HB 2768 imposes a 2% sales tax on retail purchases of industrial hemp-derived consumable products (like edibles or beverages containing ≤0.3% delta-9 THC) starting in 2027. It requires retailers to collect this tax at the point of sale, display it separately on receipts, and remit it to the state. The revenue will fund the hemp business program, directly affecting retailers, manufacturers, and distributors of these products while ensuring consumers pay the tax at checkout. The bill also defines key terms like "consumable product" and "hemp-derived cannabinoid" to clarify regulatory scope.
HB 2975 changes Missouri's personal income tax structure by creating new progressive tax brackets and eliminating tax breaks for certain capital gains. It establishes a temporary top rate of 4.95% for 2023-2026 (down from 5.9%), with potential further reductions if state revenue exceeds specific thresholds. Starting in 2027, new brackets take effect with a 0% rate for income under $2,000, followed by 2.9% to 5.9% rates for higher income levels, adjusted annually for inflation. This bill directly affects all Missouri residents filing state income taxes, altering how their taxable income is calculated under the new rates and brackets.
HB 2756 would revise Missouri's property tax assessment rates by lowering the percentage used to calculate taxes for certain real property classes. Specifically, it reduces the assessment rate for subclass (1) property from 19% to 10%, maintains subclass (2) at 8%, and lowers subclass (3) from 32% to 20%. These changes directly affect property owners and businesses paying real property taxes under these classifications. The bill also includes a specific provision for airport-related property assessments but primarily focuses on adjusting these core tax rates.
HB 3133 proposes increasing the cigarette tax from $0.17 to $1.50 per pack of 20 cigarettes, requiring voter approval in a November 2026 election. This tax applies to all cigarettes sold in the state and directly affects cigarette consumers, retailers, and manufacturers. Revenue from the tax would initially fund the health initiatives fund (until the legislature appropriates 25% of federal reimbursement funds), then shift to the general revenue fund after 2027. The bill does not take effect without voter approval and specifies how tax stamps must be affixed to cigarette packages.
HB 3118 modifies tax credit rules for business contributions to community programs. It allows up to 70% tax credits for donations to approved programs in small communities (under 15,000 residents) or distressed areas, with an annual cap of $6 million. Special provisions apply to affordable housing investments in distressed communities, offering up to 55% tax credits under separate annual limits. The bill affects businesses and financial institutions making qualifying contributions, excluding normal business activities like banking or insurance operations.
SB 1551 authorizes certain third-class cities (smaller municipalities) to impose a transient guest tax, which would apply to short-term visitors like hotel guests. The bill gives these cities the authority to set their own tax rates and rules for this levy, though it does not require them to implement the tax. It creates a new option for local governments to generate revenue, without mandating any specific action. The bill is currently under review by the Local Government Committee.
HB 2713 creates a 25% tax credit for Missouri meat processing facilities making qualifying modernization or expansion investments (like new equipment, building upgrades, or software). It directly affects small meat processors with fewer than 500 combined employees in Missouri, allowing them to claim up to $75,000 annually in tax credits against their state tax liability. The credit covers expenses for facility improvements, equipment, and technology used exclusively for meat processing, with a total annual cap of $2 million for all claims. The program runs through 2028, requires state authority approval, and mandates verification that facilities actually expanded production within three years.
SB 1534 would remove credit and debit card processing fees from the definition of "gross receipts" for sales tax purposes. This means businesses would no longer include these fees - paid to payment processors - as part of their taxable sales revenue. The bill directly affects merchants who accept card payments, reducing their sales tax liability on these fees. The key provision changes how gross receipts are calculated, excluding processing costs from the taxable base. This is a policy change to simplify tax calculations for businesses, not a procedural or commemorative measure.
HB 2754 modifies Missouri's individual income tax rates. It sets a temporary top tax rate of 4.95% for tax years 2023-2026, replacing the previous structure. After 2026, the top rate permanently drops to 4.7% for all Missouri resident taxpayers. The bill also establishes a mechanism allowing annual 0.1% rate reductions (up to ten times) if state revenue exceeds prior-year levels, effective January 1 of each year. This directly affects Missouri residents filing state income tax returns.
HB 2650 gradually eliminates property taxes on tangible personal property (like business equipment and furniture) in cities or counties that vote to do so. If approved by voters, the tax rate on this property decreases each year for five years: starting at 26.6% in year one, dropping to 19.9%, then 13.2%, 6.5%, and finally 0% from year five onward. Cities or counties may also choose to replace lost revenue with a local sales tax, but only if voters approve both the elimination and the sales tax. This directly affects local governments and businesses that own taxable tangible personal property within participating jurisdictions.
