LAW ENFORCEMENT SALES TAXES

Current law limits the aggregate amount of sales tax levied by a county pursuant to the County Sales Tax Act to 1%. This act increases such limit to 1.5% for Ozark County, provided that any tax in excess of 1% is levied for the purpose of providing law enforcement services, and provides that any sales tax levy approved during the November 8, 2022, general election shall be deemed to be in compliance with state law if the aggregate amount of sales tax levied pursuant to the County Sales Tax Act is not in excess of 1.5%. (Section 67.547)

Current law authorizes certain counties to levy a sales tax for the purpose of providing law enforcement services to such county, with the rate not to exceed 0.5%. This act authorizes such levy not to exceed 1%. (Section 67.582)

These provisions are identical to SB 547 (2025) and to provisions in SS#2/SCS/HB 199 (2025) and SCS/HCS/HB 643 (2025), and are substantially similar to HB 66 (2025), HCS/HB 2077 (2024), SB 550 (2023), and HB 872 (2023), and to provisions in SCS/SB 1091 (2024).

TRANSIENT GUEST TAXES

Current law authorizes certain cities to impose a transient guest tax for the purpose of funding the promotion, operation, and development of tourism. This act also allows the proceeds from such tax to be used for the operating costs of a community center. (Section 67.1366)

This provision is identical to SB 510 (2025), HB 687 (2025), HB 699 (2025), and SB 1488 (2024), and to a provision in SS#2/SCS/HB 199 (2025), HCS/HB 532 (2025), and SCS/HCS/HB 1564 (2024).

This act adds the counties of Ste. Genevieve and Perry to the list of counties authorized to impose a transient guest tax for the promotion of tourism. (Section 67.1367)

This provision is identical to SB 169 (2025) and to a provision in SCS/SB 104 (2025) and SS#2/SCS/HB 199 (2025), and is substantially similar to HB 2784 (2024) and to a provision in HCS/HB 532 (2025).

PUBLIC SAFETY SALES TAXES

This act adds the village of Sunrise Beach and the cities of Hannibal, Moberly, Nevada, and Joplin to the list of cities authorized to impose a sales tax for the purposes of public safety. (Section 94.900)

This provision is identical to a provision in SCS/SB 104 (2025), SS#2/SCS/HB 199 (2025), and SCS/HCS/HB 643 (2025), and is substantially similar to SB 749 (2025), HB 866 (2025), and HB 1572 (2025), and to a provision in SS/SCS/HB 225 (2025), HB 330 (2025), and HCS/HB 532 (2025).

SENIOR CITIZENS PROPERTY TAX CREDIT

Current law authorizes an income tax credit for certain senior citizens and disabled veterans in amount equal to a portion of such taxpayer's property tax liabilities, with the amount of the credit dependent on the taxpayer's income and property tax liability. This act modifies the definition of "income" to increase the amount deducted from Missouri adjusted gross income from $2,000 to $2,800, or, for claimants who owned and occupied the residence for the entire year, such amount is increased from $4,000 to $5,800. (Section 135.010)

The maximum allowable credit under current law is limited to $750 in rent constituting property taxes actually paid or $1,100 in actual property tax paid. This act increases such amounts to $1,055 and $1,550, respectively, and annually adjusts such maximum amounts for inflation. (Section 135.025)

Additionally, current law limits the tax credit to qualifying taxpayers with an income of $27,500 or less, or $30,000 in the case of a homestead owned and occupied by a claimant for the entire year. This act increases such maximum income to $38,200 for claimants with a filing status of single, $42,200 for claimants with a filing status of single and who owned and occupied a homestead for the entire year, $41,000 for claimants with a filing status of married filing combined, and $48,000 for claimants with a filing status of married filing combined and who owned and occupied a homestead for the entire year, and annually adjusts such amounts for inflation. (Section 135.030)

These provisions are identical to SCS/SBs 101 & 64 (2025), HB 1093 (2025), HB 1469 (2025), HB 1480 (2025), HB 1483 (2025), HB 1533 (2025), HB 1535 (2025), HB 1566 (2025), and SB 822 (2024), and are substantially similar to SB 457 (2025), HB 45 (2025), HB 518 (2025), HB 772 (2025), HB 1196 (2025), HB 1430 (2025), SB 930 (2024), HCS/HB 1428 (2024), HB 1670 (2024), HB 1939 (2024), HB 2050 (2024), HB 666 (2023), and HCS/HB 1134 (2023), and to provisions in HCS/SCS/SB 163 (2025), HB 1061 (2025), HB 1636 (2024), SS/SCS/SB 15 (2023), HCS/SS/SB 143 (2023), HCS/SB 247 (2023), and HB 1351 (2023).

CAPITAL GAINS DEDUCTION

For all tax years beginning on or after January 1, 2025, this act authorizes an income tax deduction for one hundred percent of all income reported as a capital gain for federal income tax purposes by an individual subject to individual income tax.

For all tax years beginning on January 1 of the tax year immediately following the tax year in which the top rate of income tax is equal to or less than 4.5%, this act authorizes an income tax deduction for one hundred percent of all income reported as a capital gain for federal income tax purposes by entities subject to corporate income tax. (Section 143.121)

This provision is substantially similar to SB 46 (2025) and to a provision in HCS/SCS/SB 163 (2025) and HCS/HB 798 (2025).

HYGIENE PRODUCTS SALES TAX EXEMPTION

This act authorizes a state sales tax exemption for retail sales of diapers, feminine hygiene products, and incontinence products. (Section 144.029)

This provision is substantially similar to SB 37 (2025), SB 496 (2025), SB 819 (2025), HB 472 (2025), HB 935 (2025), and HB 2187 (2024), and to a provision in SB 57 (2025), SCS/SB 95 (2025), SB 671 (2025), and HB 1029 (2025).

BROADBAND SALES TAX EXEMPTION

For all tax years beginning on or after January 1, 2026, this act authorizes a state and local sales tax exemption for machinery and equipment used to provide broadband communications service by a broadband communications service provider, as such terms are defined in the act. (Section 144.812)

This provision is identical to SB 185 (2025) and HB 743 (2025), and is substantially similar to HB 2168 (2024) and to a provision in HCS/HB 149 (2025), HCS/HBs 493 & 635 (2025).

EMERGENCY SERVICES SALES TAXES

Current law authorizes counties to provide a credit for the property tax liabilities of certain seniors. This act provides that the calculation of such credit shall not include any reduction in emergency services property tax levies. (Section 137.1050)

This provision is identical to a provision in SCS/SB 33 (2025).

Current law authorizes ambulance and fire protection districts in certain counties to propose a sales tax at a rate of up to 0.5%. This act allows such districts to propose a sales tax of up to 1.0%, and repeals a prohibition on certain counties imposing such tax. (Section 321.552)

These provisions are identical to provisions in SS#2/SCS/HB 199 (2025), SS/SCS/SB 271 (2025), and SS/SCS/HB 225 (2025), and are substantially similar to HCS/HB 895 (2025), HCS/HB 1268 (2025), SB 354 (2023), SB 966 (2022), SB 175 (2021), SB 869 (2020), and HB 2386 (2020), and to a provision in SCS/SB 33 (2025), SB 270 (2025), SCS/SB 770 (2020), SS#2/SCS/HCS/HB 1854 (2020), and HCS/SS#2/SB 704 (2020).