JC/DC Action Alert: HB 548

JC/DC ACTION ALERT: Tax Bill

Please contact your Representative now and ask them to OPPOSE this Wayfair Fix tax bill!

HB548 has been placed on the House calendar and will be debated April 16th.

**ACTION NEEDED: PLEASE CALL OR E-MAIL** and urge your State Representative to oppose the Wayfair Fix tax bill.

Tax Bill Would Cost MO $74 Million in 1st Year, Divert Education Funding, and Bar Cities and Counties from Collecting Online Sales Taxes Owed to Them

Although certain provisions of House Committee Substitute for House Bill 548 (HB 548) would close an ongoing tax loophole, the remainder of the bill would make Missouri’s tax structure more unfair for most Missourians, shortchange education funding, and jeopardize the resources our communities need to prosper. The bill would cost Missouri $74 million in just the first full tax year of implementation.

Our partners at the Budget Project have provided the following analysis for this potentially damaging bill:

The House Committee Substitute for House Bill 548 (HB 548) would:

  • Implement the components of the “Wayfair Fix,” allowing Missouri to collect sales taxes owed on online retail purchases just like the state does for purchases at local retailers. 
  • Endanger public services while directing an additional tax cut to Missouri’s wealthiest. The bill would cut the top rate of income tax by 0.14 in the first year of implementation, followed by additional reductions in the income tax rate that would be triggered by growth in sales tax revenue. The cost of the income tax reductions far outweigh the benefit of Wayfair.
  • Shortchange pre-K to 12 education funding by diverting currently earmarked sales taxes for education. Earmarked sales taxes that would be collected under the “Wayfair Fix” would be designated as general revenue, reducing education funding over time as e-commerce grows.
  • Limit the ability of cities and counties to collect taxes due for online retail purchases, even if those localities already have a “use tax.”

 

HB 548 Letter:

Dear Representative,

Missouri’s tax code is unfair to most Missourians, and is causing a budget crisis. Missouri is facing more than $500M in additional tax cuts that haven’t been implemented yet. Our current budget situation is volatile, at best, and any changes in tax policy should help us meet current needs and not stop us from correcting issues when they arise. House Bill 548 would make the volatility more severe. Increases in General Revenue should be used to address current budget needs and not irresponsibly wasted on new loopholes or giveaways. This bill will Shortchange pre-K to 12 education funding by diverting currently earmarked sales taxes for education. Earmarked sales taxes that would be collected under the “Wayfair Fix” would be designated as general revenue, reducing education funding over time as e-commerce grows. As a community we prioritize the education standards of our kids and oppose any measure that would divert funds from public education. Please oppose HB 548 and instead support a clean version of the “Wayfair Fix” (See our quick summary of the Wayfair Fix here: http://www.mobudget.org/wp-content/uploads/2019/04/Wayfair-Fact-Sheet-April-2019.pdf

Sincerely,

Your name and PTA

Not sure how to contact your state legislators? Click here and insert your street address or 9-digit zip code.

Carla Wiese

President Elect, Missouri PTA

carlaw@mopta.org