04/27/2016
Missouri State Auditor Nicole Galloway today released a report on the office's annual review of state compliance with tax limits, known as the Hancock Amendment.
The Missouri Constitution was amended in 1980 to add restrictions on the amount of personal income used to fund state government, and the amount by which fees and taxes can be increased. The Hancock Amendment limits the amount of Missourians' income that may be used to fund state government to no greater than the portion used to do so in 1981, when it was 5.6 percent. Based on this calculation, that puts the refund threshold at $14.05 billion. For the 2015 Fiscal Year, total state revenue was $10.15 billion, approximately $3.9 billion under the threshold, which means the state is in compliance, and no revenues are due to be refunded for the 16th year in a row.
The Hancock Amendment also requires voter approval before taxes or fees can be increased by the General Assembly beyond an annual limit, which is calculated based on metrics outlined in the Missouri Constitution. The annual revenue limit for tax and fee increases for the 2015 Fiscal Year was $94.6 million, but net taxes and fees actually decreased by $20.8 million, which means the state was also in compliance with this component of the amendment.
A complete copy of the office's review of compliance with the Hancock amendment is online here.
