AIM joins Hancock refund lawsuit

by Melissa Wilson

SBJ Staff

Associated Industries of Missouri joined state Sen. Franc Flotron of Chesterfield and Rep. Gary Marble of Neosho in a lawsuit filed Nov. 17 against Gov. Mel Carnahan, State Treasurer Bob Holden, State Auditor Claire McCaskill, Commissioner of Administration Dick Hanson and Revenue Director Quentin Wilson in an effort to gain $22 million to $30 million in Hancock refunds for Missouri businesses.

AIM is asserting the state's Conservation Sales Tax should be subtracted from total sales revenues in 1980-1981 the base year under the Hancock Amendment as well as in each ensuing fiscal year.

The lawsuit stems from a recent Missouri Supreme Court decision that held the Conservation Sales Tax was not included in total state revenues for purposes of calculating refunds due businesses and individuals under the Hancock Amendment.

"This lawsuit was filed to make sure the Hancock Amendment refund was calculated properly," AIM board member Don Golick, of Paul Mueller Co., said. "It could result in more refunds for businesses and individuals."

AIM's action could mean a total of $229 million in refunds for all Missourians, including business and industry, according to an AIM press release.

"Employers and individuals across the state currently share the tax burden," AIM President Chris Long said in the release. "This action is intended to retrieve tax refunds for employers that can be used to create new jobs, increase employee benefits and further grow this state's economy. However, all Missourians will enjoy additional tax refunds through this action."

With headquarters in Jefferson City, Associated Industries of Missouri is a business and trade association with more than 1,500 Missouri members it represents before state government agencies and courts.