The Missouri Senate has given initial approval to a proposed constitutional amendment on taxation. If approved by voters, the proposal from Sen. Andrew Koenig, R-Manchester, would prevent the General Assembly from setting a state income tax rate above 5.5%.

“It creates an income tax cap. We’ve actually passed it,” Koenig said. “The cap was actually at 5.5%, so way above where we currently are sitting in statute. It’s at 4.5%. Also, it creates a situation kind of like what I would consider a Wayfair 2.0, allow the legislature to potentially pass a bill in the future related to that.”

Other provisions include providing exceptions for taxes on subscriptions, licenses for digital products, and online purchases of personal property.

“In prior years, it was passed out of the senate 29-3 and 30-1,” Koenig said. “It came out with bipartisan support. There, in the substitute, the one change that we have is the way the ballot summary that the voters would see.”

The income tax rate for the current tax year is 4.8%.

If the bill passes the General Assembly, it will come to a vote of the people.

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