House Communications - News

9-13-16 Sponsors to seek overrides of vetoes on bills Gov. Nixon says would be costly
Governor Jay Nixon (D) said three of the bills he vetoed were rejected because, among other reasons, they would cost the state $60-million if they became law. This would come after he has already withheld $115.5-million from the current fiscal year’s budget, and as revenues have been coming in more slowly than projected. Nixon said if those vetoes are overturned he will have to withhold more money in the FY 17 budget.

The House sponsors and handlers of those bills say they will bring them up for override votes and dispute Nixon’s projections.

Senate Bill 641 would make disaster payments to farmers non-taxable. Nixon said that bill, alone, would cost Missouri $50-million.

Its House handler, Representative Bill Reiboldt (R-Neosho), questions Nixon’s estimate.

“When we did fiscal review on the bill, this year the tops was $11-million, and then they extended that and they said it could possibly reach $19-million, but then they said more than likely it would be down around five or six,”(Audio) said Reiboldt. “I question whether the state should be profiting on ag disasters.” (Audio)

Reiboldt said it is “questionable” whether there will be enough support for the bill to override Nixon’s veto in the House. During the regular session it passed out of that chamber with 97 “yes” votes; short of the 109 needed for an override.

HB 2030, sponsored by Warrensburg Republican Denny Hoskins, would give business owners a 50-percent break on capital gains taxes on income from switching to an employee ownership plan. Nixon projects that bill would reduce state revenue by $10.3-million dollars. Hoskins disagrees.

“The governor’s estimates would predict that every business in the state all of a sudden would sell their business to their employees, and that’s why I believe that the cost to the state is inflated,” (Audio)said Hoskins.

HB 2030 passed the House and Senate with enough votes for a veto overturn if enough legislators maintain their positions. Hoskins believes there will be enough support for an overturn.

SB 1025 would create a tax break for instructional classes, including yoga, martial arts, and gym classes. The governor’s office projects it would cut state and local revenue each by $8-million.

It was handled in the House by Manchester Republican Andrew Koenig, who said the taxation of these businesses began recently, so those estimates of lost revenue are overblown.

“There was a regulation back in 2008 governing this statute which no longer exists, and the Department [of Revenue] just decided to go out and start auditing businesses. If the governor wants these type of things taxed then businesses need to have a clear avenue of knowing what is taxed and what’s not. Citation or by audit is not a good way of notifying a business that a tax is owed. They need to know before they’re audited,” (Audio)said Koenig.

SB 1025 was passed out of both the House and the Senate with enough votes to overturn the governor’s veto.

Senate Bills 641 and 1025 must both be taken up first in the Senate. If that chamber votes for to overturn their vetoes, they would advance to the House.

The 2016 veto session begins at noon September 14.
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