MO SJR35

Prohibits state income tax on individuals for tax years beginning January 1, 2016, and repeals existing income tax laws by January 1, 2014, with a temporary 3% cap on state income tax from 2014-2016.

Authorizes a new state sales and use tax effective January 1, 2014, capped at 5% before January 1, 2016 (4% on food), and 7% after January 1, 2016 (5.5% on food), with revenues directed to the general revenue fund and school districts.

Requires counties and political subdivisions to recalculate their sales tax rates by September 1, 2013, to maintain revenue levels equivalent to the five-year average prior to January 1, 2014, with a cumulative statewide cap of 10% after January 1, 2016.

Exempts 27 categories of sales and services from the new sales tax, including professional services, real property transactions, utilities, pharmaceuticals, education, agricultural items, and food stamp purchases.

Requires the legislature to enact a property tax relief mechanism by January 1, 2016, to maintain tax credits for senior citizens and disabled individuals currently provided through income tax deductions.