{"id":8526,"date":"2026-01-23T06:00:42","date_gmt":"2026-01-23T12:00:42","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/01\/23\/new-missouri-income-tax-cut-plan-could-allow-first-ever-sales-tax-on-gas-and-diesel\/"},"modified":"2026-01-23T06:00:42","modified_gmt":"2026-01-23T12:00:42","slug":"new-missouri-income-tax-cut-plan-could-allow-first-ever-sales-tax-on-gas-and-diesel","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/01\/23\/new-missouri-income-tax-cut-plan-could-allow-first-ever-sales-tax-on-gas-and-diesel\/","title":{"rendered":"New Missouri income tax cut plan could allow first-ever sales tax on gas and diesel"},"content":{"rendered":"

\"\"<\/p>\n

House Speaker Jon Patterson, a Lee’s Summit Republican, speaks at a press conference at the end of special session on June 11, 2025 (Annelise Hanshaw\/Missouri Independent).<\/p>\n

The latest <\/span>version of a proposal<\/span><\/a> meant to implement the governor\u2019s income tax cut could also trigger a first for Missouri: sales taxes on gasoline and diesel, a result the bill\u2019s sponsor says was accidental.<\/span><\/p>\n

Under the terms of the proposed constitutional amendment sponsored by House Speaker Jon Patterson, sales tax could be imposed \u201con transactions involving any goods and services\u201d and the revenue would be exempt from the prohibition on using money generated from a tax on fuel sales for state needs <\/span>other than highways<\/span><\/a>.\u00a0<\/span><\/p>\n

Missouri has earmarked money from taxes on motor fuels for highways <\/span>since 1928<\/span><\/a>.<\/span><\/p>\n

That is not the intent, Patterson said in an interview with The Independent on Thursday, the day after he filed a revised version of the proposal that fixes earlier errors and expands on limitations intended to prevent a windfall of new revenue for state and local governments.<\/span><\/p>\n

\u201cThere is absolutely zero intention on my part to see any increase in the motor fuel tax,\u201d Patterson said.<\/span><\/p>\n

An amendment to his bill will be prepared to make that explicit, Patterson said. The reference to how taxes on motor fuels are used is intended to prevent a new sales tax on fuel, Patterson said, not to divert money from highways.\u00a0<\/span><\/p>\n

\u201cThe purpose of that whole paragraph is to say, \u2018no, the motor fuel tax is not part <\/span>of this,\u2019\u201d Patterson said.<\/span><\/p>\n

Gov. Mike Kehoe, in a brief interview, declined to comment on imposing sales tax on fuel. He said he had not read Patterson\u2019s proposal.<\/span><\/p>\n

Missourians, who would have to vote on Patterson\u2019s proposal, don\u2019t want to pay more for gasoline, said Senate Minority Leader Doug Beck, a Democrat from Affton, at his weekly news conference.<\/span><\/p>\n

\u201cThey\u2019re going to be upset,\u201d Beck said. \u201cI think they\u2019re going to be upset because there\u2019s a lot of this.\u201d<\/span><\/p>\n

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Senate Minority Leader Doug Beck, D-Affton, discusses Democratic opposition to eliminating the state income tax during a Thursday news conference. Beck was joined by Sens. Angela Mossley, D-Florissant, left, and Steve Roberts, D-St. Louis (Rudi Keller\/Missouri Independent).<\/em><\/figcaption><\/figure>\n

Kehoe and Republicans who control the General Assembly have made <\/span>eliminating the state income tax<\/span><\/a> on individuals their top priority for the year. Patterson\u2019s proposal, which is expected to receive a public hearing next week, does not specify a sales tax rate to replace the income tax.<\/span><\/p>\n

Missouri currently charges 4.225% on taxable goods other than food from groceries and vending machines. Of that, 3% is for general revenue, generating about one-fifth of the $13.4 billion in general revenue collected in the most recent fiscal year.<\/span><\/p>\n

Local sales tax can double or almost triple the basic state rate.<\/span><\/p>\n

The version filed Wednesday is Patterson\u2019s second attempt. A constitutional amendment he <\/span>filed last week<\/span><\/a> had a drafting error that misstated which article contains the limit on the use of highway funds.<\/span><\/p>\n

Patterson\u2019s new proposal asks voters to grant lawmakers broad authority to expand sales tax to currently untaxed goods and services. Services such as accounting fees for tax preparation or car repairs are not currently taxed, and goods currently exempt include prescription drugs and home utilities.<\/span><\/p>\n

In his State of the State Address, Kehoe said he wants to target \u201cmonthly subscriptions and digital services like online advertising, e-books and AI platforms that fall outside our current sales tax base.\u201d<\/span><\/p>\n

Lawmakers are also authorized by Patterson\u2019s proposed amendment to set revenue triggers that would reduce, and then eliminate, the individual income tax as early as Jan. 1, 2031.<\/span><\/p>\n

Other provisions would:<\/span><\/p>\n