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Missouri would keep sales tax as it is

  • Oct 14, 2016 | Gail Cole

 Sales tax measures make Missouri ballot.

Two ballot measures in Missouri seek to keep sales tax pretty much as it is.

Constitutional Amendment 1 would renew for 10 years an existing 0.1% sales tax for parks and conservation.

Constitutional Amendment 4 would prohibit the broadening of state and local sales tax to any services not subject to sales, use, or similar transaction-based tax as of January 1, 2015. These include banking services, doctor’s services, and services provided by auto mechanics.

Missouri currently taxes only a small number of services, including admissions to places of amusement and recreation, mandatory gratuities, and telecommunications services. And proponents of the proposed ban on broadening tax see it as a way to ensure other services remain affordable for “those who are least able to pay… senior citizens, retirees, disabled people on fixed incomes, and also hard working low and middle income families.”

Yet opponents fear it “could lead to a reduction of vital local services.” According to Richard Sheets, Deputy Director of the Missouri Municipal League, “Sales taxes are an important way cities pay for police, fire, streets, economic development.”

Cigarette tax

Taxing services may be banned on November 8, but there’s a good chance that voters will decide to increase the cigarette tax. There are two proposed cigarette taxes on the Missouri ballot: one would increase the rate by 23 cents per pack, and the other by 60 cents per pack. In the event both pass, the one with the most affirmative votes will win.

Voting often brings about sales tax changes at both the state and local level. Tax automation helps businesses account for change and remain compliant, relieving tax pain. Learn more.

photo credit: Prachatai Vote Ballot Box via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.