Voters to decide whether to ban sales tax on services like hairc - KMOV.com

Voters to decide whether to ban sales tax on services like haircuts and car repairs

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Approval of Amendment 4 would prevent a sales tax from going into effect on many purchases and services in Missouri. Credit: KMOV Approval of Amendment 4 would prevent a sales tax from going into effect on many purchases and services in Missouri. Credit: KMOV
ST. CHARLES, Mo. (KMOV.com) -

Voters will take to the polls next week to decide whether to prohibit sales tax on services like haircuts, pet grooming and car repairs.

Amendment 4 would alter the Missouri Constitution and prohibit any new state or local sales tax on services or transactions. The confusing part is a 'yes' vote on the amendment means you are against new taxes.

Small businesses like Reeds Barbershop in St Charles County say it would hurt their bottom line

“It’s going to affect everyone here, some people joke saying it’s not going to affect me that bad but it’s going to hurt you on your tips. Instead of giving you more, I’ll pay the tax, we laugh about it, but everyone’s a little bit taxed out,” said Thomas Reed Hanna, owner of Reed’s Barbershop.

Real estate agents are also supporting Amendment 4, pouring millions of dollars into the campaign.

“Everything from obviously the sale of your home, your real estate agent plus all the cost of home ownership, lawn care bills, a carpenter to do renovations, the plumber,” explained Mark Stallman, the president of the St. Charles County Real Estate Association.

There is not a specific plan to implement these types of sales taxes, but this would ensure it can’t ever happen.

That’s a concern for opponents like the Missouri Municipal League.

“It could cripple a local government in carrying out the needs citizens demand,” said MML President Kathy Rose.

They compare it to music. In the past people used to be buy records and paid sales tax. Now people buy music on iTunes and there is no sales tax.

Amendment 4 would limit the ability for cities to adjust to an ever-shifting economy which could eventually mean less funding for police, fire and roads according to opponents.

They also say amending the Constitution makes things even harder to change down the road.

For Hanna, he says he just wants people to pay close attention to what the language says and vote carefully.

Here is what it will look like on your ballot.

CONSTITUTIONAL AMENDMENT 4 Proposed by Initiative Petition 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.

YES - FOR THE AMENDMENT NO - AGAINST THE AMENDMENT

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