Approval of Amendment 3 stops bad idea before it gets started

By Ray McCarty

For years, family businesses have had to plan for inheritance and estate taxes (so called "death taxes") when the owner of the business dies and leaves the business to his or her heirs. Associated Industries of Missouri and other business groups have consistently fought to eliminate these "death taxes" at the state and federal level. But some states have decided to tax these transactions anyway through the use of a "real estate transfer tax."

Missouri is one of 13 states that have not implemented real estate transfer taxes. A "yes" vote on Amendment 3 would ban the tax in Missouri, along with any other type of transfer taxes, including sales taxes. Again, home sales are not subject to sales tax today, and if this amendment is approved by voters Nov. 2, they would continue to be exempt from sales tax. This exemption would remain in place, even if a so-called "FairTax" – one that trades a broad sales tax for state income taxes -- were enacted in the future.

The amendment just makes good sense. After all, homeowners and business owners already pay property taxes on real estate. Why should they also pay an additional tax to buy or sell real estate? Any such tax would be a lug on the ability to buy and sell property of all types and would be just another burden on family businesses that want to keep their businesses in the family.

Associated Industries of Missouri fights against higher taxes on businesses. Voters should approve Amendment 3 and stop this bad idea before it gets started.

Ray McCarty is president of Associated Industries of Missouri and longtime advocate for manufacturing and industry in Missouri.