(The Center Square) – Missouri taxpayers won’t be providing state government leaders with additional tax revenue for the upcoming fiscal year.
Republican Gov. Mike Parson, entering his final year in the office, announced net general revenue collections for fiscal year 2025 are projected to be $13.16 billion, a 0.2% increase in net general revenue growth compared to the revised fiscal year 2024 estimate of $13.14 billion.
“As always, we greatly appreciate House and Senate leadership, our state budget team and other state partners for helping develop this year’s revenue estimate to inform our budget for next year,” Parson said in a statement. “Our administration has passed three tax cuts, one being the largest in state history, and made historic, once-in-a-generation investments all while approving conservative, balanced budgets every year. As a result, our revenues remain strong and stable and Missouri’s financial position is secure.”
Last December, net general revenue for the current fiscal year was projected to be $13.2 billion, or 1% growth from 2023.
“The Missouri economy remains strong due to the conservative policies that we’ve put in place,” said Senate Appropriations Chairman Lincoln Hough, R-Springfield. “Our projected growth in revenue is lower due to Missourians keeping more of their hard-earned money in their pocket, which increases individual household income.”
Parson will submit and review his fiscal year 2025 budget in his annual State of the State address to be delivered during a yet-to-be scheduled joint session of the General Assembly in January.
“I am proud to reach an agreement on a conservative revenue estimate, and I look forward to working with both Senator Hough and Governor Parson to create a suitable and sustainable budget next fiscal year,” House Budget Chairman Cody Smith, R-Carthage, who’s a candidate for the Republican nomination for treasurer in 2024, said in a statement.
State Budget Director Dan Haug earlier this month announced net general revenue collections for October declined 0.7% compared to October 2022, from $904.4 million last year to $898.3 this year. The year-to-date net general revenue collections for the first four months of fiscal year 2024 decreased 2.4% from $4.14 billion to $4.04 billion.
Individual income taxes collected decreased 9.2% for the year, from $2.9 billion to $2.64 billion. However, other categories had increases, including sales and use tax collections (14.5%), corporate income and corporate franchise tax collections (2.6%) and all other collections (19.3%).
The liquor tax collected by the state increased 5.74% so far this year, but tax revenue on beer decreased 7.03%.