The Missouri House of Representatives has approved a proposal to restructure the state’s tax system by reducing or replacing income taxes and expanding sales taxes to include services and digital goods.The measure passed 98-54 and now heads to the Missouri Senate. If approved there, the proposal would go before voters on a statewide ballot. The measure would ask voters to grant the next General Assembly authority to implement the new sales taxes.
Under the proposal, the Missouri Constitution would be amended to phase out the individual income tax based on revenue growth, reduce personal property and other local tax rates, modernize sales and use taxes, and protect funding for public schools.
A recent poll from Saint Louis University and YouGov found 52% of likely Missouri voters support a system that relies more on sales taxes than income taxes.
The plan has drawn opposition from some small business owners, advocacy groups and at least one Republican lawmaker, who argue the shift could increase costs for families and certain services.
Income taxes currently make up about 60% of Missouri’s general revenue, which funds state operations after designated allocations are made.
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