Auditor’s report finds Missouri compliant with Hancock Amendment

| June 7, 2018
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JEFFERSON CITY, Mo. — A report released Thursday by Missouri State Auditor Nicole Galloway details the office’s annual review of state compliance with the state constitutional limits on taxing and expenditures – commonly known as the Hancock Amendment. For the 18th consecutive year, Missouri was found to be in compliance.

The Missouri Constitution’s Hancock Amendment restricts the amount by which fees and taxes can be increased and also limits the amount of personal income used to fund state government

One aspect of the Hancock Amendment limits the amount of state government funding that comes from Missourians’ income to no greater than the portion used to do so in 1981 (except as authorized in a vote of the people). The review found that for the 2017 fiscal year, total state revenue was approximately $4.2 billion under the refund threshold, meaning the state is in compliance. The limit has not been exceeded since 1999.

Additionally, the amendment limits the amount that the General Assembly may raise fees or taxes through new legislation (without a vote of the people). Missouri was again in compliance, as projected increases of taxes or fees was less than the 2017 fiscal year’s $101.5  million limit.

The Hancock Amendment was passed in 1980 and named after the late Mel Hancock, a former member of the House of Representatives who was the originator, catalyst, and primary organizer and author of an multi-faceted state and local tax limitation amendment to the Missouri Constitution passed by the voters of Missouri.

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