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Expanding sales taxes to permanently eliminate the state income tax now up to Missouri voters

Missouri House members voted 95-59 on Tuesday to pass a proposed constitutional amendment that gives lawmakers the power to modify sales and use taxes – including raising them – in the pursuit of eliminating the state income tax. The fate of the amendment is now up to Missouri voters.
Brian Munoz
/
St. Louis Public Radio
Missouri House members voted 95-59 on Tuesday to pass a proposed constitutional amendment that gives lawmakers the power to modify sales and use taxes – including raising them – in the pursuit of eliminating the state income tax. The fate of the amendment is now up to Missouri voters.

The proposed constitutional amendment gives lawmakers five years to expand transaction-based taxes to make up for revenue lost by eliminating the state income tax.

Missouri voters will decide whether to grant state lawmakers the power to expand sales and use taxes in order to permanently eliminate the state income tax.

Members of the state House voted 95-59 Tuesday to pass a proposed constitutional amendment that gives lawmakers the power to change the taxes.

A handful of Republicans joined Democrats in voting against the proposal.

Because the House adopted the changes made by the Senate last week, the resolution now goes to Missouri voters. Proposed constitutional amendments do not need the governor's signature.

"If the people of Missouri want to bound the hands of the legislature that they shall enact legislation which eliminates income taxes, and most permanently eliminates income taxes because it does so in their constitution, then they need to vote for this amendment," said Rep. Bishop Davidson, R-Republic, who sponsored the resolution.

Democrats like House Minority Leader Ashley Aune, D-Kansas City, said eliminating Missouri's income tax would blow a multibillion-dollar hole in the state budget.

"Where are we going to get that revenue? We're going to get that revenue off the backs of Missourians who are living paycheck to paycheck, seniors who already can't afford their medications or to stay in their homes," Aune said.

Proponents of eliminating Missouri's individual income tax say it will make the state more competitive and appealing for businesses and people looking to move to the state.

Republicans like Rep. Ann Kelley of Lamar called the resolution the first step in the process.

"This is not an overnight change. This is not a blank check to raise taxes. In fact, this proposal requires the opposite," Kelley said. "It requires that an expansion of sales tax be paired with reductions in income tax and reductions at the local level. That means this is a tax swap, not a tax increase."

Opponents say large hikes on sales and use taxes would be necessary to make up for the billions the state will lose by eliminating the tax.

Additionally, some organizations like AARP say that since most seniors do not pay income taxes in the state, this change would impose more taxes on them.

In a statement released after the House vote on Tuesday, the nonpartisan Missouri Budget Project called the amendment a "misleading tax scheme."

"While the richest Missourians will pad their investment accounts, the vast majority of us will be subject to whopping increased costs for everything from home repairs to car insurance to burial services," Missouri Budget Project President and CEO Amy Blouin said.

According to the legislation, the General Assembly would eliminate the income tax by requiring reductions to the top rate based on revenue growth.

Higher sales and use taxes would likely be necessary to make up for that eventual loss of state revenue.

Once the income tax is eliminated, lawmakers would be unable to reinstate any version of an income tax, unless a different constitutional amendment is passed.

The proposal, which is a key priority of Gov. Mike Kehoe's, gives a five-year window to expand transaction-based taxes, like sales taxes, to make up for lost income tax revenue.

It would be up to lawmakers to change policies to both lower the income tax and raise other taxes to make up for that loss.

Davidson spoke on guardrails the amendment contains, including the five-year deadline.

"If consumption taxes were expanded, they would have to be for the purpose of eliminating the income tax. That's guardrail one," Davidson said. "They would have to be revenue neutral. That's guardrail two. It would have to be in the same legislation that revenue neutrality is accomplished. That's guardrail three."

Rep. Bryant Wolfin, R-Ste. Genevieve, voted against the legislation. In speaking against it, he said he did not like how the bill now requires the legislature to take action to eliminate the income tax.

"This is more 'Trust us, we got this.' And from the people that I'm hearing back at home, that's not the case," Wolfin said.

The proposed amendment will appear on a future ballot, either in a special election or possibly in November.

The ballot language reads:

"Shall the Missouri Constitution be amended to:

● Phase-out the individual income tax based on revenue growth;

● Reduce personal property and other local taxes when local revenues increase;

● Modify the sales and use tax to eliminate income tax and reduce local taxes; and

● Protect local funding for public schools and other purposes?"

Rep. Emily Weber, D-Kansas City, asked Republicans if they would respect the decision of Missouri voters if they rejected the amendment.

"Are you all going to back off, or is this coming back up again next session, and the session after that, and the session after that? Because again, you all are not listening," Weber said.

The legislation is HJR 173.

Copyright 2026 St. Louis Public Radio

Sarah Kellogg