An initiative petition to ban the Missouri legislature from imposing service sales taxes will go before voters this year.
The measure is among several petitions certified Tuesday by the secretary of state’s office for the November ballot.
Known as the Taxpayer Protection Amendment, it would prohibit taxes on any services provided to customers.
Scott Charton with Missourians for Fair Taxation, which filed the petition, says service sales taxes are in place in some other states. “For example in North Carolina, you would have always paid for a new transmission part. But now if you get that repair done to your car, you also pay a sales tax on the labor of the mechanic.”
The Republican-controlled North Carolina legislature recently expanded service sales taxes as part of a move away from income taxes. Democrats typically oppose service taxes, claiming they dis-proportionally impact low-income people.
The secretary of state’s office says the cost of banning such taxes is unknown, but could have significant impact on state and local governments.
If passed by voters, an amendment to the state constitution would prohibit the imposition of service sales taxes in Missouri. Slightly more than 218,000 valid signatures were required to get the proposal on the ballot. Missourians for Fair Taxation secured a total 228,401 valid signatures.
The measure will appear on the ballot as Constitutional Amendment 4. The three other initiative petitions certified Tuesday included two proposals to raise cigarette taxes (although pending litigation will affect which one stays on the ballot), and one proposal to limit campaign contributions.