Governor’s income tax elimination plan could tax services instead

Alison Patton

EDITOR’S NOTE: A statistic about income taxes paid by the top 1% of earners has been corrected.

COLUMBIA, Mo. (KMIZ)

Gov. Mike Kehoe might be looking to phase out income tax in 2026, but to do that, the state would have to expand the sales tax base to include services, according to conservative group Americans For Prosperity.

The governor hasn’t released a plan to eliminate income tax, but a spokesperson said Thursday that he will unveil his tax and spending plan for fiscal 2027 at the State of the State Address on Jan. 12. That plan will be “comprehensive and responsible,” the governor’s office said.

Americans For Prosperity has been working closely with the governor to craft a plan that will keep more money in Missourians’ paychecks, legislative director Camellia Peterson said. The governor plans to phase out the income tax over five to 10 years, Peterson said.

Income tax accounts for about two-thirds of Missouri’s general revenue, according to the Missouri Budget Project. The state has to make up that loss from somewhere.

The state collected about $3.31 billion since December 2024, according to the state general revenue report for November 2025.

The bottom 20% of Missouri workers pay about 0.5% of their income, the top 20% pay about 3.6% and everyone in between pays somewhere between 1.4% and 3.6%, according to the Institute on Taxation and Economic Policy.

Peterson said the governor’s plan would include widening the sales tax base to include services while also cutting spending. For example, realtor transaction fees and accounting services would be taxable under this proposed plan, Peterson said. Health care services would be exempt from this tax.

“Broadening the sales tax base really does help people at lower income levels because it also gives you more choice in how much tax you pay when there are budget shortfalls or when things get tight,” Peterson said.

The Missouri Realtors Association did not respond to a request for comment.

Traci Gleason from the Missouri Budget Project said services could include repairs, lawn service and pet grooming.

Missouri voters passed a ballot initiative in 2016 to keep sales and use taxes off services, according to Gleason.

Gleason said this would act like a tax break for the upper class because a larger share of their tax burden comes from income tax.

The other way the governor could make up for the income tax revenue is to increase sales tax, Gleason said.

The Missouri Budget Project estimates that sales tax would have to be about 12% to completely replace income tax, and when that’s combined with other local taxes, that number could jump to 17% to 19%.

Gleason said this projected sales tax could be costly for Missourians.

“We don’t add up the sales taxes that we pay every single day, and so it seems like it’s going to be something that’s going to help people, but when you add up what they’re actually paying, it’s going to hurt most Missourians in the long run,” Gleason said.

Peterson said the governor isn’t planning on an increase in sales tax. However, the governor hasn’t released his official plan.

The plan would also need voter approval because it’s considered a new tax, Peterson said. It would be on the 2026 ballot.

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Strikes to End Alzheimer’s held Thursday night in Jefferson City

Meghan Drakas

JEFFERSON CITY, Mo. (KMIZ)

The Alzheimer’s Association hosted Strikes to End Alzheimer’s on Thursday night.

The event was held at Strikers Bowling Alley after the Walk to End Alzheimer’s event was canceled in October due to weather.

“It’s really a time for the community to come together,” Alzheimer’s Association Fundraising Senior Manager Laurie Williams said. “This is such a healing journey for people. It’s beyond just the fundraising efforts. We want to create a sense of community and really show Jefferson City that we’re here and all the good work that we’re doing. So we’re excited to welcome everyone out tonight to make up for for the walk that we missed.”

More than 7 million Americans have been diagnosed with Alzheimer’s and that number is projected to grow each year.

According to the Alzheimer’s Association, more than 122,000 Missourians who are 65 years old and older are battling the disease. This equates to more than 11% of the 65 and older population in the Show-Me State.

The Jefferson City chapter of the Alzheimer’s Association hosted the event for the community to help bring awareness to the cause and honor those who are affected by the disease. As of Thursday afternoon, the chapter has raised nearly $72,000 of its goal of $90,000.

According to Williams, the money raised is used for a number of things to support an end to Alzheimer’s disease and the families who are affected by it.

“One of the things that people think of most is our research…we’re so close to a cure and treatments and prevent, so that’s one portion,” Williams said. “But the real big piece, especially for our local communities, is the care and the support that we provide to them.”

Williams said the organization hosts monthly support groups and there is a free 24/7 hotline available for anyone with questions about the disease, resources or how to handle a situation.

“I actually heard a story today about someone who called and she was having some trouble with her husband and and she said the hotline literally saved my life,” Williams said. “We she called it, and we were able to deescalate the escalated situation that was happening and and really bring the love back to work to what was going on. So we want to support anyone and everyone in every way that we can. And those funds will allow us to do that in our local communities.”

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Jefferson City teenager charged as adult in August shooting

Ryan Shiner

COLUMBIA, Mo. (KMIZ)

A Jefferson City teenager has been certified as an adult in a shooting that occurred in August.

Daniel Day, 17, was charged as an adult on Wednesday with unlawful use of a weapon, two counts of armed criminal action and a count of first-degree assault. He is being held at the Cole County Jail without bond. An entry of appearance was filed on Thursday.

Cole County Prosecutor Locke Thompson told ABC 17 News in an email that Day was certified as an adult on Tuesday and that he has been in custody since Aug. 20.

The probable cause statement says Jefferson City police were called at 4:48 p.m. Aug. 20 to the 300 block of Benton Street. A witness allegedly told police that gunshots came from someone in the area and a white BMW was possibly shot at. Officers found several shell casings in a yard, the statement says.

Minutes later, officers found the vehicle with bullet holes in 700 block of Marshall Street, the statement says. A person described as a victim saw a witness’ car and started honking the horn of his vehicle, he then heard gunshots while driving away and realized his car was shot, the statement says. The victim’s head appeared to have been grazed by a bullet, police wrote.

Another witness allegedly saw a male walking and shooting toward the BMW during the incident, court documents say. One of the witnesses allegedly identified Day from a photo, court documents say. Another witness allegedly told police they drove Day from the area after the shooting and that he had a gun, court documents say.

Police searched an apartment, found the gun and test results on Dec. 3 determined the shell casings they found earlier matched the gun, court documents say.

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Mizzou Democratic Socialists to protest federal warrant sweep and university president’s meeting

Jazsmin Halliburton

COLUMBIA, Mo. (KMIZ)

The University of Missouri’s Young Democratic Socialists of America will hold a protest Thursday in response to a federal “warrant sweep” from last month and University of Missouri System President Mun Choi’s meeting with Gov. Mike Kehoe.

Mizzou YSDA will meet at Speaker’s Circle on the University of Missouri’s campus at 3 p.m. on Thursday, before protesters march towards City Hall.

According to a social media post, the student group has three demands they want addressed:

Stop sharing the city’s surveillance data with Homeland Security and ICE and shut down Flock surveillance systems.

Keep Homeland Security/ICE out of Columbia and keep policing local.

Ensure city policy is directed by elected city officials, not Gov. Mike Kehoe or Mun Choi.

In November, various law enforcement agencies were in and around Columbia to conduct a warrant sweep, which was referred to as “Operation Brightside.” During the sweep, people with federal warrants were arrested, with most arrests involving gun-related charges. Some were also arrested on drug charges.

Last week, University President Mun Choi met with Gov. Kehoe to discuss public safety in the city, but a number of city leaders were not invited. This meeting strengthened tensions between the city and the university after Choi asked city leaders to crack down on crime, after a Stephens College student was shot and killed in late September. Choi then sent an 11-step action plan to officials.

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QUESTION OF THE DAY: Do you agree with banning sugary food and drinks from SNAP?

Matthew Sanders

The USDA said Wednesday that it had approved Missouri’s request for a waiver from Supplemental Nutrition Assistance Program rules, allowing the state to exclude sugary food and drinks from the program.

SNAP helps low-income Missourians pay for food. Starting next year, they won’t be able to use SNAP funds to buy prepackaged sweets, candy, soda, sugary juices and certain other items.

The move is drawing praise for its healthy focus. Others say it’s a way to target the poor.

What do you think? Let us know by voting in the poll.

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Columbia man seriously injured in Boone County crash

Ryan Shiner

COLUMBIA, Mo. (KMIZ)

A 39-year-old Columbia man was seriously injured in a Wednesday morning crash on Route PP at Starling Road in Boone County, according to a crash report from the Missouri State Highway Patrol.

The report says a 2011 Toyota Scion – driven by a 42-year-old Columbia man – was heading northbound when it turned into the path of a 2003 Nissan Frontier that was going in the opposite direction. The 39-year-old man was the driver of the Nissan, according to the report.

The driver of the Toyota had minor injuries and was brought to University Hospital in a private vehicle while his passenger – a 40-year-old woman from Columbia – had moderate injuries and was brought to the same hospital by ambulance, the report says. Both people in the Toyota wore seatbelts, the report says.

The 39-year-old man did not wear a seatbelt and was brought to University Hospital by ambulance, the report says. Both vehicles were totaled.

MSHP reports do not name those involved in crashes.

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Sedalia man accused of posing as private investigator, DEA agent while breaking into vehicles

Ryan Shiner

COLUMBIA, Mo. (KMIZ)

A Sedalia man was arrested and charged after he allegedly told law enforcement that he was a private investigator while he broke into multiple vehicles on Monday evening.

Ethan Jones, 22, was charged on Tuesday with second-degree burglary, armed criminal action and misdemeanor stealing. An arraignment was scheduled for Wednesday morning.  

The probable cause statement says Sedalia police were called to the intersection of 6th Street and Moniteau Avenue for a report of burglaries in unlocked vehicles. Jones was found by officers and he allegedly claimed he was a private investigator for a business named “TOMO,” which he was not able to spell and ended up being the name of a drug testing facility, police wrote.

Two people saw Jones go into several unlocked vehicles and take a plethora of items, the statement says. He allegedly told one person he was a private investigator before changing his story and claimed he worked for the Drug Enforcement Administration and was trying to “stop drugs,” the statement says.

Law enforcement recovered several stolen items that were found on Jones while at the Pettis County Jail, including a passport, cellphone, headphones and more, the statement says.

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Fulton school bus involved in crash, no injuries reported

Ryan Shiner

COLUMBIA, Mo. (KMIZ)

A school bus from Fulton Public Schools was involved in a crash on Wednesday, according to an email sent to parents by the school district.

No injuries were reported in the crash. The email says another bus picked up the remaining students and a 10-minute delay for drop-offs was expected.

“This message is to inform you that while on its afternoon route, Bus 15 was involved in a minor vehicular accident; there were no student or staff injuries,” the email says. “Another bus was dispatched to resume transporting students home. Students will be arriving at their respective drop off locations approximately 10 minutes behind schedule.”

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Lake of the Ozarks mansion considered total loss after fire

Nia Hinson

COLUMBIA, Mo. (KMIZ)

Editor’s Note: A source error regarding the time firefighters responded has been corrected.

No one was injured after a home caught fire Wednesday on Trillium Lane, according to a press release from the Lake Ozark Fire Protection District.

The release says firefighters were called at 1:23 p.m. and arriving first-responders saw a home with “heavy fire” coming from the back of the building. The fire “rapidly advanced” because of strong winds, according the release. Wind gusts were around 30-35 miles per hour in the area at the time of the fire, according to the ABC 17 News Stormtrack Weather Team.

Deputy Chief George Creamer said the home is considered a total loss.

Additional fires were caused in the area and two more homes had minor damage, the release says.

The fire at the initial home started on the lower level, but the cause is under investigation, the release says. Both residents at that home were able to get out without being injured, according to the release.

An ABC 17 News reporter on scene saw at least two fire trucks in the area on scene around 5 p.m. and crews working to put out hotspots.

David Loyd said he and his wife live just across the lake in Rocky Mountain, but said the view of his home allows him to see directly toward across the main channel toward where the home caught fire. Loyd said he had just finished editing at home, when he looked outside of his living room and saw what he initially thought was smoke coming from a pile of leaves.

However, Loyd said he quickly realized he was looking at flames coming from the corner of the home, prompting him to yell to his wife to call 911. What happened next happened very quickly, he said.

“The smoke was really dense. The flames had to have been 60-foot high coming out of the side of the house,” Loyd said. “The smoke was just so thick it was hard to see if it was just contained to that piece of property or if it was really spreading.”

Loyd said within 10 minutes, the back corner of the home was engulfed in flames and said firefighters were on scene minutes later. Loyd said while he doesn’t directly know the family involved, hearing stories like this always hit close to home.

“Every once in a while you hear of somebody’s lake house or somebody’s home catching fire and it always kind of hits home because you know we’re all susceptible to accidents or something bad like this happening,” Loyd said. “It’s just really sad to see something like this happen to anybody. I was just hoping that everybody was safe and no body got hurt. You can always buy another house.”

A neighbor in the area told ABC 17 News the window of the home was damaged in the fire, but said the extent of the damage was minor. She said her roof also briefly caught fire but was able to be quickly put out.

Crews remained on scene until around 9 p.m.

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Fisherman whose boat motor broke found at Lake of the Ozarks

Ryan Shiner

COLUMBIA, Mo. (KMIZ)

An elderly fisherman at the Lake of the Ozarks was found on Tuesday evening after a roughly hour-and-a-half search, according to a Wednesday social media post from the Gravois Fire Protection District.

The post says the Gravois Fire Protection District was called at 6:07 p.m. to the Gravois Arm of the Lake of the Ozarks to help the Missouri State Highway Patrol.

The man had called his family at 7:45 p.m. and was able to give them a location where he could be found and he required no medical attention, the post says.

“According to information gathered on scene, the fisherman experienced a mechanical failure when his primary motor would not start,” the post says. “He attempted to return using his trolling motor, but wind conditions pushed him across the arm, leading him to a dock on the opposite shoreline. Without a cell phone, he sought help from nearby homeowners, who provided shelter and assisted him in contacting his family.”

Three fire boats, an MSHP water patrol unit, MSHP helicopter, a thermal drone, one squad, three chief officers and one command unit were utilized at the scene, the post says.

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