FIRSTREGULARSESSION
HOUSEJOINT
RESOLUTION NO.50
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECHAPPELL.
1728H.01I JOSEPHENGLER,ChiefClerk
JOINTRESOLUTION
SubmittingtothequalifiedvotersofMissourianamendmentrepealingSection4(d)ofArticle
XoftheConstitutionofMissouri,andadoptingonenewsectioninlieuthereof
relatingtotaxation.
BeitresolvedbytheHouseofRepresentatives,theSenateconcurringtherein:
ThatatthenextgeneralelectiontobeheldinthestateofMissouri,onTuesdaynext
2followingthefirstMondayinNovember,2026,orataspecialelectiontobecalledbythe
3governorforthatpurpose,thereisherebysubmittedtothequalifiedvotersofthisstate,for
4adoptionorrejection,thefollowingamendmenttoArticleXoftheConstitutionofthestateof
5Missouri:
SectionA.Section4(d),ArticleX,ConstitutionofMissouri,isrepealedandonenew
2sectionadoptedinlieuthereof,tobeknownasSection4(d),toreadasfollows:
Section4(d).1.Inenactinganylawimposingataxonormeasuredbyincome,the
2generalassemblymaydefineincomebyreferencetoprovisionsofthelawsoftheUnited
3Statesastheymaybeorbecomeeffectiveatanytimeorfromtimetotime,whether
4retrospectiveorprospectiveintheiroperation.Thegeneralassemblyshallinanysuchlawset
5therateorratesofsuchtax.Thegeneralassemblymayinsodefiningincomemake
6exceptions,additions,ormodificationstoanyprovisionsofthelawsoftheUnitedStatesso
7referredtoandforretrospectiveexceptionsormodificationstothoseprovisionswhichare
8retrospective.
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 9 2.(1)ForalltaxyearsbeginningonorafterJanuary1,2028,notaxshallbe
10imposeduponanyincomederivedfromanysourcewithinthisstate,andallrevenues
11lostasaresultoftheprohibitiononthetaxationofincomeunderthissectionshallbe
12replacedbythelevyandimpositionofataxuponallsales,use,orconsumptionofall
13newtangiblepersonalproperty,rentalproperty,ortaxableservicesinthisstate,except
14forsuchpropertysoldtothefederalgovernmentorpurchasedtobeacomponentpart
15oringredientofthenewtangiblepersonalpropertytobesoldatretail.
16 (2)Notaxshallbeimposedunderthissubsectiononanytaxablepropertyor
17servicepurchasedforabusinesspurposeinatradeorbusiness,includingagriculture,
18orpurchasedforaninvestmentpurposeandheldexclusivelyforaninvestmentpurpose.
19Forthepurposesofthissubdivision,thefollowingtermsmean:
20 (a)"Purchasedforabusinesspurposeinatradeorbusiness",purchasedbya
21personengagedinatradeorbusinessandusedinthattradeorbusinessforresale,to
22produce,provide,render,orselltaxablepropertyorservices,orinfurtheranceofother
23bonafidebusinesspurposes;
24 (b)"Purchasedforaninvestmentpurpose",propertypurchasedexclusivelyfor
25purposesofappreciationortheproductionofincome.
26 3.Therateofthetaxleviedandimposedundersubdivision(1)ofsubsection2of
27thissectionshallbefiveandeleven-hundredthspercent.Thegeneralassemblymay
28enactoneadjustment,subjecttothelimitationontotalstaterevenuesasprovidedunder
29section18ofthisarticle,aftertheimpositionofsuchtaxiftherevenuelostasaresultof
30theprohibitiononthetaxationofincomeisgreaterthanorlessthantherevenue
31receivedfromthetaximposedinthissection.Suchadjustmentshallbecalculatedto
32ensurethattheamountofrevenuereceivedissubstantiallyequaltotheamountof
33revenuelostunderthissection.Localpoliticalsubdivisionsshallrecalculatelocaltax
34rates,includinglocaltaxrevenuetobedepositedintheschooldistricttrustfund,
35affectedbythissectiontoproducethesameorsubstantiallysimilarrevenueascollected
36intheimmediatelypreviousfiscalyear.Thegeneralassemblymayprovidebylawfor
37determiningthescopeoftaxableservicesandforotherwiseimplementingtheprovisions
38ofthissection.Exemptionsfromsuchtaxmaybeprovidedbylawuponanaffirmative
39voteofatleasttwo-thirdsoftheelectedmembersofbothchambersandapprovalbythe
40governor.
41 4.NotwithstandingtheprovisionsofSections43(a)and47(a)ofArticleIVofthis
42Constitution,theratesoftaxleviedandimposedunderthosesectionsshallundergoa
43one-timecalculation,takingintoaccountanyadjustmentinthetaxbase.This
44recalculationshalldeterminethenewratesthatwillproduceanamountofrevenuefor
45thefiscalyearofrecalculationsubstantiallyequaltotheamountactuallyreceivedinthe
HJR50 2 46yearofrecalculationunderthepriorratedescribedinsections43(a)and47(a)articleIV
47ofthisconstitution.Thesenewtaxratesshallberecalculatedinthissamemannerifthe
48rateoftaxleviedunderthissectionbereadjusted.
49 5.Thetaxesthatarereplacedunderthissectionareasfollows:
50 (1)Withholdingtaxesandindividualandcorporateincometaxes;
51 (2)Corporationfranchiseandbankfranchisetaxes;and
52 (3)Allexistingstatesalesandusetaxes.
53 6.(1)Thedepartmentofrevenueshalldetermineamethodforprovidingan
54annualsalestaxrebateforeachdulyregisteredqualifiedfamilyofthisstate.Thesales
55taxrebateshallbedistributedatleastannuallytoeachqualifiedfamily.Theamountof
56thesalestaxrebateshallbedeterminedannuallyandbeequaltotheproductoftherate
57ofsalestaxestablishedunderthissectionandtheappropriateannualpovertyguidelines
58updatedperiodicallyintheFederalRegisterbytheUnitedStatesDepartmentofHealth
59andHumanServicesundertheauthorityof42U.S.C.9902(2),asamended.
60 (2)Forthepurposesofthissubsection,theterm"qualifiedfamily"shallmean
61oneormorefamilymembers,includingaspouse,child,stepchild,grandchild,parent,
62grandparent,brother,sister,oranysuchrelationsofthespouseofthefamilymember,
63sharingacommonresidence.
64 7.Thedepartmentofrevenueshallpromulgaterulesasotherwiseprovidedby
65lawtoimplementtheprovisionsofthissection.
66 8.Therevisorofstatutesshallprepareandsubmittothecommitteeon
67legislativeresearchaproposedbillrepealingthoseprovisionsoflawthataredeemed
68unenforceableorunnecessaryundertheprovisionsofthissection.
SectionB.Pursuanttochapter116,andotherapplicableconstitutionalprovisionsand
2lawsofthisstateallowingthegeneralassemblytoadoptballotlanguageforthesubmissionof
3thisjointresolutiontothevotersofthisstate,theofficialsummarystatementofthis
4resolutionshallbeasfollows:
5 "ShouldtheMissouriConstitutionbeamendedtoeliminateindividualandcorporate
6incometaxandstatesalesandusetax,enactasingle,revenue-neutralsalestaxonnew
7purchasesofgoodsandserviceswithanexemptionforcertainproperty,andprovidequalified
8familiesasalestaxrebateonstatesalestaxpaid?".
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HJR50 3