Local tax exemption removed from economic development bill

An economic development bill pending in the Missouri legislature won't exempt manufacturers from paying local sales tax on utilities and equipment, Sen. Jason Crowell announced Wednesday.

The measure had generated strong opposition from local governments in the area, especially Cape Girardeau County, because of the size of the potential revenue loss. The county stood to lose about $365,000 from utility sales taxes paid by Procter & Gamble's manufacturing plant on Highway 177.

"This bill is meant to strengthen Missouri's already growing economy, not harm local revenues," Crowell said in a prepared statement. "The bill as it was could have have hurt Cape Girardeau, which is why I fought so hard to get the change made."

The bill includes a wide range of tax credits, exemptions and economic development measures, and manufacturers would get a break on the state sales taxes they pay on utilities and equipment. Crowell is part of the 10-member House-Senate conference committee working out the final version of the proposal.

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