JEFFERSON CITY, MO. (KMOX) – Missouri’s House budget leader says lawmakers might not have passed changes to corporate tax law if they had known corporate tax revenue would drop roughly thirty-five percent the first year those changes were implemented.
At issue is a 2015 bill by Republican Senator Will Kraus to extend an option for calculating corporate income tax to technology and service-based businesses. State budget and revenue officials estimated it would cost about $15 million in lost general revenue annually.
Corporate tax revenues dropped more than $155 million the first fiscal year it was implemented, although it’s difficult to say whether the sole cause was the 2015 tax law change.