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Senate Bill 67 would limit penalties when tax credits run out, adds beginning-farmer fix and filing-date alignment
Summary
Sen. Mike Henderson told the committee Senate Bill 67 would let taxpayers cure denied or partially funded tax credits within 60 days to avoid penalties and interest; the bill also contains a technical fix for beginning-farmer rules and a provision to align state filing deadlines with federal changes.
Senator Mike Henderson, sponsor of Senate Bill 67, told the Special Committee on Tax Reform that the bill is intended to protect taxpayers from penalties and interest when a tax credit is not fully funded. "This is not a tax credit," Henderson said. "It's a taxpayer protection against penalties and interest." The measure would require the Department of Revenue to issue a letter giving a taxpayer 60 days to pay back any tax liability created by a denied or partially funded tax credit; if the tax is paid within 60 days, penalties and interest would not be assessed.
The bill would extend language already in statute for the Champion for Children's tax credit (cited in testimony as section 135.341) to other tax credits, add a provision to align the state individual income tax filing date with any federal change, and include a technical correction to beginning-farmer language to ensure entities such as S corporations and certain limited liability companies qualify as intended. Henderson said the Department of Revenue supports the 60-day cure provision and that similar language already appears in statute for the Champion for Children's credit.
Testimony in support came from Ben Travellous of the Missouri Soybean Association and Jacob Knable of the Missouri Corn Growers Association, who described cases where apportionment or entity-structure technicalities left some farm operations ineligible for benefits the legislature intended. Travellous said a prior fiscal note assumed the intent covered family farms including LLCs, but rulemaking left some farm structures out; the bill aims to correct that.
Henderson noted the bill passed the Senate committee unanimously (7-0) and passed the Senate floor by a margin described in testimony as 30-1-1. Committee members asked several technical questions about the beginning-farmer definition and who would carry companion language in the House; Henderson said Representative Lavenger is carrying the deficiency/credit portion in the House and he would consult with Representative Glaubinger about the filing-date provision.
The committee did not take a final vote on SB 67 during the hearing. Supporters asked the committee to advance the measure so that taxpayers who unintentionally receive denied or partially funded credits would avoid repetitive amended returns and accounting costs.
