(Jefferson City,MO) A proposed state bill could reduce how much how much you pay in sales tax. Missouri Senate Bill 149, filed by St. Louis Senator Andrew Koenig, would cap all combined local sales tax across the state at 7.2 percent.
In Missouri the state sales tax is 4.2 percent, but when combined with the additional sales tax from cities, counties and fire and ambulance districts, the average combined sales tax rate for most Missouri cities range from six to ten percent.
In St. Joseph the sales tax rate currently sits at 8.6 percent, but if the bill is approved city and county officials will have to collaborate to work out a plan to reduce the overall tax rate.
Eastern District Commissioner Scott Burnham said capping off sales tax could hurt community services.
“We are going to have to look for a way to cut services if that indeed does happen, or look for ways we can save money to make up that difference and sometimes that’s a challenge,” Burnham said.
If approved the new tax limits will be put in place by January of 2020.