HB 3518: Relating to certain nonresident income tax revenues
Sponsor: Renee Reuter
OPPOSE
Expands entrenched government spending beyond core functions.
HB 3518 redirects state income tax revenue from nonresident entertainers away from General Revenue and into a new, dedicated, nonreverting fund through the year 2060. This long-term earmark bill locks future legislatures into a specific spending structure for decades, prioritizing entities like the arts council and public broadcasting rather than returning money to taxpayers or focusing on core state functions.
What Does This Bill Do?
- Direct Revenue Diversion: It redirects 100% of the state income tax revenue collected from nonresident entertainers and athletes away from the General Revenue fund.
- Creates a Nonreverting Fund: Establishes the "Nonresident Entertainer and Professional Athletic Team Income Tax Fund" as a dedicated, nonreverting treasury fund where interest remains in the fund.
- 34-Year Spending Lockdown: Hard-codes a specific annual spending split (60% Arts, 10% Humanities, 10% Libraries, 10% Public Broadcasting, 10% Historic Preservation) through the year 2060.
Constitutional or Critical Context
This bill represents a significant structural shift in Missouri's fiscal policy. By locking in a 34-year spending preference list, it effectively binds the hands of future legislatures and reduces the state's ability to respond to changing priorities. Furthermore, it continues taxpayer-backed media subsidies for public radio, which falls outside the limited-government role of focusing on justice and safety. While it likely survives a single-subject challenge, the title understates the extent to which long-term fiscal policy is being embedded into statute.
Red Flags & Recommended Amendments
34-Year Earmark
The bill locks future legislatures into this spending structure until 2060. This is far too long for a niche revenue dedication and prevents proper legislative oversight.
Budget-Based Ratchet
Transfers are designated as "in addition to each agency's budget base," making this an expansion of baseline spending that is notoriously difficult to unwind.
Act for Missouri Recommendation:
Act for Missouri opposes HB 3518 because it fails the limited-government test. It prioritizes non-core government spending and uses a nonreverting fund to bypass ordinary spending discipline and legislative review.