Shaping Policies. Creating Opportunities.

HB 548 Would Further Destabilize MO Budget

Download/View the PDF Version

Although certain provisions of House Committee Substitute for House Bill 548 (HB 548) would close an ongoing tax loophole, the remainder of the bill would make Missouri’s tax structure more unfair for most Missourians, shortchange education funding, and jeopardize the resources our communities need to prosper. The bill would cost Missouri $74 million in just the first full tax year of implementation.

The House Committee Substitute for House Bill 548 (HB 548) would:

  • Implement the components of the “Wayfair Fix,” allowing Missouri to collect sales taxes owed on online retail purchases just like the state does for purchases at local retailers.
  • Endanger public services while directing an additional tax cut to Missouri’s wealthiest. The bill would cut the top rate of income tax by 0.14 in the first year of implementation, followed by additional reductions in the income tax rate that would be triggered by growth in sales tax revenue.
  • Shortchange pre-K to 12 education funding by diverting currently earmarked sales taxes for education. Earmarked sales taxes that would be collected under the “Wayfair Fix” would be designated as general revenue, reducing education funding over time as e-commerce grows.
  • Limit the ability of cities and counties to collect taxes due for online retail purchases, even if those localities already have a “use tax.”
About the Author

Leave a Reply


Verified by MonsterInsights