Nixon to call special session
Republican legislative leaders and Democratic Gov. Jay Nixon said yesterday a special session is needed to pass a job creation bill that will be financed by eliminating a tax credit enjoyed by more than 100,000 senior and disabled Missourians. In a speech in St. Louis this morning, Nixon said he plans to call a special session in September. He endorsed the key elements of the package outlined by Republican leaders.
In a news conference at Columbia Regional Airport, House Speaker Steve Tilley and Senate President Pro Tem Rob Mayer said they have been talking since May about the bill. Their proposal would overhaul tax credit programs, create new economic development incentives and add a projected $1.5 billion to the state treasury over 15 years.
“We have got a great proposal that is good for the entire state, not just St. Louis and Kansas City but Columbia and rural Missouri as well,” Tilley said. “It could bring thousands and thousands of jobs to the entire state.”
Key elements of the package include:
Up to $360 million in tax credits for the “Aerotropolis” freight hub at Lambert-St. Louis International Airport. The Missouri Science and Reinvestment Act, or MOSIRA, which would provide funding to exploit new products or crops. Local sales and tax exemptions to attract large data storage facilities. Up to $10 million annually in tax credits to attract sporting events, both amateur and professional, to the state, with a portion set aside for cities outside the two major metropolitan areas.The bill is similar to one that fell just short of passage in May. Lawmakers also want to debate local control of the St. Louis Police Department and work on a disaster-spending bill during the special session, Tilley and Mayer said. Nixon said today disaster funding would be on the agenda.
To pay for new tax credit programs, the bill would scale back or eliminate several existing tax credits. The three biggest programs targeted by the bill are the “circuit breaker” tax credit for renters and credits that help finance low-income housing and historic preservation.
The circuit breaker credit, originally created in 1973, gives seniors and the disabled a credit for the portion of rent used to pay property taxes on their dwelling. A similar program for homeowners would not be touched.
Tilley and Mayer said they support the change because it was recommended by the Tax Credit Review Commission and proved popular during the session.
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