Budget & Taxes (Tax Incentives)

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.

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.

SB 1668 - This act establishes the "Missouri Innovation, Public Safety, and Accountability Act". The act authorizes a city to submit an innovation district master plan to the Department of Economic Development for the establishment of an innovation district. The master plan shall include the geographic boundaries, identification of vacant or underutilized property, public safety and infrastructure priorities, a general strategy for surplus or incremental state revenues, and high-level projections of anticipated housing units, jobs, business, and population impacts. The Department's authority to approve or deny an application shall be limited to determining whether the geographic boundaries are reasonable. All other application information shall be considered informational and not subject to approval, modification, or denial by the Department. The Department shall adopt and administer a single, standardized master scorecard to evaluate incentives for projects located within an innovation district. The scorecard shall establish uniform criteria, provide predictability and transparency, rank projects based on measurable outcomes, establish intermediate incentive tiers for projects that do not meet full eligibility, and assign project applications to incentive tiers based on the master scorecard. The scorecard shall include categories as described in the act. An application for incentives shall be approved or denied by a reviewing authority within forty-five calendar days. Failure to issue a determination shall result in approval of the application. (Section 620.6000) A city establishing an innovation district shall establish a fast track permitting process for projects located within the district, including the designation of a single, empowered point of contact that is authorized to coordinate reviews and issue binding determinations on behalf of all relevant departments, agencies, and offices. The city shall waive, reduce, or defer discretionary, duplicative, or extraordinary permit and development fees for projects within the district. For properties not subject to an existing tax increment financing plan or property tax abatement, fifty percent of the incremental increase in real property tax revenues generated after designation shall be deposited into the innovation district's public safety fund. The city shall adopt policies providing building code flexibility for adaptive reuse projects, as described in the act. The Department shall prepare and submit a biennial written report to the General Assembly summarizing the performance of the innovation district program, as described in the act. (Section 620.6003) The act establishes the "Rural Missouri Development Fund" for the purpose of supporting economic development, infrastructure, housing, workforce development, and related community-building activities in rural and smaller communities in the state. Any municipality in the top five percent of assessed valuation in the state and that has an innovation district shall deposit ten percent of new property tax revenues into the Rural Missouri Development Fund. Such funds shall be awarded to rural and smaller municipalities, and regional development organizations. The moneys shall be used for rural education, public infrastructure improvements, public safety, housing development, workforce development, and health care community service facilities. (Section 620.6006) The act establishes the "Innovation District Public Safety Fund", which shall be composed of fifty percent of net new state tax receipts generated in the innovation district. Moneys in the fund shall be used for capital or operating expenditures related to public safety and public realm improvements within the district. A project sponsor may apply to the Department for a construction-phase withholding advance. If the application meets all technical requirements, the Department shall disburse the construction-phase withholding advance. (Section 620.6009) For all tax years beginning on or after January 1, 2027, any person who is not a resident of this state and that establishes a primary residence within an innovation zone shall be eligible for an income tax exclusion. (Section 620.2012) The act authorizes an employer to enter into a withholding agreement with the Department for the retention of a portion of withholding taxes of employees located within an innovation district. The Department may establish aggregate or annual program caps by rule to manage fiscal exposure. Retained withholdings shall be used solely for qualifying reinvestment expenditures, as defined in the act. (Section 620.2015) For all tax years beginning on or after January 1, 2027, the act authorizes an eligible employer to claim a tax credit in an amount equal to $5,000 per eligible employee for relocation expenses incurred in moving such employee from out of the state into an innovation zone. (Section 620.2018) For all tax years beginning on or after January 1, 2027, the act authorizes a taxpayer to claim a tax credit in an amount equal to twenty-five percent of conversion expenditures incurred for converting nonresidential property into residential property. The tax credit may be claimed against the taxpayer's income tax liability or sales tax liability. (Section 620.2021) The act authorizes a city to establish a Missouri Opportunity Zone, which shall be conterminous with the innovation district boundaries. A taxpayer may elect to defer payment of state income taxes if such income tax liability is invested in a qualified Missouri Opportunity Zone investment, as defined in the act. This act shall sunset on August 28, 2036, unless reauthorized by the General Assembly. This act is substantially similar to provisions in SS#2/SCS/HCS/HBs 3231 & 2531 (2026). JOSH NORBERG

HB 3395 extends Missouri's Downtown Economic Stimulus Act (MODESA) to support existing and new downtown redevelopment projects. It allows developers to expand approved projects beyond original boundaries (including noncontiguous areas outside central business districts), extends project obligation terms to 35 years, and increases tax benefits: up to 85% of new income tax revenue from jobs in the project area, plus 85% of new sales tax revenue. This directly affects developers, municipalities with "expansion authorities," and state tax revenue streams by modifying how economic development incentives are applied. The bill removes requirements like proving a project "could not be financed without incentives" and allows reimbursement for costs incurred before approval.

HB 3539 creates a refund program for Missouri residents who paid motor fuel tax on vehicles, directly affecting individuals and businesses that purchased fuel for vehicles registered in Missouri. It establishes two claim methods: a receipt-based refund requiring detailed vehicle and purchase documentation (filed by September 30 annually), or a standard refund applied as a flat amount against income tax (filed by April 15 annually). The standard refund amount increases yearly - $30 for 2026, $45 for 2027, $60 for 2028, and $75+ for 2029 onward - with receipts needed for the detailed option. Refunds are funded by the same motor fuel tax revenue and cannot exceed taxes collected in a given year.

SB 1694 extends Missouri's Downtown Economic Stimulus Act (MODESA) to support existing downtown redevelopment projects approved before 2013. It allows developers to modify project areas (including noncontiguous zones outside central business districts), extend project timelines to 35 years, and use tax increments (up to 85% of state income tax and sales tax revenue) to fund development costs. The bill directly affects developers of approved projects, municipalities with designated development areas, and the state through new tax increment financing mechanisms. Key changes include removing requirements for new applications, eliminating displacement percentage rules, and enabling expanded project areas without new approval.

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 3268 creates a tax credit for Missouri businesses or organizations that provide specific services to homeless individuals. Eligible entities must be certified by the Department of Economic Development as providers of employment services, direct employment (at minimum wage for 28+ hours/week), or housing (rented/leased at income-based rates). Certified providers can claim up to $10,000 annually against their state income tax, with a total annual cap of $1 million across all credits. The program expires December 31, 2032, unless renewed by the legislature.