HJR 173

                                SECOND REGULAR SESSION
                      [TRULY AGREED TO AND FINALLY PASSED]
                                 SENATE SUBSTITUTE FOR
                         SENATE COMMITTEE SUBSTITUTE FOR
                         HOUSE COMMITTEE SUBSTITUTE FOR
                 HOUSE JOINT
            RESOLUTION NOS. 173 & 174
                          103RD GENERAL ASSEMBLY
6854S.13T  2026
                                 JOINT RESOLUTION
Submitting to the qualified voters of Missouri an amendment repealing Sections 4(d) and 26
      of Article X of the Constitution of Missouri, and adopting two new sections in lieu
      thereof relating to taxation.
Be it resolved by the House of Representatives, the Senate concurring therein:
        That at the next general election to be held in the state of Missouri, on Tuesday next
2 following the first Monday in November, 2026, or at a special election to be called by the
3 governor for that purpose, there is hereby submitted to the qualified voters of this state, for
4 adoption or rejection, the following amendment to Article X of the Constitution of the state of
5 Missouri:
        Section A. Sections 4(d) and 26, Article X, Constitution of Missouri, are repealed and
2 two new sections adopted in lieu thereof, to be known as Sections 4(d) and 26, to read as
3 follows:
        Section 4(d). 1. In enacting any law imposing a tax on or measured by income, the
2 general assembly may define income by reference to provisions of the laws of the United
3 States as they may be or become effective at any time or from time to time, whether
4 retrospective or prospective in their operation. The general assembly shall in any such law set
5 the rate or rates of such tax. The general assembly may in so defining income make
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
SS SCS HCS HJRs 173 & 174  2
6 exceptions, additions, or modifications to any provisions of the laws of the United States so
7 referred to and for retrospective exceptions or modifications to those provisions which are
8 retrospective.
92. Notwithstanding any provision of this constitution to the contrary, the general
10 assembly shall enact legislation to reduce and eliminate the state individual income tax
11 by requiring reductions to the top rate of the individual income tax based on revenue
12 growth until such tax is eliminated. Upon the elimination of the individual income tax,
13 the general assembly shall be prohibited from enacting or imposing any state individual
14 income tax.
         Section 26. 1. In order to prohibit an increase in the tax burden on the citizens of
2 Missouri, state and local sales and use taxes (or any similar transaction-based tax) shall not be
3 expanded to impose taxes on any service or transaction that was not subject to sales, use or
4 similar transaction-based tax on January 1, 2015.
52. (1) Notwithstanding any provision of this constitution to the contrary,
6 including subsection 1 of this section, for the purpose of reducing and eliminating the
7 state individual income tax and reducing local tax rates, state and local sales and use
8 taxes (or any similar transaction-based tax) may be expanded by legislation to impose
9 taxes on transactions involving any goods and services. For the purposes of this section,
10 the phrase "for the purpose of reducing and eliminating the state individual income tax
11 and reducing local tax rates", with respect to legislation enacted by the general
12 assembly, means that the legislation expressly states the general assembly's finding that
13 such legislation will directly lead to the reduction and elimination of the state individual
14 income tax as provided in subdivision (2) of this subsection, and will directly or
15 indirectly lead to the reduction of local tax rates as provided in subsection 3 of this
16 section.
17(2) Any expansion of the sales and use tax base or increase in the state sales and
18 use tax rate enacted for the purpose of reducing and eliminating the state individual
19 income tax and reducing local tax rates shall be offset in the same legislation by a
20 reduction in the top rate of individual income tax that reduces such tax revenues, less
21 refunds, by an amount that is at least substantially equal to revenues generated by such
22 expansion of the sales and use tax base or increase in the state sales and use tax rate,
23 and, if such legislation is enacted within five years of the effective date of this
24 amendment, shall not be considered new annual revenue for the purposes of Section 18
25 (e) of this Article and shall be exempt from the provisions of Article IV, Sections 30(b),
26 30(c), and 30(d) of this Constitution.
273. (1) Notwithstanding any provision of this constitution to the contrary,
28 beginning twelve months from the effective date for legislation in which the general
SS SCS HCS HJRs 173 & 174  3
29 assembly expands the sales and use tax base pursuant to subsection 2 of this section, any
30 political subdivision that imposes a sales or use tax shall, in the manner provided by law
31 enacted by the general assembly, make a one-time adjustment to one or more of the
32 following rates of tax imposed by the political subdivision to reduce the amount of
33 revenue generated thereby in an amount that is substantially equal to ninety-seven
34 percent of the additional revenue produced by any expansion of the sales and use tax
35 base authorized by this section:
36(a) The sales and use tax rate;
37(b) The levy imposed on property in class 2;
38(c) The levy imposed on property in subclass (1) of class 1;
39(d) The levy imposed on all class 1 property if such political subdivision imposes
40 a single rate of levy on all such property; or
41(e) The rate of any tax imposed on earnings.
42(2) Notwithstanding the provisions of subdivision (1) of this subsection to the
43 contrary, no political subdivision shall adjust its local tax rates in a manner that results
44 in any reduction in funding to any public schools within, or serving, such political
45 subdivision.
464. Notwithstanding any provision of this constitution to the contrary, beginning
47 twelve months from the effective date for legislation in which the general assembly
48 expands the sales and use tax base pursuant to subsection 2 of this section, each sales
49 and use tax rate imposed directly by this constitution, with the exception of the rate
50 imposed under Article XIV of this Constitution, shall, in the manner provided by law
51 enacted by the general assembly, be adjusted in order to reduce the amount of tax in an
52 amount substantially equal to the amount of tax produced by any sales and use tax base
53 expansion authorized by this section. The state auditor shall be responsible for
54 calculating the reduced rates that will go into effect as provided in this subsection.
         Section B. Pursuant to chapter 116, and other applicable constitutional provisions and
2 laws of this state allowing the general assembly to adopt ballot language for the submission of
3 this joint resolution to the voters of this state, the official summary statement of this
4 resolution shall be as follows:
5"Shall the Missouri Constitution be amended to:
6● Phase-out the individual income tax based on revenue growth;
7● Reduce personal property and other local taxes when local revenues increase;
8● Modify the sales and use tax to eliminate income tax and reduce local taxes; and
9● Protect local funding for public schools and other purposes?".
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