MO SJR101

Constitutional amendment to be placed on November 2026 ballot (or special election) that would eliminate Missouri's individual income tax for tax years beginning January 1, 2031, with a transitional cap of 3% starting January 1, 2029

Replaces income tax revenue with a new broad-based state sales and use tax on sales and services, capped at 5% before 2031 (4% on food) and 7% after 2031 (5.5% on food), effective January 1, 2029

Repeals most existing state sales tax laws and exemptions as of January 1, 2029, while preserving taxes on alcohol, aviation fuel, insurance, and tobacco; creates 27 categories of exempt sales and services including professional services, utilities, medical services, real property transactions, and agricultural products

Establishes a 10% cap on cumulative local and state sales tax rates starting January 1, 2031, with local tax rates recalculated by the Department of Revenue to maintain revenue neutrality

Creates mandatory property tax relief for homeowners age 65+ with income under $75,000 (adjusted for inflation) and homes valued under $400,000, providing a 50% credit on tax increases exceeding 5% in reassessment years or 2.5% in other years, with the state reimbursing local governments for 75% of credits