Missouri revenue chief expects minor federal tax effect
JEFFERSON CITY (AP) — Missouri's revenue director says a federal tax overhaul should have a relatively minor effect on the state's bottom line.
Department of Revenue Director Joel Walters said Tuesday that budget officials are still working on projections, but he thinks that the federal tax changes could result in "a relatively narrow plus or minus" of around $100 million to the state's tax revenues.
By comparison, Missouri's overall budget is more than $27 billion this year.
Missouri is one of 20 states with laws that automatically apply federal tax changes to state income taxes.
Walters says a larger federal standard deduction would carry over to Missouri and reduce its revenues, but that would be offset by other parts of the federal tax changes that could result in higher state tax revenues.