Tax on a Haircut? Missouri Voters Weigh Sales Tax Limits

Oct 28, 2016

Credit Marjie Kennedy / Flickr

  Missouri voters will be the first in the nation to decide whether to amend their state constitution to prohibit sales taxes from being expanded to services.

The proposal on the Nov. 8 ballot is a backlash against efforts in various states to extend sales taxes from consumer goods to services such as auto repairs, haircuts, legal work or financial accounting.

If the Missouri measure passes, supporters hope that it could become a national model.

Sales taxes have long provided an important financial foundation for governments. They are levied by 45 states and more than 10,000 local jurisdictions. But only a few states currently charge sales taxes on a wide array of services.

Lawmakers have considered expanding sales taxes to keep pace with a service-driven economy.