As the annual income tax filing deadline approaches on Friday, Republican legislative leaders have announced a plan to use $1 billion from the state’s historic surplus for tax rebates.
Under a bill introduced Monday, single income tax filers would receive a $500 credit and married couples a $1,000 credit if they lived in the state for all of 2021. The credits would be issued after the new fiscal year begins July 1.
“As families struggle to make ends meet with the rising cost of inflation, it’s important that we do everything we can to help them keep more of their hard-earned dollars, House Budget Committee Chairman Cody Smith, R-Carthage, said in a news release. “The state is fortunate to have a record surplus that we can use a portion of to provide direct economic relief to working Missourians.”
Under the bill, lawmakers would appropriate $1 billion from the general revenue surplus that could reach $3.5 billion in the coming year toward the credits. Each tax filer would receive a credit equal to their state tax liability.
It is not a refundable credit. The rebate would only be for the amount of the tax liability and not the full $500 or $1,000 if the taxes owed do not exceed that amount.
For the 2021 tax year, a single taxpayer taking the standard deduction has a liability of at least $500 if they earned $25,250 or more. A married couple filing a combined tax return with an income of about $44,500 has a tax liability of approximately $1,000.
The plan is supported by the top GOP leaders in the Republican-dominated House, the release stated. House Speaker Rob Vescovo, R-Arnold, said he intends to make the bill a priority for lawmakers in the final weeks of the session.
All spending bills must be passed by May 6. No hearing has been set on the bill.