The Missouri Association of Realtors (MAR) has entered the political fray over a proposal that would end the state income tax and replace it with higher sales taxes.
The Missouri Independent reports the MAR donated $1.9 million to the campaign opposing Amendment 5, which would create revenue triggers to cut the top state income tax rate, which is currently 4.7% for taxable incomes greater than about $9,200. The amendment would then put lawmakers on a five-year schedule to change to adjust the sales tax rate to generate more revenue, thus replacing the funds lost with the elimination of the income tax.
However, the revenue triggers are not specified. Critics of the amendment warned that the current 3% sales tax rate could increase to as much as 11.5% to replace the income tax revenue.
Scott Charton, a spokesman for Missourians for Fair Taxation, which received the MAR donation, welcomed the input of real estate professionals into the campaign.
“These donations come from the pockets of realtors who are on every Main Street, suburban circle and country road across Missouri,” Charton said in a statement. “We have 26,000 hardworking grassroots members who are mobilized to protect taxpayers against the deceptive Amendment 5’s Everything Tax.”
Missourians for Fair Taxation stated that Amendment 5 would ignore the 1980 Hancock Amendment that requires voter approval for certain tax increases, adding that its language is so evasive that voters cannot know how much taxes could rise if it passes.
“Amendment 5 is so vague, even the state auditor cannot say how much taxes could ultimately go up, which means Missourians are being asked to approve a constitutional change without knowing the full impact to their own pocketbooks,” Charton said.
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