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The Lake News Online
  • Commissioner disagrees with state's assessment of tax cut impact

  • Camden County officials say tax cuts passed by Missouri lawmakers in the last hours of the state legislative session will have some impact on county revenue but doubt it will come close to what has been predicted by the governor's office.
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  • Camden County officials say tax cuts passed by Missouri lawmakers in the last hours of the state legislative session will have some impact on county revenue but doubt it will come close to what has been predicted by the governor's office.
    The legislature passed $776 million in special breaks and exemptions on the last day of session.
    According to Governor Jay Nixon's office, the eight bills on the last day of session will significantly impact state and local funds. The bills contain more than a dozen provisions that would reduce state and local revenue beginning on August 28, including new sales tax exemptions for recreation venues, data storage and processing, used vehicles, supplies and equipment used in electricity generation, and laundries.
    Based on data provided by Nixon's staff, Camden County’s loss in revenue was estimated to be about $1.2 million.
    Once county official says he believe that the impact to Camden Countycounty will be less than $25,000 per year. That figure is based on data provided by Nixon's staff.
    Presiding Commissioner Kris Franken said he has reviewed the new bills that have been passed and the only provisions that could possibly impact the county are the used vehicle reduction and the laundry exemptions.
    "There is very little sales tax revenue generated in the county by laundries, so I do not anticipate a large impact from that sector. Used vehicles is a different issue. The bill that I reviewed had no sales tax on vehicles that were over 10 years old, but did not apply to vehicles that were over 10 years old but have a purchase price in excess of $15,000," Franken said.
    The sales tax report that Camden County receives from the Missouri Department of Transportation does not break out model year or purchase price, so there is no way for the county to calculate the impact on the motor vehicle fee portion of the CART funds.
    Franken said he does believe that this will impact the county's CART funds, but not to the extent that is indicated in the information that Nixon’s office provided.
    CART funds are County Aid Road Trust (CART). The funds are distributed by the Missouri Department of Revenue from the motor fuel tax. Counties receive a percentage of the tax collected within their respective county. The amount a county receives is based on a formula administered through DOR.
    Missouri's total state motor fuel tax is 17 cents per gallon.
    But including the affect on CART funds, Franken’s estimates differ from the state’s estimates by close to $1 million.
    “I cannot come close to the numbers that are being put out into the public,” Franken said. “I have seen other county's numbers that are of similar size and the largest estimated number that I have seen (from the ones that have disclosed) was $63,000 per year, which was Pettis County, and they have a larger population than we do.”

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