Modifies provisions relating to income taxes

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Modifies provisions relating to income taxes

The following summaries of this bill are available: Print All Summaries Introduced Print SJR 74 - This constitutional amendment, if approved by the voters, provides that, in the event that the General Assembly reduces the rate of income tax for state purposes below the rate of 4.5%, every county in the state shall be authorized to impose an income tax on the residents of such county, provided that the total combined rate of such tax and the state income tax does not exceed 4.5% The taxable income for the purposes of the county income tax shall be a taxpayer's Missouri taxable income for state purposes, and the Department of Revenue shall perform all functions incident to the administration, collection, enforcement, and operation of the tax.

What This Bill Does

• The following summaries of this bill are available: Print All Summaries Introduced Print SJR 74 - This constitutional amendment, if approved by the voters, provides that, in the event that the General Assembly reduces the rate of income tax for state purposes below the rate of 4.5%, every county in the state shall be authorized to impose an income tax on the residents of such county, provided that the total combined rate of such tax and the state income tax does not exceed 4.5% The taxable income for the purposes of the county income tax shall be a taxpayer's Missouri taxable income for state purposes, and the Department of Revenue shall perform all functions incident to the administration, collection, enforcement, and operation of the tax.
• All taxes collected pursuant to this amendment shall be deposited in the "County Income Tax Trust Fund" and shall be considered nonstate funds, but shall not commingled with any funds of the state or be subject to appropriation by the General Assembly.
• JOSH NORBERG

Limits and Unknowns

• This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Official Summary Text

The following summaries of this bill are available:

Print All Summaries

Introduced

Print

SJR 74 - This constitutional amendment, if approved by the voters, provides that, in the event that the General Assembly reduces the rate of income tax for state purposes below the rate of 4.5%, every county in the state shall be authorized to impose an income tax on the residents of such county, provided that the total combined rate of such tax and the state income tax does not exceed 4.5%

The taxable income for the purposes of the county income tax shall be a taxpayer's Missouri taxable income for state purposes, and the Department of Revenue shall perform all functions incident to the administration, collection, enforcement, and operation of the tax.

All taxes collected pursuant to this amendment shall be deposited in the "County Income Tax Trust Fund" and shall be considered nonstate funds, but shall not commingled with any funds of the state or be subject to appropriation by the General Assembly.
JOSH NORBERG

Current Bill Text

SECOND REGULAR SESSION
SENATE JOINT RESOLUTION NO. 74
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BECK.
3874S.02I KRISTINA MARTIN, Secretary
JOINT RESOLUTION
Submitting to the qualified voters of Missouri, an amendment to article X of the Constitution of
Missouri, by adding thereto one new section relating to income taxes.
Be it resolved by the Senate, the House of Representatives concurring therein:
That at the next general election to be held in the 1
state of Missouri, on Tuesday next following the first Monday 2
in November, 2026, or at a special election to be called by 3
the governor for that purpose, there is hereby submitted to 4
the qualified voters of this state, for adoption or 5
rejection, the following amendment to article X of the 6
Constitution of the state of Missouri:7
Section A. Article X, Constitution of Missouri, is amended 1
by adding thereto one new section, to be known as section 27, 2
to read as follows:3
Section 27. 1. (1) In order to ensure the sufficient 1
funding of essential services, in the event that the general 2
assembly reduces the rate of income tax for state purposes 3
below the rate of four and one-half percent, every county 4
shall be authorized to impose a tax on the income of the 5
residents of such county, provided that the total combined 6
rate of such tax plus the rate of the income tax for state 7
purposes shall not exceed four and one-half percent, and 8
further provided that the tax shall not become effective 9
unless the governing body of the county submits to the 10
SJR 74 2
voters of the county at a general election a proposal to 11
impose a tax pursuant to the provisions of this section. 12
(2) For the purposes of the tax imposed pursuant to 13
this section, the county taxable income of a taxpayer shall 14
be equal to the taxpayer's Missouri taxable income for state 15
purposes, and the director of revenue shall perform all 16
functions incident to the administration, collection, 17
enforcement, and operation of such tax. The tax authorized 18
in this section shall be collected and reported upon such 19
forms and under such administrative rules and regulations as 20
may be prescribed by the director of revenue. 21
(3) All county income taxes collected by the director 22
of revenue pursuant to this section on behalf of any county, 23
less one percent for cost of collection which shall be 24
deposited in the state's general revenue fund, shall be 25
deposited in a special trust fund, which is hereby created, 26
to be known as the "County Income Tax Trust Fund". The 27
moneys in the county income tax trust fund shall be 28
considered nonstate funds and shall not be commingled with 29
any funds of the state or be subject to appropriation by the 30
general assembly. The director of revenue shall keep 31
accurate records of the amount of money in the fund. Not 32
later than the tenth day of each month the director of 33
revenue shall distribute all moneys deposited in the trust 34
fund during the preceding month to the county which levied 35
the tax. 36
2. The tax imposed pursuant to this section shall not 37
be subject to the provisions of sections 16 to 24 of this 38
article. 39
3. As used in this section, the term "county" shall 40
mean any county or city not within a county in this state. 41
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