Missouri’s largest $140 million plus tax cut for low income housing developers is in trouble.
On Friday morning, by a vote of 6-2, the Missouri Housing Development Commission voted to not distribute the money allocated by the state legislature under the Missouri Low Income Tax Credit Program.
One member of the committee, Missouri Treasurer Eric Schmitt, said through a spokesman that he needs more information before he votes definitively on this matter.
“The treasurer’s votes today were based on the need for more clarity on how ongoing federal tax reform efforts could alter the implementation of tax credit programs.”
Developers and government housing officials are not happy with the decision. CEO of the Columbia Housing Authority Phil Steinhaus questions whether the commission has the authority to effectively end the tax cut.
“Being as the legislature has already allocated those funds, the Missouri Housing Development Commission is just responsible for allocating those funds out to various housing projects,” Steinhaus said.
The Governor’s committee on Simple, Fair and Low Taxes claims that the program, which began in 1990, is not allocating funds effectively and is another area where Missouri can cut back on tax breaks.