Missouri House Bill HJR155

Missouri 2026 Regular Session

• Introduced: 1/7/26

Caption

Proposes a constitutional amendment replacing individual and corporate income tax and sales and use tax with a sales tax on retail sales of new tangible property and taxable services

Impact

If adopted, HJR155 would fundamentally alter how the state generates revenue. It is designed to replace existing varied tax structures with a singular sales tax, which could lead to increased efficiency in tax collection. Proponents argue that this new tax model would stimulate economic growth by relieving taxpayers of income and corporate taxes, thereby encouraging spending and investment. However, this approach has raised concerns about its long-term implications for revenue stability and adequacy, especially in critical areas such as education and public services that traditionally rely heavily on existing income taxes.

Summary

HJR155 proposes a significant constitutional amendment aimed at restructuring the state's taxation system by eliminating both individual and corporate income taxes as well as sales and use taxes. Instead, it recommends the implementation of a new sales tax specifically targeting retail sales of new tangible property and certain taxable services. This shift seeks to create a more streamlined tax framework that potentially enhances predictability for both businesses and consumers, as it simplifies the overall tax compliance landscape.

Contention

Opposition to HJR155 stems from fears of potential inequities created by its implementation. Critics emphasize that sales taxes tend to disproportionately affect lower-income individuals and families, who spend a larger share of their income on taxable goods and services compared to wealthier individuals. Furthermore, there are apprehensions regarding the proposed amendment's impact on local governments, which often depend on various types of tax revenue for services and infrastructure. The debate centers around balancing economic incentives with the need for fair and sustainable funding for essential public services.