Missouri Prohibition on Extending Sales Tax to Previously Untaxed Services, Constitutional Amendment 4 (2016)

Missouri Amendment 4
Election date November 8, 2016
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin Citizens

2016 measures
November 8
Amendment 1 a
Amendment 2 a
Amendment 3 d
Amendment 4 a
Amendment 6 a
Proposition A d
Polls
Voter guides
Campaign finance
Signature costs

The Missouri Prohibition on Extending Sales Tax to Previously Untaxed Services Amendment, also known as Constitutional Amendment 4, was on the November 8, 2016, ballot in Missouri as an initiated constitutional amendment. It was approved.

A "yes" vote supported prohibiting a new state sales or use tax on any service or activity that was not subject to a sales or use tax as of January 1, 2015.

A "no" vote opposed this amendment prohibiting new sales or use taxes.

Election results

Amendment 4
Result		Votes	Percentage
a Yes		1,533,909	56.98%
No		1,158,291	43.02%

Election results from Missouri Secretary of State

Overview

Sales tax in Missouri

In 2016, the state sales tax in Missouri was 4.225 percent. Cities, counties, and certain special districts were permitted to enact a local sales tax in addition to the state tax.

Initiative design

Amendment 4 prohibited the state and local governments from enacting sales and use taxes on any service or activity not subjected to one on January 1, 2015. As a constitutional amendment, the measure would require a vote of the people to amend or repeal.

State of the ballot measure campaigns

See also: Campaign finance for Amendment 4

Missourians for Fair Taxation led the campaign in support of Amendment 4. The group raised over $5.44 million as of December 14, 2016. The National Association of Realtors contributed $4 million to the campaign. Opponents, such as the Missouri Municipal League, did not organized a campaign to oppose the initiative. A poll from October 2016 indicated support for Amendment 4 to be around 23 percent.

Text of measure

Ballot title

The official ballot title was as follows:

“

Shall the Missouri Constitution be amended to prohibit a new state or local sales/use or other similar tax on any service or transaction that was not subject to a sales/use or similar tax as of January 1, 2015? Potential costs to state and local governmental entities are unknown, but could be significant. The proposal’s passage would impact governmental entity’s ability to revise their tax structures. State and local governments expect no savings from this proposal.

”

Fair ballot language

An explanation of the ballot language was as follows:

“

A “yes” vote will amend the Missouri Constitution to prohibit a new state or local sales/use or other similar tax on any service or transaction. This amendment only applies to any service or transaction that was not subject to a sales/use or similar tax as of January 1, 2015. A “no” vote will not amend the Missouri Constitution to prohibit such state or local sales/use or other similar tax. If passed, this measure will not increase or decrease taxes.

”

Constitutional changes

See also: Article X of the Missouri Constitution

The measure added a Section 26 to Article X of the Missouri Constitution. The following text was added:

Section 26. In order to prohibit an increase in the tax burden on the citizens of Missouri, state and local sales and use taxes (or any similar transaction-based tax) shall not be expanded to impose taxes on any service or transaction that was not subject to sales, use or similar transaction-based tax on January 1, 2015.

Support

Missourians for Fair Taxation, also known as Yes on 4, led the campaign in support of Amendment 4. Supporters called the initiative the Taxpayer Protection Amendment.

Supporters

• Home Builders Association of Greater Kansas City
• Home Builders Association of Greater St. Louis
• Independent Bankers Association
• Mid-Mo Apartment Association
• Missouri Amusement & Music Operators Association
• Missouri Appraisers Advisory Committee
• Missouri Association of Home Inspectors
• Missouri Association of Trial Lawyers
• Missouri Automobile Dealers Association
• Missouri Bankers Association
• Missouri Broadcasters Association
• Missouri Cattlemen’s Association
• Missouri Coalition for Interior Design
• Missouri Funeral Directors & Embalmers Association
• Missouri Grocers Association
• Missouri Independent Bankers Association
• Missouri Land Title Association
• Missouri Optometric Association
• Missouri Press Association
• Missouri Realtors
• Missouri Society of Certified Public Accountants
• Missouri Society of Professional Surveyors
• Missouri State Chiropractic Association
• National Federation of Independent Business
• Ozarks Realtor Association

Arguments

Missourians for Fair Taxation provided the following questions-and-answers on the group's website:

“ WHAT KINDS OF SERVICES WOULD AMENDMENT 4 KEEP TAX-FREE? Amendment 4 is designed to prohibit the state from putting a new sales tax on services that Missourians use every day. Here are just a few examples: FAMILY SERVICES: Day care, rent, health care, self-defense instruction and tutoring. PERSONAL SERVICES: Haircuts, manicures, tattoos, dry cleaning, car repairs and funerals. PROFESSIONAL SERVICES: Banking, accounting, advertising, technical installations and real estate. HEALTH CARE SERVICES: Physicians, surgeons, nurses, physical therapists, dentists, eye doctors and counselors. HOME SERVICES: Construction, plumbing, lawn care, heating and air conditioning, installations and repairs, appraisals and inspections. HOW ARE CONSUMERS IMPACTED? Sales taxes hit low- and middle-income families hardest. Amendment 4 protects those who are least able to afford new taxes, including senior citizens, the disabled and others on fixed incomes. HOW REAL IS THE THREAT? New sales taxes on services have been proposed in the last seven sessions of the Missouri General Assembly. Just this year, Missouri’s neighboring states of Oklahoma and Illinois have discussed taxing services. Other states, such as North Carolina and Washington State, have started imposing new sales taxes on services this year. The threat is real because politicians often share bad ideas, and a sales tax on services is a bad idea for Missouri consumers. WHAT WOULD BE THE AMENDMENT’S FINANCIAL IMPACT ON GOVERNMENT? Missouri does not currently impose a broad sales tax on services. Because Amendment 4 would protect Missouri from imposing future sales taxes on services, there would not be any financial impact on governments because they do not now collect such a tax. Amendment 4 is revenue-neutral. A constitutional amendment adds certainty that future Missouri politicians and bureaucrats cannot simply change or interpret the law to allow sales taxes on services. WHAT MESSAGE IS SENT TO POLITICIANS AND BUREAUCRATS? Amendment 4 adds Constitutional security to Missouri’s current practice of not taxing sales of services we use every day. It tells politicians to stop wasting tax dollars they already collect, stop looking for new ways to tax our citizens, and Protect Missouri from new taxes. ”

Campaign advertisements

The following campaign advertisements were produced by Missourians for Fair Taxation:

Missourians For Fair Taxation's "Stop Sales Taxes On Services in Missouri"

Missourians For Fair Taxation's "A Building Storm”

Opposition

Opponents

• Missouri Municipal League
• Missouri Budget Project

Arguments

The Missouri Municipal League Board of Directors voted to oppose Amendment 4 for the following reasons:

“

Placing a sales/use tax expansion prohibition in the Missouri Constitution would not allow this vitally important local revenue source to adjust to new technologies and an ever-shifting economy. Amendment 4 could lead to the elimination or reduction of vital local services. There are no current efforts in Missouri to tax services. Placing a broad constitutional prohibition on the ballot to prevent an action that has not yet or may never occur is bad public policy. With existing constitutional requirements, any proposals to extend sales tax to services in Missouri require a vote of the people. Amendment 4 focuses on a problem that does not exist.

”

Campaign finance

One campaign committee, Missourians for Fair Taxation, was registered in support of Amendment 4, while none were registered in opposition. The contribution and expenditure totals below were current as of December 14, 2016.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$5,444,067.00	$0.00	$5,444,067.00	$5,609,437.16	$5,609,437.16
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$5,444,067.00	$0.00	$5,444,067.00	$5,609,437.16	$5,609,437.16

Support

The following table includes contribution and expenditure totals for the committees in support of the measure.

Committees in support of Amendment 4
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Missourians for Fair Taxation	$5,444,067.00	$0.00	$5,444,067.00	$5,609,437.16	$5,609,437.16
Total	$5,444,067.00	$0.00	$5,444,067.00	$5,609,437.16	$5,609,437.16

Donors

The following were the top donors to the committee.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
National Association of REALTORS	$4,005,045.00	$0.00	$4,005,045.00
MO Independent Bankers Association PAC	$25,000.00	$0.00	$25,000.00
MBA Ozark Region PAC	$15,000.00	$0.00	$15,000.00
MBA Pony Express Region PAC	$15,000.00	$0.00	$15,000.00
MBA River Heritage Region PAC	$15,000.00	$0.00	$15,000.00

Media editorials

Support

• Hannibal Courier-Post said: “We live in tax-happy times. This amendment prevents unsensible taxation on services. Everyone has a budget, and often they don’t include unforeseen taxes on previously untaxable parts of life, like a haircut, flower deliveries or more. Simple and concise, Amendment 4 deserves a “yes” vote to prevent egregious over-taxation.”
• The Joplin Globe said: "As a rule, we don’t favor efforts to amend the Constitution, the state’s primary governing document. But we understand the protections that are being sought in a proposal that which would ensure state residents, who already pay sales tax on most tangible goods, would not also have to pay them on services."
• St. Joseph News-Press said: "Think this could not happen here? New sales taxes on services have been proposed each of the past seven years in the Missouri General Assembly. Fortunately, none has been approved."

Opposition

• The Herald-Whig said: "While we would oppose taxing many services, a constitutional amendment would be shortsighted in an ever-changing world. This issue should be left up to elected state and local officials, rather than changing the Constitution."
• The Kansas City Star said: "However, this amendment would unjustifiably cripple local governments’ ability to approve targeted sales taxes for specific needs."
• St. Louis Post-Dispatch said: "Many economists argue that consumption taxes are more rational than wealth taxes, which they claim sap incentive. Any debate over a more fair and rational tax system is worth having. But until that debate happens, voters should not foreclose their revenue options."

Polls

See also: Polls, 2016 ballot measures

• In October 2016, Remington Research Group surveyed 1,588 likely voters and found 49 percent of respondents opposed to Amendment 4.

Missouri Amendment 4 (2016)
Poll	Support	Oppose	Undecided	Margin of error	Sample size
Remington Research Group 10/4/2016 - 10/5/2016	23.0%	49.0%	27.0%	+/-2.64	1,588
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org.

Path to the ballot

See also: Laws governing the initiative process in Missouri

The supporting group was required to turn in at least 157,788 valid signatures, depending on the congressional districts in which the group collects signatures. Missouri law states that signatures must be obtained from registered voters equal to 8 percent of the total votes cast in the most recent governor's election from 6 of the state's 8 congressional districts.

Supporters filed signatures with the Secretary of State's office by the deadline on May 8, 2016. Constitutional Amendment 4 was certified on August 9, 2016.

Cost of signature collection:
Sponsors of the measure hired Lincoln Strategy Group to collect signatures for the petition to qualify this measure for the ballot. A total of $785,374.10 was spent to collect the 157,788 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $4.98.

State profile

Demographic data for Missouri
	Missouri	U.S.
Total population:	6,076,204	316,515,021
Land area (sq mi):	68,742	3,531,905
Race and ethnicity**
White:	82.6%	73.6%
Black/African American:	11.5%	12.6%
Asian:	1.8%	5.1%
Native American:	0.4%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	2.4%	3%
Hispanic/Latino:	3.9%	17.1%
Education
High school graduation rate:	88.4%	86.7%
College graduation rate:	27.1%	29.8%
Income
Median household income:	$48,173	$53,889
Persons below poverty level:	18.2%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Missouri. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Missouri

Missouri voted Republican in all seven presidential elections between 2000 and 2024.

More Missouri coverage on Ballotpedia

• Elections in Missouri
• United States congressional delegations from Missouri
• Public policy in Missouri
• Endorsers in Missouri
• Missouri fact checks
• More...

Related measures

Taxes measures on the ballot in 2016
State	Measures
North Dakota	North Dakota Tobacco Tax Increase, Initiated Statutory Measure 4 d
Washington	Washington State-Provided Campaign Financing Funded by a Non-Resident Sales Tax, Initiative 1464 d
Washington	Washington Modifying Tax Exemption Criteria for Alternative Fuel Vehicles, Advisory Vote 15 d
Washington	Washington Taxation of Stand-Alone Dental Plans, Advisory Vote 14 d
Missouri	Missouri 60 Cent Cigarette Tax, Constitutional Amendment 3 d
Illinois	Illinois Transportation Taxes and Fees Lockbox Amendment a
Florida	Florida Property Tax Exemptions for Renewable Energy Equipment, Amendment 4 a
Nevada	Nevada Medical Equipment Sales Tax Exemption, Question 4 a
Oregon	Oregon Business Tax Increase, Measure 97 d
Colorado	Colorado Tobacco Tax Increase, Amendment 72 d
Missouri	Missouri 23 Cent Cigarette Tax, Proposition A d
Maine	Maine Tax on Incomes Exceeding $200,000 for Public Education, Question 2 a
New Jersey	New Jersey Dedication of All Gas Tax Revenue to Transportation, Public Question 2 (2016) a
Oklahoma	Oklahoma One Percent Sales Tax, State Question 779 d
Utah	Utah Amendment C, Tax Exemptions for Property Leased By State Measure d

Recent news

The link below is to the most recent stories in a Google news search for the terms Missouri Amendment 4 2016 Sales Tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Missouri Prohibition on Extending Sales Tax to Previously Untaxed Services, Constitutional Amendment 4 (2016) - Google News

See also

Suggest a link

• 2016 ballot measures
• Missouri 2016 ballot measures
• Laws governing the initiative process in Missouri

External links

Basic information

• Petition for Amendment 4
• Missouri 2016 ballot measures
• League of Women Voters of Missouri 2016 Ballot Issues Guide

Support

• Missourians for Fair Taxation
• Missourians for Fair Taxation Facebook
• Missourians for Fair Taxation Twitter

Footnotes

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