FIRSTREGULARSESSION
HOUSEBILLNO.821
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECHAPPELL.
1666H.01I JOSEPHENGLER,ChiefClerk
ANACT
Toamendchapter144,RSMo,byaddingtheretoonenewsectionrelatingtothefairtaxactof
2025,withareferendumclause.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter144,RSMo,isamendedbyaddingtheretoonenewsection,tobe
2knownassection144.001,toreadasfollows:
144.001.1.Thissectionshallbeknownandmaybecitedasthe"FairTaxActof
22025".
3 2.ForalltaxyearsbeginningonorafterJanuary1,2028,notaxshallbe
4imposeduponanyincomederivedfromanysourcewithinthisstate,andallrevenues
5lostasaresultoftheprohibitiononthetaxationofincomeunderthissectionshallbe
6replacedbythelevyandimpositionofataxuponalluseorconsumptionoftaxable
7propertyorservicesinthisstate.Therateofsuchtaxshallbefiveandelevenone-
8hundredthspercent.Thegeneralassemblymayenactoneadjustmentafterthe
9impositionofsuchtaxiftherevenuelostasaresultoftheprohibitiononthetaxationof
10incomeisgreaterthanorlessthantherevenuereceivedfromthetaximposedunderthis
11section.Suchadjustmentshallbecalculatedtoensurethattheamountofrevenue
12receivedisequaltotheamountofrevenuelostunderthissection.
13 3.Thetaxesthatshallbereplacedunderthissectionareasfollows:
14 (1)Withholdingtaxesandindividualandcorporateincometaxation;
15 (2)Corporationfranchiseandbankfranchisetaxes;
16 (3)Alltaxexemptionsanddeductionsrelatedtoincomeandsalestaxes;
17 (4)Theestatetax;and
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (5)Allotherstatetaxesonanysourceofincome.
19 4.Thedepartmentofrevenueshalldetermineamethodforprovidingamonthly
20salestaxrebateforeachqualifiedfamily.Thesalestaxrebateshallbedistributedto
21eachqualifiedfamilyonorbeforethefirstbusinessdayofthemonthforwhichthesales
22taxrebateisbeingprovided.Theamountofthesalestaxrebateshallbedetermined
23annuallyandbeequaltotheproductoftherateofsalestaxestablishedunderthis
24sectionandone-twelfthoftheannualpovertyguidelinesupdatedperiodicallyinthe
25FederalRegisterbytheU.S.DepartmentofHealthandHumanServicesunderthe
26authorityof42U.S.C.269902(2),asamended.
27 5.Thedepartmentofrevenuemaypromulgateallnecessaryrulesand
28regulationsfortheadministrationofthissection.Anyruleorportionofarule,asthat
29termisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
30sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
31provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
32536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
33pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
34arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
35andanyruleproposedoradoptedaftertheeffectivedateofthissectionshallbeinvalid
36andvoid.
SectionB.SectionAofthisactisherebysubmittedtothequalifiedvotersofthisstate
2forapprovalorrejectionatanelectionwhichisherebyorderedandwhichshallbeheldand
3conductedonTuesdaynextfollowingthefirstMondayinNovember,2026,underthe
4applicablelawsandconstitutionalprovisionsofthisstateforthesubmissionofreferendum
5measuresbythegeneralassembly,andthisactshallbecomeeffectivewhenapprovedbya
6majorityofthevotescastthereonatsuchelectionandnototherwise.
SectionC.Pursuanttochapter116,andotherapplicableconstitutionalprovisionsand
2lawsofthisstateallowingthegeneralassemblytoadoptballotlanguageforthesubmissionof
3thisacttothevotersofthisstate,theofficialsummarystatementofthisactshallbeas
4follows:
5 "ShalltheMissouristatutesbeamendedtoeliminateindividualandcorporateincome
6taxandestatetax,andtoenactasingle,revenue-neutralsalestaxoffiveandelevenone-
7hundredthspercentonnewpurchasesofgoodsandservices,andtoprovideeachfamilywith
8amonthlysalestaxrebate?".
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HB821 2