Missouri Voters Decide on Income Tax Elimination in Amendment 5

Missouri voters will decide on Amendment 5 during the August 4 primary election. Championed by Governor Mike Kehoe, the proposed constitutional amendment would require the Missouri General Assembly to phase out the state individual income tax based on revenue growth and permanently ban its re-institution. To offset the loss of income tax revenue, which accounts for approximately 65% of the state budget, the amendment authorizes lawmakers to increase sales and use tax rates or expand the taxable base without further voter approval for five years.

Supporters argue the measure will make Missouri more competitive with states like Texas and Tennessee, potentially providing citizens with an additional $3,000 and lowering property taxes. However, critics and the No On 5 campaign contend the plan shifts the tax burden from wealthy residents to the general public. The Missouri Budget Project estimates that 80% of Missourians could see an overall tax increase, while others warn the measure could apply sales taxes to previously exempt costs like nursing home care and hospital bills.

Concerns have also been raised regarding charitable funding. Because the amendment would end current tax incentives for donations, nonprofit advocates warn of decreased support for food pantries and organ donor programs. Governor Kehoe suggested that because the corporate income tax structure remains, the state could utilize corporate tax credits to sustain these funding levels. The Missouri Catholic Bishops opposed the measure, stating that taxation systems must serve the common good and be guided by justice and equity.