News

Missouri Ag Chair disagrees with governor on disaster refund

The head of the Missouri House Select Committee on agriculture disagrees with Governor Nixon about income tax deductions for farmers who receive federal disaster payments. Earlier this month, the state legislature voted to override Nixon’s veto of a bill that allows that.  Representative Bill Reiboldt, a former dairy farmer, says Federal Emergency Management Agency payments are NOT taxable, “This is money that belongs in our rural communities and, you know, why should the state profit off of our, of natural disaster?”

Governor Nixon describes Reiboldt’s bill as a “special interest tax break”, estimating its fiscal impact at 51-million dollars. Reiboldt contends the estimate is closer to six-million dollars. Governor Nixon restricted 57-million dollars, saying the withholdings were necessary to balance the state budget. His proposed cuts include more than $1-million in new funding for Missouri dairy producers.