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SECOND REGULAR SESSION
HOUSE BILL NO. 2690
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE CHAPPELL.
5006H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 144, RSMo, by adding thereto one new section relating to the fair tax act of
2026, with a referendum clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 144, RSMo, is amended by adding thereto one new section, to be
2 known as section 144.001, to read as follows:
144.001. 1. This section shall be known and may be cited as the "Fair T ax Act of
2 2026".
3 2. For all tax years beginning on or after January 1, 2028, no tax shall be
4 imposed upon any income derived fr om any source within this state, and all r evenues
5 lost as a result of the proh ibition on the taxation of income under this section shall be
6 r eplaced by the levy and imposition of a tax upon all use or consumption of taxable
7 pr operty or services in this state. The rate of such tax shall be five and eleven one-
8 hundr edths percen t. The general assembly may enact one adjustment after the
9 imposition of such tax if the revenu e lost as a r esult of the proh ibition on the taxation of
10 income is gr eater than or less than the reve nue received fr om the tax imposed under this
11 section. Such adjustment shall be calculated to ensure that the amount of reven ue
12 r eceived is equal to the amount of reven ue lost under this section.
13 3. The taxes that shall be repl aced under this section are as follows:
14 (1) Withho lding taxes and individual and corporate income taxation;
15 (2) Corporation franchise and bank franchise taxes;
16 (3) All tax exemptions and deductions relat ed to income and sales taxes;
17 (4) The estate tax; and
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (5) All other state taxes on any sour ce of income.
19 4. The department of r evenue shall determine a method for pro viding a monthly
20 sales tax reb ate for each qualified family . The sales tax reb ate shall be distributed to
21 each qualified family on or befor e the first business day of the month for which the sales
22 tax reb ate is being pr ovided. The amount of the sales tax r ebate shall be determined
23 annually and be equal to the pr oduct of the rate of sales tax established under this
24 section and one-twelfth of the annual poverty guidelines updated periodically in the
25 Federal Register by the U.S. Department of Health and Human Services under the
26 authority of 42 U.S.C. Section 9902(2), as amended.
27 5. The department of reven ue may pr omulgate all necessary rules and
28 r egulations for the administration of this section. Any rule or portion of a rule, as that
29 term is defined in section 536.010, that is creat ed under the authority delegated in this
30 section shall become effective only if it complies with and is subject to all of the
31 pr ovisions of chapter 536 and, if applicable, section 536.028. This section and chapter
32 536 are nonseverable and if any of the powers vested with the general assembly
33 pursuant to chapter 536 to revi ew , to delay the effective date, or to disappr ove and annul
34 a rule are subsequently held unconstitutional, then the grant of rulemaking authority
35 and any rule pr oposed or adopted after the effective date of this section shall be invalid
36 and void.
Section B. Section A of this act is hereby submitted to the qualified voters of this state
2 for approval or rejection at an election which is hereby ordered and which shall be held and
3 conducted on T uesday next following the first Monday in November , 2026, under the
4 applicable laws and constitutional provisions of this state for the submission of referendum
5 measures by the general assembly , and this act shall become ef fective when approved by a
6 majority of the votes cast thereon at such election and not otherwise.
Section C. Pursuant to chapter 1 16, and other applicable constitutional provisions and
2 laws of this state allowing the general assembly to adopt ballot language for the submission of
3 this act to the voters of this state, the of ficial summary statement of this act shall be as
4 follows:
5 "Shall the Missouri statutes be amended to eliminate individual and corporate income
6 tax and estate tax, and to enact a single, revenue-neutral sales tax of five and eleven one-
7 hundredths percent on new purchases of goods and services, and to provide each family with
8 a monthly sales tax rebate?".
✔
HB 2690 2