Vetoed tax exemptions likely to force reduction in city services if overturned

Monday, June 16, 2014

scottw@standard-democrat.com

SIKESTON -- Whether or not the city will lose hundreds of thousands of dollars in sales tax revenue in the next fiscal year or not will remain unknown until September.

Gov. Jay Nixon last week vetoed 10 bills passed at the end of the legislative session's close providing special tax exemptions. The Missouri General Assembly will have the opportunity to overturn those vetoes during a veto session in September.

Among those bills, new exemptions were included for fitness centers; commercial laundries and dry cleaners; country club memberships; entertainment venues; vehicles older than 10 years old; data processing centers; and certain purchases by fast foot restaurants.

Sikeston officials have only an estimate for the impact on the city budget if the vetoes are overturned and the new tax exemptions become effective.

"I can only tell you what the Missouri Department of Revenue has reported. They have the best data in terms of what is taxable now and what different business are bringing in," said Jon Douglass, city manager. "The Department of Revenue estimated that if all those exemptions went into effect, that Sikeston would lose about $934,000."

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