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Update: House passes expanded tax incentive bill
Posted: 06.29.2010 at 2:03 PM
Updated: 06.29.2010 at 7:25 PM
Kermit Miller

Kermit Miller is the evening news anchor and state legislature reporter.

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JEFFERSON CITY, MO. -- Update: Tuesday, June 29 at 7:25 p.m.

The Missouri House passed bills Tuesday offering tax breaks for automobile makers and revamping the state retirement system.

Lawmakers approved the automotive incentives on a vote of 125-19, but only after expanding it to include tax breaks for a lot of other people.

The House endorsed a package that extends tax breaks to senior citizens.

House members also added language to benefit the manufacturers of airplanes, bicycles, boats, rockets and various other things. However, the big add-on is an incentive plan for computer data storage centers.

"The governor's staff has reported they're not opposed generally to this concept,” Economic Development Chairman Rep. Tim Flook (R) said. “Ya know, their only concern is can there be a compromise.”

The Ford plan allows that company to keep some of the payroll withholdings to retool the Claycomo Plant.  The data center language forgives utilities sales taxes and property taxes in exchange for new investment.

"We're not intending to derail the manufacturing bill by any stretch of the imagination,” Flook said. 

The legislation now clearly goes beyond the agenda set by Gov. Jay Nixon for the special session, a move that could violate the Missouri Constitution. However, Flook said Nixon easily can expand his call to include the additional tax incentives. 

Yet, Nixon, Monday night, issued statement reminding lawmakers of his narrow agenda and telling them to stay the course. And there appears little chance the Senate would go for the extra baggage.

"If it goes to the senate and it gets pulled out and that debate doesn't go anywhere and it comes back here then I hope this body lives with that,” Rep. Sam Komo (D) of House Springs said.

Original Story:

A special session offering incentives to Missouri automakers has been turned into a tax break extravaganza.

The Missouri House endorsed legislation Tuesday also extending tax breaks to senior citizens, computerized data centers and the manufacturers of airplanes, bicycles, boats, rockets and various other things.

The legislation goes beyond the agenda set by Gov. Jay Nixon for the special session, which could violate the Missouri Constitution.

But many House members countered that Nixon could expand his call for a special session to include additional tax incentives.

That appears unlikely to happen. Nixon has urged lawmakers to stay focused on the auto incentives. The governor's primary goal is to entice Ford Motor Co. to keep making vehicles at its factory near Kansas City.

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