State Sen. Mike Moon has long been an advocate for businesses facing unexpected tax bills due to changes in state sales tax laws. After a Missouri Supreme Court ruling in 2008 led to fitness clubs being required to charge tax on memberships and classes, many businesses were audited and left struggling to pay thousands of dollars in back taxes.
Moon has consistently pushed for bills to refund these businesses and managed to secure a $38,000 earmarked appropriation for a Kansas City fitness club owner this year. However, Gov. Mike Parson vetoed a similar $150,000 appropriation in 2021, citing constitutional concerns about refunding legally paid taxes.
The $38,000 proposal is just one of over 400 earmarked items totaling more than $2.1 billion in the $51.7 billion state budget passed by lawmakers this year. Parson has a history of targeting earmarked funds in his veto messages, cutting significant amounts from the budget in recent years.
Critics argue that the lack of transparency in the earmark process makes it difficult for constituents to know how their tax dollars are being spent. While some lawmakers believe earmarks should be publicly attributed to specific sponsors, others feel that the responsibility for spending lies with the legislature as a whole.
Moon has raised constitutional objections to 64 earmarked items totaling $131.9 million, citing concerns about state funds being used for private entities. He has encouraged Parson to veto these appropriations, particularly those funded by state money rather than federal grants.
As Parson reviews the 16 appropriation bills before the new fiscal year begins, the fate of these earmarked items remains uncertain. Despite a significant state surplus, the governor has historically been cautious with approving earmarks, signaling a potential showdown over how Missouri’s budget will be allocated.
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