HANCOCK REFUNDS RING HOLLOW IN FACE OF SB 380 TAXATION

Gov. Mel Carnahan announced a few days ago that the state owes refunds to Missouri taxpayers. Specifically, the governor says his administration will be issuing the first-ever refunds under the Missouri Tax Limitation provision, commonly known as the Hancock Amendment to the Missouri Constitution and adopted by Missouri voters in 1980.

Hard-pressed Missouri taxpayers are still reeling from paying substantially more in tribute, thanks to this governor's higher taxes, passed in 1993 and kicking in for the first time this spring. Missourians will be pardoned for holding their applause at the announcement of these refunds. The reason for what might seem like ingratitude is axiomatic, so simple that it should hardly require re-statement: Tax refunds can't be owed unless the taxing authorities have taken too much already. For this Missourians are supposed to be grateful?

Gov. Carnahan stated, correctly, that it is impossible to know the size of the refunds to Missouri taxpayers. This is because refunds are for the tax year 1995, which are paid, of course, next year. Some business taxes aren't paid until next fall, so it apparently will be early 1997 before checks will be figured and mailed.

Perhaps a little history can provide necessary context. In 1993, Gov. Carnahan successfully rammed through the General Assembly Senate Bill 380 with its huge, $350 million tax increase for education, thus violating his campaign pledge of the year before to place any such proposition before the voters. In April 1993, at the time lawmakers were debating that measure, State Auditor Margaret Kelly issued a warning in the form of a memo to lawmakers. Any tax increase issue of such magnitude, Kelly warned, would almost certainly trigger the Hancock Amendment threshold for refunds to taxpayers. Better to submit the issue to voters for their approval, Kelly advised.

No, said Gov. Carnahan and leaders of the General Assembly, including President Pro Tem Jim Mathewson and House Speaker Bob Griffin. The line from all three went like this: "We are well within the Hancock lid, and no popular approval is necessary." Now, just 25 months later, Gov. Carnahan announces that refunds are, in fact, owed.

Gov. Carnahan is hoping Missourians won't remember these indisputable facts. Missourians should not only remember, but also be prepared to hold leaders in government accountable as they watch the unfolding scenario of tax refunds that will be made in early 1997 -- after the next gubernatorial election.