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Missouri, are repealed and three new sections adopted in lieu 2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