HB 318 -- Elimination of Income Tax

Sponsor:  Kelly

This bill requires the Department of Revenue to submit a report
to the General Assembly by January 1, 2011, with recommendations
for specific methods for replacing the state individual and
corporate income tax and the estate tax with a fair tax based on
all new retail sales and services.  The income tax will be
replaced beginning January 1, 2012, with the new
department-proposed sales tax.  Sales tax exemptions will be
eliminated, and tax credits will be phased-out as the fair tax
rate is adjusted to provide continued funding for programs.  Each
sales tax collector and the department will be allowed to retain
one-fourth of 1% of the amount collected.  Each family will
receive a monthly sales tax rebate adjusted annually based on the
number of members in the family and the federal poverty level
guidelines to offset the sales tax on basic necessities.

The bill contains a referendum clause and will be submitted to
qualified voters in November 2009.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am