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HJR 155

Proposes a constitutional amendment replacing individual and corporate income tax and sales and use tax with a sales tax on retail sales of new tangible property and taxable services

2026 Regular Session Introduced by Darin Chappell

Replace income and existing state sales taxes with a single broad sales tax on retail goods and taxable services, pending voter approval.

Referred: Emerging Issues(H)
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Bill Summary · HJR 155

Overview

HJR 155 (Missouri, 2026) proposes a constitutional amendment to replace the state’s individual and corporate income taxes and the sales and use tax with a single sales tax applied to retail sales of new tangible property and taxable services. The measure is framed as a broad tax reform effort, shifting the tax base from income to consumption, and would require voter approval to take effect.

Purpose and Intent

  • Replace current tax structure consisting of:
    • Individual income tax
    • Corporate income tax
    • State sales and use tax
  • With a unified state sales tax on:
    • Retail sales of goods (new tangible property)
    • Taxable services (as defined by the measure)
  • The amendment seeks to simplify the tax system, potentially broadening the base of taxable transactions while eliminating personal and corporate income taxes.

Key Provisions (as implied by the title and typical HJR structure)

  • Constitutional amendment rather than ordinary statute, meaning it would require statewide voter approval to become effective.
  • Elimination or phasing out of:
    • Missouri individual income tax
    • Missouri corporate income tax
    • Missouri sales and use tax (existing structure)
  • Introduction or expansion of a single sales tax applied to:
    • Retail sales of new tangible property
    • Taxable services (definitions to be specified in implementing statutes or subsequent legislation if the amendment is approved)
  • Potential framework for tax rate, exemptions, and administration to be determined by future legislation or constitutional provisions (subject to voter approval of the amendment).

Who Would Be Affected

  • Individual taxpayers: would be relieved of personal income tax obligations if the income tax is repealed or replaced.
  • Businesses: would be relieved of corporate income tax burdens; must adapt to a different tax collection framework under a single sales tax system.
  • Consumers: would pay sales tax on purchases, including some services, depending on the scope of “taxable services” defined by the amendment.
  • Government and tax administration: would transition to a new tax collection and enforcement framework under the single sales tax model; potential changes to revenue administration, compliance, and auditing processes.

Procedural and Timeline Aspects

  • Referral: Emerging Issues (H) on May 15, 2026.
  • Read Second Time: January 8, 2026.
  • Read First Time: January 7, 2026.
  • Prefiled: January 5, 2026.
  • As a constitutional amendment, passage would require:
    • Approval by both legislative chambers (through the normal amendment process) and
    • A majority vote by the electorate in a statewide election.
  • If approved by voters, the amendment would become part of the Missouri Constitution and would guide the design and implementation of tax reform, including the specifics of rate, exemptions, and administration through subsequent enabling legislation or constitutional definitions.

Notes and Considerations

  • The bill’s text would specify the exact scope of “retail sales of new tangible property” and define “taxable services.” The inclusion or exclusion of certain services could significantly affect overall tax incidence.
  • Transition timing and method (e.g., phasing in a new tax, sunset of existing income taxes, transitional revenue safeguards) would be critical details likely addressed in companion bills or implementing measures if the amendment passes.
  • Economic effects, including impact on state revenue stability, consumer prices, and business competitiveness, would depend on the final constitutional language and rate structure.

This summary captures the bill’s intent to substitute an income-based tax system with a broad sales tax base, the major affected groups, and the high-level procedural steps for a constitutional amendment in Missouri. For a complete understanding, the full constitutional text and any accompanying fiscal notes or fiscal impact statements would be essential.

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

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