| 1 | 1 | | |
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| 2 | 2 | | EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted |
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| 3 | 3 | | and is intended to be omitted in the law. |
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| 4 | 4 | | FIRST REGULAR SESSION |
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| 5 | 5 | | SENATE JOINT RESOLUTION NO. 24 |
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| 6 | 6 | | 103RD GENERAL ASSEMBLY |
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| 7 | 7 | | INTRODUCED BY SENATOR SCHROER. |
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| 8 | 8 | | 1397S.01I KRISTINA MARTIN, Secretary |
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| 9 | 9 | | JOINT RESOLUTION |
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| 10 | 10 | | Submitting to the qualified voters of Missouri, an amendment repealing sections 20 and 26 of |
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| 11 | 11 | | article X of the Constitution of Missouri, and adopting three new sections in lieu thereof |
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| 12 | 12 | | relating to taxation. |
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| 13 | 13 | | |
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| 14 | 14 | | Be it resolved by the Senate, the House of Representatives concurring therein: |
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| 15 | 15 | | That at the next general election to be held in the 1 |
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| 16 | 16 | | state of Missouri, on Tuesday next following the first Monday 2 |
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| 17 | 17 | | in November, 2026, or at a special election to be called by 3 |
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| 18 | 18 | | the governor for that purpose, there is hereby submitted to 4 |
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| 19 | 19 | | the qualified voters of this state, for adoption or 5 |
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| 20 | 20 | | rejection, the following amend ment to article X of the 6 |
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| 21 | 21 | | Constitution of the state of Missouri:7 |
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| 22 | 22 | | Section A. Sections 20 and 26, article X, Constitution of 1 |
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| 23 | 23 | | Missouri, are repealed and three new sections adopted in lieu 2 |
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| 24 | 24 | | thereof, to be known as sections 20, 20(a), and 26, to re ad as 3 |
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| 25 | 25 | | follows:4 |
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| 26 | 26 | | Section 20. 1. No expenses of state government shall 1 |
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| 27 | 27 | | be incurred in any fiscal year which exceed the sum of the 2 |
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| 28 | 28 | | revenue limit established in sections 18 and 19 of this 3 |
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| 29 | 29 | | article plus federal funds and any surplus from a previous 4 |
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| 30 | 30 | | fiscal year. 5 |
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| 31 | 31 | | 2. (1) The appropriation authority of the general 6 |
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| 32 | 32 | | assembly under Section 36 of Article III of this 7 |
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| 33 | 33 | | constitution shall be limited as provided under this 8 SJR 24 2 |
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| 34 | 34 | | subsection. The total amount of moneys available for 9 |
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| 35 | 35 | | appropriation each fiscal ye ar shall be limited as follows: 10 |
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| 36 | 36 | | (a) If the population of the state increased in the 11 |
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| 37 | 37 | | most recent full calendar year by more than one percent from 12 |
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| 38 | 38 | | the calendar year immediately preceding such calendar year, 13 |
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| 39 | 39 | | the general assembly shall have a spending limit equal to 14 |
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| 40 | 40 | | one hundred percent of the most recent year's appropriation 15 |
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| 41 | 41 | | in which no appropriation is made under subsection 3 of this 16 |
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| 42 | 42 | | section plus the percentage of the state population 17 |
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| 43 | 43 | | increase, which shall be applied as the percent of the total 18 |
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| 44 | 44 | | moneys available for appropriation; 19 |
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| 45 | 45 | | (b) If the population of the state increased in the 20 |
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| 46 | 46 | | most recent full calendar year by one percent or less from 21 |
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| 47 | 47 | | the calendar year immediately preceding such calendar year, 22 |
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| 48 | 48 | | the general assembly shall have a spendin g limit equal to 23 |
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| 49 | 49 | | one hundred and one percent of the most recent year's 24 |
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| 50 | 50 | | appropriation in which no appropriation is made under 25 |
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| 51 | 51 | | subsection 3 of this section; or 26 |
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| 52 | 52 | | (c) If the population of the state decreased in the 27 |
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| 53 | 53 | | most recent full calendar year, the general assembly shall 28 |
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| 54 | 54 | | have a spending limit equal to one hundred percent of the 29 |
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| 55 | 55 | | most recent year’s appropriation in which no appropriation 30 |
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| 56 | 56 | | is made under subsection 3 of this section minus the 31 |
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| 57 | 57 | | percentage of the state population decrease. 32 |
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| 58 | 58 | | (2) When calculating the spending limitation on the 33 |
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| 59 | 59 | | appropriation authority of the general assembly as provided 34 |
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| 60 | 60 | | under this subsection, all deductions, exemptions, credits, 35 |
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| 61 | 61 | | and other tax preferences issued in the previous fiscal year 36 |
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| 62 | 62 | | shall be included in the ca lculation of the spending 37 |
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| 63 | 63 | | limitation. 38 SJR 24 3 |
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| 64 | 64 | | 3. (1) The spending limitation on the appropriation 39 |
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| 65 | 65 | | authority of the general assembly under subsection 2 of this 40 |
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| 66 | 66 | | section may be raised if the following conditions are met: 41 |
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| 67 | 67 | | (a) The governor requests the general assembly to 42 |
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| 68 | 68 | | approve and authorize an appropriation; and 43 |
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| 69 | 69 | | (b) The general assembly approves the request in 44 |
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| 70 | 70 | | accordance with the specifics of the governor's request by a 45 |
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| 71 | 71 | | two-thirds vote of the members elected to and serving in 46 |
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| 72 | 72 | | each house. 47 |
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| 73 | 73 | | (2) Once the conditions under subdivision (1) of this 48 |
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| 74 | 74 | | subsection are met, the spending limitation on the 49 |
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| 75 | 75 | | appropriation authority of the general assembly shall be 50 |
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| 76 | 76 | | equal to one hundred two percent of the previous year's 51 |
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| 77 | 77 | | appropriation. This one-hundred-two-percent limit shall 52 |
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| 78 | 78 | | remain in effect until the governor's appropriation request 53 |
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| 79 | 79 | | is rescinded or until twelve months have passed since the 54 |
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| 80 | 80 | | request was made, whichever occurs first. 55 |
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| 81 | 81 | | Section 20(a). 1. (1) There is hereby establi shed 1 |
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| 82 | 82 | | within the state treasury a fund to be known as the "Tax 2 |
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| 83 | 83 | | Reform Fund", which shall consist of moneys collected under 3 |
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| 84 | 84 | | subsection 2 of this section. Moneys in the fund shall be 4 |
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| 85 | 85 | | kept in a singular account to be expended pursuant to 5 |
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| 86 | 86 | | appropriation by the general assembly if the conditions 6 |
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| 87 | 87 | | under subsection 3 of this section are met and used solely 7 |
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| 88 | 88 | | for the purpose of supplementing a full fiscal year 8 |
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| 89 | 89 | | budgetary shortfall as described under subsection 3 of this 9 |
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| 90 | 90 | | section and for no other purpose. 10 |
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| 91 | 91 | | (2) The state treasurer shall invest moneys in the 11 |
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| 92 | 92 | | fund in the same manner as other funds are invested. Any 12 |
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| 93 | 93 | | interest and moneys earned on such investments shall be 13 |
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| 94 | 94 | | credited to the fund. 14 SJR 24 4 |
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| 95 | 95 | | (3) Subject to the provisions of subsection 3 of this 15 |
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| 96 | 96 | | section, the unexpended balance in the tax reform fund at 16 |
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| 97 | 97 | | the close of any fiscal year shall remain in the fund. 17 |
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| 98 | 98 | | 2. (1) For all fiscal years beginning on or after 18 |
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| 99 | 99 | | July 1, 2027, if the amount of net general revenue 19 |
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| 100 | 100 | | collected, as defined under Section 27 (a) of Article IV of 20 |
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| 101 | 101 | | this constitution, exceeds the anticipated general fund 21 |
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| 102 | 102 | | revenue expenditures for a fiscal year by one million 22 |
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| 103 | 103 | | dollars or more, each fiscal year that such surplus is 23 |
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| 104 | 104 | | realized, such surplus in excess of one million dollars 24 |
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| 105 | 105 | | shall be deposited into the tax reform fund. 25 |
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| 106 | 106 | | (2) In a subsequent year where a surplus of one 26 |
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| 107 | 107 | | million dollars or more is realized, if the tax reform fund 27 |
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| 108 | 108 | | reaches and maintains a minimum balance that is greater than 28 |
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| 109 | 109 | | or equal to one hundred twenty million dol lars, the general 29 |
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| 110 | 110 | | assembly shall authorize by general law a personal income 30 |
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| 111 | 111 | | tax decrease trigger of one -tenth of one percent or 31 |
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| 112 | 112 | | greater. If the balance of the tax reform fund exceeds one 32 |
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| 113 | 113 | | hundred twenty million dollars, the general assembly shall 33 |
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| 114 | 114 | | authorize by general law additional personal income tax 34 |
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| 115 | 115 | | decreases in an amount equal to or greater than one - 35 |
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| 116 | 116 | | twentieth of one percent for every sixty million dollars 36 |
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| 117 | 117 | | over one hundred twenty million dollars in the tax reform 37 |
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| 118 | 118 | | fund. There shall be no cap on t he number of reductions 38 |
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| 119 | 119 | | authorized under this subdivision and such decreases shall 39 |
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| 120 | 120 | | remain in effect until the personal income tax is reduced to 40 |
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| 121 | 121 | | zero. 41 |
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| 122 | 122 | | (3) Upon the reduction and elimination of the personal 42 |
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| 123 | 123 | | income tax, the general assembly shall ut ilize the tax 43 |
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| 124 | 124 | | reform fund to gradually reduce and eliminate the corporate 44 |
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| 125 | 125 | | income tax. 45 SJR 24 5 |
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| 126 | 126 | | (4) After both personal income taxes and corporate 46 |
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| 127 | 127 | | income taxes have been reduced to zero, the tax reform fund 47 |
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| 128 | 128 | | shall continue to collect revenue and shall be us ed only to 48 |
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| 129 | 129 | | supplement budget shortfalls as described under subsection 3 49 |
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| 130 | 130 | | of this section following fiscal years where the general 50 |
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| 131 | 131 | | assembly enacted a tax reduction. 51 |
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| 132 | 132 | | (5) After personal income tax is reduced to zero, it 52 |
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| 133 | 133 | | shall remain at zero. 53 |
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| 134 | 134 | | (6) After corporate income tax is reduced to zero, it 54 |
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| 135 | 135 | | shall remain at zero. 55 |
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| 136 | 136 | | (7) The general assembly may appropriate funds to the 56 |
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| 137 | 137 | | credit of the tax reform fund. 57 |
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| 138 | 138 | | 3. If the state experiences a budgetary shortfall in 58 |
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| 139 | 139 | | the next fiscal year immediat ely succeeding the 59 |
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| 140 | 140 | | implementation of a personal income tax decrease, the tax 60 |
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| 141 | 141 | | reform fund may be used during the immediately succeeding 61 |
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| 142 | 142 | | appropriation period to supplement areas of necessary 62 |
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| 143 | 143 | | funding in the order of the general assembly's authorized 63 |
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| 144 | 144 | | appropriations priority for the next fiscal year's budget. 64 |
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| 145 | 145 | | The moneys from the fund that may be used for such 65 |
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| 146 | 146 | | supplemental funding shall be in an amount not to exceed the 66 |
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| 147 | 147 | | lesser of that year’s budgetary shortfall or sixty million 67 |
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| 148 | 148 | | dollars for every one -twentieth of one percent decrease from 68 |
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| 149 | 149 | | the personal income tax from the previous year. 69 |
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| 150 | 150 | | 4. (1) Subject to the enactment of a personal income 70 |
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| 151 | 151 | | tax decrease trigger by general law as provided under 71 |
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| 152 | 152 | | subdivision (2) of subsection 2 of this section, if the one- 72 |
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| 153 | 153 | | million-dollar surplus trigger under subdivision (2) of 73 |
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| 154 | 154 | | subsection 2 of this section was realized in the previous 74 |
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| 155 | 155 | | fiscal year, the personal income tax decrease trigger shall 75 |
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| 156 | 156 | | be implemented by the department of revenue to take effect 76 |
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| 157 | 157 | | on January first of the calendar year immediately following 77 SJR 24 6 |
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| 158 | 158 | | the close of the fiscal year in which the one -million-dollar 78 |
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| 159 | 159 | | surplus amount was realized. 79 |
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| 160 | 160 | | (2) The department of revenue shall implement an 80 |
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| 161 | 161 | | annual process to review and report future reduction 81 |
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| 162 | 162 | | conditions at the same time and in the same manner as under 82 |
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| 163 | 163 | | chapter 143. 83 |
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| 164 | 164 | | 5. The general assembly shall enact such laws as may 84 |
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| 165 | 165 | | be necessary to carry out the provisions of this section. 85 |
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| 166 | 166 | | Section 26. [In order to prohibit an increase in th e 1 |
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| 167 | 167 | | tax burden on the citizens of Missouri, state and local 2 |
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| 168 | 168 | | sales and use taxes (or any similar transaction -based tax) 3 |
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| 169 | 169 | | shall not be expanded to impose taxes on any service or 4 |
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| 170 | 170 | | transaction that was not subject to sales, use or similar 5 |
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| 171 | 171 | | transaction-based tax on January 1, 2015. ] 1. (1) The 6 |
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| 172 | 172 | | total amount of state sales tax imposed by general law, 7 |
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| 173 | 173 | | excluding any additional sales tax imposed under this 8 |
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| 174 | 174 | | constitution, shall be capped and the rate of sales tax 9 |
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| 175 | 175 | | shall be a tax equivalent to three and seven hundr ed seventy- 10 |
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| 176 | 176 | | five thousandths percent, levied and imposed upon all 11 |
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| 177 | 177 | | sellers for the privilege of selling tangible personal 12 |
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| 178 | 178 | | property or rendering taxable services at retail in this 13 |
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| 179 | 179 | | state upon the sales and services that now are or hereafter 14 |
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| 180 | 180 | | are listed and set forth in, and except as to the amount of 15 |
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| 181 | 181 | | tax, subject to the provisions of and to be collected as 16 |
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| 182 | 182 | | provided in the "Sales Tax Law" and subject to the rules and 17 |
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| 183 | 183 | | regulations promulgated in connection therewith. 18 |
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| 184 | 184 | | (2) The provisions of subdivision (1) of this 19 |
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| 185 | 185 | | subsection shall become effective upon the passage by the 20 |
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| 186 | 186 | | general assembly and approval by the governor of any bill 21 |
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| 187 | 187 | | authorizing the statutory imposition of a state sales or use 22 |
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| 188 | 188 | | tax on any service that was not subject to sales, use, or 23 |
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| 189 | 189 | | similar transaction-based tax on January 1, 2015. The 24 SJR 24 7 |
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| 190 | 190 | | reduction in the rate of tax under subdivision (1) of this 25 |
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| 191 | 191 | | subsection shall take effect on the immediately succeeding 26 |
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| 192 | 192 | | January first, following the passage and approval of such 27 |
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| 193 | 193 | | bill. 28 |
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| 194 | 194 | | 2. An additional state sales tax is levied for the 29 |
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| 195 | 195 | | rendering of lobbying services in this state. The tax shall 30 |
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| 196 | 196 | | be at a rate equivalent to six percent. 31 |
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| 197 | 197 | | Section B. Pursuant to chapter 116, and other 1 |
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| 198 | 198 | | applicable constitutional provisions and laws of this state 2 |
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| 199 | 199 | | allowing the general assembly to adopt ballot language for 3 |
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| 200 | 200 | | the submission of this joint resolution to the voters of 4 |
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| 201 | 201 | | this state, the official summary statement of this 5 |
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| 202 | 202 | | resolution shall be as follows: 6 |
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| 203 | 203 | | "Shall the Missouri Constitution be amended to: 7 |
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| 204 | 204 | | • Create a "Tax Reform Fund", which would use 8 |
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| 205 | 205 | | excess revenue to reduce and gradually eliminate 9 |
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| 206 | 206 | | Missouri income taxes; 10 |
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| 207 | 207 | | • Impose an annual spending limit on the 11 |
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| 208 | 208 | | Missouri General Assembly; 12 |
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| 209 | 209 | | • Cap the statutory state sales tax rate; 13 |
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| 210 | 210 | | • Impose a sales tax on lobbying services; and 14 |
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| 211 | 211 | | • Repeal the prohibition on certain new sales 15 |
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| 212 | 212 | | and use taxes?". 16 |
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| 213 | 213 | | |
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