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Governor Nixon Discusses Local Tax Revenue in Carthage

Missouri Governor Jay Nixon stops in Carthage to discuss how special tax breaks and exemptions could have an impact on local tax revenue.
CARTHAGE, MO.--- Missouri Governor Jay Nixon met with Carthage and Jasper County leaders. He met to discuss the potential impact of recent tax breaks passed by the legislature.

"As the leaders said this would have a dramatic and negative effect on voter approved levies for necessary services here in Southwest Missouri," said Jay Nixon, Missouri Governor.

Earlier this week, Governor Nixon vetoed several bills containing special breaks and exemptions. Nixon says, if approved, they would reduce local and state revenues by up to $776 million a year.

"I think some of the members were unaware of what they were doing and certainly unaware of the totality of these," said Governor Nixon.

Governor Nixon says the proposed tax breaks would impact sales tax collections, affecting local police, fire, ambulance, emergency services, and other public services.

"80% of our costs are personnel, so any reduction in sales tax from the budget would definitely result in a reduction in services that we provide, and unfortunately those would be in personnel," said Chris Thompson, Carthage Fire Chief. 

Mayor Mike Harris adds that Carthage is mainly a sales tax driven city.

"It's just something the city can't afford without cutting services. So it's something that we really need to look at and we need to make sure that everybody is on the right track, and we can get this handled properly," said Mike Harris, Mayor of Carthage.

KSN also talked with Missouri State Representative Charlie Davis about the tax breaks. He said House members were more conservative than the governor's suggested budget, hoping to give tax relief to businesses and tax payers. Their overall goal is to provide tax relief to keep jobs and businesses in Missouri.

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