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State revenue report shows corporate tax decrease

Friday, October 7, 2011 | 4:01 p.m. CDT

COLUMBIA — So far this fiscal year, Missouri has seen a sharp drop in the amount of money it collects from taxes on corporations and franchises, but total revenue in the state's general fund has increased.

The state's net general revenue in September was 1.5 percent lower than September 2010, but the revenue for the first quarter of fiscal year 2012, which began July 1, is up 1.9 percent from the same period last year.

Tax revenue by the numbers

Individual income tax collections

  • Increased 1 percent in September
  • Increased 2.2 percent for the fiscal year, from $1.22 billion last year to $1.25 billion this year.

Sales and use tax collections

  • Decreased 1.2 percent in September
  • Increased 3.1 percent this fiscal year, to $467.1 million this year from $453.1 million last year

Corporate income and franchise tax collections

  •  Decreased 20.3 percent in September
  • Decreased 20.6 percent this fiscal year, down to $103.5 million this year from $130.5 million last year.

Source: State Budget Office



"I wish that September were better," said state Rep. Chris Kelly, D-Columbia.

State Budget Director Linda Luebbering said her office tends to focus more on the year to date numbers.

"It's some growth," she said. "Not stellar growth, but it's nice to see a positive number."

Luebbering said she finds the numbers for the corporate income and corporate franchise tax revenue troublesome. At the start of the fiscal year, she expected those revenue categories to rise. The dramatic decline, about 20 percent, is due to changes to the tax code at the federal level. For example, businesses are now allowed to write off more depreciation, Luebbering said.

"Since our tax code is tied to the federal code, we lose money as well," she said.

Luebbering said there is some concern that the drop could portend future revenue problems for the state.

Revenue from individual income taxes — the state's largest source of revenue — increased. Luebbering said the increase likely is the result of people working longer hours, and some might have received small pay increases.

"There is some growth to point to, but that's relatively small growth compared to a typical year," she said. "It's positive, which is good, but it's not growing the way we'd like to see it grow."

According to the September General Revenue Report, sales tax collections decreased by about 1 percent but are up about 3 percent overall this fiscal year.

"That's good news because our sales taxes have taken a steep hit over the last few years," Luebbering said.

Kelly said sales tax holidays have hurt state revenue.

"If we’re going to get ourselves out of the situation we’re in now, we have to build things," he said. "We have to take responsibility for changing the situation in a serious way. That means we need to build highways or power plants or the engineering school."

Luebbering said fiscal year 2008, when the state collected a total of $1.9 billion in sales taxes, was the last time the state had "normal" revenue. In the first three months of fiscal 2012, it had collected $476.1 million. That's an increase of $14 million over the same period a year ago and puts the state on pace to collect $1.9 billion this year.


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Comments

matt arnall October 7, 2011 | 4:39 p.m.

So, we the people are paying more, and big business is paying 20% less. Looks like republicans win again, which means banks and big business have added to their record stock piles of cash. Unemployment remains the same, and all Cantor and Boehner want is to tilt the scales futher in that direction. How can anyone support these ideas? I hope OWS is the beginning of a change in this country. If not, we are all going to struggle to feed ourselves before long.

(Report Comment)
frank christian October 7, 2011 | 7:17 p.m.

matt arnall - "Unemployment remains the same". You forgot to add "and we are deeper in debt." There Is "beginning of a change in this country." Hopefully, the change you cannot embrace, will keep us free and we will never "owe our souls to the company store." Thank you, Tennessee Ernie Ford.

(Report Comment)
Corey Parks October 7, 2011 | 10:21 p.m.

Matt I think you meant to say Big Government not big business. How much did the state take in from taxes on the likes of OIL and AUTO?

Everyone likes to demonize big business, but the only reason for high prices is that the majority of it goes to the govt in form a taxes to give the people what they want. How much of every gallon of gas money goes to the state and feds? Lots of hypocrisy floating around.

I like that people are finally starting to show signs of life in this country but I guess I still kind of find it funny that most of them are young and naive and have no real world experience or held a real job in their lives. They are protesting of theories they learned in college.

(Report Comment)
Gregg Bush October 7, 2011 | 10:45 p.m.

"...majority of it goes to the govt in form a taxes ..."

When fiction becomes
A "real" masquerade, then
All discourse is myth.

(Report Comment)
matt arnall October 8, 2011 | 10:40 a.m.

Frank Christian-the debt that has increased has been brought about by the people on your side of the isle. And, no Corey, I meant big business. Are you implying that Auto and Oil are government and not business? Have you not read the storys detailing the loop holes used by giant coorporations to pay no taxes and actually get money from the government at tax time?
"How much did the state take in from taxes on the likes of OIL and AUTO?"
Well, not as much as the year before, while increasing the amount that they took from the middle class. Big business tax breaks have allowed coorporations to stock pile vast amounts of cash, of which they are not reinvesting into the "people".
Leaders of big business are republicans for the most part and just as the idiots in congress, they have decided that their main goal is to make Obama a one and done president. At this point, I think Obama has stunk things up pretty good, but when compared to the alternative (ie the republican candidates) he still looks good.
Government is slashing costs, which is hurting our economy, all the while being touted as the fix to the problem by the right.
Read the story again. Individual taxes increased, coorporate taxes decreased. This is rediculous. I can handle a small increase to individual taxes, as long as big business has an increase as well. After all, we have a hole that we MUST get out of somehow, and I really don't think cutting government expenses blindly is the correct answer.
Finally, if you are old and unhappy, that doesn't mean that any one that doesn't think like you is young and naive. There is a diverse mix of individuals participating in the OWS protests. Age does not make you correct, as is obvious from these posts.
Simply put, if you are a billionaire, then it would make sense to be a republican. If you are not a billionaire, then it would best suit you to side with democrats. Old republican values make sense, but those are not the values that they apply today. Repubs side with Banks and Business, while Dems are trying to defend us, the regular people in the country. Choose as you like.

(Report Comment)
frank christian October 14, 2011 | 5:54 p.m.

matt arnall - I just got back here. Your post is so full of provable errors, I'm appalled. Let me know that you are reading it and I'll tell you about them.

(Report Comment)

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