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State Revenue

Overview of Missouri’s Recreational Marijuana Tax Revenue

In February 2023, sales of recreational marijuana became legal in Missouri following voter approval of a state constitutional amendment that legalized marijuana for Missouri residents over age 21. This amendment included a six percent state sales tax on recreational marijuana.
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State Revenue Bottoms Out: The Impact of Years of Tax Cuts & Ongoing Implementation

Contrary to the extraordinary growth of general revenue in recent years, state revenue is stagnating, which will result in difficult budget decisions in future years. The fluctuations in state revenue are a result of overlapping factors. Specifically, federal COVID funding has
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Federal Reimbursement Allowance Critical to Solvency of Missouri’s Entire State Budget

Medicaid provider taxes (commonly referred to as the Federal Reimbursement Allowance, or FRA) are a critical funding stream supporting the entire state budget. While dollars raised through the FRA directly support the MO HealthNet program, the funding frees up state general
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How Missouri Taxes & Revenue Compare to Other States

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their
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How Missouri Taxes & Revenue Compare to Other States

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their
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Federal COVID Relief is Driving the State’s Economy and Budget “Surplus”

Missouri ended calendar year 2021 with $11.2 billion in the bank – an extraordinary amount. Although much of the balance is federal funding or earmarked state funds, $2.8 billion of the total was state general revenue. By comparison, that amount was nearly six times the
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Failure to Renew Medicaid Provider Taxes Would Be Devastating for Missourians

Failure to renew the state’s Medicaid provider taxes would not only cost Missouri the funding associated with those taxes and their corresponding federal Medicaid match, but could also put up to $5.7 billion in additional federal dollars from the American Rescue Plan at risk.
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Expiring Federal Relief, Delayed Tax Deadline Drive Missouri General Revenue Growth: Outlook Less Rosy Than It Appears

At first glance, it seems like Missouri’s state general revenue has fared well through the pandemic. However, much of state revenue growth can be attributed to Missouri’s delayed tax deadline and earlier federal COVID relief that is now expiring. Assessed in the context of these
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The Crisis We Face: How Missouri Can Respond to the Economic Impacts of COVID-19

The health and economic effects of the Coronavirus will require an aggressive state and local policy response to help families make ends meet and avoid disastrous economic consequences. It is critical for Missouri to act in tandem with federal responses in order to cushion the
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Missouri General Revenue: Limping Into the New Year

Tax Changes Leave State Unable to Meet Inflationary Costs Recently announced growth in Missouri’s state general revenue collections may be misleading because the growth is based on a comparison to very weak collections in the prior year. Taking a more comprehensive view shows
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