Kelley: Franchise Tax Axed, Funeral Protest Bill Advances

This week we voted to phase out the corporate franchise tax in Missouri over a five-year period [HB76]. I did not know what the franchise tax was until I was elected. I would venture most people in the state do not know either. One of my predecessors, former representative Bubs Hohulin confessed he did not know what it was until he asked one day as a member of the House Ways and Means Committee. He said the chairwoman asked if anyone else didn’t know and about half the members of the committee raised their hands.

In Missouri, citizens and businesses pay real estate and property taxes. These are paid at the end of each year and the money goes to pay for things such as schools, libraries, hospitals, county road maintenance, and other local entities and services. In addition to paying property and real estate taxes, many businesses in the state pay the franchise tax. This is another tax levied on tangible property such as buildings and equipment.

Right now we are doing everything we can to entice businesses to come to our state. This is made more difficult when we impose taxes on businesses that other states do not. Kansas recently voted to phase out their franchise tax and have used that as a tool to lure businesses to their side of the state in the Kansas City area.

In addition to luring businesses from other states, we also try to encourage existing Missouri companies to expand. This can be a hard sell if we tell them their expansion will result in an immediate tax increase. Rather than paying more in taxes, the money would be better used to construct new facilities, buy new equipment, and hire new employees.

We also passed a bill [HB276] limiting where and when protestors may picket at funerals in Missouri. It is not a secret this legislation is aimed at the group from Kansas who came to Lamar to protest the funeral of Dylan Reid. The legislature has previously addressed this issue, but the laws were struck down as unconstitutional. I suspect if this measure becomes law, it will also be challenged. Hopefully it is enough different to pass a constitutional case. I understand the importance of free speech in our society. I also understand and agree with the necessity of the right for a family to grieve in peace without interference from severely misguided individuals.

Until our next update, I am, and remain, in your service.