Missouri House Commerce Committee advances income tax elimination measure

By: Jazsmin Halliburton

JEFFERSON CITY, Mo. (KMIZ) -- The House Commerce Committee voted 7-3 on Wednesday to advance a resolution that could eliminate income tax.

The committee voted to pass HJR 174, sponsored by Republican Speaker of the House John Patterson. The resolution would post a ballot question to voters to potentially phase out the income tax by 2031 so long as certain revenue benchmarks set by lawmakers are met.

“This is a great opportunity to stop taxing everyone’s income and modernize Missouri’s 100-year-old tax system. It’s an opportunity to do something really big and make Missouri competitive," Patterson is quoted in a news release from MO Tax Relief Now. "It simply asks taxpayers, do you want to try something else to keep more money in your pocket?”

Income tax elimination is one of Governor Mike Kehoe's top priorities for the 2026 legislative session. Income-tax revenue makes up about two-thirds of the state's revenue. If lawmakers vote yes on the HJR 174, it would cut the state's income tax to zero in 2031, and lawmakers could replace it with an expanded sales tax.

Many Republicans who support eliminating the income tax say it means more money in Missourians' pockets. Missourians and people visiting the state could pay more at the cash register.

Representatives from tourist-attracting areas like the Lake of the Ozarks argue that eliminating the income tax makes Missouri more competitive. However, Democrats argue this would increase the prices of everyday services, especially for senior citizens.

“Nobody in Missouri is complaining that sales taxes are too low, and House Democrats are committed to preventing Tax Hike Mike from raising them. If we can’t stop him in the legislative process, we will stop him at the ballot box,” Rep. Ashley Aune (D-Kansas City) said in a press release.

When the committee heard public comments regarding HJR 174 in January, Jason Zamkus, a lobbyist with the Missouri Realtors, testified in opposition to the bill. Zamkus said the bill could force price hikes on services such as home inspections, appraisals and title insurance.

The resolution will head to the full House chamber for debate and possible passage to the Senate. If the General Assembly clears it, it will be on the November ballot.

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