Analysis: Huge Mo. tax cut largely hypothetical - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Analysis: Huge Mo. tax cut largely hypothetical

JEFFERSON CITY, Mo. (AP) - Gov. Jay Nixon says a clause in the income tax cut bill that he vetoed could have triggered a $1.2 billion run on the state treasury.

Attorney General Chris Koster agreed with Nixon's legal analysis this past week. But the projection remains largely hypothetical.

The Missouri bill would trigger a one-half of a percent reduction in state income tax rates if the federal government enacts a measure making it easier for states to collect online sales taxes.

That bill has stalled in the U.S. House. But if it passes, then all of Missouri's roughly 2.8 million income taxpayers would have to amend three years of tax returns for Nixon's projections to hit in a single year.

The courts likely would have to determine whether the retroactive tax refund is legal.

An AP News Analysis

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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