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.

The donation matches the amount a nonprofit gave to the PAC supporting the August ballot measure

Opponents contend the measure would violate a ban on constitutional amendments including more than one subject. They also argue the ballot summary is misleading and should be changed.

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

The Associated Industries of Missouri sees a danger in the state maintaining its budget obligations while transitioning to an expanded sales tax.

Supporters argue getting rid of the tax — which generates $9 billion a year for the state government — would give Missourians more control.

House Majority Leader Alex Riley will likely become Missouri’s speaker of the House after next year’s elections.

In his 2026 State of the State address, Gov. Mike Kehoe said he wants voters to authorize a plan that would phase out the state income tax and allow for taxes on purchases like monthly subscriptions and digital services.

The capital gains tax cut will apply to all gains since Jan. 1 and will be reflected in the income tax returns due in April.