HB 814 -- Fair Tax Act of 2009

Sponsor:  Emery

This bill establishes the Fair Tax Act of 2009 which replaces the
state individual and corporate income tax and the estate tax with
a fair tax based on all new retail sales and services.  Beginning
January 1, 2011, the individual and corporate income tax and
estate tax will be replaced with the fair tax at a rate of 5.11%.
The General Assembly can make one adjustment to the rate after
its imposition to make the fair tax revenue-neutral and to
provide continued funding for programs.  Sales tax exemptions
will be eliminated, and tax credits will be phased out.  Each
family will receive a monthly sales tax rebate 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 9:25 am