JEFFERSON CITY, Mo. (KY3) -Gov. Mike Kehoe signed proclamations Friday placing four constitutional amendments on the August primary election ballot, moving up several questions that will shape Missouri’s tax structure and voting process.
The primary election will take place on August 4.
“With several significant issues set to appear before Missouri voters this year, it is important that we both prepare for the outcome of each proposal and allow each issue to receive the careful public consideration it deserves,” Kehoe said.
Two of the amendments are facing strong opposition: Amendments 4 and 5.
Past election data show more Republicans are likely to vote in the August primary election. Likely voters polled by Saint Louis University showed support for Amendments 4 and 5, with more Republicans in favor than Democrats.
All other ballot measures, if certified, will be on the November general election ballot.
Amendment 1: Natural resources sales tax
Amendment 1 continues for an existing sales tax one-tenth of one percent sales tax that supports soil and water conservation, state parks, and historic sites for 10 more years.
The ballot will read: “Shall Missouri continue for 10 years the one-tenth of one percent sales/use tax that is used for soil and water conservation and for state parks and historic sites, and resubmit this tax to the voters for approval in 10 years?
The measure allows continued collection of the existing sales and use tax, which generates revenue of approximately $140 million annually.”
Amendment 2: County assessors
Amendment 2 requires all charter counties, including Jackson County, to elect a county assessor and requires assessors to comply with training requirements established by state law.
The ballot will read: “Shall the Missouri Constitution be amended to:
- require all charter counties, including Jackson County, to provide for the election of a county assessor; and
- require assessors in all charter counties to comply with any training requirements established by general law?
State and local governmental entities estimate no costs or savings.”
Amendment 4: Constitutional amendments
Amendment 4 modifies current requirements that a simple statewide majority of voters may approve initiative petitions to amend the constitution. It requires a majority of voters in each congressional district to approve initiative petitions to amend the constitution, and makes available to each voter the full text of initiative petitions with their ballot.
The ballot will read: “Shall the Missouri Constitution be amended to:
- Modify current requirements that a statewide majority of voters may approve initiative petitions to amend the constitution;
- Require a majority of voters in each congressional district to approve initiative petitions to amend the constitution; and
- Make available to each voter the full text of initiative petitions with their ballot?
The Department of Corrections estimates increased annual costs of up to $21,817. The Office of State Public Defender estimates an unknown fiscal impact. Other state governmental entities estimate no costs or savings. Local governmental entities estimate no costs or savings. ”Missouri Realtors formed the Protect Majority Rule Campaign Missouri to oppose Amendments 4 and 5.
“Amendment 4 would effectively kill our initiative petition process that our citizens have to make laws directly,” said spokesperson Scott Charton.
Moberly Republican Rep. Ed Lewis, who sponsored Amendment 4, said the change is needed.
“It’s not fair that only a few sections of the state, essentially around the urban core, are essentially dictating what the constitution is going to contain,” Lewis said.
A separate group, Protect MO Voters, supports Amendment 4.
“Missourians deserve a Constitution that is protected, not hijacked by out-of-state special interests and paid signature-gathering operations. Amendment 4 ensures that changes to our founding document have real statewide support,” the group said in a statement.
Amendment 5: Taxes
Amendment 5 requires the phase-out and elimination of the individual income tax based on revenue growth and requires the reduction of property taxes and other local taxes to offset any local sales tax revenue increases, while preserving local funding for public schools.
The ballot will read: “Shall the Missouri Constitution be amended to:
- Phase-out the individual income tax based on revenue growth;
- Reduce personal property and other local taxes when local revenues increase;
- Modify the sales and use tax to eliminate income tax and reduce local taxes; and
- Protect local funding for public schools and other purposes?
The proposal has no direct impact on state or local tax revenue. If passed, implementing legislation will have an unknown impact to state and local tax revenue. If implemented, state government entities expect a reduction of $57,000 annually in income tax check-off donations and implementation costs of at least $100,000.”
Amendment 5 is Kehoe’s tax plan. If voters approve the plan, lawmakers can raise sales tax or introduce new ones to replace the state income tax.
“The current system that we have now is 100 years old and we need to modernize it, we need to update it to reflect the current times that we live in,” said State Rep. Jon Patterson, speaker of the Missouri House.
New taxes could be placed on services, including real estate transactions.
“We call it the Everything Tax,” Charton said. “It would allow lawmakers to just ignore existing constitutional protections and raise new sales taxes and add new sales taxes on services.”
Kehoe said placing the income tax measure on the August ballot gives lawmakers additional time to prepare for implementation.
“Modernizing Missouri’s outdated tax code, specifically, will be a momentous task for the Missouri General Assembly,” Kehoe said.
A poll released this month from Saint Louis University and YouGov shows 52% of likely Missouri voters support a taxing system that relies on sales taxes instead of income taxes. However, when asked about taxing specific items, the taxes were a lot less popular. The most agreeable possible new tax is a sales tax on streaming services, like Netflix or Hulu.
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