MO SJR37

Submits to Missouri voters a constitutional amendment to eliminate all income taxes (individual, corporate, withholding, and franchise taxes) effective January 1, 2012, and replace them with a single sales and use tax.

Establishes a new sales tax rate of 5.11% on consumption and use of taxable property and services, excluding intangible property, used property, and items purchased as components for resale.

Exempts from the sales tax all property and services purchased for business purposes in a trade or business (including agriculture) and property purchased exclusively for investment purposes, as well as tuition and fees at accredited institutions of higher education.

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, to ensure revenue-neutrality compared to fiscal year 2011.

Provides all qualified households with a monthly sales tax rebate equal to the sales tax rate multiplied by one-twelfth of the annual federal poverty guidelines, beginning January 1, 2012.