Gov. Parson announces fifth tax cut of his tenure during Springfield visit

Next year, Missouri's top income tax rate will be cut to 4.7%, marking the fifth tax cut in Gov. Mike Parson's six-year tenure in office. The announcement was made during Tuesday's State of the State address in Springfield, with Parson crediting increased jobs and investment for meeting the revenue threshold that triggered the tax cut.

The reduction from a 4.8% to 4.7% top tax rate was a result of Senate Bills 3 and 5 passed in 2022. The bills set up a series of 0.1% income tax cuts, dependent on general revenue increasing by $200 million, adjusted for inflation, in a given fiscal year. From the 2023 budget year to 2024, net general revenue grew by $322.6 million, according to a news release for the governor's office. The new top tax rate will take effect Jan. 1.

With the addition of this tax cut, the tax rate has been reduced by 1.2 percentage points during Parson's tenure.

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Ahead of the announcement, Parson boasted of increased job growth, investment in infrastructure and commitment to education programs that support workforce development as the source of the state's increased revenue. In turn, he said with more tax cuts, revenues will continue to grow as Missourians will have more purchasing power.

"The good thing is when people get their money back, they spend that money, and that increases revenue, so it offsets that loss," Parson told media Tuesday. "So, it's a win-win for an everyday person."

The governor said the announcement was made in Springfield as it was his first event since confirming state revenues qualified for the tax cut and it was an opportunity to deliver the news "close to home."

Marta Mieze covers local government at the News-Leader. Have feedback, tips or story ideas? Contact her at [email protected].

This article originally appeared on Springfield News-Leader: Missouri governor announces income tax cut during Springfield visit