SCHOOL FUNDING - House Bill 1392
(HS HCS HB 1392)
School District Tax Alternativess

[updated June 1, 2002]

    THIS BILL DIED IN THE 2002 LEGISLATIVE SESSION. It would have allowed school districts to adopt by voter approval a personal income tax, which would be a surcharge on state personal income tax of up to 15%. It required that the school district must specify the purpose of the tax and the period of time for which the tax would be imposed, not to exceed three years. But if used to reduce property taxes, the tax could be imposed for up to five years. At least one year must elapse before a vote for another surcharge becomes effective, and a period of 10 months must elapse between a failed tax issue and its resubmission to the voters. The funds raised by the tax would not be used in calculating a district's state school aid.

   This bill was passed by the House. The Senate Ways and Means committee voted to approve this bill late in the session, but it was not reported out by the committee chairman, Sen. Gibbons, for debate and vote by the full Senate.

   The bill originally authorized a sales tax (up to 1¢), but this was removed in committee (House Education: Elementary & Secondary committee). An attempt to replace the sales tax authorization was made on the House floor and DEFEATED 96 to 60!

   The vote by House members on the proposed sales tax authorization amendment to this bill and the subsequent vote on approval of the bill were extremely significant. The vote on the amendment tells us who was truly committed to a tax system with taxes based on the ability to pay. (Some legislators say they want fair taxes, but rarely fail to support more sales taxes.) But note that some who voted against the amendment then voted against the bill as a whole. Perhaps theirs was just an "anti-tax vote" rather than a vote for tax fairness.

To check the House vote on the amendment to HS HCS HB 1392 and the vote on Perfection (first round approval), go to:

http://www.house.state.mo.us/bills02/jrn02/jrn038.htm

To see the summary and text of HB 1392, go to:

http://www.house.state.mo.us/bills02/bills02/HB1392.htm

     Missourians for Tax Justice will continue to support legislation such as this which offers a much more equitable alternative to property tax for funding schools' needs. We must encourage state lawmakers to use income tax (which is based on the ability to pay) to fund needs. This is especially important at the local level, since most local governments use only regressive taxes to finance their operations.

If you believe that taxes should be based on the ability to pay, encourage candidates, and elected officials to support legislation such as this!

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