(Missourinet) – The state Senate has given initial approval to a constitutional amendment on taxation. If approved by voters, the bill from Manchester Republican Andrew Koenig would prevent the General Assembly from setting a state income tax rate above five-point-five-percent.
“It creates an income tax cap. We’ve passed it. 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, allowing 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. The income tax rate for the current tax year is four-point-eight percent. The corporate tax rate is four percent.
