Missouri Senate candidates Swan, Rehder differ on use tax

Two Republican state lawmakers from Southeast Missouri, each elected to the Missouri House in 2012, and who both are co-owners of small businesses in similar industries, will square off for the same Senate seat in less than three months.

Kathy Swan

As similar as Rep. Holly Rehder and Rep. Kathy Swan are in background and political outlook, they appear to differ in theory on the hot-button issue of a use tax on out-of-state internet purchases.

Rehder of Sikeston (R-148) and Swan of Cape Girardeau (R-147) will battle head-to-head in the Aug. 4 primary.

Both are term-limited in the lower chamber of the General Assembly, having served eight years.

Each seeks the seat currently occupied by Sen. Wayne Wallingford (R-27), who is also barred from seeking reelection to the same seat, having served the maximum years allowable.

Wallingford, in fact, is running to succeed Swan in the House.

All three candidates seek voter approval to remain in Jefferson City. Rep. Barry Hovis of Cape Girardeau (R-146) is too, but he is unopposed in his reelection bid.

With the cities of Cape Girardeau and Jackson lamenting expected COVID-19 pandemic-related drops in sales tax revenue, both cities are looking to the Legislature to get a wide-ranging use tax approved on online purchases.

Swan, a wireless communications company owner, said so-called “bricks-and-mortar” businesses are feeling the lack of a use tax.

“If (a use tax) will help our local economy, we (lawmakers) need to listen,” Swan said.

“It’s a matter of exploring what (use tax) option will be best for Missouri,” she added.

Rehder, owner of a cable telecommunications contracting firm, is sympathetic to the business downturn, yet is not at all happy about talk of a use tax now.

Rehder said she has supported herself since age 15 and pronounces herself “leery” of taxes.

“I’m personally tired of (them),” Rehder said.

“I want to be left alone as a citizen,” she added. “The government gets enough from me.”

Late Monday, Gov. Mike Parson signed a nearly $30 billion FY 2021 budget without exercising any line-item vetoes.

Swan and Rehder think it likely the General Assembly will be called back for a special session this summer.

“We have to backfill some of the cuts we made with (expected) federal dollars,” Rehder said, in reference to the additional money Missouri is expected to receive from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“I think we’ll be talking just about the budget,” added Swan, who said Missouri has received so far just part of the $2.379 billion CARES allocation.

Neither expects any summer action on a use tax.

“(But) Missouri politics is crazy,” opined Rehder, “and my experience is anything could happen.”

Rehder and Swan both have signature legislation attached to their names.

Rehder, 50, repeatedly sponsored a bill that finally passed the House on Feb. 17, creating a statewide prescription drug monitoring (PDM) program aimed at preventing opioid abuse. The legislation had languished in Missouri’s capital for several years, as lawmakers overcame fears the proposed law would be an invasion of privacy.

The 98-56 House vote, followed by a 21-10 vote in the Senate on March 12, made Missouri the last of the 50 states to approve such a program.

House and Senate conferees have been meeting to iron out differences in the respective PDM bills.

Swan, 69, is credited with writing legislation that became law in 2016 requiring Missouri high school students to pass a civics course to graduate.

Swan told the Southeast Missourian at the time it was important for young people to understand “how this country was formed and why.”

Swan said her legislative priorities are “education, health care and workforce development.”

Rehder, in addition to her interest in PDM program, said she also takes an interest in the effect of tax credits on the state budget.