CONTINUATION OF SALES AND USE TAX MEASURE, CONSTITUTIONAL AMENDMENT 1, would continue the one-tenth of one percent sales tax that the state has in place for the next 10 years. If rejected by voters, the tax would lapse – marking a victory for taxpayers.
60 CENT CIGARETTE TAX, CONSTITUTIONAL AMENDMENT 3, would increase the tax on cigarettes by 60 cents per pack by 2020. The revenue generated by this regressive tax would be deposited into a new trust fund to pay for health care coverage and educational opportunities for children. Aside from the regressive nature of the tax, Missouri may well surrender a revenue advantage it has because so many cross border shoppers come to the Show Me State for purchases.
SALES TAX PROHIBITION, CONSTITUTIONAL AMENDMENT 4, would, if enacted, prohibit new state sales and use taxes on any service or activity that was not subject to sales or use tax on or before January 1, 2015. Although systemic tax reform might broaden the base of tax and reduce rates, in the near term this measure would protect taxpayers from efforts to simply raise more revenues by applying existing taxes on more goods and services.
23 CENT CIGARETTE TAX, PROPOSITION A, would raise the cigarette tax by 23 cents per pack by 2021. Unlike Constitutional Amendment 3, Proposition A would use the additional tax revenue generated by the regressive tax hike to fund infrastructure and transportation projects. However, like all cigarette tax hikes, it would likely lead to less predictable revenues.