Wayne Wallingford unworried about state income tax cut for seniors on Social Security

Wayne Wallingford of Cape Girardeau, the state's director of revenue, said Tuesday, May 30, he doesn't know whether Gov. Mike Parson will sign into a law a bill to exempt Missouri Social Security recipients from paying income tax on benefits.

Wallingford does say the state can afford the cut.

According to a fiscal note on Senate Bill 190, the elimination will cost the state $318 million annually.

Both the House and Senate of Missouri's Legislature voted overwhelmingly before the May 12 adjournment to join 39 other states that already have eliminated the tax on these government-supplied senior benefits.

In April, the House voted 154-2 to OK the tax eradication effective in 2024.

Beginning in 2024, Social Security benefit payments will be exempted from state income tax. Missouri House and Senate voted overwhelmingly in the recently-completed legislative session in Jefferson City, Missouri.Jenny Kane ~ Associated Press, file

Beginning in 2024, Social Security benefit payments will be exempted from state income tax. Missouri House and Senate voted overwhelmingly in the recently-completed legislative session in Jefferson City, Missouri.Jenny Kane ~ Associated Press, file

On May 8, the Senate voted 33-1 to do the same.

"As far as the impact on Missouri, revenues have been coming in very well and I don't see (this elimination) as a problem," said Wallingford, who has been the state's revenue chief for 16 months.

"People thought this might be a bad year for revenue, but people are still spending money and the way sales tax is coming in, the state can support this."

During floor debate, GOP Rep. Ben Baker of Neosho, Missouri, cited inflation as a prime driver in seeking cessation of taxes on Social Security payments.

"With the rising costs of consumer goods, it's more important now than ever to put money back in the pockets of Missouri seniors, particularly those on fixed incomes," Baker said.

"So it's time for Missouri to join other states that have already eliminated the tax on Social Security."

Wallingford points out Missouri came into 2023 with a $6 billion general revenue surplus, partly due to pandemic relief funds.

"It's nice to have the surplus, certainly, because there will be rainy days at some point," he said.

Of note

SB 190 also authorizes the state's 114 counties to grant a property tax credit for a senior's primary residence.

The credit will apply to senior citizens who are at least 65 years of age.

Counties would be able to enact this credit either through an ordinance or via public referendum.