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HomeMy WebLinkAboutR-2014-074 Suppot Governor Nixon's Veto of Bills RESOLUTION NO. R-2014-074 A RESOLUTION TO SHOW SUPPORT OF THE CITY COUNCIL OF THE CITY OF RIVERSIDE, MISSOURI, FOR GOVERNOR NIXON'S VETO OF BILLS SB 584, SB 693, SB 662, SB 612, SB 829, SB 727 AND HB 1455 WHICH WOULD HAVE SIGNIFICANTLY DIMINISHED VOTER-APPROVED MUNICIPAL SALES TAX REVENUES, POTENTIALLY FORCING CUTS TO ESSENTIAL LOCAL SERVICES FOR THE RESIDENTS OF RIVERSIDE. WHEREAS, it was calculated that the sales tax exemptions authorized by the Missouri General Assembly, if not been vetoed, had the potential to significantly cost the City of Riverside. Local sales taxes, which are voted on and approved by the citizens of their respective municipality, fund specific local services. For Riverside and other local cities, these exemptions have the potential to diminish, in varying degrees, the amount of revenue funding essential basic services that citizens expect and demand of their local government. WHEREAS, Riverside, like other cities across the Great State of Missouri, cannot afford to lose any amount of general fund revenue and still provide the level of service that citizens deserve. A veto override will likely mean a reduction in such services. NOW THEREFORE, BE IT RESOLVED, BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI AS FOLLOWS: We thank Governor Nixon for taking this needed step to protect the citizens of Riverside and encourage all residents to please contact State Representative Ron Schieber at 573-751-3618 or at Ronald.Schieber(ftouse.mo.00v and ask him to support the Governor's veto, which in turn supports the citizens of Riverside and Platte County. THIS RESOLUTION APPROVED THIS DAY OF , 2014. ® Kathleen L. Rose e ATTfL Robin Littrell, City. Cler FACT SHEET. Impact on Local Revenues of Special Interest Tax Breaks • In the final hours of the legislative session,the General Assembly passed a series of bills that included a number of sales tax exemptions that will affect local revenues. • The bills, which were vetoed by the Governor last month, include new sales tax exemptions for recreation venues, fast food restaurants,power companies,data storage and processing, used vehicles,supplies and equipment used in electricity generation, and commercial laundries. • Deviating from the normal legislative process,many of the most costly provisions passed without public hearings and even without fiscal notes. • A fiscal analysis completed by the Office of Administration's Division of Budget and Planning estimates that the bills will reduce state revenues by$425.1 million annually and local revenues by$351.2 million annually. • While some members of the General Assembly have said that these cost estimates were vastly overstated,the fiscal notes recently completed by the General Assembly's own staff at Legislative Oversight refute these claims. In fact,especially for the most costly provisions,the General Assembly's fiscal notes do not vary widely from the estimates prepared by the Office of Administration and the Department of Revenue. • The fiscal notes prepared by the General Assembly's legislative staff show that these bills would drain more than $222 million from local revenues each and every year. The legislature's fiscal notes also acknowledge that the true cost of many of these bills is"unknown"and could exceed their estimates. • Here is a chart comparing the Office of Administration and the Department of Revenue's estimate of the local impact with Legislative Oversight's estimate. Local Impact of the Friday Favors: Comparison of Fiscal Estimates OA-DOR Legislative Oversight IIB 1296 $0.0 Cess than $600,000 HB 1455 Unknown S0.0 HB 1865 S0.0 $0.0 SB 584 $222.9 million Could exceed$202.3 million SB 612 $102.0 million More than$100,000 Unknoxm impact due to refunds provision SB 662 $700,000 More than$100,000 SB 693 $26.0 million $19.8 million SB 727 $300,000 More than S 100,000 SB 829 Unknown $0.0 SB 860 $5.0 million Could exceed$600,000 Total• $351.2 million Could exceed$222.8 million 'Total takes into account duplicated provisions that appear in multiple bills • Using the General Assembly's own estimates, it is clear that the barrage of sales tax exemptions passed in the final hours of the 2014 session would have a sizeable and permanent impact on local revenues if the Governor's vetoes are not sustained in September. • The legislature returns to Jefferson City for its annual veto session on September 10, when members of the General Assembly have indicated they plan to attempt to override some or all of the Governor's vetoes of these bills.