Colin Jeffery
Missouri Democrats choose Steve Hodges for congress
Sunday, 17 February 2013 08:23 Published in Local NewsThe Southeast Missourian reported that he earned 39 votes during his party's meeting in Poplar Bluff. De Soto funeral home director Todd Mahn got 27 votes, and former Blodgett mayor Markel Fitchpatrick earned only two votes.
Hodges, 64, of East Prairie, is a former grocery store owner and high school sports referee who spent a dozen years on a local school board and first won election to the Missouri House in 2006. Only after other likely candidates bowed out did he belatedly enter the race Wednesday night to run in a June 4 special election against Republican state Rep. Jason Smith, who was nominated by his party last weekend.
In accepting the nomination, Hodges recalled his son Andrew's valedictorian address at West Point. "He said opportunities sometimes only come along once in your life," Hodges said. "And he said it's your choice to decide whether to accept that opportunity or let it pass. I thought about it a great deal for several days this week and I thought I think God is presenting this as an opportunity for me. So I need to decide whether this is something I should take advantage of or let pass by because it's not going to happen again."
Missouri's 8th District stretches across 30 counties, from the outer suburbs of St. Louis south to the agricultural-base of the Missouri Bootheel and west to the rolling Ozark hills. The district's residents are the poorest and least educated in Missouri, with a median household income of less than $36,000 and more than 85 percent lacking bachelor's degrees. For 32 years, much of the area had been represented by either Bill Emerson or Jo Ann Emerson, who succeeded her husband after he died in 1996. Jo Ann Emerson resigned Jan. 22 to become president and CEO of the National Rural Electric Cooperative Association. Although of opposite political parties, Hodges praised the Emersons and vowed to continue their legacies of supporting labor and agriculture. He also stressed the need to balance the budget.
Hodges described Smith, the Republican nominee, as a friend and said he hoped to conduct the campaign as friends. "That was the way I was reared," he said. "But in politics as Gov. (Jay) Nixon has said, `There is no second place.' There are only winners and losers, and I hope to give you a winner."
Smith, an attorney, farmer and real estate partner, won a special election to the Missouri House of Representatives in November 2005. Because of term limits, Smith, 32, is now one of the most senior members of the chamber. After serving as majority party whip, his colleagues elected him in January as House speaker pro tem - the No. 2 ranking position.
The estimate of lost tax revenues is being used by Sen. Mike Kehoe as one of his main arguments why lawmakers should enact a measure reinstating local taxes on vehicles bought from other states or sold in private deals between Missouri residents. The bill, which already has won initial Senate approval, is expected to receive a second vote this week that would send it to the House.
The legislation was prompted by a Missouri Supreme Court decision last year that said local sales taxes cannot be levied when vehicle purchases are made in another state. The ruling also applied to cars sold by one person to another, because sales taxes only can be collected from retail businesses. The court said a local "use tax" could be charged on such vehicles, but only if approved by local voters.
Almost all counties and municipalities had been collecting the tax on out-of-state vehicle sales before the Supreme Court's decision, but less than half had a voter-approved "use tax" and so have been unable to keep collecting the revenue.
State lawmakers reacted to the Supreme Court decision by passing a bill last May that would have allowed local governments to collect the tax. But Nixon vetoed the measure and said voters should have a say in whether the tax should be imposed. Some lawmakers launched an effort to override Nixon's veto over concerns that Missouri car dealers were at a competitive disadvantage, because customers were going out of state to avoid paying local vehicle taxes. The veto-override attempt ultimately failed.
Now lawmakers are trying again to re-instate the local taxes. "Who in their right mind would think it is right for the state of Missouri that we would tax our own local businesses, but not those out-of-state," said Sen. Jay Wasson, R-Nixa.
This year's Senate bill would try to alleviate the governor's concerns. Republican Sen. Mike Kehoe, a former Jefferson City car dealership owner, said it's a "new version for the same conversation."
The bill would allow local governments to start collecting the sales tax immediately after Nixon's signature. But it would also require local governments to put a "repeal" vote on the ballot sometime between November 2014 and November 2016 in which voters would be asked whether they want to keep the local tax.
Kehoe said he thought his bill would be a "bit more palatable" to Nixon than the version he vetoed, because it lets voters decide whether to keep the tax.
One Senator said she was "a little nervous" about how the bill would allow taxes to be collected immediately without voter approval. But Minority Leader Jolie Justus, D-Kansas City, said she still wants the bill's end result.
Since the issue has been unresolved, counties and municipalities lost $43 million in revenue between April and December 2012, according to figures compiled by Kehoe's office. During that period, $1.4 billion in motor vehicle sales were not subject to local sales taxes. Missouri dealers sold $5.1 billion worth of vehicles, which were subject to local taxes.
At the time of Nixon's veto, just 43 of Missouri's 114 counties and more than 90 of the roughly 950 municipalities had the ability to continue to collect a sales tax on cars not bought at Missouri dealers. Under the Senate bill, these local governments would not have to hold a "repeal" vote and currently can collect taxes on motor vehicles not purchased from Missouri car dealers. With Kehoe's bill still in the legislative process, some counties are looking to fix the problem on their own. At least 18 counties or municipalities have placed "use taxes" on the April ballot that would apply to vehicles sold in other states or between individuals, according to Americans for Prosperity, a group that advocates for lower taxes and limited government.
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