Missouri voters decisively rejected Amendment 5 on Tuesday, rejecting a proposal that would have given state lawmakers the power to phase out the state income tax and expand sales and use taxes to replace the lost revenue. With 83 percent voting against the measure, the defeat blocks a signature initiative pushed by Gov. Mike Kehoe and Republican leaders who had argued the change would spur economic growth.
The amendment would have authorized lawmakers to gradually eliminate Missouri’s individual income tax, which generates approximately $8.5 billion annually—more than half of the state’s general revenue. To offset that loss, the measure would have allowed the General Assembly to expand and raise sales and use taxes within a five-year window, though no specific plan for which items would be taxed was included in the amendment itself.
The failure of Amendment 5 is a major setback for Kehoe, who made income tax elimination a priority in his State of the State address. Proponents had referenced other states without income taxes—like Florida and Tennessee—arguing that such a change would make Missouri more competitive and attract residents and businesses.
Opponents of the amendment raised concerns about the tax structure shift itself. The nonpartisan Missouri Budget Project found that 80 percent of Missourians would have experienced a net tax increase under the proposal, with the average household paying over $500 more annually in taxes. The analysis highlighted that shifting from income tax to sales tax would place a heavier burden on lower-income families, who spend a larger share of their income on taxable goods and services.
Rep. Bishop Davidson, R-Republic, who sponsored the amendment, had suggested the resulting state sales tax could range from 4 percent to 6 percent, compared to Missouri’s current state sales tax of 4.225 percent. The amendment also included a requirement that income tax reductions match or exceed any expansion of the sales tax base, though lawmakers would have determined which specific items and services became subject to sales tax.
With Amendment 5’s defeat, state lawmakers remain unable to expand the sales and use tax base without voter approval. The result means that any future attempt to change Missouri’s tax structure would require another constitutional amendment and a new vote from the electorate.
Sources
- St. Louis Public Radio — detailed reporting on Amendment 5’s failure with 83 percent no votes, the measure’s provisions, and analysis of its fiscal impact
- The New York Times — confirmation of the overwhelming rejection of the income tax elimination measure
- Missouri Budget Project — analysis showing 80 percent of Missourians would have faced net tax increases averaging over $500 annually, and the $8.5 billion annual income tax revenue figure
- Ballotpedia — comprehensive overview of Amendment 5’s provisions and status as a defeated legislatively referred constitutional amendment
