Missouri voters would decide on a fund to replace state taxes

The amendment would establish a permanent public fund in the state treasury, supported by legislative appropriations and any gifts, grants, or bequests it receives. The fund's stated goal would be to support long-term state finances and eliminate state-imposed taxes without reducing the real value of its principal. Missouri voters must approve the amendment. The amendment would go to voters at the November 2026 general election or at a special election called by the governor.

The state treasurer would invest the fund in exchange-traded funds that track the S&P 500 or a comparable successor index set by law. This rule would apply to the Show-Me Prosperity Fund. The treasurer must follow investment standards for public trust funds.

The General Assembly could use fund money only to eliminate the listed state taxes, after the treasurer reports sufficient earnings and lawmakers approve the report. The money could be used only to eliminate those state-imposed taxes. The treasurer's report must say that the fund's net investment earnings for the previous fiscal year are enough to replace revenue from all listed taxes. Lawmakers must approve the report by concurrent resolution within the first 60 calendar days of the regular session after the treasurer's notice. Withdrawals in any fiscal year could not exceed 3% of the fund's average market value over the previous five fiscal years; lawmakers could take less. The listed taxes are individual income, state sales and use, state corporate income, and other state-imposed taxes in an order set by law. After the listed taxes are eliminated, they could not be enacted again. If the fund cannot meet its obligations because of insolvency, a revenue shortfall, or program failure, lawmakers could use other lawful funds and establish or raise taxes or other revenue to support state programs and spending.

The state auditor would audit the fund at least once every three fiscal years, and the state would publish its balance and investment performance at least quarterly. These requirements would apply to the Show-Me Prosperity Fund. The auditor could conduct additional audits when the auditor considers them necessary. The information would be posted on an existing free online database for state and local financial information.