A custom combine crew rolls through a 200-acre soybean field outside Keytesville, wrapping up harvest for a local farmer. The bill comes to around $7,000 for the job. Right now, that labor charge is not subject to Missouri sales tax. But if voters approve House Joint Resolution 173 and 174 (combined as one measure) on the November 2026 ballot, the Missouri Constitution could change forever — giving the legislature a blank check to add sales tax to exactly that kind of service, along with dozens of others rural families and businesses rely on every day.
The Missouri House passed the perfected version (HCS HJRs 173 & 174) on March 12, 2026, by a 98-54 vote. It was reported to the Senate on March 19 and is now awaiting action there, with the session resuming soon. If the Senate passes it unchanged (or with minor tweaks), Missourians will decide in November whether to repeal key parts of Article X of the state Constitution and replace them with new sections on taxation.
The ballot language voters will see sounds appealing: “Shall the Missouri Constitution be amended to: Phase-out the individual income tax based on revenue growth; Reduce personal property tax and other local tax rates; Modernize the sales and use tax for the purpose of eliminating income tax and reducing local tax rates; and Protect local funding for public schools?”
But the actual 20-page bill text tells a different story for rural Missouri — one where new taxes could hit farm services, small-town shops, and families first, while income-tax relief depends on statewide revenue growth that urban areas drive.
Governor Kehoe’s Promise vs. What the Bill Actually Says
In his January 13, 2026, State of the State address, Governor Mike Kehoe pledged:
I will never support extending sales taxes on agriculture, healthcare, or real estate.
That’s a strong political commitment from the governor, who has made phasing out the individual income tax one of his top priorities. But the constitutional amendment contains no exemptions for agriculture or any other sector. New Section 26.2 states plainly: “state and local sales and use taxes… may be expanded by legislation to impose taxes on transactions involving any goods and services” — as long as the legislation includes a finding that it’s for reducing and eliminating the state individual income tax and lowering local tax rates.
The “notwithstanding” clause overrides the existing constitutional ban on expanding sales taxes to new services (the one restated in Section 26.1). Future lawmakers decide what gets taxed — not the Constitution, and not the governor’s personal pledge. Even some House Republicans who voted no, like Reps. Greg Sharpe and Rudy Veit, raised concerns during debate that rural and farm-related services could be vulnerable.
In short: The promise stops at the Capitol door. Chariton County farmers, repair shops, and families could still face new taxes on everyday services the current system protects.
Rural Services That Could Be Taxed Overnight
Missouri currently taxes tangible personal property and only a narrow list of services (like admissions, utilities, or certain repairs involving parts). Most professional labor, custom work, and ag-related services are exempt — including everything below. The bill’s override would let the legislature change that with a single bill saying it’s for income-tax relief.
Here are real-world examples rural Missourians will recognize:
Farm & Harvest Services
- Custom combining, baling, or chopping: MU Extension’s “Custom Rates for Farm Services in Missouri” guide lists typical charges of $30–$45 per acre for combining or $15–$25 per bale. A 200-acre job could see hundreds in new tax — hitting farmers when margins are already squeezed by weather, input costs, and low commodity prices.
- Livestock veterinary services and on-farm calls: Rural vets in places like Brunswick or Salisbury charge $150–$400 per visit (plus mileage) for vaccinations, pregnancy checks, or emergencies. Taxing the service fee raises costs for cow-calf operations and backgrounders.
- Agronomy consulting, crop scouting, soil testing, or custom fertilizer/chemical application: Independent consultants or co-op applicators charge per acre. These help smaller farms use precision tools without full-time staff.
- Manure hauling/spreading or fence building: Keeps nutrient cycles and pasture rotation going on dairy, hog, or beef operations.
Equipment & Repair Shops
- Farm machinery repair labor: The one- or two-person shops in Marceline, Brunswick, or Keytesville fixing tractors, combines, or planters. Labor on repairs is untaxed today; a new tax inflates bills that already run thousands during critical seasons.
Small-Town Professional & Support Services
- Farm-specific accounting/bookkeeping or tax prep: Local CPAs handling Schedule F, depreciation, and payroll for dozens of operations. Adds another cost layer for paperwork-burdened farmers.
- Drone photography/videography for crops, insurance, or farm marketing: Custom digital work (like web design) is exempt now. Taxing it makes tools for direct sales or agritourism more expensive.
- Pest control, lawn care, or snow removal for farmsteads: Small operators spraying bins, treating pastures, mowing, or plowing driveways after storms — essential for rural properties.
Digital & Home-Based Businesses
- Web design, SEO, graphic design, or social-media management: If you run a one-person shop serving local farms, stores, or chambers, you’d suddenly register for sales tax, collect it on every invoice (often 8–10% combined state + local), and face price-sensitive clients switching to out-of-state providers or skipping services altogether.
These aren’t hypothetical — they’re the services keeping tractors running, cattle healthy, and small towns functioning in north-central Missouri.
Visual: Estimated New Tax Impact on Sample Rural Services
(Assuming ~9% average combined state + local sales tax rate; mid-range costs from MU Extension & local examples)
Hidden Hits on Local Budgets & Families
The bill requires political subdivisions to annually adjust other taxes (sales rate, personal-property levy, residential real-property levy, uniform property levy, or earnings tax) to offset new service-tax revenue — “substantially equal” amount. Schools are protected, but roads, bridges, sheriff departments, EMS, and county health services aren’t. In low-population rural counties with fewer transactions, this creates budget volatility.
Income-tax relief is tied to statewide net general revenue exceeding an inflation-adjusted FY2025 baseline (plus $20 million increments, also inflation-adjusted). Urban growth in Kansas City and St. Louis drives most of that. Rural areas could pay new service taxes for years — or indefinitely — before (or if) the trigger fully eliminates the tax by 2032 or beyond.
What This Means for Chariton County Readers
Whether you hire custom harvest crews, need your tractor fixed on the square, rely on a local vet for herd health, or just want your farm website updated, the bill introduces uncertainty the current Constitution forbids. Rural Missouri gets the potential new taxes first, the relief later (and unevenly), and no built-in safeguards for agriculture.
For more on opposition arguments, see Act for Missouri’s red alert (they highlight some similar concerns but miss many rural-specific examples like custom harvest or farm repairs).
What You Can Do
- Contact your state senator before the session heats up again — urge them to add real exemptions for agriculture and rural services if they advance the measure.
- Share this article with your farm co-op, chamber, church group, or neighbors.
- Watch for Senate changes, especially any attempt to write in protections the House version lacks.
- Come November 2026, the ballot is the final check on this constitutional blank check. Rural voices matter — make sure yours is heard.
(Sources: Missouri House bill tracking, official bill text (HCS HJRs 173 & 174), Governor Kehoe’s State of the State address, MU Extension custom rates guide, Missouri DOR sales tax exemption listings. All facts current as of March 21, 2026.)
