Democrats file alternate tax plan to Kehoe’s proposed income tax elimination
COLUMBIA, Mo. (KMIZ)
Missouri Speaker of the House Jonathon Patterson (R-Lees Summit) has introduced the governor's tax elimination plan, and Representative Mark Boyko (D-Kirkwood) from across the aisle filed an alternate plan.
Governor Mike Kehoe has been a long-standing proponent of eliminating the state's income tax. The bill Patterson filed would do that without increasing the sales tax rate, but it would expand the sales tax base to include services.
"For the purpose of reducing and eliminating the state individual income tax, state and local sales and use taxes or any similar transaction-based tax may be expanded by legislation to impose taxes on transactions involving any goods and services," the House Joint Resolution 165 reads.
During his State of the State Address on Tuesday, Kehoe said this might mean local governments will have to adjust their property tax rates to compensate for the sales tax expansion.
Cole County Commissioner Harry Otto told ABC 17 News that county sales, property and use taxes were the biggest revenue streams for the county.
Patterson's tax plan, if passed, would either need to be put before the voters in November or be passed during a special session the governor calls.
On the opening day of the regular session, Democrats announced that they would file alternative legislation, and they did.
Boyko filed House Bill 2975, which would adjust Missouri's tax brackets.
Currently, anyone with a taxable income in Missouri who makes over $9,191 is taxed $256 plus 6% on income over the base income. For example, if you make $10,000, you would be taxed 6% on $809.
Starting in 2027, Boyko wants to adjust taxes for people who make over $30,000 and increase taxes for people who make over $1 million.
According to Boyko's plan, people who make over $30,000 would be pay a base tax of $1,183.25 plus 4.7% on excess. The highest earners would pay a base of $46,773 plus 5.9% on excess over $1 million.
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