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Bill

HB 3026

Authorizes counties to enact an earnings tax to replace county real property and personal property taxes

2026 Regular Session Introduced by Tonya Rush

Missouri bill authorizing counties to replace property taxes with earnings taxes, shifting tax burden from property owners to wage earners with local option implementation.

Withdrawn (H)
#kansascity #saintlouiscity #taxationandrevenue-income
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Bill Summary · HB 3026

Legislative bill overview

HB 3026 would authorize Missouri counties to implement an earnings tax as an alternative revenue source while reducing or eliminating county real property and personal property taxes. The bill gives individual counties local discretion to adopt this tax structure rather than mandating it statewide.

Why is this important

Property taxes are a major funding source for county operations, schools, and services. Shifting to earnings taxes would change who bears the tax burden—moving it from property owners to wage earners—and could significantly affect local government finances, business competitiveness, and housing affordability depending on implementation details.

Potential points of contention

  • Tax burden shift: Would transfer obligations from property owners (including businesses and retirees) to wage earners, potentially disadvantaging workers while benefiting those with significant property holdings
  • Economic competitiveness: Counties adopting earnings taxes might face business relocation pressures, particularly for companies with employees commuting from non-taxing jurisdictions
  • Revenue uncertainty: Earnings taxes are more volatile than property taxes during economic downturns, creating potential budget instability for counties relying on them
  • Implementation details unclear: The bill's specifics on tax rates, exemptions, and how the transition period would work are not detailed in available information

Compiled from official sources — confirm details with the bill’s official record.

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