Budget & Taxes (Sales Tax)

HB 1867 allows the city of Joplin to increase its transient guest tax on hotel and motel stays to a maximum of six percent, but only after voters approve the change through a local election. The tax would be added to the room charge and collected by hotels/motels, with all revenue dedicated exclusively to funding Joplin’s convention and visitors bureau. This bill amends Missouri law to create a specific exception for Joplin, which would otherwise be subject to a standard five percent cap for cities of its size. The tax must be listed separately on guests’ bills and cannot replace any existing taxes.

HB 2253 exempts the retail sale of most food from Missouri’s state sales tax starting January 1, 2027, permanently removing this tax. It directly affects grocery stores, convenience stores, and vending machines selling SNAP-eligible food items (like groceries), but excludes restaurants and fast-food establishments where over 80% of revenue comes from prepared food sold for immediate consumption. The bill defines "food" to include items redeemable with SNAP benefits and vending machine sales, while specifying that local sales taxes still apply. This change ends a temporary 1% state tax rate that previously funded school district trust funds. The policy shifts the tax burden entirely to local jurisdictions for affected food sales.

HB 1766 modifies how local governments adjust property tax rates when property valuations change. It requires counties, cities, and school districts to revise tax rates for different property types (like residential or commercial) to maintain the same total tax revenue as the previous year, excluding certain properties such as railroads and utilities. The bill sets limits on rate increases, preventing them from exceeding voter-approved ceilings or a 5% annual inflation cap. This ensures local governments collect consistent revenue after valuation changes while adhering to constitutional and legal constraints.

HB 1793 modifies the state's earnings tax by adding a new exemption for low-income individuals. It exempts salary, wage, commission, and other compensation income for people earning at or below 150% of the federal poverty level. This change directly affects low-income taxpayers by removing earnings tax liability on their work income. The bill does not alter existing exemptions for organizations like charities, credit unions, or insurance companies listed in the original tax code. The policy change is a specific addition to the tax exemption list, not a broad overhaul.