Budget director Linda Luebbering said Thursday that the state could end up collecting approximately $10 million for income tax on the jackpot, assuming Missouri’s winner opts for a lump-sum payment. The current year’s budget is $24 billion, which includes about $8 billion from general tax collections.
A convenience store in the town of Dearborn sold one of two winning Powerball tickets in the drawing Wednesday for a $587.5 million total jackpot. The other ticket was sold in Arizona.
Officials said the state could collect income taxes even if the newly minted millionaire only bought the winning ticket while passing through the town north of Kansas City and does not live in Missouri. However, the prospect of extra cash in state coffers does not mean officials are planning a spending spree. Senate Appropriations Committee Chairman Kurt Schaefer likened the expected boost in revenue from the lottery jackpot to a one-time funding source.
In addition to income taxes, revenue generate from the Missouri Lottery is used to fund education. Missouri Lottery Executive Director May Scheve Reardon said Thursday that during the buildup to the jackpot starting Oct. 3, revenue from lottery sales will generate more than $10.7 million for public education.