Missouri House passes legislation to reduce taxes for sawmills.
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Missouri House passes legislation to reduce taxes for sawmills.

Date: May 3, 2011
By: Helena Kooi
State Capitol Bureau
Links: SB 55

Intro: 
Struggling sawmills could find relief under a bill passed by the Missouri House.
RunTime:  0:40
OutCue:  SOC

Wrap: The bill would reduce property tax rates for more than four hundred sawmills in Missouri.

It reclassifies them as agricultural properties instead of commercial ones. 

Mid-Missouri Republican Representative David Day sponsored the bill.

He says the current, higher taxes are killing the industry and hurting state revenue.

Actuality:  DAY.WAV
Run Time:  00:06
Description: "Twelve percent of a business with its doors open is a heck of a lot more than thirty-two percent of a business that's closed."

Day says the tax cuts are important for the economy even though they would reduce revenue for schools.

He says the change will save sawmills about four million dollars each year.

The bill now moves on to the governor for approval.

From Jefferson City, I'm Helena Kooi.

Intro: 
Missouri's sawmills could be getting a tax break under a bill approved in the House.
RunTime:  0:42
OutCue:  SOC

Wrap: The bill would reclassify more than four hundred sawmills as agricultural instead of commercial properties.

The change would reduce property tax rates for sawmills from 32 to 12 percent.

Executive Director of the Missouri Forest Products Association Steve Jarvis says the tax cuts would help struggling sawmills.

Actuality:  JARVIS.WAV
Run Time:  00:12
Description: "You're either working at the sawmill or your business is supported by people who work at the sawmill. And they realized losing out a little revenue was better than having the mill close up and move to China."

The U.S. Department of Agriculture ranks Missouri third in the nation in terms of forestry's impact on the economy.

The bill has been sent to Gov. Jay Nixon for approval.

From the state Capitol, I'm Helena Kooi.

Intro: 
Legislation to aid struggling Missouri sawmills could come at the expense of school districts.
RunTime:  0:38
OutCue:  SOC

Wrap: The Missouri House approved a bill to cut property tax rates for more than four hundred sawmills.

It would save the mills about four million dollars a year.

Republican Representative Joe Aull from Marshall says that will put financial pressure on schools.

Actuality:  AULL2.WAV
Run Time:  00:07
Description: "In tough financial times like what we're going through right now, I just don't think we can be lowering revenue and giving away potential state money."

He says the property tax cut would cost school districts tens of thousands of dollars.

Similar legislation passed in 2009 but was vetoed by Gov. Jay Nixon.

Nixon's office refused to comment on whether he was planning on signing it or not.

From Jefferson City, I'm Helena Kooi.