Missouri to have 6th Highest Combined Tax Rate in the Nation

Apr 22, 2014 by AFP

Proposed Sales Tax Hike Will Ratchet Up Tax Burden, Says Americans for Prosperity

JEFFERSON CITY – Americans for Prosperity – Missouri drew attention today to the consequences of the proposed one cent or one percent state sales tax increase. Last month AFP-Missouri highlighted a new chart (see below) from the non-partisan Tax Foundation showing that Missouri has the 14th highest combined state and local sales tax rate in the nation. The proposed one percent increase in the Sales Tax would vault Missouri from the 14th highest to the 6th highest combined tax rate in the nation.

“As I said last month, Missourians are getting nickeled and dimed at the cash register and it will only get worse if this proposal is passed,” said Patrick Werner, Missouri state director of Americans for Prosperity. “The sales tax is essentially the final cut government takes from the taxpayer after federal, state and county taxes and fees are administered.  The problem Missouri has is that local governments think it is necessary to put tax hikes on the ballot every April*, ratcheting up the burden on hardworking Missourians and discouraging families from relocating to our great state. It’s time our elected officials recognize the burden of Missouri’s overall tax policy is having on its residents and businesses and take steps to lower taxes in Jefferson City and in local municipalities across the state.”

The current chart, not accounting for recent local tax hikes or proposed state sales tax:

Since last month’s chart was released, April municipal election have come and gone with over 100 local tax increases being passed all over the state.  More significantly, the Missouri House of Representatives passed a proposed 1 cent or 1% Sales Tax increase from 4.225 to 5.225.  That increase, combined with Missouri’s current average local sales tax of 3.36, would saddle Missourians with a total sales tax burden of 8.58% (not even including areas in Missouri with special TDD and TIF’s). The resulting tax rate would vault Missouri’s combined state and local sales tax burden to the 6th highest in the nation.

“Missouri is about to join the ‘top ten’ of highest tax states in the nation,” Werner continued. “We will have a higher combined tax rate than notorious high tax states like New York and California. It’s time for our Senators to stop hiking taxes and instead look for ways to cut spending and let Missourians keep more of their income.”

Missouri, which has had hundreds of proposed local tax hikes each year in recent years, is identified by the non-partisan Tax Foundation as having the 14th highest combined tax burden in the nation. The Tax Foundation study also notes that 5 states don’t collect a statewide sales tax and 12 states don’t allow local governments to levy sales taxes.

*For a list of the 2014 Municipal Tax Proposals, please go here.

For further information or an interview, please contact Patrick Werner at PWerner@afphq.org or 314-780-7687.