Governor Mike Parson signs bills enacting income tax cuts, agricultural tax credit plan

Photo courtesy of the Governor's office

Governor Mike Parson signs a $40 million agricultural tax credit plan into law and cuts individual income taxes during a bill signing ceremony at the Capitol.

Parson signed HB 3 Wednesday morning, which extends several agricultural tax credits for six years.  He had vetoed similar legislation earlier in the year, saying the two year sunset placed on them was too short.  Several new tax credits were also created, including a one for dealers of higher ethanol fuel blends and one for establishing or improving urban farming. 

Parson also signed SB 3 and 5, which cut the top income tax rate from 5.3% to 4.95%.  He says this $700 million dollar plan was a fiscally responsible way to give back to all Missourians during troubling times.

"While Washington D.C. politicians ignore record inflation and skyrocketing consumer prices and focus on trying to spend their way out of a problem, we won't make the same mistake here, in the state of Missouri.  We are providing real, permanent relief to Missourians, and trusting them to spend their own money."  

In the future, if revenue grows, that rate could drop as low as 4.5%.  The bill also eliminates the bottom tax bracket, so no one making under $13,000 a year will pay taxes. 

This is the largest tax cut in state history. Â