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Missouri voters will decide on a proposal to eliminate the state's individual income tax by 2032.

Missouri voters will have the opportunity on August 4 to vote on an amendment that would gradually reduce the state's individual income tax rate with the goal of eliminating it by 2032. The proposal, sponsored by state Representative Bishop Davidson, would allow for a broad sales tax on all goods and services to replace the lost revenue. Currently, individual income tax revenue accounts for 63% of the state's general revenue for fiscal year 2025. Proponents of the resolution argue that Missouri could follow the success of other states without an income tax, such as Texas and Florida. However, some critics, including state Representative Steve Butz, argue that Missouri lacks the natural resources and infrastructure of states like Texas. While the resolution does not mandate specific sales tax changes, it requires the state budget to remain balanced, meaning the loss in income tax revenue must be recovered through other means. Governor Mike Kehoe has suggested potential exemptions for healthcare, agriculture, and real estate to help manage the transition.

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