Auditor - No tax refunds under Hancock Amendment

JEFFERSON CITY, Mo. -- There will be no tax refunds for Missourians this year under the revenue-capping provisions of the Hancock Amendment to the state constitution.

State Auditor Claire McCaskill's confirmation Wednesday of the lack of tax refunds came as little surprise, considering that state revenue fell during the 2003 fiscal year -- the second straight declining year.

A constitutional amendment passed by voters in 1980 limits the annual growth in state revenue by requiring that no greater portion of Missourians' personal income be used to fund government than was the case in the 1981 fiscal year. It makes exceptions for any voter-approved tax increases.

It also requires the auditor's office to make an annual determination of whether the state has exceeded its revenue cap.

McCaskill's report showed that total state revenue, as defined under the amendment, was $7.2 billion during the fiscal year that ended June 30, 2003. The report calculated the Hancock Amendment's revenue cap at $9.1 billion.

The $1.9 billion gap between the actual and maximum-allowed state revenue was the largest difference in the 22 years that the amendment has been in effect.

Missourians received tax refunds under the amendment for five consecutive years, covering the 1995-1999 state fiscal years.

The amendment is commonly called the Hancock amendment because it was backed by former U.S. Rep. Mel Hancock, a Republican from the Springfield area.