Income Tax

Missouri voters in August will decide whether to approve a proposed constitutional amendment allowing for the expansion of sales and use taxes in order to eliminate the income tax.

Plaintiffs argue that the proposal, known as Amendment 5, violated constitutional prohibitions on addressing more than one subject. They plan to appeal the ruling.

Kehoe also said he doesn't plan on calling any special sessions including on drawing another new congressional map.

The GOP governor said he's ready to sell his plan to expand sales and use taxes as a way to eliminate Missouri's income tax to voters.

The proposed constitutional amendment gives lawmakers five years to expand transaction-based taxes to make up for revenue lost by eliminating the state income tax.

The resolution now goes back to the Missouri House. If the House passes the Senate version, it will appear on a ballot in a future election.

Missouri's legislature is debating a proposal that would gradually eliminate the state's income tax and allow the legislature to hike or expand sales taxes. Economists warn it could add a financial burden to people who can least afford it —and mean less money for schools and transit.

The fiscal note for the proposed income tax resolution indicates billions of lost revenue if sales taxes are not raised.

Organizers are raising concerns that Missouri lawmakers' plan to eliminate the state's income tax will raise costs for lower-income residents and lessen state funding for schools, roads and senior services.

Lawmakers are leaving Jefferson City for a week having sent a total of four bills to Gov. Mike Kehoe's desk, one more than last year at this point.