HB 3149 modifies Missouri county sales tax rules to specifically direct revenue from certain local sales taxes toward early childhood education. It requires counties seeking to fund early childhood education through new sales taxes to obtain voter approval via ballot measure, with the tax rate limited to a combined maximum of 1.5% after 2025. The bill mandates that any revenue collected for this purpose must be deposited into the dedicated early childhood education fund and managed under existing rules (Section 67.5420). This directly affects Missouri counties considering new local sales taxes for education, as well as voters who must approve such tax proposals. The bill does not create new taxes but changes how existing county sales tax authority can be allocated.
HJR 179 proposes a constitutional amendment that would exempt Missouri residents aged 65 or older from paying state and local taxes on their tangible personal property, such as vehicles, furniture, and other movable belongings. The amendment would also include existing exemptions for homesteads, manufacturers' inventories, and non-profit properties, but the primary focus is on seniors. If approved by voters in the November 2026 election or a special election, this exemption would take effect immediately for qualifying individuals. As a constitutional amendment, it requires voter approval to become law and does not change current tax rates for other property types.
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.
HJR 151 proposes a constitutional amendment to create new personal property tax exemptions in Missouri. It would exempt manufacturers' and retailers' inventories (like raw materials and goods for sale), household items in homes, and property used by veterans with service-connected disabilities or religious/charitable organizations. To offset lost tax revenue, counties would implement a replacement tax on other property (specifically subclass 3 of class 1 property) at a rate calculated to cover the shortfall. The amendment requires voter approval after legislative passage and would take effect in counties following their first general reassessment. This change would directly affect manufacturers, retailers, and homeowners with qualifying property, while shifting tax burden to other property owners in affected counties.
HB 3027, the Missouri Defense and Energy Independence Act, creates new sales tax exemptions for businesses producing critical materials (like metals for defense tech) and critical pharmaceuticals. It exempts purchases of materials, equipment, and energy used in manufacturing these items, as well as defense contractors' purchases under federal contracts and large-scale industrial laundries. The bill also exempts construction costs for nuclear security enterprises in cities over 400,000 population, with this exemption expiring August 28, 2034. These tax breaks directly benefit manufacturers and defense-related businesses in Missouri.
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.
SB 1562 authorizes a new surcharge on telecommunications services to fund crisis support programs. This bill would directly affect telecom customers through a small additional fee on their bills. The legislation is currently in early stages (first read in January 2026, referred to committee in February), and the abstract does not specify which crisis services would be funded or the exact surcharge amount. As a procedural authorization bill, it does not yet establish concrete policy changes.
HJR 174 proposes a constitutional amendment that would allow Missouri to eliminate its individual income tax by 2031 if specific revenue targets are met, while requiring the state to offset any revenue lost from this change. It prohibits expanding sales taxes to new services beyond those taxed in 2015 and mandates that local governments reduce other taxes (like property or sales taxes) if they expand the sales tax base to fund income tax elimination. The amendment also requires the state to adjust sales tax rates to maintain historical revenue levels after 2028 and exempts certain tax increases from revenue caps. This is a proposed amendment requiring voter approval, not current law, and does not affect existing tax debts or taxes on businesses, trusts, or estates.
HJR 173 proposes a constitutional amendment to eliminate Missouri's state individual income tax by 2031 if specific revenue goals are met, requiring the legislature to set a tax rate below 1.4% for any tax year starting in 2031 or later. It also restricts expanding sales and use taxes to new services beyond what was taxed as of January 1, 2015, unless the expansion is explicitly tied to reducing the income tax. To offset revenue changes from any tax base expansion, local governments must adjust property taxes, earnings taxes, or sales tax rates by July 1, 2029, without reducing school funding. The amendment further mandates that sales tax rates be adjusted annually to maintain pre-2029 revenue levels, adjusted for inflation. This amendment requires voter approval before taking effect.
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.
