Proposes a constitutional amendment to impose an appropriation spending limitation, implement sales and use tax changes, and establish the "Tax Reform Fund" to be used to fund budgetary shortfalls, subject to an appropriation limitation, and allow for certain taxation changes based on revenue triggers, by general law
HJR 76 is a proposed constitutional amendment that would make several major changes to Missouri’s budget and tax structure. It would repeal and replace existing Article X provisions governing state revenue, create a new spending limit on the General Assembly’s appropriations authority, and establish a “Tax Reform Fund” in the state treasury. The fund would receive excess general revenue above a $1 million annual surplus threshold beginning in fiscal years starting on or after July 1, 2027, and could be used to help cover budget shortfalls under specified conditions.
The resolution also sets out a revenue-triggered path to reduce Missouri’s personal income tax and, eventually, the corporate income tax. Once the Tax Reform Fund reaches certain balance thresholds, the General Assembly would be required to authorize incremental income tax reductions by general law, with reductions continuing until the personal income tax is eliminated and then the corporate income tax is reduced to zero. The bill further directs that, after both taxes are eliminated, the fund would continue to be used only for budget shortfalls following years in which tax reductions were enacted. It also requires the Department of Revenue to implement and review the reduction triggers and authorizes the legislature to pass additional laws needed to carry out the amendment.
HJR 76 would also significantly alter Missouri’s sales tax rules. It would cap the statutorily imposed state sales tax rate at an equivalent of 3.775% and tie that cap to the passage of a bill authorizing sales or use tax on services not previously taxed as of January 1, 2015. In addition, it would impose a new 6% state sales tax on lobbying services. The resolution’s ballot language also states that it would repeal the constitutional prohibition on new sales and use taxes, indicating a broader change to the state’s authority to tax services and transactions.
If adopted, the measure would amend the Missouri Constitution and affect the state’s revenue, appropriations, income tax, corporate tax, and sales tax statutes and practices. It would constrain future spending growth, create a dedicated reserve mechanism for tax cuts and budget stabilization, and require implementing legislation and administrative action from the General Assembly and Department of Revenue. The proposal would also affect taxpayers, businesses, and service providers, especially those subject to income tax, sales tax, or lobbying-service taxation.
No committee transcript or recorded votes were provided, so there is no documented floor or committee debate to gauge sentiment. Based on the bill’s structure, it appears to reflect a strong tax-cut and spending-restraint approach, but the absence of discussion and voting history means there is no direct evidence of support, opposition, or specific concerns in the available record.
HJR 76 would amend the Missouri Constitution by repealing existing Article X sections on state revenue and replacing them with new provisions that impose an appropriations spending limit, create the Tax Reform Fund, and authorize revenue-triggered income tax reductions. It would also alter the state’s sales tax framework by capping the statutory state sales tax rate, adding a sales tax on lobbying services, and signaling repeal of the constitutional restriction on expanding sales and use taxes. The measure would require implementing laws and administrative procedures from the General Assembly and Department of Revenue, and it would affect state budgeting, tax collection, and future tax policy for individuals, corporations, and certain service providers.
No committee transcripts or vote history were provided, so there is no recorded legislative sentiment to summarize. On its face, the resolution is framed around tax reduction, spending restraint, and budget stabilization, suggesting support from lawmakers favoring lower taxes and tighter fiscal limits. At the same time, the proposal’s broad restructuring of revenue policy would likely draw scrutiny from legislators concerned about budget flexibility, revenue adequacy, and the effects of automatic tax cuts.
The main points of contention are likely to be the strict spending cap, the automatic revenue-triggered tax cuts, and the long-term elimination of the personal and corporate income taxes. Critics may object that the formula could reduce fiscal flexibility or create budget pressure during downturns, while supporters may argue it disciplines spending and returns surplus revenue to taxpayers. The proposal to cap sales tax and tax lobbying services, along with the apparent repeal of limits on new sales and use taxes, could also be controversial among businesses, tax policy advocates, and local government interests.