MO HJR71

Submits to Missouri voters a constitutional amendment to eliminate individual and corporate income taxes, corporation and bank franchise taxes, state sales and use taxes, and local earnings taxes beginning January 1, 2012.

Replaces eliminated taxes with a single sales tax of 5.11% on consumption or use of new taxable property and services, excluding intangible property, used property, and items purchased for business or investment purposes.

Establishes a monthly sales tax rebate for qualified households equal to the federal poverty level times the 5.11% tax rate to ensure no tax is paid on purchases up to the poverty threshold.

Creates a Tax Adjustment Commission consisting of the governor, house budget committee chair, and senate appropriations committee chair to recommend a one-time tax rate adjustment by January 1, 2013, if revenue collected differs from revenue lost.

Requires local political subdivisions to recalculate their tax rates to produce substantially similar revenue as the previous fiscal year, and voids all existing sales tax exemptions except those specified in the amendment.