Veto override most feared by city, county appears unlikely

JEFFERSON CITY – Hopes to override the veto of Senate Bill 584 — which county and local governments had feared would take a chunk out of their revenue — faded Wednesday after sponsor Sen. Bob Dixon did not move to override.

Dixon, R-Springfield, spoke about the need for an overhaul of the state's tax code but did not attempt to have Gov. Jay Nixon's veto overturned. Nixon had campaigned against Senate Bill 584 and a number of other bills that he said contained tax breaks that would drain state and local revenue.

Senate Bill 584 had passed the House originally with less than a veto-proof majority. It was unclear how supporters would have gained the votes necessary for an override.

Greene County and Springfield had both been critical of the legislation. Dixon addressed the bill's opponents in his speech.

"I expect those voices that were raised loudest in concern on Senate Bill 584 to be in the hearing room and at the table as part of the solution, not just in the gallery," Dixon said.

Senate Bill 584 would have created a sales tax exemption for data processing centers. The language is broad, however, and exempts utilities, materials and and machinery used in connection to a data processing center.

Additionally, an exemption was created for utilities, materials and machinery used to generate or transmit electricity. Another provision also exempted motor fuel delivered to marinas for use in watercraft from fuel taxes.

Springfield City Council in early August passed a resolution urging lawmakers to let the vetoes stand. The city estimated the impact to general revenue, which is buoyed by a specific city sales tax, at $3.2 million. It also said reductions from other city taxes, such as the pension sales tax and the 911 sales tax, would occur.

Greene County's warnings were even more dire. The county has said the tax exemptions could cut $4 million annually from its budget. County officials sent multiple letters to lawmakers over the summer warning of the consequences.

Dixon sought to portray Senate Bill 584 as only dealing with the symptoms of an "ailing tax code," not the root causes. He announced an effort to overhaul the tax code, which he said is antiquated, next year.

City and county officials were also opposed to Senate Bill 693. That bill would have exempted motor vehicles at least 10 years old from sales taxes on the titling of the vehicle, so long as the sale price was less than $15,000.

As of 11:30 p.m. Wednesday, that bill had not been taken up in the Senate.