Missouri Voters Reject Citizen Initiative Limits and Income Tax Phaseout

Missouri voters overwhelmingly rejected two proposed constitutional amendments Tuesday that would have raised the approval threshold for citizen-led amendments and required lawmakers to phase out the state’s individual income tax.

Amendment 4 failed by about 80 percent to 20 percent, while Amendment 5 received about 16 percent support in the August 4 primary election. Every county rejected both proposals.

The first proposal would have required citizen-led constitutional amendments to receive majority support statewide and in each of Missouri’s eight congressional districts. Missouri currently requires a simple majority of votes cast across the state.

State constitutions can reserve part of the lawmaking power to voters through the initiative process. Missouri residents may place a proposed constitutional amendment on the ballot after collecting enough valid signatures. Lawmakers may also refer amendments to voters, but the new district requirement would have applied only to citizen-led measures.

Opponents argued that the proposal would have allowed one congressional district to block an amendment supported by a statewide majority. Supporters said changes to the state constitution should receive broad geographic backing.

Gov. Mike Kehoe said before the election that Amendment 4 was intended to prevent outside groups from reshaping the Missouri Constitution without broad support across the state. Voters rejected the measure statewide and in all eight congressional districts.

The second proposal would have required lawmakers to begin phasing out Missouri’s individual income tax after state revenue reached specified growth levels. It also would have allowed broader sales and use taxes and changed existing constitutional limits on taxing goods and services.

The tax would not have ended immediately. The amendment would have placed the phaseout requirement in the state constitution, where it could not be reversed through an ordinary bill, while later legislation would have set many of the rates, exemptions and other details needed to carry out the change.

Missouri’s official ballot summary said the amendment itself would not have produced an immediate change in state or local revenue. The financial effect of the future laws needed to carry out the tax plan remained unknown.

Opponents warned that broader sales taxes could increase costs for consumers and reduce money available for schools and other public services. Supporters argued that eliminating the income tax would allow residents to keep more of their earnings and make Missouri more competitive for businesses and investment.

Opposition to the two measures brought together labor groups, educators, civil liberties advocates, parent organizations and activists from across the political spectrum. Several business groups also opposed Amendment 5 or stayed out of the campaign. Coalition representatives credited the broad alliance with helping defeat the proposals despite millions of dollars in spending by supporters of the tax measure.

The Missouri Association of Realtors became a leading opponent of both amendments and provided millions of dollars to the campaigns against them. The organization had previously used citizen initiatives to secure constitutional restrictions involving real estate transfer taxes and sales taxes on goods and services.

Kehoe criticized the money behind the opposition campaigns and described the Realtors as a special interest group. Campaign representatives disputed that label, saying the organization’s funding came from its members across Missouri.

Opponents also criticized Missouri Promise, the political action committee supporting Amendment 5, because its donors were not publicly disclosed. The committee outspent opponents of the tax proposal and increased its advertising during the final week of the campaign.

Voters approved the other two statewide measures on the ballot. Amendment 1 extends a 0.1 percent sales tax that funds state parks and soil and water conservation. Amendment 2 requires Jackson County’s assessor to be elected.

Kehoe, who backed Amendment 5, said after the vote that he would continue pursuing changes to Missouri’s tax structure. Missouri Promise also said its effort to lower taxes would continue.

The results remained unofficial Wednesday, but both amendments fell far short of the statewide majority required for adoption.