Missouri House Commerce Committee to vote on eliminating income tax

JEFFERSON CITY, Mo. (KMIZ)

The House Commerce Committee is expected to vote on a bill Wednesday that would eliminate income tax.

Income tax elimination is one of Governor Mike Kehoe's top priorities for the 2026 legislative session. Income-tax revenue makes up about two-thirds of the state's revenue. If lawmakers vote yes on the HJB 174, it would cut the state's income tax to zero in 2031 and replace it with an expanded sales tax.

Many Republicans who support eliminating the income tax say it means more money in Missourians' pockets. Missourians and people visiting the state could pay more at the register.

Representatives from tourist-attracting areas like the Lake of the Ozarks argue that eliminating the income tax makes Missouri more competitive. However, Democrats argue this would increase the prices of everyday services, especially for senior citizens.

When the committee heard public comments regarding HJB 174 in January, Jason Zamkus, a lobbyist with the Missouri Realtors, testified in opposition to the bill. Zamkus said the bill could force price hikes on services such as home inspections, appraisals and title insurance.

If the bill passes the committee, it will head to the full house for debate and will be on the November ballot.

Wednesday's vote is set to begin at 8 a.m. at the Capitol in Jefferson City.