Missouri 2025 Regular Session

Missouri Senate Bill SJR31

Introduced
1/8/25  

Caption

Modifies provisions relating to taxation

Summary

SJR31 is a proposed constitutional amendment that would make major changes to Missouri’s tax and budget structure. Beginning January 1, 2027, it would eliminate the state personal income tax. It would also impose new constitutional limits on state spending, tying the General Assembly’s appropriation authority to population growth and requiring supermajority votes to exceed those limits or suspend them entirely. The resolution creates several new funds to manage surplus revenue. If general revenue collections exceed anticipated expenditures by at least $1 million, half of the surplus would go to a Tax Reform Fund and half to a Budget Responsibility Fund. The Tax Reform Fund would first be used to reduce the state sales tax rate, eventually capping it at 4%, and then to reduce and eliminate the corporate income tax. Any remaining balance would be transferred to a Strategic Gold & Silver Reserve Fund. That reserve fund would be used only to buy and store gold and silver in Missouri, with restrictions on sale, transfer, or use as collateral. The measure also adds a 6% state sales tax on lobbying services and directs the legislature to enact implementing laws.

Impact

If adopted, the amendment would repeal and replace existing constitutional provisions in Article X governing taxation and spending. It would remove the personal income tax from the Missouri Constitution, cap state sales tax rates, prohibit expansion of sales and use taxes to services not taxed as of January 1, 2015, and add a new tax on lobbying services. It would also substantially constrain future appropriations by the General Assembly and redirect surplus revenues into constitutionally created funds for tax reduction, budget stabilization, and precious-metals reserves, affecting taxpayers, state agencies, and the legislature’s budget authority.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate tone or final legislative support in the materials supplied. Based on the text alone, the resolution appears strongly tax-cutting and budget-restrictive, suggesting support from lawmakers favoring lower taxes, spending limits, and fiscal restraint. At the same time, the breadth of the changes indicates the measure would likely draw significant scrutiny because it restructures core revenue sources and state budgeting rules.

Contention

The most likely points of contention are the elimination of the personal income tax, the strict spending cap, and the use of surplus funds to buy gold and silver rather than for general government needs. Another likely dispute is the new 6% tax on lobbying services, which may be seen as unusual or targeted. The measure’s restrictions on expanding sales and use taxes, along with the eventual cap on the state sales tax rate and the phaseout of the corporate income tax, could also be controversial among those concerned about revenue stability and the state’s ability to fund services.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.