Modifies provisions relating to taxation
SJR 56 is a proposed constitutional amendment that would substantially restructure Missouri’s tax system beginning in 2028, with additional changes phased in through 2030. It repeals the current constitutional provisions governing state income taxation and sales/use taxation, replaces them with a new framework for a broad state sales-and-services tax, and limits or eliminates the state’s ability to tax individual income over time. Under the proposal, the state could impose a sales-and-services tax on most transactions, with numerous specified exemptions, and the amendment also directs how existing state tax rates and local tax bases would be recalculated to preserve revenue levels.
The resolution also changes local taxation rules. It would void many local sales-tax exemptions and require counties and other political subdivisions to adopt recalculated rates intended to generate roughly the same revenue as before, while capping the cumulative sales-tax burden and setting conditions for any higher local rates. In addition, it revises the constitution’s homestead/property-tax relief language to create a targeted property tax credit for eligible seniors, with state reimbursement to local governments for most of the credit amount.
If adopted, SJR 56 would amend Article X of the Missouri Constitution and override conflicting statutes and local ordinances to the extent they relate to income tax, sales tax, and certain property-tax relief provisions. It would eliminate the state income tax on individuals by 2030, cap the state income tax before repeal, and replace much of the current sales-tax structure with a constitutionally mandated tax on sales and services, subject to extensive exemptions. The measure would also require the Department of Revenue and the General Assembly to recalculate state and local tax rates and create procedures for appeals and later adjustments. Local governments, school funding mechanisms, taxpayers, and businesses in exempt and taxable service categories would all be affected, as would senior homeowners eligible for the new property-tax credit.
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the available record shows no formal legislative sentiment data. The proposal itself reflects a strong tax-cut and tax-restructuring approach, especially through the eventual repeal of the individual income tax and the shift toward a broader sales-and-services tax. Its design suggests an intent to simplify and broaden the tax base while preserving revenue, but the lack of discussion or voting history means there is no documented support or opposition in the supplied context.
The most likely points of contention are the elimination of the individual income tax, the expansion of sales taxation to services, and the impact on local governments and school funding. Critics could object to taxing services that are currently exempt, the complexity of recalculating rates, and the potential regressivity of a broader sales tax, while supporters may emphasize the income-tax repeal and the preservation of revenue neutrality. Another likely issue is the senior property-tax credit, which is limited by age, income, and home value and requires state reimbursement to local governments, raising questions about eligibility, administrative burden, and fiscal cost. The amendment’s many exemptions and special rules for local tax rates, food, and certain industries could also draw scrutiny from affected businesses and taxing jurisdictions.