05/01/2026
I thought for this week’s capitol report it may be a good idea to share Representative Darin Chappell’s words concerning the Elimination of the State Income Tax legislation. Next week I will once again send out information regarding the upcoming ballot measure. I hope it answers some of your questions. Darin made his living as a bean counter. Rep. Darin Chappell is a former City Manager and City Administrator, and I have a lot of confidence in his knowledge of finance.
“Okay, here’s the deal” …
The House and Senate have passed HJR 173 & 174 and there is vas misunderstanding about this Tax Reform effort. In this post, he sets the records straight to the best of his ability. “Now, you may well disagree with the policy in question, and that’s fair.” He states “you can disagree respectfully. However, what’s not fair, is for someone to suggest that he is somehow being less than honest.” He offers for those “who may not know him well to ask around…” He is well known for his truthfulness. He contends that “every single thing he writes is 100% true.”
“First, this HJR cannot go into effect without the vote of the People. Simply passing both Chambers of the General Assembly is not enough; the measure will be on the ballot for voters to decide.:
“Second, The Governor’s signature is not needed for this measure. The Governor will determine when it will be on your ballot, but that’s all.”
“Third, this measure is not an attempt to raise increased tax revenues for any government, State or local. The measure demands that the revenues raised be neutral (the same amount of money collected) or less in exchange for Eliminating the State Income Tax.”
“Fourth, this will not have any negative effect on Public Education funding. It is specifically written into the amendment that such is not permitted.”
“Fifth, this amendment would insert a constitutional requirement to gradually eliminate the State income tax by way of the growth of revenues from the normal economic growth in the State.”
“Once the income tax is eliminated, this amendment would disallow the General Assembly from ever re-establishing an income tax again.”
“In order to expedite that progress toward a 0% income tax, this amendment asks if the General Assembly may create legislation to expand a consumption tax onto purchases currently exempt from sales taxes. This is largely in regard to various services. The General Assembly will have five (5) years in which to formulate and pass such a plan.”
Chappell contends that “the plan will be adopted must be done in one piece of legislation, and all new State revenues raised by the expanded tax base must be used ONLY for the reduction, and eventual elimination, of the income tax. No other purpose is permitted.”
“The expansion of the consumption tax base for the State also allows the Counties, Cities, and other local governments to have a sales tax on that basis too. However, whatever the increase in revenues to the local governments are gained as a result MUST be offset at the local governmental level by either lowering the overall sales tax rate, lowering local property tax rates, or a combination of thereof.”
“It is extremely important to understand,” Chappell says that, “if this amendment passes at the ballot box, we can, in just a few years, eliminate the income tax, have a minimal increase in the State sales tax (less than 6% for the State rate as opposed to the current 4.225%), and lower local sales tax rates, property tax rates, or both.”
“I have ready what many are saying, and MANY are simply incorrect.” Darin Chappell further stated that, “I know the matter well, having filed a similar plan (the Missouri Fair Tax) four times during my tenure in the House. I’m happy to engage in genuine discussion, and to answer specific questions. If I don’t know, I’ll say so, explain why not, and do my best to find out.”
Chappell further states, “I have no interest, time, or patience in arguing for the sake of argument, however. I do not lie and will not engage those who do. Disagree all you want, respectful to all reading this. If you want to be disrespectful, that’s what your page is for…” (yes, I took this from his Facebook post)
As already stated, I thought some insight from a financial expert on State Taxes being a member of the House Budget Committee would be helpful.