taxes

Supporters say the $15 billion project in Montgomery County, Missouri, will bring jobs and tax revenue. Some residents say no one asked them

Missouri voters will decide later this year whether to eliminate the state's income tax. Small business owners would be among those to feel the effects most acutely if the measure were to pass.

In some respects, whether the Republican-controlled legislature succeeded in all of its goals isn’t known yet, because priorities like restricting abortion and ending the income tax must be decided by voters.

Other legislation that could be considered in the last week of the 2026 session includes a wide-reaching education bill and measures to limit vehicle inspections and raise the rural highway speed limit.

As a proposal to eliminate Missouri sales tax is put before voters this year, some workers worry efforts to offset the losses will make it hard to pay rent or put food on the table.

The Senate legislation contains several provisions aimed at reducing property taxes, although none makes sweeping reductions. Senate Democrats widely supported the legislation.

Republican Gov. Mike Kehoe said he's ready to sell his plan to expand sales and use taxes, which would allow Missouri to end the income tax. Another ballot measure would repeal constitutional protections for abortion rights.

Kansas lawmakers have promised for years to fix sky-high property tax bills. But the 2026 session ended with both Democrats and Republicans disappointed and vowing to try again next year.

The proposed constitutional amendment gives Missouri lawmakers five years to expand sales and use taxes, in order to make up for revenue lost by eliminating the state income tax. It will appear in either a special election or on November's ballot.

Despite the potential high costs, Republicans on a Senate committee advanced the plan on a party-line vote Monday. The bill would place an amendment on the statewide ballot later this year asking voters permission to eliminate the income tax and expand sales taxes.

Missouri’s legislature is debating a proposal that would gradually eliminate the state’s income tax and allow the legislature to hike or expand sales taxes. Economists warn it could add a financial burden to people who can least afford it —and mean less money for schools and transit.

This is the fourth time since 2010 that voters have renewed the tax by an overwhelming margin.