MO HB590

Eliminates state sales tax on food beginning January 1, 2016, while allowing local jurisdictions to continue taxing food sales

Establishes a mechanism to reduce state income tax rates annually if revenue collections meet certain thresholds, with the top rate potentially reducible by up to 0.5% starting in 2015

Caps the cumulative sales tax rate (state plus local) at 10% and requires the Department of Revenue to recalculate local sales tax rates by September 1, 2016 to produce revenue-equivalent amounts

Consolidates and simplifies sales tax exemptions, exempting categories including professional services, real property transactions, utilities, prescription drugs/medical equipment, educational services, agricultural products, and manufacturing materials

Reduces the vendor compensation rate for timely sales tax remittance from 2% to 1% and shifts the burden of proof for establishing tax liability to the state in legal proceedings