LEGISLATIVE REPORT: PEOPLE WANT AND NEED TAX RELIEF

Three of the 238 pieces of legislation that passed the General Assembly this year address tax relief. Since Gov. Carnahan took office the budget has grown close to a billion dollars each year.

In fact, the state budget has doubled in this time frame giving Missouri the dubious honor of having the second fastest growing budget in the nation.

At a time when the economy is at its highest and brightest level in years and when the state is over collecting revenue in violation of the Hancock tax limit, I think that three bills totaling about $130 million some odd dollars in tax relief is not enough - but at least it is a start.

The relief covers care of children, certain business investments, agricultural work, senior citizen property tax relief and a taxpayer "Bill of Rights." We also created tax relief for families who care for their elderly dependents at home.

Senate Bill 675 is probably the most written about bill. Beginning next year, families will be allowed to claim $1,200 per child. This deduction will put approximately $60 per child per year back into family budgets instead of the state budget.

Senate Bill 675 also contains an additional $1,000 deduction for elderly dependents. A family who cares for an elderly person who is at least 65 years old will be able to claim this deduction if the elderly person lives with the family in the family's home or the elderly person's home. The elderly person cannot be receiving Medicaid or state assistance while residing in certain care facilities to qualify.

In addition, SB 675 expands the existing "Circuit Breaker" program. The "Circuit Breaker" program provides property tax credits for seniors and disabled veterans. This credit is claimed on the person's income tax return. An elderly person or disabled veteran who has an income of between a minimum of $13,000 and a maximum $25,000 per year is eligible for a refundable tax credit up to a maximum of $750.

The amount of the credit is determined on a sliding scale. To claim this credit, a state income tax return must be filed. This will provide much needed tax relief to those seniors who are being threatened with losing their homes because of high, burdensome property taxes, which they must pay even though they no longer have the income to do so.

Senate Bill 936 makes changes to the state and local use tax law. All of the following are exempt from state and local sales and use tax, under this bill:

* Certain replacement machinery and parts used in manufacturing, mining, fabricating or producing a product;

* Feed for livestock and poultry (regardless of whether or not the animals are intended for final human consumption) and certain pesticides and herbicides used in agriculture;

* Certain equipment and drugs for individuals with disabilities;

* Home Respiratory equipment, hospital beds and ambulatory aides; as well as,

* Lubricants for farm equipment, certain grain bins, commercial breeder pet food and more.

Finally, House Bill 1301 is the "Taxpayer Bill of Rights" and it expands certain notification of tax rights to include state income taxes and sales uses taxes.

I co-sponsored several other pieces of legislation that would have totaled an additional 500 million in tax relief and while most of the legislation passed out of our committee overwhelmingly, the legislation was never allowed debate on the house floor by the speaker. I believe we could have and should have cut government spending further and it is unfortunate that we were unsuccessful in passing property tax relief this year as so many taxpayers wanted. But it has become obvious that we have to reduce government taxing and spending the same way it was increased - little by little, year after year.

David Schwab represents the 157th district.