{"id":9167,"date":"2026-04-15T05:55:32","date_gmt":"2026-04-15T10:55:32","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/04\/15\/capital-gains-tax-refunds-hit-missouri-revenue-as-senate-tries-to-plug-budget-holes\/"},"modified":"2026-04-15T05:55:32","modified_gmt":"2026-04-15T10:55:32","slug":"capital-gains-tax-refunds-hit-missouri-revenue-as-senate-tries-to-plug-budget-holes","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/04\/15\/capital-gains-tax-refunds-hit-missouri-revenue-as-senate-tries-to-plug-budget-holes\/","title":{"rendered":"Capital gains tax refunds hit Missouri revenue as Senate tries to plug budget holes"},"content":{"rendered":"
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State Senate Appropriations Committee Chairman Rusty Black, R-Chillicothe, discusses a spending item Tuesday as the panel finalized a budget plan for debate in the full Senate. Black is flanked on the left by state Sen. Brad Hudson, R-Cape Fair, and on the right by state Sen. Barbara Washington, D-Kansas City (Rudi Keller\/Missouri Independent).<\/p>\n<\/figcaption><\/figure>\n

A surge of tax refunds tied to Missouri\u2019s <\/span>capital gains tax cut<\/span><\/a> pushed general revenue collections below last year\u2019s pace, as the Senate Appropriations Committee worked on Tuesday to finalize the state budget for the coming year.<\/span><\/p>\n

Net general revenue collections for the year fell $10 million between the close of business Friday and the final figures for Monday as $60 million in tax refunds were paid out. When lawmakers approved the capital gains tax cut last year, it was expected to reduce revenue by about $110 million annually. Yet by December, budget officials had revised that estimate upward to $500 million or more.<\/span><\/p>\n

The state expects $13.1 billion in revenue for the current fiscal year, down from $13.4 collected last fiscal year. The dip into negative territory after nearly 10 months of growth came later than anticipated but is on track with projections, state Budget Director Dan Haug told The Independent.<\/span><\/p>\n

Total tax refunds for the year stood at $1.4 billion on Monday, $50 million more than the same date last year. The difference is expected to grow dramatically as high-income filers, those most likely to have capital gains now exempt from taxation, send in returns to meet Wednesday\u2019s deadline.<\/span><\/p>\n

Against that backdrop, the Senate Appropriations Committee on Tuesday dipped into money set aside for expansion and renovation <\/span>of the Capitol Building<\/span><\/a>. State Sen. Rusty Black, the Chillicothe Republican who chairs the committee, said he is using about $200 million of the $600 million reserved for the Capitol renovation project.<\/span><\/p>\n

The committee will vote on the spending plan Wednesday after finishing work on provisions that will govern spending. The 12 bills setting operational spending keep some surplus funds in reserve.\u00a0<\/span><\/p>\n

The committee reversed decisions made in the Missouri House that used $65 million of surplus in the Blind Pension Fund for public schools and shifted about $120 million in interest accrued on $1.6 billion set aside for highway projects on Interstate 70 and Interstate 44 to the general revenue fund.<\/span><\/p>\n

The state Constitution allows surplus money in the Blind Pension Fund, supplied by a statewide property tax, to be <\/span>used for schools<\/span><\/a>. In an interview, Black said he\u2019d rather wait to use it.<\/span><\/p>\n

\u201cThere may be other times that we need surplus,\u201d Black said.<\/span><\/p>\n

The Capitol Building funds helped replace school funding typically covered by lottery revenue, which can only be spent on education. Lottery proceeds have fallen short of projections.<\/span><\/p>\n

\u201cThis puts us in a better spot,\u201d state Sen. Maggie Nurrenbern, a Democrat from Kansas City, said when Black made the shift. \u201cLottery proceeds are down right now. We need to make sure those numbers represent what they are going to receive.\u201d<\/span><\/p>\n

The Senate committee made its changes in the spending amounts in the state operating budget during a session that took up most of the day on Tuesday.\u00a0 It will finish the job on Wednesday when members finalize provisions that will govern spending, with the full Senate expected to debate the budget next week.<\/span><\/p>\n

Final figures showing how much the committee appropriated for state operations were not available immediately. The House-passed budget uses <\/span>$50.4 billion for operations<\/span><\/a> and another <\/span>$2.5 for billion construction<\/span><\/a> and maintenance projects. Of that amount, $15.9 billion comes from general revenue, with $2.3 billion covered by the accumulated surplus.<\/span><\/p>\n

The state began the current fiscal year with $4.3 billion on hand. That figure was $2.9 billion on March 31 and is projected to be under $300 million by June 30, 2027.<\/span><\/p>\n

Other major changes to the House-passed budget include:<\/span><\/p>\n