The Missouri House passed a bill that would phase out the state's individual income tax and replace that revenue with expanded sales taxes covering services and digital goods. The bill now moves to the Senate. If passed, Missouri voters would decide on a constitutional amendment giving the next General Assembly authority to implement the new sales taxes.

The bottom line: Income taxes account for about 60% of Missouri's general revenue. If this passes, businesses selling services or digital goods in Missouri should prepare for new sales tax obligations. The bill still needs Senate approval and a voter referendum before anything takes effect.