Democrats file alternate tax plan to Governor Kehoe’s proposed income tax elimination
COLUMBIA, Mo. (KMIZ)
Missouri Speaker of the House Jonathon Patterson (R-Lee's Summit) has introduced the governor's tax elimination plan, but Representative Mark Boyko (D-Kirkwood) from across the aisle has 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 election.
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 more than $9,191 is taxed $256 plus 4.7% on the excess income. For example, if you make $10,000 a year, you would pay a base rate of $256 plus 4.7% of $809.
Starting in 2027, Boyko wants to adjust taxes for people who make more than $30,000 and increase taxes for people who make more than $1 million.
According to Boyko's plan, people who make over $30,000 would be taxed $1,183.25 plus 4.7% on excess. The highest earners would be taxed $46,773 plus 5.9% on excess of $1 million.
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