several being considered in the commerce committee that would alter the terms of Proposition A. There are bills to exempt employers with 50 or fewer workers from the new minimum wage, to limit application of the new minimum wage to workers 21 and older and to repeal the inflation adjustment.
The campaign to pass Proposition A drew no large-scale opposition prior to the vote. But a court challenge filed in early December by major business advocacy groups asks the Missouri Supreme Court to invalidate the vote. The court has set the case for arguments on March 12.
Many of the same groups involved with the lawsuit — Associated Industries of Missouri, the Missouri Chamber of Commerce and Industry, the Missouri Grocers Association and others — are backing the bills to change Proposition A.
Ron Berry, a lobbyist for Jobs with Justice, said the challenges should have come earlier.
“When the petition is first certified for circulation, there’s an opportunity to challenge that ballot summary. That didn’t happen,” Berry said Wednesday. “When the petition signatures are turned in and the initiative is certified for the ballot, there’s an opportunity to challenge the signatures. That didn’t happen. None of these challenges started coming until after the voters approved this by 57%.”
Kara Corches, executive director of the Missouri Chamber of Commerce and Industry, said businesses are worried about language barring employers from attempting “to interfere with, restrain, or deny the exercise of, or the attempt to exercise, any right” to paid leave.
The language creates a potential liability that has employers worried about “trial attorneys getting rich off of their backs.”
The paid leave mandate opens the door for other requirements, she said.
“This is a very slippery slope,” Corches said. “Once we start on this, it’s minimum wages, it’s paid sick leave, what’s next? Is it the dress code in your workplace? Is it the days that you’re allowed to be closed?”
Committee Chairman David Casteel, a Republican from High Ridge, said he intends to work through the week to develop a bill that both businesses and advocates defending Proposition A can accept.
“It has never been my intent to overturn the will of the people,” Casteel said. “I just want to create a product that will be agreeable and compromised by both the employee and the employer.”
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Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: info@missouriindependent.com.
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