Budget & Taxes (Sales Tax)

HB 3248 proposes to create a sales tax exemption in Missouri for supplies specifically needed to care for infants. The bill would allow parents and caregivers to purchase items such as diapers, formula, and other essential baby care products without paying state sales tax. This change would directly affect families with infants by reducing the cost of raising a baby. The legislation modifies existing sales tax laws to include these infant care supplies in the list of exempt items, similar to how other essential goods are currently treated.

SJR 115 - This constitutional amendment, if approved by the voters, modifies provisions relating to taxation. INCOME TAX This amendment provides that, if all revenue triggers established by the General Assembly for the elimination of the individual income tax are met such that the top rate of tax is reduced below 1.4%, then for any tax year beginning on or after the later of January 1, 2031, or January 1 of the year in which the top rate of tax is reduced below 1.4%, no individual income tax shall be imposed by the state, provided that this provision shall not apply to any earnings tax imposed by a political subdivision or to the income tax imposed on the income of trusts, estates, or fiduciaries thereof, corporations, partnerships, limited liability companies, or any other entity other than real persons. SALES AND USE TAX This amendment authorizes the General Assembly to expand the sales and use tax base to include the ability to tax any goods and services. Beginning January 1, 2029, any county, city, town, or village imposing a sales or use tax at a rate greater than 1%, and any other political subdivision imposing a sales and use tax at a rate greater than 0.5% shall annually adjust one or more of several tax levies imposed by such political subdivision for the purpose of offsetting any additional revenue received from the expansion of the sales and use tax base. The levies that shall be adjusted are the sales and use tax rate, personal property tax levy, residential real property tax levy, or earnings tax rate. Notwithstanding such provision, no adjustment made pursuant to this provision shall result in a reduction in funding to the public schools within or serving such political subdivision. Beginning January 1, 2029, each constitutionally-imposed sales and use tax rate shall be adjusted in a manner provided by law in order to produce substantially the same amount of revenue as the median annual revenue that such tax produced for the three fiscal years ending prior to the preceding calendar year, as adjusted for inflation. The State Auditor shall determine any such adjustments. Any tax or revenue increase resulting from any general law enacted by the General Assembly for the purpose of eliminating the individual income tax, provided that such general law is enacted within three years of the effective date of this amendment, shall be exempt from Hancock limitations and from constitutional provisions relating to motor fuel tax. The Director of Revenue may promulgate rules for the purpose of clarifying and prohibiting the circumvention of the expansion of the sales and use tax base, as well as to define any terms left undefined by general law. This amendment is substantially similar to SS/SCS/HCS/HJRs 173 & 174 (2026). JOSH NORBERG

This bill authorizes a sales and use tax exemption for products purchased at prison canteens or commissaries in Missouri. It directly affects state and local tax authorities as well as inmates and vendors who sell goods within correctional facilities. The key provision establishes that these specific retail sales will not be subject to state or local sales taxes, similar to exemptions already granted for other types of purchases. By removing the tax burden on these transactions, the bill aims to provide a consistent tax treatment for prison store purchases without changing the underlying tax laws for other goods.

This bill (SJR 73) is titled "Establishes the Missouri Homestead Act," but the provided context does not include any details about the act's specific provisions, policy changes, or who it would affect. The official abstract only states the name of the act without describing its content or mechanisms. Since no substantive information about the bill's purpose or provisions is available in the context, a meaningful summary cannot be generated.

HB 3397 proposes to exempt purchases made at prison canteens or commissaries from state and local sales and use taxes in Missouri. This change would directly benefit incarcerated individuals and prison staff by reducing the cost of essential goods purchased within correctional facilities. The bill amends existing tax exemption statutes to specifically include these prison retail transactions alongside other current exemptions for items like agricultural supplies and manufacturing equipment. By removing sales tax from these specific prison purchases, the legislation aims to lower expenses for inmates without altering the broader tax structure for other consumers.

HB 3405 modifies Missouri's tax treatment for partnerships and S corporations (referred to as "affected business entities"). It imposes a new tax on these entities doing business in Missouri, calculating the tax by adjusting their federal income (after state deductions) or applying a 20% deduction to ordinary business income for tax years starting in 2027. The tax applies to income sourced within Missouri, with losses allowed to be carried forward to future tax years. This directly affects Missouri-based partnerships and S corporations, particularly those with members holding interests through multiple tiers.

HB 3312 establishes a 6-year pilot program that redirects local sales tax revenues from purchases made in one county (seller's county) to the county where the buyer lives (purchaser's county). It directly affects veterans and senior citizens in specific small counties (based on population thresholds) by using redirected funds to eliminate veterans' residential property tax bills and reduce up to 30% of senior citizens' property taxes. The program requires sellers to use a unique transaction code to identify the purchaser's county, with tax revenues collected into a separate trust fund before being distributed monthly to qualifying counties. Counties must use these funds first to replace lost revenue from veterans' tax eliminations, then for senior citizen reductions, with any remaining funds going to general county revenue.

HB 3475 would allow Vernon County to seek voter approval for a 1% sales tax on retail purchases within the county, specifically to fund hospital operations. The tax requires a majority vote in a county election and must be listed separately on receipts. If approved, the revenue would go exclusively to hospital services, deposited into a dedicated trust fund managed by the state. The bill does not impose the tax automatically - it only enables the process for Vernon County residents to decide through a vote.

HB 3206 replaces Missouri's existing regulations for tobacco, alternative nicotine, and vapor products with new definitions and requirements. It directly affects manufacturers, wholesalers, retailers, and distributors of these products by creating a new licensing system (requiring a $100 annual license) and defining key terms like "vapor product" (e.g., e-cigarettes) and "nicotine analogue" (substances mimicking nicotine's effects). The bill establishes a tax collection system based on the "first sale within the state" and mandates tax stamps for cigarettes. These changes aim to clarify regulatory boundaries and tax collection procedures for these products within Missouri.

SB 1656 removes the state sales tax from eligible food items, meaning groceries and similar products purchased for home consumption will not be taxed at the standard rate. It specifically exempts food that qualifies for federal food stamps (like groceries), but excludes restaurants, fast food, and eateries where food sales make up over 80% of revenue. The bill defines "food" broadly to include vending machine sales but clarifies this exemption does not affect local sales taxes. This policy change directly affects grocery shoppers and retailers selling qualifying food items, while excluding dining establishments. The tax revenue previously collected on these items (at 1%) would no longer be collected under this exemption.