MO SJR1

Eliminates all individual and corporate income taxes, corporation and bank franchise taxes, state sales and use taxes, and local earnings taxes effective January 1, 2013, with revenues replaced by a new sales and use tax on consumption of taxable property and services.

Establishes a new sales and use tax rate of 5.11 percent on consumption of new tangible personal property and services, excluding intangible personal property, used property, and purchases for business or investment purposes.

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

Voids all existing sales tax exemptions except those enumerated in the amendment; allows one-time rate adjustment after implementation if actual revenue differs from lost income tax revenue, with adjustment requiring unanimous vote of a three-member Tax Adjustment Commission and approval by the general assembly or two-thirds majority override.

Provides monthly sales tax rebates to qualified households equal to the product of the new tax rate and one-twelfth of annual federal poverty guidelines, distributed beginning January 1, 2013.