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Gov Nixon: Tax bill could raise taxes on prescription drugs

JEFFERSON CITY, Mo. (AP) - Missouri Gov. Jay Nixon says an income-tax cut bill passed by the Legislature also could levy taxes on prescription drugs.

Nixon released a written statement Thursday saying the legislation would repeal an existing sales tax exemption on prescriptions, which could cost consumers $200 million annually.

The Democratic governor has previously indicated that he is likely to veto the bill. His previous statements pointed to the eventual loss of hundreds of millions of dollars for state services as a result of the income tax cut.

The legislation was handled by Republican Sen. Will Kraus, of Lee's Summit. Kraus said Thursday that he did not intend to tax prescription drugs. If that's the case, he says Nixon should sign the bill and call a special session so lawmakers can fix it.

 

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