🔥 Trending Missouri Amendment 5 Explained: What You Need to Know

Missouri Amendment 5 refers to a ballot measure that will appear on the August 2026 ballot in Missouri. It proposes significant changes to the state's tax system, primarily by phasing out the individual income tax and increasing sales taxes ¹².

Key Provisions of Missouri Amendment 5

The core of Amendment 5 involves a fundamental shift in how Missouri funds its state government and local services. Here are its main components:

• Income Tax Elimination: The amendment proposes to phase out the individual income tax in Missouri. This would be based on revenue growth, meaning the income tax would gradually decrease as state revenues increase ¹⁶.
• Sales Tax Changes: To compensate for the loss of income tax revenue, Amendment 5 suggests modifying the sales and use tax. Critics argue this would lead to a "massive increase in sales taxes" ¹²⁶.
• Local Tax Reductions: The amendment also aims to reduce personal property and other local taxes when local revenues increase ⁶.

Arguments For and Against Amendment 5

Amendment 5 has generated considerable debate, with proponents and opponents presenting differing views on its potential impact.

Arguments in Favor

Supporters of Amendment 5 generally advocate for reducing the tax burden on individuals and believe that eliminating income tax will stimulate economic growth. They often argue that a sales tax-centric system can be simpler and more equitable ¹.

Arguments Against

Opponents, such as the Missouri Budget Project, argue that Amendment 5 would disproportionately affect most Missourians by increasing their overall tax burden. They contend that swapping the income tax for a significantly higher sales tax would shift the tax burden from the wealthy to lower and middle-income families, as sales taxes tend to be regressive. Furthermore, critics suggest that the measure could lead to cuts in critical services and damage the state's economy ².

Historical Context and Other Missouri Amendments

It's important to note that Missouri has seen various amendments on its ballots over the years addressing different issues. For instance:

• Missouri Amendment 1 (2020): This amendment focused on imposing term limits for specific state offices, including lieutenant governor, secretary of state, auditor, and attorney general ⁵.
• Missouri Amendment 2: This amendment concerned the right to access medical marijuana ⁸.
• Missouri Amendment 5 (other years): There have been instances where "Amendment 5" referred to different proposals in previous elections. For example, a 2024 proposal also labeled Amendment 5 pertained to building a casino, convention center, hotel, and other attractions at the Lake of the Ozarks ⁴. The current discussion specifically refers to the tax-related amendment scheduled for August 2026 ¹.

Given Missouri's population of over six million residents and its significant urban areas like St. Louis and Kansas City ³, any major tax reform like Amendment 5 is expected to have a broad impact across the state.