MO HJR173

Phases out Missouri's individual income tax by January 1, 2032, through automatic rate reductions of 0.01% for each $20 million increase in net general revenue above fiscal year 2025 levels (adjusted for inflation), with a maximum annual reduction of 1.6%

Permanently prohibits the state from enacting or imposing an individual income tax once the rate reaches zero

Allows the General Assembly to expand state and local sales and use taxes to cover any goods and services if the legislation is enacted for the purpose of eliminating income tax and reducing local tax rates

Requires political subdivisions beginning January 1, 2029, to offset revenue from expanded sales tax base by reducing sales tax rates, property tax levies, or earnings tax rates, with explicit protection prohibiting any reduction in funding to public schools

Exempts tax or revenue increases enacted within three years of the amendment's effective date from constitutional spending limit requirements if enacted to reduce/eliminate income tax and reduce local tax rates