HJR 56 -- Fair Taxation

Sponsor:  Emery

Upon voter approval, this proposed constitutional amendment
replaces the state individual and corporate income tax and state
sales and use tax with a fair sales tax of 5.11% on retail sales
of new tangible personal property and taxable services beginning
January 1, 2012.  The General Assembly, with or without a
recommendation from the Tax Adjustment Commission which is
established in the amendment, can make one rate adjustment to be
effective no later than July 1, 2012, to adjust the amount of
revenue received to make the tax revenue-neutral and to provide
continued funding for programs.  A component part or ingredient
of a new tangible personal property to be sold at retail, federal
government purchases, and business-to-business transactions
including agriculture will be exempt from the new sales tax while
all other exemptions and tax credits will be eliminated.  Any new
exemptions will require a two-thirds affirmative vote by the
General Assembly and approval by the Governor.  The conservation
sales tax, the soil and parks sales tax, and local sales taxes
will be recalculated to produce substantially the same amount of
revenue.  Each qualified family will receive a sales tax rebate
based on the federal poverty level guidelines to offset the sales
tax on basic necessities.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:14 pm