FIRSTREGULARSESSION
HOUSEJOINT
RESOLUTION NO.1
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEDAVIDSON.
1138H.01I DANARADEMANMILLER,ChiefClerk
JOINTRESOLUTION
SubmittingtothequalifiedvotersofMissourianamendmentrepealingSections20and26of
ArticleXoftheConstitutionofMissouri,andadoptingthreenewsectionsinlieu
thereofrelatingtostaterevenue.
BeitresolvedbytheHouseofRepresentatives,theSenateconcurringtherein:
ThatatthenextgeneralelectiontobeheldinthestateofMissouri,onTuesdaynext
2followingthefirstMondayinNovember,2026,orataspecialelectiontobecalledbythe
3governorforthatpurpose,thereisherebysubmittedtothequalifiedvotersofthisstate,for
4adoptionorrejection,thefollowingamendmenttoArticleXoftheConstitutionofthestateof
5Missouri:
SectionA.Sections20and26,ArticleX,ConstitutionofMissouri,arerepealedand
2threenewsectionsadoptedinlieuthereof,tobeknownasSections20,20(a),and26,toread
3asfollows:
Section20.1.Noexpensesofstategovernmentshallbeincurredinanyfiscalyear
2whichexceedthesumoftherevenuelimitestablishedinsections18and19ofthisarticle
3plusfederalfundsandanysurplusfromapreviousfiscalyear.
4 2.(1)TheappropriationauthorityofthegeneralassemblyunderSection36of
5ArticleIIIofthisconstitutionshallbelimitedasprovidedunderthissubsection.The
6totalamountofmoneysavailableforappropriationeachfiscalyearshallbelimitedas
7follows:
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 8 (a)Ifthepopulationofthestateincreasedinthemostrecentfullcalendaryear
9bymorethanonepercentfromthecalendaryearimmediatelyprecedingsuchcalendar
10year,thegeneralassemblyshallhaveaspendinglimitequaltoonehundredpercentof
11themostrecentyear'sappropriationinwhichnoappropriationismadeunder
12subsection3ofthissectionplusthepercentageofthestatepopulationincrease,which
13shallbeappliedasthepercentofthetotalmoneysavailableforappropriation;
14 (b)Ifthepopulationofthestateincreasedinthemostrecentfullcalendaryear
15byonepercentorlessfromthecalendaryearimmediatelyprecedingsuchcalendaryear,
16thegeneralassemblyshallhaveaspendinglimitequaltoonehundredandonepercent
17ofthemostrecentyear'sappropriationinwhichnoappropriationismadeunder
18subsection3ofthissection;or
19 (c)Ifthepopulationofthestatedecreasedinthemostrecentfullcalendaryear,
20thegeneralassemblyshallhaveaspendinglimitequaltoonehundredpercentofthe
21mostrecentyear’sappropriationinwhichnoappropriationismadeundersubsection3
22ofthissectionminusthepercentageofthestatepopulationdecrease.
23 (2)Whencalculatingthespendinglimitationontheappropriationauthorityof
24thegeneralassemblyasprovidedunderthissubsection,alldeductions,exemptions,
25credits,andothertaxpreferencesissuedinthepreviousfiscalyearshallbeincludedin
26thecalculationofthespendinglimitation.
27 3.(1)Thespendinglimitationontheappropriationauthorityofthegeneral
28assemblyundersubsection2ofthissectionmayberaisedifthefollowingconditionsare
29met:
30 (a)Thegovernorrequeststhegeneralassemblytoapproveandauthorizean
31appropriation;and
32 (b)Thegeneralassemblyapprovestherequestinaccordancewiththespecifics
33ofthegovernor'srequestbyatwo-thirdsvoteofthememberselectedtoandservingin
34eachhouse.
35 (2)Oncetheconditionsundersubdivision(1)ofthissubsectionaremet,the
36spendinglimitationontheappropriationauthorityofthegeneralassemblyshallbe
37equaltoonehundredtwopercentofthepreviousyear'sappropriation.Thisone-
38hundred-two-percentlimitshallremainineffectuntilthegovernor'sappropriation
39requestisrescindedoruntiltwelvemonthshavepassedsincetherequestwasmade,
40whicheveroccursfirst.
Section20(a).1.(1)Thereisherebyestablishedwithinthestatetreasuryafund
2tobeknownasthe"TaxReformFund",whichshallconsistofmoneyscollectedunder
3subsection2ofthissection.Moneysinthefundshallbekeptinasingularaccounttobe
4expendedpursuanttoappropriationbythegeneralassemblyiftheconditionsunder
HJR1 2 5subsection3ofthissectionaremetandusedsolelyforthepurposeofsupplementinga
6fullfiscalyearbudgetaryshortfallasdescribedundersubsection3ofthissectionand
7fornootherpurpose.
8 (2)Thestatetreasurershallinvestmoneysinthefundinthesamemanneras
9otherfundsareinvested.Anyinterestandmoneysearnedonsuchinvestmentsshallbe
10creditedtothefund.
11 (3)Subjecttotheprovisionsofsubsection3ofthissection,theunexpended
12balanceinthetaxreformfundatthecloseofanyfiscalyearshallremaininthefund.
13 2.(1)ForallfiscalyearsbeginningonorafterJuly1,2027,iftheamountofnet
14generalrevenuecollected,asdefinedunderSection27(a)ofArticleIVofthis
15constitution,exceedstheanticipatedgeneralfundrevenueexpendituresforafiscalyear
16byonemilliondollarsormore,eachfiscalyearthatsuchsurplusisrealized,such
17surplusinexcessofonemilliondollarsshallbedepositedintothetaxreformfund.
18 (2)Inasubsequentyearwhereasurplusofonemilliondollarsormoreis
19realized,ifthetaxreformfundreachesandmaintainsaminimumbalancethatis
20greaterthanorequaltoonehundredtwentymilliondollars,thegeneralassemblyshall
21authorizebygenerallawapersonalincometaxdecreasetriggerofone-tenthofone
22percentorgreater.Ifthebalanceofthetaxreformfundexceedsonehundredtwenty
23milliondollars,thegeneralassemblyshallauthorizebygenerallawadditionalpersonal
24incometaxdecreasesinanamountequaltoorgreaterthanone-twentiethofonepercent
25foreverysixtymilliondollarsoveronehundredtwentymilliondollarsinthetaxreform
26fund.Thereshallbenocaponthenumberofreductionsauthorizedunderthis
27subdivisionandsuchdecreasesshallremainineffectuntilthepersonalincometaxis
28reducedtozero.
29 (3)Uponthereductionandeliminationofthepersonalincometax,thegeneral
30assemblyshallutilizethetaxreformfundtograduallyreduceandeliminatethe
31corporateincometax.
32 (4)Afterbothpersonalincometaxesandcorporateincometaxeshavebeen
33reducedtozero,thetaxreformfundshallcontinuetocollectrevenueandshallbeused
34onlytosupplementbudgetshortfallsasdescribedundersubsection3ofthissection
35followingfiscalyearswherethegeneralassemblyenactedataxreduction.
36 (5)Afterpersonalincometaxisreducedtozero,itshallremainatzero.
37 (6)Aftercorporateincometaxisreducedtozero,itshallremainatzero.
38 (7)Thegeneralassemblymayappropriatefundstothecreditofthetaxreform
39fund.
40 3.Ifthestateexperiencesabudgetaryshortfallinthenextfiscalyear
41immediatelysucceedingtheimplementationofapersonalincometaxdecrease,thetax
HJR1 3 42reformfundmaybeusedduringtheimmediatelysucceedingappropriationperiodto
43supplementareasofnecessaryfundingintheorderofthegeneralassembly'sauthorized
44appropriationspriorityforthenextfiscalyear'sbudget.Themoneysfromthefundthat
45maybeusedforsuchsupplementalfundingshallbeinanamountnottoexceedthe
46lesserofthatyear’sbudgetaryshortfallorsixtymilliondollarsforeveryone-twentieth
47ofonepercentdecreasefromthepersonalincometaxfromthepreviousyear.
48 4.(1)Subjecttotheenactmentofapersonalincometaxdecreasetriggerby
49generallawasprovidedundersubdivision(2)ofsubsection2ofthissection,iftheone-
50million-dollarsurplustriggerundersubdivision(2)ofsubsection2ofthissectionwas
51realizedinthepreviousfiscalyear,thepersonalincometaxdecreasetriggershallbe
52implementedbythedepartmentofrevenuetotakeeffectonJanuaryfirstofthe
53calendaryearimmediatelyfollowingthecloseofthefiscalyearinwhichtheone-million-
54dollarsurplusamountwasrealized.
55 (2)Thedepartmentofrevenueshallimplementanannualprocesstoreviewand
56reportfuturereductionconditionsatthesametimeandinthesamemannerasunder
57chapter143.
58 5.Thegeneralassemblyshallenactsuchlawsasmaybenecessarytocarryout
59theprovisionsofthissection.
Section26.[Inordertoprohibitanincreaseinthetaxburdenonthecitizensof
2Missouri,stateandlocalsalesandusetaxes(oranysimilartransaction-basedtax)shallnotbe
3expandedtoimposetaxesonanyserviceortransactionthatwasnotsubjecttosales,useor
4similartransaction-basedtaxonJanuary1,2015] 1.(1)Thetotalamountofstatesalestax
5imposedbygenerallaw,excludinganyadditionalsalestaximposedunderthis
6constitution,shallbecappedandtherateofsalestaxshallbeataxequivalenttothree
7andsevenhundredseventy-fivethousandthspercent,leviedandimposeduponallsellers
8fortheprivilegeofsellingtangiblepersonalpropertyorrenderingtaxableservicesat
9retailinthisstateuponthesalesandservicesthatnowareorhereafterarelistedandset
10forthin,andexceptastotheamountoftax,subjecttotheprovisionsofandtobe
11collectedasprovidedinthe"SalesTaxLaw"andsubjecttotherulesandregulations
12promulgatedinconnectiontherewith.
13 (2)Theprovisionsofsubdivision(1)ofthissubsectionshallbecomeeffective
14uponthepassagebythegeneralassemblyandapprovalbythegovernorofanybill
15authorizingthestatutoryimpositionofastatesalesorusetaxonanyservicethatwas
16notsubjecttosales,use,orsimilartransaction-basedtaxonJanuary1,2015.The
17reductionintherateoftaxundersubdivision(1)ofthissubsectionshalltakeeffecton
18theimmediatelysucceedingJanuaryfirst,followingthepassageandapprovalofsuch
19bill.
HJR1 4 20 2.Anadditionalstatesalestaxisleviedfortherenderingoflobbyingservicesin
21thisstate.Thetaxshallbeatarateequivalenttosixpercent.
SectionB.Pursuanttochapter116,andotherapplicableconstitutionalprovisionsand
2lawsofthisstateallowingthegeneralassemblytoadoptballotlanguageforthesubmissionof
3thisjointresolutiontothevotersofthisstate,theofficialsummarystatementofthis
4resolutionshallbeasfollows:
5 "ShalltheMissouriConstitutionbeamendedto:
6 •Createa"TaxReformFund",whichwoulduseexcessrevenuetoreduceand
7graduallyeliminateMissouriincometaxes;
8 •ImposeanannualspendinglimitontheMissouriGeneralAssembly;
9 •Capthestatutorystatesalestaxrate;
10 •Imposeasalestaxonlobbyingservices;and
11 •Repealtheprohibitiononcertainnewsalesandusetaxes?".
✔
HJR1 5