Bill > HJR174

This joint resolution proposes a constitutional amendment for Missouri voters to consider at the next general election in November 2026, or a special election, that would fundamentally alter the state's tax structure. Key provisions include allowing the state legislature to define income for tax purposes by referencing federal tax laws, with the ability to make modifications, and importantly, prohibiting any state individual income tax from being enacted or imposed after January 1, 2031, if certain revenue growth triggers are met, ensuring the top individual income tax rate is reduced below 1.4% by statute. Additionally, the resolution aims to prevent the expansion of sales and use taxes (taxes on the sale of goods and services) to cover any service or transaction not already taxed as of January 1, 2015, but it simultaneously allows for the expansion of this sales and use tax base to include new goods and services, specifically for the purpose of reducing and eventually eliminating the state individual income tax. To offset any revenue increases from expanding the sales and use tax base, political subdivisions (like counties) and the state itself would be required to adjust other taxes, such as lowering sales and use tax rates, reducing property tax levies, or lowering earnings tax rates, with specific provisions for how these adjustments should be calculated and implemented to ensure no reduction in funding for public schools.

Business and Industry

https://house.mo.gov/Bill.aspx?bill=HJR174&year=2026&code=R