This proposed constitutional amendment would generally prohibit expanding Missouri's sales and use taxes to cover new services or transactions after January 1, 2015. However, it would allow expanding these taxes specifically to fund reductions in the state's individual income tax. Any revenue generated from such tax expansions would not count toward certain constitutional revenue limits. If approved by voters, it would require legislative action to adjust tax policies in line with these rules.
HB 2646 creates a Missouri tax credit for interest paid on new vehicle loans for qualifying cars, SUVs, trucks, or motorcycles assembled in Missouri and purchased after 2025. It directly affects Missouri residents who bought such new vehicles for personal use and paid loan interest, allowing them to claim a credit equal to the interest paid (up to $10,000 per year) against their state income tax. The credit phases out for taxpayers earning over $100,000 ($200,000 for joint filers) and excludes loans for commercial vehicles, leases, salvage-title vehicles, or loans to relatives. The credit expires after 2029 unless renewed by the legislature.
HJR 174 proposes a constitutional amendment that would allow Missouri to eliminate its individual income tax by 2031 if specific revenue targets are met, while requiring the state to offset any revenue lost from this change. It prohibits expanding sales taxes to new services beyond those taxed in 2015 and mandates that local governments reduce other taxes (like property or sales taxes) if they expand the sales tax base to fund income tax elimination. The amendment also requires the state to adjust sales tax rates to maintain historical revenue levels after 2028 and exempts certain tax increases from revenue caps. This is a proposed amendment requiring voter approval, not current law, and does not affect existing tax debts or taxes on businesses, trusts, or estates.
HJR 173 proposes a constitutional amendment to eliminate Missouri's state individual income tax by 2031 if specific revenue goals are met, requiring the legislature to set a tax rate below 1.4% for any tax year starting in 2031 or later. It also restricts expanding sales and use taxes to new services beyond what was taxed as of January 1, 2015, unless the expansion is explicitly tied to reducing the income tax. To offset revenue changes from any tax base expansion, local governments must adjust property taxes, earnings taxes, or sales tax rates by July 1, 2029, without reducing school funding. The amendment further mandates that sales tax rates be adjusted annually to maintain pre-2029 revenue levels, adjusted for inflation. This amendment requires voter approval before taking effect.
HB 2754 modifies Missouri's individual income tax rates. It sets a temporary top tax rate of 4.95% for tax years 2023-2026, replacing the previous structure. After 2026, the top rate permanently drops to 4.7% for all Missouri resident taxpayers. The bill also establishes a mechanism allowing annual 0.1% rate reductions (up to ten times) if state revenue exceeds prior-year levels, effective January 1 of each year. This directly affects Missouri residents filing state income tax returns.
HB 2690 would replace Missouri's individual and corporate income taxes, estate tax, and related deductions with a 5.11% tax on all new retail purchases and services starting in 2028. It requires the state to adjust the tax rate if revenue changes and provides monthly sales tax rebates to qualifying families based on federal poverty guidelines. The bill directly affects all Missouri residents and businesses by shifting tax responsibility from income to consumption. It must be approved by voters in a 2026 referendum to take effect.
HJR 164 proposes a constitutional amendment in Missouri that would prohibit expanding state and local sales/use taxes to cover new services or transactions after January 1, 2015, unless the expansion is specifically intended to reduce or eliminate the state individual income tax. It would allow the legislature to broaden the sales tax base for this purpose and exempt such tax increases from certain revenue requirements and reporting rules. The amendment, if approved by voters, would directly affect Missouri taxpayers and lawmakers by restricting future tax expansions while creating a pathway to replace income tax with sales tax. This proposal requires voter approval in a 2026 election and is not yet law.
HB 2955 creates a Missouri tax credit for businesses and organizations providing services to homeless individuals. Eligible taxpayers (such as job training agencies, employment providers, or housing organizations) can claim up to $10,000 annually in income tax credits for services like job training, employment (28+ hours/week at minimum wage), or housing support specifically for homeless persons. Certification by the Department of Economic Development is required, with annual renewal, and credits are non-refundable but carry forward for up to three years. The total annual credit amount is capped at $1 million. This bill directly affects service providers who meet the certification criteria, not homeless individuals themselves.
HJR 155 proposes replacing Missouri's individual and corporate income taxes and current sales tax with a new 5.11% tax on retail sales of new tangible property and taxable services, effective for tax years beginning January 1, 2028. It would exempt business purchases for resale, operations (including agriculture), and investment property held exclusively for appreciation or income. The bill requires revenue neutrality adjustments if tax revenue falls short of lost income tax revenue, with local tax rates recalculated to maintain previous revenue levels. This constitutional amendment must be approved by Missouri voters in the 2026 general election.
SB 936 reauthorizes a Missouri income tax deduction for contributions to "long-term dignity savings accounts," primarily benefiting individual taxpayers who use these accounts for qualifying expenses. It allows a 100% deduction of contributions up to $4,000 (or $8,000 for married couples filing jointly) from taxable income, with earnings in these accounts exempt from state income tax. The deduction requires taxpayers to verify contributions via an affidavit, and any distributions not used for eligible expenses must be added back to taxable income. The program expires automatically on December 31, 2031, unless reauthorized by the legislature.
