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SECOND REGULAR SESSION
HOUSE JOINT
RESOLUTION NO. 155
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE CHAPPELL.
5007H.01I JOSEPH ENGLER, Chief Clerk
JOINT RESOLUTION
Submitting to the qualified voters of Missouri an amendment repealing Section 4(d) of Article
X of the Constitution of Missouri, and adopting one new section in lieu thereof
relating to taxation.
Be it r esolved by the House of Repr esentatives, the Senate concurring ther ein:
That at the next general election to be held in the state of Missouri, on T uesday next
2 following the first Monday in November , 2026, or at a special election to be called by the
3 governor for that purpose, there is hereby submitted to the qualified voters of this state, for
4 adoption or rejection, the following amendment to Article X of the Constitution of the state of
5 Missouri:
Section A. Section 4(d), Article X, Constitution of Missouri, is repealed and one new
2 section adopted in lieu thereof, to be known as Section 4(d), to read as follows:
Section 4(d). 1. In enacting any law imposing a tax on or measured by income, the
2 general assembly may define income by reference to provisions of the laws of the United
3 States as they may be or become ef fective at any time or from time to time, whether
4 retrospective or prospective in their operation. The general assembly shall in any such law set
5 the rate or rates of such tax. The general assembly may in so defining income make
6 exceptions, additions, or modifications to any provisions of the laws of the United States so
7 referred to and for retrospective exceptions or modifications to those provisions which are
8 retrospective.
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.
9 2. (1) For all tax years beginning on or after January 1, 2028, no tax shall be
10 imposed upon any income derived fr om any source within this state, and all r evenues
11 lost as a result of the proh ibition on the taxation of income under this section shall be
12 r eplaced by the levy and imposition of a tax upon all sales, use, or consumption of all
13 new tangible personal pr operty , r ental pro perty , or taxable services in this state, except
14 for such pr operty sold to the federal government or pur chased to be a component part
15 or ingr edient of the new tangible personal pro perty to be sold at ret ail.
16 (2) No tax shall be imposed under this subsection on any taxable pr operty or
17 service pur chased for a business purpose in a trade or business, including agricultur e,
18 or pur chased for an investment purpose and held exclusively for an investment purpose.
19 For the purposes of this subdivision, the following terms mean:
20 (a) "Purch ased for a business purpose in a trade or business", pur chased by a
21 person engaged in a trade or business and used in that trade or business for res ale; to
22 pr oduce, pro vide, r ender , or sell taxable pro perty or services; or in furtherance of other
23 bona fide business purposes;
24 (b) "Pur chased for an investment purpose", pro perty pur chased exclusively for
25 purposes of appr eciation or the producti on of income.
26 3. The rate of the tax levied and imposed under subdivision (1) of subsection 2 of
27 this section shall be five and eleven-hundre dths per cent. The general assembly may
28 enact one adjustment, subject to the limitation on total state reven ues as prov ided under
29 Section 18 of this article, after the imposition of such tax if the r evenue lost as a res ult of
30 the pr ohibition on the taxation of income is gr eater than or less than the reven ue
31 r eceived fr om the tax imposed in this section. Such adjustment shall be calculated to
32 ensur e that the amount of revenu e re ceived is substantially equal to the amount of
33 r evenue lost under this section. Local political subdivisions shall reca lculate local tax
34 rates, including local tax r evenue to be deposited in the school district trust fund,
35 affected by this section to prod uce the same or substantially similar reven ue as collected
36 in the immediately pr evious fiscal year . The general assembly may provi de by law for
37 determining the scope of taxable services and for otherwise implementing the pr ovisions
38 of this section. Exemptions fr om such tax may be pr ovided by law upon an affirmative
39 vote of at least two-thirds of the elected members of both chambers and appr oval by the
40 governor .
41 4. Notwithstanding the pr ovisions of Article IV , Sections 43(a) and 47(a) of this
42 Constitution, the rates of tax levied and imposed under those sections shall undergo a
43 one-time calculation, taking into account any adjustment in the tax base. This
44 r ecalculation shall determine the new rates that will prod uce an amount of rev enue for
45 the fiscal year of reca lculation substantially equal to the amount actually re ceived in the
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46 year of r ecalculation under the prior rate described in Article IV , Sections 43(a) and 47
47 (a) of this Constitution. These new tax rates shall be r ecalculated in this same manner if
48 the rate of tax levied under this section is read justed.
49 5. The taxes that ar e rep laced under this section are as follows:
50 (1) Withho lding taxes and individual and corporate income taxes;
51 (2) Corporation franchise and bank franchise taxes; and
52 (3) All existing state sales and use taxes.
53 6. (1) The department of r evenue shall determine a method for prov iding an
54 annual sales tax re bate for each duly r egister ed qualified family of this state. The sales
55 tax re bate shall be distributed at least annually to each qualified family . The amount of
56 the sales tax reba te shall be determined annually and be equal to the pro duct of the rate
57 of sales tax established under this section and the appr opriate annual poverty guidelines
58 updated periodically in the Federal Register by the United States Department of Health
59 and Human Services under the authority of 42 U.S.C. Section 9902(2), as amended.
60 (2) For the purposes of this subsection, the term "qualified family" shall mean
61 one or mor e family members, including a spouse, child, stepchild, grandchild, par ent,
62 grandpar ent, br other , sister , or any such rel ations of the spouse of the family member ,
63 sharing a common res idence.
64 7. The department of rev enue shall pr omulgate rules as otherwise provi ded by
65 law to implement the pr ovisions of this section.
66 8. The rev isor of statutes shall pr epare and submit to the committee on
67 legislative r esear ch a pr oposed bill rep ealing those pr ovisions of law that are deemed
68 unenfor ceable or unnecessary under the pr ovisions of this section.
Section B. 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 joint resolution to the voters of this state, the of ficial summary statement of this
4 resolution shall be as follows:
5 "Should the Missouri Constitution be amended to eliminate individual and corporate
6 income tax and state sales and use tax, enact a single, revenue-neutral sales tax on new
7 purchases of goods and services with an exemption for certain property , and provide qualified
8 families a sales tax rebate on state sales tax paid?".
✔
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