MO HB3026

Missouri counties may replace all county real and personal property taxes with an earnings tax on wages, commissions, and net business profits of both residents and nonresidents working in the county

Voter approval required at a state general, primary, or municipal election before the earnings tax can take effect; the tax rate must produce substantially the same revenue as the replaced property taxes

Contributions to deferred compensation plans (401k, cafeteria plans, etc.) are excluded from the earnings tax if not subject to Missouri state income tax at the time of contribution

Nonprofit organizations, religious/charitable entities, credit unions, pension trusts, and certain other organizations are exempt from the earnings tax, along with life insurance proceeds, workers' compensation, and government bond interest

Employers may be required to withhold and remit the earnings tax, with a 1.5% retention fee allowed as compensation for collection duties; taxpayers cannot be required to submit state or federal tax returns to the county