- Associated Press - Wednesday, June 11, 2014

Missouri Gov. Jay Nixon on Wednesday vetoed a package of state tax breaks that he contends would harm state and local budgets. A look at some of the bills that were vetoed:

DATA CENTERS: Electricity and equipment used by computer data centers that store or process electronic information would be exempt from sales tax. Senate Bill 584.

Cost: Nixon’s administration says more than $152 million annually each for local and state governments.

TAX NOTICES: The Department of Revenue would be required to notify businesses of changes in sales tax policies before they would be required to pay the tax. SB612 and SB662.

Cost: Nixon’s administration estimates it would cost $100 million each for state and local governments because businesses could gain greater ability to challenge taxes. Legislative researchers estimate minimal costs for sending notices.

MAKING FOOD: Restaurants, bakeries and grocery stores would be exempt from paying sales taxes for electricity used to prepare food. The provision sought to overturn a Missouri Supreme Court ruling earlier this year denying a sales tax exemption for baked goods prepared at numerous Schnucks grocery stores. House Bill 1865.

Cost: Nixon’s administration says $51.2 million annually for state government.

FITNESS CENTERS: State law levies a tax on admission and fees to places of amusement, entertainment and recreation. The Missouri Supreme Court has ruled that athletic, exercise and fitness clubs count as places of recreation. Lawmakers sought to narrow that so sales tax is charged when people watch an activity but not when they participate. SB584.

Cost: Nixon’s administration says $35.8 million per year each for state and local governments.

USED CARS: Sales taxes would not be collected for vehicles that are at least 10 years old for purchases up to $15,000. SB693.

Cost: Nixon’s administration says it would reduce state revenues each year by $33.5 million and local government revenue by $26 million annually.

ELECTRICITY: The provision would establish a sales tax exemption for such things as poles, wires and transformers used by power companies for transmitting electricity. SB584.

Cost: Nixon’s administration says $30 million each for state and local governments.

LAUNDRIES: Dry cleaners and other commercial laundries would not be required to pay sales taxes on energy, soap and chemicals that they use. The state Supreme Court denied a “processing” tax break for a laundry in a case earlier this year. SB612.

Cost: Nixon’s administration says $2 million per year each for state government and local officials.

FARMERS MARKETS: Farm products such as eggs, fruits, vegetables, milk and meat purchased at farmers’ markets would be exempt from sales tax.

Cost: Nixon’s administration estimates $300,000 per year each for state and local governments.

CALUCLATORS: Graphing calculators worth $150 or less would be eligible for Missouri’s annual sales tax holiday for school supplies. HB1296 and SB680.

Cost: Nixon’s administration says $200,000 each year for the state.

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