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Mo. AG Koster sides with Gov. Nixon on tax cut

(AP) Missouri Attorney General Chris Koster is siding with Gov. Jay Nixon in determining that a vetoed tax cut bill could have applied retroactively.

At issue is a provision in the legislation that triggers an automatic half-percent reduction in Missouri's income tax if the federal government makes it easier for states to collect taxes on Internet retail sales. Koster released an analysis today that says the tax-rate reduction could be applied retroactively, entitling people to ask for refunds on their three previous years of taxes. That backs Nixon's assertion but is at odds with an analysis by the legislative research office.

Koster examined the issue at the request of House Speaker Tim Jones.

Jones wants to try to override Nixon's veto of the tax cut.

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