Missourians for Fair Taxation propose a constitutional amendment.
Grassroots Effort Seeks to Block Sales Tax Expansion
Lawmakers just began annual budget negotiations last month, but a Missouri grassroots group is taking proactive action to permanently block an expansion of the state sales tax to services.
Missourians for Fair Taxation, a group created and led by the Missouri Association of Realtors, seeks a constitutional amendment that will prevent any proposals to introduce sales tax on services. While there is no proposal on this issue currently on the table, it has been proposed in the past, but failed to pass the legislature.
Along with hurting senior citizens and low-income households, the group notes that sales taxes on services—like haircuts, manicures, healthcare, accounting, landscaping and car repairs—also disproportionately impact small businesses. Preventing a sales tax on services also helps Missouri stay competitive with the eight surrounding states.
The group held a kickoff event last month to raise support for the issue and begin collecting signatures to put the proposed amendment on the ballot in November 2016.