HB 2362 creates a property tax exemption for Missouri disabled veterans, reducing their primary residence property taxes by a percentage equal to their U.S. Department of Veterans Affairs disability rating (e.g., a 50% rating reduces taxes by 50%). It directly affects Missouri residents who are disabled veterans (with VA-certified disability ratings), own their primary residence, and file annual applications with VA documentation by April 1. The exemption is proportional to the veteran’s disability rating (up to 100% for 100% rating) and extends to surviving spouses who retain ownership and residency without remarrying. To qualify, applicants must submit proof of disability rating, ownership, and primary residence occupancy each year.
HB 1703 allows Missouri taxpayers who serve in the National Guard or military reserves to deduct a portion of their military-related income from their state taxable income. The deduction percentage increases gradually - from 20% in 2020 up to 100% starting in 2024 - and applies to income from training, reserve duty, or joining/re-enlistment bonuses. It directly affects Missouri military members (National Guard/reserves) who file state tax returns, reducing their taxable income for eligible military compensation. The bill also specifies that this deduction will no longer apply to civilian federal service positions (including uniformed roles) beginning in 2027.
SB 961 modifies Missouri's Historic Preservation Tax Credit by increasing the credit rate to 35% for rehabilitation of eligible historic properties in qualifying counties or for historic schools/theaters, up from 25% for standard projects. It requires rehabilitation costs to exceed 50% of a property’s value and aligns with federal Secretary of the Interior standards. The bill also establishes a $90 million annual cap on tax credits, with $30 million specifically reserved for projects in qualified census tracts (areas with high poverty rates). These changes aim to incentivize historic preservation in rural and economically disadvantaged communities while streamlining the credit application process under the "Missouri Historic, Rural Revitalization, and Regulatory Streamlining Act." The provisions take effect for projects beginning July 1, 2026.
HB 1670 corrects a misleading title; it does not address income tax on tips but modifies Missouri's tax calculation rules for adjusted gross income. The bill repeals existing tax provisions and adds new rules to adjust federal tax items when calculating Missouri income tax, including: adding back certain federal tax refunds (excluding pandemic-related credits), including interest on specific government bonds, and adjusting deductions for property purchases and net operating losses. These changes affect all Missouri taxpayers who file state income tax returns, as they alter how federal tax items are treated for state tax purposes. The bill focuses on aligning Missouri's tax code with federal adjustments rather than creating new tax rates or exemptions.
This bill modifies Missouri's tax credit program for contributions to educational assistance organizations (EAOs). It allows taxpayers to claim a 100% credit for donations made after August 2021, capped at 50% of their state tax liability, with an annual $75 million limit adjusted yearly based on school district funding changes. Credits are allocated on a first-come, first-served basis, and taxpayers cannot designate specific students for scholarships. The law directly affects donors to EAOs and the organizations themselves, ensuring credits are used within the annual cap without transferability or refunds.
HB 1632 creates tax credits for Missouri retailers and distributors selling biodiesel blends (5-20% biodiesel mixed with diesel fuel). It provides a 2-cent-per-gallon credit for blends of 5-10% biodiesel and a 5-cent-per-gallon credit for blends of 10-20% biodiesel sold at retail service stations or to final users within Missouri. The credits apply to tax years beginning in 2023 or later, with a total annual cap of $16 million and a sunset provision ending the program on December 31, 2028, unless reauthorized. This bill directly affects fuel sellers who meet the blend specifications defined in the law.
HB 2329 reduces the tax assessment rate for tangible personal property (such as business equipment, vehicles, and movable assets) owned by businesses and individuals in Missouri. It phases down the current 33.33% assessment rate over three years: to 28.22% in 2027, 23.11% in 2028, and permanently to 18% starting in 2029. The bill repeals the existing assessment rate language in Missouri law (section 137.115) and replaces it with this new phased reduction schedule. This directly lowers property tax bills for owners of tangible personal property beginning in 2027.
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 1882 creates a state tax credit allowing taxpayers to claim 100% of contributions made to eligible non-profit organizations running youth police initiatives in urban areas (as defined by the U.S. Census Bureau). The credit applies to tax years starting January 1, 2027, and is non-refundable but can be carried forward for up to five years or transferred/sold. The total annual credit amount is capped at $500,000, and the Missouri Department of Public Safety must maintain an annual list of eligible organizations on its website. The program expires automatically six years after enactment unless reauthorized by the legislature.
SJR 88 is a proposed constitutional amendment in Missouri that would create a property tax exemption for disabled veterans and their surviving spouses. It defines a "disabled veteran" as a Missouri resident with honorable military service and 100% VA disability compensation from service-connected injuries, and exempts their primary residence (homestead) from property taxes. Surviving spouses retain the exemption only if they continue living in the same home; the exemption ends if they sell the property or move. To offset lost local tax revenue, the bill requires counties to impose a replacement tax on certain commercial property (subclass 3 of class 1), with adjustments based on property values and voter approval for rate changes. This is a pending constitutional amendment (prefiled Dec 2025, first read Jan 2026), not yet law.
