JEFFERSON CITY, Mo. – The Missourians for Fair Taxation will kick off their statewide campaign for a constitutional amendment prohibiting service sales tax Wednesday at the Capitol Plaza Hotel.
The proposed amendment is to Article X and would prohibit new state sales and use taxes on services. The petition is currently approved for circulation, and reads:
Shall the Missouri Constitution be amended to prohibit a new state sales/use tax on any service or activity that was not subject to a sales/use tax as of January 1, 2015?
Potential costs to state and local governmental entities are unknown, but could be significant. The proposal’s passage would impact governmental entity’s ability to revise their tax structures. State and local governments expect no savings from this proposal.
The coalition is led by the Missouri Association of Realtors, who believe sales taxes are already high and an increased sales tax would decrease state competitiveness.
“Sales taxes are already high, exceeding a dime on the dollar in many parts of Missouri,” reads the advisory. “Expanding the sales tax base to include services has been recently proposed by lawmakers and special interests. Sales taxes are regressive, hitting hardest at those least able to pay, including senior citizens, low-and-middle- income families and the disabled. Sales taxes on services would increase the cost of services Missourians use every day, from haircuts and manicures to rent and health care, from services of doctors, accountants and bankers to the services of landscapers, mechanics and tattoo artists.
“With most of Missouri’s population living within 30 miles of state borders, Missouri cannot afford to lose its competitive edge with sales taxes on services. The Missourians for Fair Taxation proposal, for which signature gathering is under way, would add constitutional security to stopping sales taxes on services.”
The kickoff will start at 11:00 a.m. in the Capitol and Missouri Ballrooms.
Rachael Herndon was the editor at The Missouri Times and also produced This Week in Missouri Politics, published Missouri Times Magazine, and co-hosted the #MoLeg podcast. She joined The Missouri Times in 2014, returning to political reporting after working as a campaign and legislative staffer.
Rachael studied at the University of Missouri – Columbia. She lives in Jefferson City with her husband, Brandon, and their two children.
