HCS HJR 36 -- FAIR TAXATION (Emery)

COMMITTEE OF ORIGIN:  Committee on Tax Reform

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 can make one adjustment to
the rate after the imposition of the tax 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 2/3 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.

FISCAL NOTE:  Estimated Effect on General Revenue Fund of an
Income of $0 in FY 2010, an Income of $0 or a Cost of More than
$100,000 in FY 2011, and an Income of $0 or a Cost of Unknown in
FY 2012.  No impact on Other State Funds in FY 2010, FY 2011, and
FY 2012.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am