MARQUIS MAY 2024

MARQUIS • Serving St. Louis’ Near Southside Neighborhoods 6 MAY 2024 Capitol Corner B y M arty M urray J r ., 5 th S enate D istrict C ommitteeman “Capitol Corner” is a column for the latest on the developments in our state’s Capitol. House approves bills targeting St. Louis City police, earnings tax The Republican-controlled Missouri House of Representatives has approved two bills targeting Democratic-run St. Louis city—one to strip the city of control over its police department and another to prohibit it from imposing its local earnings tax on people who work remotely from outside the city for city-based companies. House Bill 1481 seeks to undo a 2012 statewide vote in which 63.9% of Missouri voters approved ending state control of the St. Louis police department. State control was put in place in 1861 as part of the pro-secession state government’s attempt to suppress the strongly Union city and its black population. The current bill would put the department back under the control of a five-person board consisting of four members appointed by the governor plus the city’s mayor. The House passed it on March 28 by a vote of 109-36-3. House Bill 1516 would prevent the city from levying its 1% local earnings tax on remote workers who live outside the city, a practice that is currently being litigated. It cleared the House on a 100-47 vote. Both bills, which now advance to the Senate, are sponsored by Republican lawmakers who don’t live in the city. Lawmakers seek to fix property tax credit passed last year Some recently enacted county ordi- nances providing a property tax credit to eligible senior citizens could be invali- dated under legislation the Missouri House of Representatives approvedMarch 28 that would modify a new law enacted last year authorizing such ordinances. The House sent the measure to the Senate on a vote of 141-2, with six members voting present. Last year’s legislation, Senate Bill 190, authorizes each county to determine whether to grant senior citizens who own and occupy their homes an annual tax credit that essentially would freeze their property taxes. However, the bill excluded some older homeowners from eligibility. In addition, some county ordinances limited the benefit to less wealthy home- owners or excluded property taxes owed to other local governments, such as school and fire districts, from the credit. House Bill 2432 clarifies that all home- owners age 62 or older are entitled to the credit. It also bars counties from imposing a means tests on eligibility or protecting schools and other local governments from losing revenue. Because existing ordi- nances that do so would conflict with HB 2432 if it became law, a court could strike them down if challenged. A county whose ordinance was inval- idated could enact another one that complied with the changes. However, since providing the credit is optional on the part of counties, they wouldn’t be required to do so. In some counties, the restrictions were intended to overcome opposition, and the ordinances might not have passed otherwise. But under both the existing law and proposed changes, voters can seek to put the issue on the countywide ballot through a petition process. House committee passes $50 billion state operating budget With limited discussion on the contents, the House Budget Committee, led by Rep. Cody Smith (R-Dist.163) on March 25 approved its version of a roughly $50 billion state operating budget for the 2025 fiscal year — a plan that slashes about $1.9 billion in spending authority from the proposed budget Republican Gov. Mike Parson presented lawmakers in January. The full House of Representatives was slated to begin debating the budget bills April 2. Smith’s changes were to cut appropria- tions for the state’s Medicaid program by about $575 million and allow a much smaller increase for public colleges and universities than recommended by the governor. Smith did add $727.5 million not requested by the governor for rebuilding Interstate 44, along with a number of pet projects pushed by Republican lawmakers. Once the budget bills clear the House, the process will move to the Senate, which is expected to undo many of Smith’s spending cuts. Lawmakers face a May 10 constitutional deadline for sending a completed budget to the governor. The new fiscal year begins July 1. House votes to eliminate state’s corporate income tax The House of Representatives voted 100-50 onMarch 27 to eliminateMissouri’s corporate income tax as of 2028, a move that would cost the state an estimated $884.39 million a year in lost revenue and make it substantially harder to fund basic government operations. Lawmakers have already slashed the corporate income tax rate by more than one-third in recent years, reducing it from a high of 6.5 % to its current 4%. House Bill 2274 calls for cutting the tax by one percentage point annually starting on Jan. 1, 2025, until the tax is zeroed out as of Jan. 1, 2028. The bill now advances to the Senate. House advances Missouri CROWN Act to the Senate Without opposition, the House approved legislation to prohibit hairstyle-based discrimination by educational institu- tions that receive state funding. The bill advanced to the Senate by a final tally of 144-0, with one member voting present. Dubbed the Creating a Respectful and Open World for Natural Hair Act, or CROWNAct, House Bill 1900 is aimed at preventing discrimination based on hair- styles common to certain races cultures or ethnicities. It is sponsored by state Rep. Raychel Proudie, D-Ferguson. Proposed constitutional change would cap assessment hikes The assessed value of owner-occupied residential property could increase by no more than 2% during a reassessment cycle under a proposed constitutional amend- ment the House approved March 28 on a vote of 104-19, with 23 lawmakers voting present. If the Senate also approves it, the measure automatically would go on the Nov. 5 statewide ballot for voter approval. House Joint Resolution 78 is intended to limit sharp increases in property taxes caused by rising property values. The 2% cap could be exceeded to account for new construction or improvements to a partic- ular property.