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Thursday, April 17, 2008

TAX HIKE FOR VETERANS WINS HOUSE APPROVAL

The House of Representatives on April 15 voted 107-40 to send a proposed constitutional amendment to voters that, if ratified, would increase the state sales tax to provide an estimated $116 million a year -- $928 million over the eight-year life of the tax – to pay for improved services for military veterans. The Senate must still pass the measure for it to go on the November ballot.

HJR 71, sponsored by state Rep. Barney Fisher, R-Richards, would ask Missouri voters to impose an additional one-eighth cent sales tax. The increase would raise the total state sales tax to 4.35 percent from the current 4.225 percent. The tax would take effect on Jan. 1, 2009, but expire at the end of 2016. Voters would then have the option of renewing the tax for another 10 years at a reduced rate of one-tenth of a cent. If renewed, voters would consider additional extensions every 10 years.

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