Missouri legislation · 2026 Regular Session
Missouri HB2690: Establishes the "Fair Tax Act of 2026" which replaces the state individual and corporate income tax and the estate tax with a tax based on all new retail sales and services
Status: In committee, May 15, 2026
What the bill says
To amend chapter 144, RSMo, by adding thereto one new section relating to the fair tax act of 2026, with a referendum clause. Section A. Chapter 144, RSMo, is amended by adding thereto one new section, to be known as section 144.001, to read as follows: 144.001. 1. This section shall be known and may be cited as the "Fair Tax Act of 2026". 2. For all tax years beginning on or after January 1, 2028, no tax shall be imposed upon any income derived from any source within this state, and all revenues lost as a result of the prohibition on the taxation of income under this section shall be replaced.
From the introduced text:
To amend chapter 144, RSMo, by adding thereto one new section relating to the fair tax act of 2026, with a referendum clause. Section A. Chapter 144, RSMo, is amended by adding thereto one new section, to be known as section 144.001, to read as follows: 144.001. 1. This section shall be known and may be cited as the "Fair Tax Act of 2026". 2. For all tax years beginning on or after January 1, 2028, no tax shall be imposed upon any income derived from any source within this state, and all revenues lost as a result of the prohibition on the taxation of income under this section shall be replaced by the levy and imposition of a tax upon all use or consumption of taxable property or services in this state. The rate of such tax shall be five and eleven onehundredths percent. The general assembly may enact one adjustment after the imposition of such tax if the revenue lost as a result of the prohibition on the taxation of income is greater than or less than the revenue received from the tax imposed under this section. Such adjustment shall be calculated to ensure that the amount of revenue received is equal to the amount of revenue lost under this section. 3. The taxes that shall be replaced …
Sponsors
- Chappell, Darin (R, 137) · primary sponsor