Missouri House Bill HB594 Introduced / Fiscal Note

                    COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1683S.04F Bill No.:SS No. 2 for HCS for HB Nos. 594 & 508  Subject:Taxation and Revenue - Income Type:Original  Date:April 6, 2025Bill Summary:This proposal modifies provisions relating to taxation. 
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General RevenueCould exceed
($429,837,794)
Could exceed 
($342,776,824 to 
($343,843,012)
Could exceed 
($347,663,571 to 
$349,200,234)
Total Estimated Net 
Effect on General 
Revenue
Could exceed
($429,837,794)
Could exceed 
($342,776,824 to 
($343,843,012)
Could exceed 
($347,663,571 to 
$349,200,234)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028School District Trust 
Fund (0688)
Could exceed 
($7,652,381)
Could exceed 
($10,940,595)
Could exceed 
($10,940,595)
Conservation 
Commission Fund 
(0609)
Could Exceed 
($955,114)
Could Exceed 
($1,365,664)
Could Exceed 
($1,365,664)
Parks and Soils State 
Sales Tax Fund(s) 
(0613 & 0614)
Could Exceed 
($765,238)
Could Exceed 
($1,094,060)
Could Exceed 
($1,094,060)
Total Estimated Net 
Effect on Other State 
Funds
Could Exceed 
($9,372,733)
Could Exceed 
($13,400,319)
Could Exceed 
($13,400,319)
Numbers within parentheses: () indicate costs or losses. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net 
Effect on All Federal 
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net 
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any  
     of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
     the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028
Local Government
More or Less than 
($31,046,283)
More or Less than 
($30,403,080)
More or Less than 
($24,577,399) L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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FISCAL ANALYSIS
ASSUMPTION
Section 67.547 - County Local Sales Tax
Officials from the Department of Revenue (DOR) note this section of statute currently allows a 
County to impose a county sales tax upon a vote of its citizens.  The statutes state that the tax 
could be at a rate of one-eighth of one percent, one-fourth of one percent, three-eighths of one 
percent, or one-half of one percent.  This proposal is adding language in Section 67.547.3 that 
would prohibit a county from submitting to the voters any proposal that results in a combined 
sales tax rate of more than 1.5%.
DOR notes that once a political subdivision adopts a sales tax, they notify the Department.  DOR 
reviews to determine if the political subdivision has statutory authority to have a sales tax and 
calculates the aggregate of any they have.  If approved, DOR has the new tax rate start in the 
second quarter after DOR receives it.  If it is determined that the county did not have statutory 
authority or that they exceed their aggregate rate allowed, the county is notified that their sales 
tax is null and void. 
This proposal makes a one-time exception for sales tax elections that were held on November 8, 
2022 (FY 2022).  This proposal would allow a county that submitted a tax proposal to the 
citizens that violated the aggregate sales tax rate allowed, to be approved by DOR to collect that 
tax, as long as they did not exceed an aggregated 1.5% sales tax rate.  This appears to be making 
a one-time exception to the rule for at least one county.
If a county is allowed to start their sales tax, then DOR would start it in the second quarter after 
the effective date of this proposal.  This will not have a fiscal impact on DOR.
Officials from the Office of Administration - Budget and Planning (B&P) note this provision 
would increase the allowable county sales tax rate from 0.5% to 1.0%.  To the extent that this 
provision results in additional sales tax collections, this provision may impact TSR through the 
2% DOR cost of collection Fee.
Oversight notes that current law limits the combined amount of sales tax levied by a county to 
1%. This act increases such limit to 1.5%, 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 
combined amount of sales tax levied pursuant to the County Sales Tax Act is not in excess of 
1.5%
Oversight will show the potential fiscal impact to locals as $0 (not approved by voters) to an 
unknown positive impact (increase in tax approved by voters).
Oversight notes if a county approves a sales tax, DOR is allowed to retain 1% of collections 
which is deposited into general revenue. Oversight will show the potential fiscal impact to  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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general revenue as $0 (not approved by voters) to an unknown positive impact (increase in tax 
approved by voters).
Section 67.582 - Law Enforcement County Sales Tax
Officials from the Department of Revenue (DOR) note starting August 28, 2024, this proposal 
will allow any county to vote on a sales tax up to an aggregate 1% for the funding of law 
enforcement services.  Currently, counties aggregate sales tax cannot exceed 0.5%.  To 
implement a tax or to increase a tax they already have, a county must take the issue back to the 
ballot for their citizens to vote on.  The Department has no way of determining which counties 
may seek to increase their sales tax rate in order to fund law enforcement.
The Department notes that if a county approves a sales tax, DOR will collect and distribute it.  
DOR is allowed to retain 1% of the amount collected.  The DOR 1% collection fee is deposited 
into general revenue.
The revenue impact of this proposal is unknown.  DOR will not have any administrative impact 
from this proposal.
Oversight notes 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%
Oversight will show the impact to locals as $0 (not approved by voters) to an unknown positive 
impact (increase in tax approved by voters).
Oversight notes if a county approves a sales tax, DOR is allowed to retain 1% of collections 
which is deposited into general revenue. Oversight will show the potential fiscal impact to 
general revenue as $0 (not approved by voters) to an unknown positive impact (increase in tax 
approved by voters).
Section 67.1366 – Small Cities Transient Guest Tax
Officials from the Office of Administration - Budget and Planning (B&P) assume this 
provision would amend local transient guest taxes.  This provision will not impact TSR or the 
calculation under Article X, Section 18(e).
Officials from the Department of Revenue and the City of Kansas City each assume the 
proposal will have no fiscal impact on their respective organizations. Oversight does not have 
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note 
for these agencies.  
Oversight notes this section allows a city with a population of more than 100,000 to adopt a 
transient guest tax by a vote of their citizens. The tax currently can be used for the promotion,  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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operation and development of tourism. This proposal would expand the use of the tax to include 
paying for the operating costs of a community center. Therefore, Oversight will reflect no fiscal 
impact for this proposal.
Section 67.1367 – Transient Guest Tax in Ste. Genevieve and Perry Counties
In response to a similar proposal this year, (SB 169), officials from the Office of 
Administration - Budget and Planning (B&P) defer to the counties on the transient guest tax 
for specific estimates of actual collection costs. This proposal
• Has no direct impact on B&P
• Has no direct impact on general or total state revenues
• Will not impact the calculation pursuant to Article X, Section 18(e).
Officials from the Department of Revenue (DOR) assume the proposal will have no fiscal 
impact on their organization. Oversight does not have any information to the contrary. Therefore, 
Oversight will reflect a zero impact in the fiscal note.  
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note for these agencies.  
Officials from St. Genevieve and Perry Counties did not respond to Oversight’s request for fiscal 
impact for this proposal.
Oversight assumes this proposal authorizes Ste. Genevieve County and Perry County, upon 
voter approval, to enact a transient guest tax of not more than 6% per occupied room at hotels, 
motels, bed and breakfast inns or campground cabins per night for tourism purposes. Oversight 
assumes this proposal is permissive in nature and would have no local fiscal impact without 
action by the governing body and approval by a majority of voters. If a majority of voters 
approve this issue on the ballot, then there would be potential tax revenue for Ste. Genevieve 
and/or Perry counties. Therefore, Oversight will reflect a $0 (no voter approval) or unknown 
revenue impact for this proposal.
Section 94.900 - Sales Tax(es) for Public Safety
Officials from the Department of Revenue (DOR) note the following:
City of Sunrise Beach
This proposal allows a village with more than four hundred thirty but fewer than four hundred 
eighty inhabitants and partially located in a county with more than forty thousand but fewer than 
fifty thousand inhabitants and with a county seat with more than two thousand but fewer than six 
thousand inhabitants to adopt a sales tax for the purpose of funding public safety.  DOR believes 
this is Sunrise Beach.  
DOR records show that Sunrise Beach has taxable sales of: L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Fiscal Year Jul-SeptOct-DecJan-MarApril- JuneTotal2020$5,838,331$13,526,486$15,734,969$7,228,722$42,328,5082021$7,048,910$13,555,591$15,540,917$8,049,232$44,194,6512022$7,048,393$14,467,865$16,470,014$7,610,478$45,596,7502023$7,724,185$16,244,642$20,493,780$9,592,952$54,055,558
The Department notes this proposal allows up to a one-half of one percent sales tax.  For the 
fiscal impact DOR will assume the one-half of one percent sales tax is adopted.  However, for 
informational purposes DOR is showing how much would be collected if they just chose full 
one-half percent sales tax.  Using the taxable sales and a 2% inflation rate in the future, DOR 
calculated the amount the Sunrise Beach would collect, and the fee retained by DOR as:
DOR notes that this proposal would become effective on August 28, 2025, and the first election 
this issue could be presented to the voters would be the April 2026 general municipal election.  
This sales tax would become effective on the first day of the second calendar quarter after the 
director of revenue receives notice of the adoption of the sales tax, which is estimated to be 
October 1, 2026 (FY 2027) if adopted by the voters.  Sales tax is remitted one month behind 
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months.
Sunrise Beach1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$1,950$193,0882028 $2,984$295,424
*Effective Date 8/28/2025
City of Hannibal
The legislation states any city with more than sixteen thousand but fewer than eighteen thousand 
inhabitants and located in more than one county can impose a sales tax for public safety services.  
DOR believes that the Cities of Hannibal and Sikeston are the ones allowed the sales tax.
DOR records show that the City of Hannibal has taxable sales of:
Fiscal 
Year Jul-SeptOct-DecJan-MarApril- JuneTotal
Fiscal YearTotal SalesTotal CollectionsDOR 1% FeeFinal Collection2026$57,364,191$286,821$2,868$283,9532027$58,511,475$292,557$2,926$289,6322028$59,681,704$298,409$2,984$295,424 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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2020$69,982,368.93$87,152,350.18$85,155,681.85$87,018,478.50$329,308,879.462021$81,082,721.86$93,364,299.02$92,954,006.96$97,111,124.68$364,512,152.522022$81,170,292.21$100,642,087.33$100,479,879.44$102,098,456.41$384,390,715.392023$93,944,023.14$105,473,477.82$98,614,294.11$102,438,199.94$400,469,995.01
The Department notes this proposal allows a one-half of one percent sales tax.  Using the taxable 
sales and a 2% inflation rate in the future, DOR calculated the amount that Hannibal would 
collect, and the fee retained by DOR as:
Fiscal YearTotal SalesTotal CollectionsDOR 1% FeeFinal Collection2026$424,981,962$2,124,910$21,249$2,103,6612027$433,481,602$2,167,408$21,674$2,145,7342028$442,151,234$2,210,756$22,108$2,188,649
DOR notes that this proposal would become effective on August 28, 2025, and the first election 
this issue could be presented to the voters would be the April 2026 general municipal election.  
This sales tax would become effective on the first day of the second calendar quarter after the 
director of revenue receives notice of the adoption of the sales tax, which is estimated to be 
October 1, 2026 (FY 2027) if adopted by the voters.  Sales tax is remitted one month behind 
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months.
Hannibal1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$14,449$1,430,4892028 $22,108$2,188,649
*Effective Date 8/28/2025 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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City of Sikeston
DOR records show that the City of Sikeston has taxable sales of:
Fiscal Year Jul-SeptOct-DecJan-MarApril- JuneTotal2020$77,014,327.29$87,785,994.44$83,655,316.11$84,822,741.37$333,278,379.212021$88,403,514.59$95,942,003.77$93,652,632.85$100,823,372.16$378,821,523.372022$90,545,427.58$98,830,654.31$97,693,783.35$99,809,523.86$386,879,389.102023$98,404,739.52$101,042,378.99$97,451,516.39$101,029,487.09$397,928,121.99
The Department notes this proposal allows a one-half of one percent sales tax.  Using the taxable 
sales and a 2% inflation rate in the future, DOR calculated the amount that Sikeston would 
collect, and the fee retained by DOR as:
Fiscal YearTotal Sales
Total 
CollectionsDOR 1% Fee
Final 
Collection
2026$422,284,506$2,111,423$21,114$2,090,3082027$430,730,197$2,153,651$21,537$2,132,1142028$439,344,801$2,196,724$21,967$2,174,757
DOR notes that this proposal would become effective on August 28, 2025, and the first election 
this issue could be presented to the voters would be the April 2026 general municipal election.  
This sales tax would become effective on the first day of the second calendar quarter after the 
director of revenue receives notice of the adoption of the sales tax, which is estimated to be 
October 1, 2026 (FY 2027) if adopted by the voters.  Sales tax is remitted one month behind 
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months.
Sikeston1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$14,358$1,421,4102028 $21,967$2,174,757
*Effective Date 8/28/2025
City of Moberly
The legislation states any city with more than twelve thousand five hundred but fewer than 
fourteen thousand inhabitants and located in a county seat with more than twenty-two thousand 
but fewer than twenty-five thousand and with a county seat with more than nine hundred but 
fewer than one thousand four hundred inhabitants can impose a sales tax for public safety 
services.  DOR believes that the City of Moberly is the one allowed the sales tax. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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DOR records show that the City of Moberly has taxable sales of:
Fiscal Year Jul-SeptOct-DecJan-MarApril- JuneTotal2020$55,859,356.06$66,129,963.24$63,232,963.70$64,320,765.28$249,543,048.282021$64,437,630.42$69,254,646.34$68,914,973.65$73,071,081.41$275,678,331.822022$65,016,796.49$72,708,115.63$73,181,876.80$76,137,546.66$287,044,335.582023$71,062,661.33$76,973,260.28$76,239,424.62$78,417,427.60$302,692,773.83
The Department notes this proposal allows a one-half of one percent sales tax.  Using the taxable 
sales and a 2% inflation rate in the future, DOR calculated the amount that Moberly would 
collect, and the fee retained by DOR as:
Fiscal YearTotal SalesTotal CollectionsDOR 1% FeeFinal Collection2026$321,219,993$1,606,100$16,061$1,590,0392027$327,644,393$1,638,222$16,382$1,621,8402028$334,197,281$1,670,986$16,710$1,654,277
DOR notes that this proposal would become effective on August 28, 2025, and the first election 
this issue could be presented to the voters would be the April 2026 general municipal election.  
This sales tax would become effective on the first day of the second calendar quarter after the 
director of revenue receives notice of the adoption of the sales tax, which is estimated to be 
October 1, 2026 (FY 2027) if adopted by the voters.  Sales tax is remitted one month behind 
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months.
Moberly1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$10,921$1,081,2262028 $16,710$1,654,277
*Effective Date 8/28/2025
City of Joplin
The legislation states any city with more than fifty-one thousand but fewer than fifty-eight 
thousand inhabitants and located in more than one county can impose a sales tax for public safety 
services.  DOR believes that the City of Joplin is the one allowed the sales tax. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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DOR records show that the City of Joplin has taxable sales of:
Fiscal Year Jul-SeptOct-DecJan-MarApril- JuneTotal2020$333,332,340.53$350,430,676.71$379,642,023.94$411,620,125.33$1,475,025,166.512021$397,523,397.19$434,444,664.37$400,127,308.43$427,402,675.08$1,659,498,045.072022$384,224,088.04$430,650,070.85$436,430,186.68$447,415,995.47$1,698,720,341.042023$395,327,695.61$434,284,211.14$425,811,465.94$456,135,462.81$1,711,558,835.50
The Department notes this proposal allows a one-half of one percent sales tax.  Using the taxable 
sales and a 2% inflation rate in the future, DOR calculated the amount that Joplin would collect, 
and the fee retained by DOR as:
Fiscal YearTotal Sales
Total 
CollectionsDOR 1% Fee
Final 
Collection
2026$1,816,319,929$9,081,600$90,816$8,990,7842027$1,852,646,327$9,263,232$92,632$9,170,5992028$1,889,699,254$9,448,496$94,485$9,354,011
DOR notes that this proposal would become effective on August 28, 2025, and the first election 
this issue could be presented to the voters would be the April 2026 general municipal election.  
This sales tax would become effective on the first day of the second calendar quarter after the 
director of revenue receives notice of the adoption of the sales tax, which is estimated to be 
October 1, 2026 (FY 2027) if adopted by the voters.  Sales tax is remitted one month behind 
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months.
Joplin1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$61,755$6,113,7332028 $94,485$9,354,011
*Effective Date 8/28/2025
City of Nevada
The legislation states any city with more than eight thousand but fewer than nine thousand 
inhabitants and that is the county seat of a county with more than nineteen thousand but fewer 
than twenty-two thousand inhabitants can impose a sales tax for public safety services.  DOR 
believes that the City of Nevada is the one allowed the sales tax. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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DOR records show that the City of Nevada has taxable sales of:
Fiscal 
Year Jul-SeptOct-DecJan-MarApril- JuneTotal
2020$38,208,694.67$44,612,841.38$43,665,437.02$42,989,997.53$169,476,970.602021$43,931,886.61$49,116,769.20$46,410,825.68$48,826,592.05$188,286,073.542022$43,446,517.76$51,704,817.34$51,124,401.71$52,879,021.88$199,154,758.692023$48,624,132.46$53,461,869.83$51,767,031.79$56,676,504.57$210,529,538.65
The Department notes this proposal allows a one-half of one percent sales tax.  Using the taxable 
sales and a 2% inflation rate in the future, DOR calculated the amount that Nevada would 
collect, and the fee retained by DOR as:
Fiscal YearTotal SalesTotal CollectionsDOR 1% FeeFinal Collection2026$223,415,631$1,117,078$11,171$1,105,9072027$227,883,943$1,139,420$11,394$1,128,0262028$232,441,622$1,162,208$11,622$1,150,586
DOR notes that this proposal would become effective on August 28, 2025, and the first election 
this issue could be presented to the voters would be the April 2026 general municipal election.  
This sales tax would become effective on the first day of the second calendar quarter after the 
director of revenue receives notice of the adoption of the sales tax, which is estimated to be 
October 1, 2026 (FY 2027) if adopted by the voters.  Sales tax is remitted one month behind 
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months.
Nevada1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$7,596$752,0172028 $11,622$1,150,586
*Effective Date 8/28/2025
If any of these cities pass a sales tax the Department will need to make changes to the 
department’s Revenue Premier system, Rate Manager system, MyTax portal system, Avalara 
Sales and use tax rate map, and website changes.  These changes are estimated at $1,832 per 
system change ($7,328) per city that passes the sales tax.
Oversight notes DOR anticipates administrative costs of ($7,328) per city that passes the sales 
tax. Therefore, Oversight will show a range of potential costs to DOR of $0 (not approved by 
voters) up to ($43,968) ($7,328 x 6 cities).  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Officials from the Office of Administration - Budget and Planning (B&P) note this provision 
would expand the ability to levy a city sales tax.  To the extent that this provision results in 
additional sales tax collections, this provision may impact TSR through the 2% DOR cost of 
collection Fee.
Sections 135.010, 135.025 & 135.030 - “Circuit Breaker”
Officials from the Department of Revenue (DOR) and Office of Administration - Budget and 
Planning (B&P) both note: 
Background of Current PTC Program
This proposal attempts to make modifications to the Senior Property tax credit (PTC).  The PTC 
provides two tax credits, one to homeowners and one to renters that pay property tax.  In order to 
qualify for the PTC program there are income eligibility requirements, and a person must:
Be over the age of 65, 
Or 100% disabled, 
Or a 100% disabled veteran,
Or at least 60 and the qualifying widow of someone in the previous categories.  
For homeowners, the PTC provides a credit to offset the amount of actual property tax paid by 
the homeowner.  The credit is up to $1,100 in property tax actually paid but the credit amount 
phases out as an individual’s income rises.  The homeowner’s credit is for those with incomes of 
less than $30,000.  It should be noted, there is no limit on the number of individuals who can 
receive the credit annually.  
The PTC also currently provides a credit to offset the amount of property tax included in a 
taxpayer’s rent payment.  The tax credit for renters is up to $750 in property tax paid and to 
qualify a renter must have an income less than $27,500.  The amount of the credit does phase out 
as income rises and there is no limit on the number of renters who can receive the credit 
annually. 
This proposal says that most of the modifications of the property tax credit will begin on January 
1, 2026.  DOR notes that the majority of the PTC tax returns are received in their office between 
January and April of each year.  DOR assume that the changes made by this proposal would fully 
impact FY 2026.
Proposed Changes
This proposal would increase the income allowance for PTC claimants by $800 for renters who 
are married (filing combined) and $1,800 for homeowners who are married (filing combined) 
starting with calendar year 2026.   L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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This proposal would increase the maximum PTC credit amount for renters and homeowners.  
Renters would increase from $750 to $1,055 and homeowners would increase from $1,100 to 
$1,550 starting with calendar year 2026.  Additionally, this proposal allows this credit amount to 
be adjusted annually by the CPI.  For fiscal note purposes, DOR uses a 2% inflation factor 
annually.
PTC CreditCalendar 
YearRenterHomeowner
Current$750 $1,100 2026$1,055 $1,550 2027$1,076 $1,581 2028$1,098 $1,613 2029$1,120 $1,645 2030$1,142 $1,678 *Assumes 2% average annual 
inflation.
This proposal also increases the maximum income limits allowed to qualify for the PTC.  
However, it limits the PTC to those with a filing status of “single” or “married filing combined”.  
Therefore, those who check the “married filing separate” box and those that do not check a box 
will no longer be eligible for the PTC credit.  
Maximum Income by Filing Status
Filing StatusOwn/Rent
2026 Max 
Income
Rent$38,200 
Single
Own$42,200 Rent$41,000 
Married Filing 
Combined
Own$48,000 Married Filing 
Separate
No longer qualifies
OtherNo longer qualifies L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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In tax year 2023, there were 1,280 individuals who filed a PTC claim with a filing status other 
than single or married filing combined.  They claimed $798,801 and therefore, this would result 
in a savings to general revenue of these filers no longer being eligible for the PTC credit.
In addition to increasing the PTC maximum income limit, this proposal starting January 1, 2027, 
will allow the maximum limit to be increased annually by the CPI.  For fiscal note purposes, 
DOR uses a 2% inflation factor.  Therefore, DOR can expect the incomes to increase as follows:
Maximum IncomeRenterHomeowner
Calendar 
Year
SingleMarriedSingleMarried Current$27,500 $30,000 2026$38,200 $42,200 $41,000 $48,000 2027$38,964 $43,044 $41,820 $48,960 2028$39,743 $43,905 $42,656 $49,939 2029$40,538 $44,783 $43,509 $50,938 2030$41,349 $45,679 $44,379 $51,957 *Assumes 2% average annual inflation.
DOR notes that the PTC credit is calculated using a formula that takes into account that as an 
individual’s income rises the amount of the credit, they are eligible for decreases.  Currently for 
every $300 increase in income the tax credit amount given decreases $25.  
This proposal increases the phase-out increments used when running the calculation.  It increases 
the income limit from $300 to $495 and then allows it to be inflation adjusted in future fiscal 
years.  DOR uses a 2% inflation factor for fiscal note purposes.
This proposal also changes the formula to cap the tax credit reduction to 2%.  Currently the 
credit is reduced by 1/16% for each $300 increment for a maximum reduction of 4%.  This 
would change the $300 to $495 and change the 4% to 2%.  Under current law, the reduction cap 
is not met however, this proposal would limit both the renters and homeowners.  After 32 
reductions the maximum tax credit allowed would remain constant.   L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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PTC Phase-Out IncrementsCalendar 
Year
Income 
Increment
Phase-
Out Cap
Current$300 4%2026$495 2%2027$505 2%2028$515 2%2029$525 2%2030$536 2%*Assumes 2% average annual 
inflation.
Impact of Maximum Credit and Slower Credit Phase-Out (Formula Changes)
Increasing the maximum credit and making changes to how the formula calculates the amount of 
credit each person gets will impact the current filers of the program.  If no additional people were 
allowed in the program, this is the impact to the current filers from the changes in this proposal.
Single Renters
In tax year 2023, there were 28,534 single renters who claimed the PTC with a maximum credit 
of $750.  With this proposal increasing the amount of the credit from $750 to $1,055 and 
increasing the phase-out income limit from $300 to $495 and changing the cap reduction to 2% 
DOR can expect an increase in the amount of credits paid out over the next several years. 
Single-Renters (Change in PTC formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$750$3004%$02026$1,055$4952%($6,886,188)2027$1,076$5052%($7,329,438)2028$1,098$5152%($7,794,365)2029$1,120$5252%($8,258,759)2030$1,142$5362%($8,721,689) L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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DOR notes that because the credit cap and income increments keep being inflated in future years, 
this will continue to have an increasing impact on general revenue.  Additionally, these changes 
are about the formula only and do not include the changes made to the maximum upper limit.  
Married Filing Combined Renters
In tax year 2023, there were 1,207 married filing combined renters claiming the PTC with a 
maximum credit of $750.  With this proposal increasing the amount of the credit from $750 to 
$1,055 and increasing the phase-out limit from $300 to $495 and changing the cap reduction to 
2% DOR can expect an increase in the amount of credits paid out over the next several years.
Married Filing Combined - Renters (Change in Formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$750$3004%$02026$1,055$4952%($282,043)2027$1,076$5052%($299,482)2028$1,098$5152%($317,878)2029$1,120$5252%($336,175)2030$1,142$5362%($354,367)
DOR notes that because the credit cap and income increments keep being inflated in future years, 
this will continue to have an increasing impact on general revenue.  Additionally, these changes 
are about the formula only and do not include the changes made to the maximum upper limit.  
Single Homeowners 
In tax year 2023, there were 28,778 single homeowners who claimed the PTC with a maximum 
credit of $1,100.  With this proposal increasing the amount of the credit from $1,100 to $1,550 
and increasing the phase-out income limit from $300 to $495 and changing the cap reduction to 
2% DOR can expect an increase in the amount of credits paid out over the next several years. 
Single-Homeowners (Change in PTC formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$1,100$3004%$02026$1,550$4952%($8,160,188)2027$1,581$5052%($8,642,843)2028$1,613$5152%($9,142,232) L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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2029$1,645$5252%($9,642,369)2030$1,678$5362%($10,153,312)
DOR notes that because the credit cap and income increments keep being inflated in future years, 
this will continue to have an increasing impact on general revenue.  Additionally, these changes 
are about the formula only and do not include the changes made to the maximum upper limit.  
Married Filing Combined Homeowners
In tax year 2023, there were 5,682 married filing combined homeowners who claimed the PTC 
with a maximum credit of $1,100.  With this proposal increasing the amount of the credit from 
$1,100 to $1,550 and increasing the phase-out income limit from $300 to $495 and changing the 
cap reduction to 2% DOR can expect an increase in the amount of credits paid out over the next 
several years. 
Married Filing Combined-Homeowners (Change in PTC formula)
Tax YearCredit CapIncome IncrementsReduction CapGR ImpactCurrent$1,100$3004%$02026$1,550$4952%($1,630,249)2027$1,581$5052%($1,727,696)2028$1,613$5152%($1,828,470)2029$1,645$5252%($1,929,242)2030$1,678$5362%($2,032,715)
DOR notes that because the credit cap and income increments keep being inflated in future years, 
this will continue to have an increasing impact on general revenue.  Additionally, these changes 
are about the formula only and do not include the changes made to the maximum upper limit.  
Credit and Formula Changes Summary
The changes to the amount of the credit allowed and the formula would result in the following 
impact to general revenue: L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 18 of 78
April 6, 2025
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Higher Credit and Slower Phase-Out
RenterHomeowner
Tax 
Year
SingleMarriedSingleMarried 
Total
2026($6,886,188)($282,043)($8,160,188)($1,630,249)($16,958,668)2027($7,329,438)($299,482)($8,642,843)($1,727,696)($17,999,459)2028($7,794,365)($317,878)($9,142,232)($1,828,470)($19,082,945)2029($8,258,759)($336,175)($9,642,369)($1,929,242)($20,166,545)2030($8,721,689)($354,367)($10,153,312)($2,032,715)($21,262,083)
Impact from Change in Maximum Upper Limit
Increasing the maximum upper limit will allow additional people to qualify for the credit that 
currently do not qualify.  Using the individual income tax system, DOR is able to determine the 
number of additional people that would qualify with an income fitting the new limits in the 
proposal.  Adding these new people into the program will result in the following impact.  
Since DOR does not know how many of these additional people are homeowners and renters, 
DOR pulled the tax year 2023 PTC claims and found the current percentage of homeowners and 
renters.  
PTC Homeowner vs. RenterFiling TypeHomeownerRenterAge 65+59.7%40.3%Widow(er)67.5%32.5%Disabled22.6%77.4%
While DOR notes as incomes rise, there is a likely hood more people will own their home rather 
than rent, it is unclear how would DOR could calculate that.  For the simplicity of the fiscal note, 
DOR will use this same split for the new people being added under this proposal as the current 
split.  
Single Renters
2026 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $38,200 who filed as a single filer.
218 widow/widower,
29,700 65 years or older,
1,504 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
71 widow(er), 
11,976 age 65 and older, 
1,163 disabled.  
13,210 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $458.  Therefore, this could result in an 
increased loss to general revenue of $6,044,175 ($458 credit * 13,210 new filers) in FY 2026.
2027
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $38,964 who filed as a single filer.
236 widow/widower,
31,685 65 years or older,
1,603 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
77 widow(er), 
12,776 age 65 and older, 
1,240 disabled.  
14,093 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $472.  Therefore, this could result in an 
increased loss to general revenue of $6,648,693 ($472 credit * 14,093 new filers) in FY 2027.
2028 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $39,743 who filed as a single filer.
254 widow/widower,
33,670 65 years or older,
1,701 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
82 widow(er), 
13,577 age 65 and older, 
1,316 disabled.  
14,975 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $493.  Therefore, this could result in an 
increased loss to general revenue of $7,377,059 ($493 credit * 14,975 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $40,538 who filed as a single filer.
264 widow/widower,
35,814 65 years or older,
1,788 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
86 widow(er), 
14,441 age 65 and older, 
1,383 disabled.  
15,910 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $514.  Therefore, this could result in an 
increased loss to general revenue of $8,175,292 ($514 credit * 15,910 new filers) in FY 2029.
2030
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $41,349 who filed as a single filer. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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286 widow/widower,
37,910 65 years or older,
1,892 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
93 widow(er), 
15,286 age 65 and older, 
1,464 disabled.  
16,843 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $528.  Therefore, this could result in an 
increased loss to general revenue of $8,898,095 ($528 credit * 16,843 new filers) in FY 2030.
DOR notes that the annual loss will continue past FY 2030 due to the inflation rate continuing 
into the future.
Married Filing Combined Renters
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $41,000 who filed as a married filing combined 
filer.
32,070 65 years or older,
4,598 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
12,932 age 65 and older, 
3,557 disabled.  
16,489 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $455.  Therefore, this could result in an 
increased loss to general revenue of $7,506,159 ($455 credit * 16,489 new filers) in FY 2026.
2027 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $41,820 who filed as a married filing combined 
filer.
33,738 65 years or older,
4,852 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
13,604 age 65 and older, 
3,753 disabled.  
17,357 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $469.  Therefore, this could result in an 
increased loss to general revenue of $8,141,053 ($469 credit * 17,357 new filers) in FY 2027.
2028
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $42,656 who filed as a married filing combined 
filer.
35,360 65 years or older,
5,115 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
14,258 age 65 and older, 
3,957 disabled.  
18,215 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $490.  Therefore, this could result in an 
increased loss to general revenue of $8,917,813 ($490 credit * 18,215 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $43,509 who filed as a married filing combined 
filer. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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37,115 65 years or older,
5,356 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
14,966 age 65 and older, 
4,143 disabled.  
19,109 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $510.  Therefore, this could result in an 
increased loss to general revenue of $9,748,672 ($510 credit * 19,109 new filers) in FY 2029.
2030
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $44,379 who filed as a married filing combined 
filer.
38,886 65 years or older,
5,576 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the renters. 
15,680 age 65 and older, 
4,313 disabled.  
19,993 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $526.  Therefore, this could result in an 
increased loss to general revenue of $10,517,651 ($526 credit * 19,993 new filers) in FY 2030.
Single Homeowners
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $42,200 who filed as a single filer.
263 widow/widower
32,775 65 years or older,
1,591 disabled  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 24 of 78
April 6, 2025
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Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
178 widow/widower
19,559 age 65 and older, 
360 disabled.  
20,097 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $940.  Therefore, this could result in an 
increased loss to general revenue of $18,891,180 ($940 credit * 20,097 new filers) in FY 2026.
2027
Using the most current year data, there are the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $43,044 who filed as a single filer.
284 widow/widower
34,960 65 years or older,
1,668 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
192 widow/widower
20,863 age 65 and older, 
378 disabled.  
21,433 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $964.  Therefore, this could result in an 
increased loss to general revenue of $20,661,412 ($964 credit * 21,433 new filers) in FY 2027.
2028
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $43,905 who filed as a single filer.
300 widow/widower
37,083 65 years or older,
1,748 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners.  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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203 widow/widower
22,130 age 65 and older, 
396 disabled.  
22,729 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $990.  Therefore, this could result in an 
increased loss to general revenue of $22,501,710 ($990 credit * 22,729 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $44,783 who filed as a single filer.
321 widow/widower
39,278 65 years or older,
1,828 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
217 widow/widower
23,440 age 65 and older, 
414 disabled.  
24,071 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $1,017.  Therefore, this could result in an 
increased loss to general revenue of $24,481,067 ($1,017 credit * 24,071 new filers) in FY 2029.
2030
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $45,679 who filed as a single filer.
338 widow/widower
41,497 65 years or older,
1,915 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
228 widow/widower L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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24,764 age 65 and older, 
434 disabled.  
25,426 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $1,043.  Therefore, this could result in an 
increased loss to general revenue of $26,520,195 ($1,043 credit * 25,426 new filers) in FY 2030.
Married Filing Combined Homeowners
2026
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $48,000 who filed as a married filing combined 
filer.
39,688 65 years or older,
5,622 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
23,685 age 65 and older, 
1,273 disabled.  
24,958 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $940.  Therefore, this could result in an 
increased loss to general revenue of $23,460,520 ($940 credit * 24,958 new filers) in FY 2026.
2027
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $48,960 who filed as a married filing combined 
filer.
41,641 65 years or older,
5,899 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
24,850 age 65 and older, 
1,336 disabled.  
26,186 total new filers L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 27 of 78
April 6, 2025
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In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $964.  Therefore, this could result in an 
increased loss to general revenue of $25,243,304 ($964 credit * 26,186 new filers) in FY 2027.
2028
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $49,939 who filed as a married filing combined 
filer.
43,629 65 years or older,
6,181 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
26,037 age 65 and older, 
1,400 disabled.  
27,437 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $990.  Therefore, this could result in an 
increased loss to general revenue of $27,162,630 ($990 credit * 27,437 new filers) in FY 2028.
2029
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $50,938 who filed as a married filing combined 
filer.
45,627 65 years or older,
6,476 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
27,229 age 65 and older, 
1,466 disabled.  
28,695 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $1,017.  Therefore, this could result in an 
increased loss to general revenue of $29,174,924 ($1,017 credit * 28,695 new filers) in FY 2029. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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2030
Using the most current year data, there were the following individuals with a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $51,957 who filed as a married filing combined 
filer.
47,730 65 years or older,
6,775 disabled 
Using the homeowner/renter split discussed above DOR assumes the following could potentially 
be the homeowners. 
28,484 age 65 and older, 
1,534 disabled.  
30,018 total new filers
In addition to the additional maximum credit and formula changes, DOR estimates that the 
average PTC credit for these additional people may be $1,043.  Therefore, this could result in an 
increased loss to general revenue of $31,301,270 ($1,043 credit * 30,018 new filers) in FY 2030.
DOR notes that the annual loss will continue to increase given the inflation factor language.  
Maximum Upper Limit Summary
Adding the additional people to the PTC program will result in the following impact: L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Higher Maximum Income Limit
RenterHomeowner
Tax 
Year
SingleMarriedSingleMarried 
Total
2026($6,044,175)($7,506,159)($18,891,180)($23,460,520)($55,902,034)2027($6,648,693)($8,141,053)($20,661,412)($25,243,304)($60,694,462)2028($7,377,059)($8,917,813)($22,501,710)($27,162,630)($65,959,212)2029($8,175,292)($9,748,672)($24,481,067)($29,174,924)($71,579,955)2030($8,898,095)($10,517,651)($26,520,195)($31,301,270)($77,237,211)
Total Bill Summary
All the changes in this proposal will result in the following impact.  
Table 8: Summary of GR ImpactRenterHomeowner
Fiscal 
Year
No 
Longer 
Qualify
Higher 
Income
Increased 
Credit
Higher 
Income
Increased 
Credit
Total GR 
Loss
2026$798,801 ($13,550,334)($7,168,231)($42,351,700)($9,790,437)($72,061,901)2027$798,801 ($14,789,746)($7,628,920)($45,904,716)($10,370,539)($77,895,120)2028$798,801 ($16,294,872)($8,112,243)($49,664,340)($10,970,702)($84,243,356)2029$798,801 ($17,923,964)($8,594,934)($53,655,991)($11,571,611)($90,947,699)2030$798,801 ($19,415,746)($9,076,056)($57,821,465)($12,186,027)($97,700,493)
This will require website changes, form changes ($2,200) and changes to DOR’s individual 
income tax computer systems ($7,327).  These changes will need to occur each year and 
estimated to cost $9,527 annually.
Oversight assumes the Department of Revenue (DOR) is provided with core funding to handle a 
certain amount of activity each year. Oversight assumes DOR could absorb the administrative 
costs related to this proposal. If multiple bills pass which require additional staffing and duties at 
substantial costs, DOR could request funding through the appropriation process. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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In response to a similar proposal this year, (SB 64), officials from the Office of Administration 
– Budget & Planning note: 
This proposal would make multiple changes to the property tax credit (PTC).  
Section 135.010 would increase the income allowance for PTC claimants by $800 for renters 
who are married (filing combined) and $1,800 for homeowners who are married (filing 
combined) starting with calendar year 2026.  B&P notes that because this provision is effective 
for calendar year 2026, it will begin affecting state revenues in FY26 as annual PTC claims are 
filed beginning in January.  B&P further notes that the peak PTC claims are January through 
April each year.
Section 135.025 would increase the maximum PTC credit amount.  Section 135.030.1 would 
increase the maximum income limits allowed to qualify for the PTC.  Section 135.030.2 would 
increase the phase-out increments, used when calculating the PTC credit based on an individual’s 
income.  B&P notes that because these provisions are effective for calendar year 2026, they will 
begin affecting state revenues in FY26 as annual PTC claims are filed beginning in January.  
B&P further notes that the peak PTC claims are January through April each year.
Section 135.025 would increase the renter credit from $750 (current law) to $1,055 and the 
homeowner credit from $1,100 (current law) to $1,555 starting with calendar year 2026.  
Beginning calendar year 2027, the tax credit amounts shall be adjusted annually by CPI-U for the 
Midwest Region.  For the purpose of this fiscal note, B&P will assume a 2% average annual 
inflation rate.  Table 1 shows the estimated credit amount over time.
Table 1: PTC CreditCalendar 
YearRenterHomeowner
Current$750 $1,100 2026$1,055 $1,550 2027$1,076 $1,581 2028$1,098 $1,613 2029$1,120 $1,645 2030$1,142 $1,678 *Assumes 2% average annual 
inflation.
Section 135.030.1 would increase the maximum upper income allowed to claim the PTC, 
depending on a taxpayer’s filing status.  Beginning calendar year 2026 the maximum limits shall 
be: L.R. No. 1683S.04F 
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Table 2: Maximum Income by Filing Status
Filing StatusOwn/Rent
2026 Max 
Income
Own$42,200 
Single
Rent$38,200 Own$48,000 
Married Filing 
Combined
Rent$41,000 Married Filing SeparateNo longer qualifiesOtherNo longer qualifies
B&P notes that the language in this proposal sets new maximum income levels explicitly for 
taxpayers with either a single or married filing combined status.  Therefore, this language 
excludes all other filing status types, such as married filing separate or individuals that do not 
indicate a filing status.  
In tax year 2023, there were 1,280 individual who filed the PTC with a filing status other than 
single or married filing combined, for total credit claims of $798,801.  Therefore, this provision 
will increase GR by $798,801 starting with FY26.
Beginning January 1, 2027, the maximum income limits shall be adjusted annually for inflation 
using CPI-U.  For the purpose of this fiscal note, B&P will assume a 2% average annual inflation 
rate.  Tables 3 shows the maximum income limits by tax year. L.R. No. 1683S.04F 
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Table 3: Maximum IncomeRenterHomeowner
Calendar 
Year
SingleMarriedSingleMarried Current$27,500 $30,000 2026$38,200 $42,200 $41,000 $48,000 2027$38,964 $43,044 $41,820 $48,960 2028$39,743 $43,905 $42,656 $49,939 2029$40,538 $44,783 $43,509 $50,938 2030$41,349 $45,679 $44,379 $51,957 *Assumes 2% average annual inflation.
Section 135.025.2 would increase the phase-out income increments from $300 (current law) to 
$495 beginning with calendar year 2026.  The income increment amounts shall the be adjusted 
annually for inflation using CPI-U.  B&P notes that this proposal does not state when such 
inflation adjustments shall occur.  For the purpose of this fiscal note, B&P assumes that the 
adjustments will occur at the same time as other inflation adjustments contained within this 
proposal.  B&P will assume a 2% average annual inflation rate.
Section 135.030.3 caps the reduction in the tax credit to 2%.  B&P notes that under current law, 
the tax credit is reduced by (1/16)% for each $300 increase in a taxpayer’s income, with a 
maximum reduction of 4.0%.  This proposal would change the reduction calculation to (1/16%) 
for every $495 (adjusted for inflation) increase in a taxpayer’s income, with a maximum 
reduction of 2.0%.  B&P further notes that under current law, the reduction cap is never met with 
the existing income limits; however, the 2% reduction limit would be binding for both renters 
and homeowners.  Therefore, after 32 reductions the minimum tax credit, based on property tax 
paid, will remain a constant amount.   L.R. No. 1683S.04F 
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Table 4: PTC Phase-Out IncrementsCalendar 
Year
Income 
Increment
Phase-Out 
Cap
Current$300 4%2026$495 2%2027$505 2%2028$515 2%2029$525 2%2030$536 2%*Assumes 2% average annual inflation.
Maximum Credit and Slower Credit Phase-Out
Single – Renter
In tax year 2023, 28,534 single renters claimed the PTC, with a maximum possible credit of 
$750.  B&P notes that the PTC phases-out as an individual’s income increases.  This proposal 
slows and limits the income phase-out.
2026
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,055, increasing the phase-out limit from $300 to 
$495, and capping the credit value reduction at 2% could reduce GR by $6,886,188 beginning 
FY26.
2027
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,076, increasing the phase-out limit from $300 to 
$505, and capping the credit value reduction at 2% could reduce GR by $7,329,438 beginning 
FY27.
2028
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,098, increasing the phase-out limit from $300 to 
$515, and capping the credit value reduction at 2% could reduce GR by $7,794,365 beginning 
FY28.
2029 L.R. No. 1683S.04F 
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Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,120, increasing the phase-out limit from $300 to 
$525, and capping the credit value reduction at 2% could reduce GR by $8,258,759 beginning 
FY29.
2030
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,142, increasing the phase-out limit from $300 to 
$536, and capping the credit value reduction at 2% could reduce GR by $8,721,689 beginning 
FY30.
B&P notes that this estimate does not include a higher average PTC claim for the individuals 
discussed under the “maximum upper limit” section.  Therefore, increasing the maximum credit 
could reduce GR by more than the estimates discussed above.  
Married, Filing Combined – Renter
In tax year 2023, 1,207 married, filing combined, renters claimed the PTC, with a maximum 
possible credit of $750.  B&P notes that the PTC phases-out as an individual’s income increases.  
This proposal slows and limits the income phase-out.
2026
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,055, increasing the phase-out limit from $300 to 
$495, and capping the credit value reduction at 2% could reduce GR by $282,043 beginning 
FY26.
2027
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,076, increasing the phase-out limit from $300 to 
$505, and capping the credit value reduction at 2% could reduce GR by $299,482 beginning 
FY27.
2028
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,098, increasing the phase-out limit from $300 to 
$515, and capping the credit value reduction at 2% could reduce GR by $317,878 beginning 
FY28.
2029
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,120, increasing the phase-out limit from $300 to  L.R. No. 1683S.04F 
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$525, and capping the credit value reduction at 2% could reduce GR by $336,175 beginning 
FY29.
2030
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $750 to $1,142, increasing the phase-out limit from $300 to 
$536, and capping the credit value reduction at 2% could reduce GR by $354,367 beginning 
FY30.
B&P notes that this estimate does not include a higher average PTC claim for the individuals 
discussed under the “maximum upper limit” section.  Therefore, increasing the maximum credit 
could reduce GR by more than the estimates discussed above.  
Single – Homeowner
In tax year 2023, 28,778 single homeowners claimed the PTC, with a maximum possible credit 
of $1,100.  B&P notes that the PTC phases-out as an individual’s income increases.  This 
proposal slows and limits the income phase-out.
2026
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,550, increasing the phase-out limit from $300 to 
$495, and capping the credit value reduction at 2% could reduce GR by $8,160,188 beginning 
FY26.  
2027
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,581, increasing the phase-out limit from $300 to 
$505, and capping the credit value reduction at 2% could reduce GR by $8,642,843 beginning 
FY27.  
2028
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,613, increasing the phase-out limit from $300 to 
$515, and capping the credit value reduction at 2% could reduce GR by $9,142,232 beginning 
FY28.  
2029
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,645, increasing the phase-out limit from $300 to 
$525, and capping the credit value reduction at 2% could reduce GR by $9,642,369 beginning 
FY29.   L.R. No. 1683S.04F 
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2030
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,678, increasing the phase-out limit from $300 to 
$536, and capping the credit value reduction at 2% could reduce GR by $10,153,312 beginning 
FY30.  
B&P notes that this estimate does not include a higher average PTC claim for the individuals 
discussed under the “maximum upper limit” section.  Therefore, increasing the maximum credit 
could reduce GR by more than the estimates discussed above.  
Married, Filing Combined – Homeowner
In tax year 2023, 5,682 married, filing combined, homeowners claimed the PTC, with a 
maximum possible credit of $1,100.  B&P notes that the PTC phases-out as an individual’s 
income increases.  This proposal slows and limits the income phase-out.
2026
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,550, increasing the phase-out limit from $300 to 
$495, and capping the credit value reduction at 2% could reduce GR by $1,630,249 beginning 
FY26.  
2027
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,581, increasing the phase-out limit from $300 to 
$505, and capping the credit value reduction at 2% could reduce GR by $1,727,696 beginning 
FY27.  
2028
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,613, increasing the phase-out limit from $300 to 
$515, and capping the credit value reduction at 2% could reduce GR by $1,828,470 beginning 
FY28.  
2029
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,645, increasing the phase-out limit from $300 to 
$525, and capping the credit value reduction at 2% could reduce GR by $1,929,242 beginning 
FY29.  
2030
Using tax year 2023 data, the most recent available, and the phase-out formula, B&P estimates 
that increasing the PTC credit from $1,100 to $1,678, increasing the phase-out limit from $300 to  L.R. No. 1683S.04F 
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$536, and capping the credit value reduction at 2% could reduce GR by $2,032,715 beginning 
FY30.  
B&P notes that this estimate does not include a higher average PTC claim for the individuals 
discussed under the “maximum upper limit” section.  Therefore, increasing the maximum credit 
could reduce GR by more than the estimates discussed above.  
Credit Changes Summary
Based on the above information, B&P estimates that this provision could reduce GR by more 
than $16,958,668 ($7,168,231 renters + $9,790,437 homeowners) beginning FY26.  By FY30, 
this provision could reduce GR by more than $21,262,083 ($9,076,056 renters + $12,186,027 
homeowners).  Table 5 shows the estimated impact by filing and owning status.
Table 5: Higher Credit and Slower Phase-OutRenterHomeowner
Calendar 
Year
Fiscal 
Year
SingleMarriedSingleMarried 
Total
20262026($6,886,188)($282,043)($8,160,188)($1,630,249)($16,958,668)20272027($7,329,438)($299,482)($8,642,843)($1,727,696)($17,999,459)20282028($7,794,365)($317,878)($9,142,232)($1,828,470)($19,082,945)20292029($8,258,759)($336,175)($9,642,369)($1,929,242)($20,166,545)20302030($8,721,689)($354,367)($10,153,312)($2,032,715)($21,262,083) L.R. No. 1683S.04F 
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Homeownership Rates
Using tax year 2023 PTC claims, the most recent year available, B&P determined the percentage 
of claimants that were homeowners versus renters.  Table 6 shows the percentage for each major 
filing type.
Table 6: PTC Homeowner vs. RenterFiling TypeHomeownerRenterAge 65+59.7%40.3%Widow(er)67.5%32.5%Disabled22.6%77.4%
For the purpose of this fiscal note, B&P will assume the potential newly qualified (under the 
higher maximum income limits) individuals will follow the same owner/renter pattern.  
However, it is likely that as the income limit increases, the homeownership rate would also 
increase.
Maximum Income Limits
Single – Renter
2026
In tax year 2023, the most recent complete year available, there were 218 individuals who filed 
as qualifying widow/widower, 29,700 individuals who claimed they were 65 years or older, and 
1,504 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $38,200.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 71 
of the widow(er), 11,976 age 65 and older, and 1,163 disabled could potentially be renters.  
Therefore, B&P estimates that 13,210 additional people could qualify for the renter PTC in 
calendar year 2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $458.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce GR by $6,044,175 
(13,210 x $458) in FY26.   L.R. No. 1683S.04F 
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2027
In tax year 2023, the most recent complete year available, there were 236 individuals who filed 
as qualifying widow/widower, 31,685 individuals who claimed they were 65 years or older, and 
1,603 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $38,964.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 77 
of the widow(er), 12,776 age 65 and older, and 1,240 disabled could potentially be renters.  
Therefore, B&P estimates that 14,093 additional people could qualify for the renter PTC in 
calendar year 2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $472.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$6,648,693 (14,093 x $472) in FY27.  
2028
In tax year 2023, the most recent complete year available, there were 254 individuals who filed 
as qualifying widow/widower, 33,670 individuals who claimed they were 65 years or older, and 
1,701 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $39,743.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 82 
of the widow(er), 13,577 age 65 and older, and 1,316 disabled could potentially be renters.  
Therefore, B&P estimates that 14,975 additional people could qualify for the renter PTC in 
calendar year 2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $493.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$7,377,059 (14,975 x $493) in FY28.  
2029
In tax year 2023, the most recent complete year available, there were 264 individuals who filed 
as qualifying widow/widower, 35,814 individuals who claimed they were 65 years or older, and 
1,788 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $40,538.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals - 86 
of the widow(er), 14,441 age 65 and older, and 1,383 disabled could potentially be renters.   L.R. No. 1683S.04F 
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Therefore, B&P estimates that 15,910 additional people could qualify for the renter PTC in 
calendar year 2029.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $514.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$8,175,292 (15,910 x $514) in FY29.  
2030
In tax year 2023, the most recent complete year available, there were 286 individuals who filed 
as qualifying widow/widower, 37,910 individuals who claimed they were 65 years or older, and 
1,892 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $27,500 and $41,349.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 93 
of the widow(er), 15,286 age 65 and older, and 1,464 disabled could potentially be renters.  
Therefore, B&P estimates that 16,843 additional people could qualify for the renter PTC in 
calendar year 2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above, 
B&P estimates that the average PTC credit for these individuals may be $528.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$8,898,095 (16,843 x $528) in FY30.  
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the 
maximum income for renters will continue to be adjusted annually for inflation.
Married, Filing Combined – Renter
2026
In tax year 2023, the most recent complete year available, there were 32,070 individuals who 
claimed they were 65 years or older and 4,598 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $41,000.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 
12,932 age 65 and older and 3,557 disabled could potentially be renters.  Therefore, B&P 
estimates that 16,489 additional people could qualify for the renter PTC in calendar year 2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $455.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce GR by $7,506,159 
(16,489 x $455) in FY26.   L.R. No. 1683S.04F 
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2027
In tax year 2023, the most recent complete year available, there were 33,738 individuals who 
claimed they were 65 years or older and 4,852 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $41,820.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 
13,604 age 65 and older and 3,753 disabled could potentially be renters.  Therefore, B&P 
estimates that 17,357 additional people could qualify for the renter PTC in calendar year 2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $469.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$8,141,053 (17,357 x $469) in FY27.  
2028
In tax year 2023, the most recent complete year available, there were 35,360 individuals who 
claimed they were 65 years or older and 5,115 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $42,656.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 
14,258 age 65 and older and 3,957 disabled could potentially be renters.  Therefore, B&P 
estimates that 18,215 additional people could qualify for the renter PTC in calendar year 2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $490.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$8,917,813 (18,215 x $490) in FY28.  
2029
In tax year 2023, the most recent complete year available, there were 37,115 individuals who 
claimed they were 65 years or older and 5,356 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $43,509.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 
14,966 age 65 and older and 4,143 disabled could potentially be renters.  Therefore, B&P 
estimates that 19,109 additional people could qualify for the renter PTC in calendar year 2029. L.R. No. 1683S.04F 
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In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $510.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$9,748,672 (19,109 x $510) in FY29.  
2030
In tax year 2023, the most recent complete year available, there were 38,886 individuals who 
claimed they were 65 years or older and 5,576 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $27,500 and $44,379.  
Using the homeowner/renter split discussed above, B&P assumes that of those individuals – 
15,680 age 65 and older and 4,313 disabled could potentially be renters.  Therefore, B&P 
estimates that 19,993 additional people could qualify for the renter PTC in calendar year 2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above, 
B&P estimates that the average PTC credit for these individuals may be $526.  Therefore, B&P 
estimates that increase the maximum income limit for renters could reduce TSR and GR by 
$10,517,651 (19,993 x $526) in FY30.  
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the 
maximum income for renters will continue to be adjusted annually for inflation.
Single – Homeowner
2026
In tax year 2023, the most recent complete year available, there were 263 individuals who filed 
as qualifying widow/widower, 32,775 individuals who claimed they were 65 years or older, and 
1,591 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $42,200.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
- 178 of the widow(er), 19,559 age 65 and older, and 360 disabled could potentially be 
homeowners.  Therefore, B&P estimates that 20,097 additional people could qualify for the 
homeowner PTC in calendar year 2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $940.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce GR by 
$18,891,180 (20,097 x $940) in FY26.  
2027 L.R. No. 1683S.04F 
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In tax year 2023, the most recent complete year available, there were 284 individuals who filed 
as qualifying widow/widower, 34,960 individuals who claimed they were 65 years or older, and 
1,668 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $43,044.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
- 192 of the widow(er), 20,863 age 65 and older, and 378 disabled could potentially be 
homeowners.  Therefore, B&P estimates that 21,433 additional people could qualify for the 
homeowner PTC in calendar year 2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $964.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$20,661,412 (21,433 x $964) in FY27.  
2028
In tax year 2023, the most recent complete year available, there were 300 individuals who filed 
as qualifying widow/widower, 37,083 individuals who claimed they were 65 years or older, and 
1,748 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $43,905.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
- 203 of the widow(er), 22,130 age 65 and older, and 396 disabled could potentially be 
homeowners.  Therefore, B&P estimates that 22,729 additional people could qualify for the 
homeowner PTC in calendar year 2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $990.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$22,501,710 (22,729 x $990) in FY28.  
2029
In tax year 2023, the most recent complete year available, there were 321 individuals who filed 
as qualifying widow/widower, 39,278 individuals who claimed they were 65 years or older, and 
1,828 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $44,783.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
- 217 of the widow(er), 23,440 age 65 and older, and 414 disabled could potentially be 
homeowners.  Therefore, B&P estimates that 24,071 additional people could qualify for the 
homeowner PTC in calendar year 2029. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 44 of 78
April 6, 2025
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In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $1,017.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$24,481,067 (24,017 x $1,017) in FY29.  
2030
In tax year 2023, the most recent complete year available, there were 338 individuals who filed 
as qualifying widow/widower, 41,497 individuals who claimed they were 65 years or older, and 
1,915 individuals who claimed they were disabled on their individual income tax forms, filed as 
single, and had a Missouri Adjusted Gross Income (MAGI) between $30,000 and $45,679.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
– 228 of the widow(er), 24,764 age 65 and older, and 434 disabled could potentially be 
homeowners.  Therefore, B&P estimates that 25,426 additional people could qualify for the 
homeowner PTC in calendar year 2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above, 
B&P estimates that the average PTC credit for these individuals may be $1,043.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$26,520,195 (25,426 x $1,043) in FY30.  
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the 
maximum income for homeowners will continue to be adjusted annually for inflation.
Married, Filing Combined – Homeowner
2026
In tax year 2023, the most recent complete year available, there were 39,688 individuals who 
claimed they were 65 years or older and 5,622 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $48,000.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
– 23,685 age 65 and older and 1,273 disabled could potentially be homeowners.  Therefore, B&P 
estimates that 24,958 additional people could qualify for the homeowner PTC in calendar year 
2026.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $940.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce GR by 
$23,460,520 (24,958 x $940) in FY26.  
2027 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 45 of 78
April 6, 2025
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In tax year 2023, the most recent complete year available, there were 41,641 individuals who 
claimed they were 65 years or older and 5,899 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $48,960.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
– 24,850 age 65 and older and 1,336 disabled could potentially be homeowners.  Therefore, B&P 
estimates that 26,186 additional people could qualify for the homeowner PTC in calendar year 
2027.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $964.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$25,243,304 (26,186 x $964) in FY27.  
2028
In tax year 2023, the most recent complete year available, there were 43,629 individuals who 
claimed they were 65 years or older and 6,181 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $49,939.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
– 26,037 age 65 and older and 1,400 disabled could potentially be homeowners.  Therefore, B&P 
estimates that 27,437 additional people could qualify for the homeowner PTC in calendar year 
2028.
In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $990.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$27,162,630 (27,437 x $990) in FY28.  
2029
In tax year 2023, the most recent complete year available, there were 45,627 individuals who 
claimed they were 65 years or older and 6,476 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $50,938.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
– 27,229 age 65 and older and 1,466 disabled could potentially be homeowners.  Therefore, B&P 
estimates that 28,695 additional people could qualify for the homeowner PTC in calendar year 
2029. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 46 of 78
April 6, 2025
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In addition, based on the additional maximum credit and slower phase-out discussed above, B&P 
estimates that the average PTC credit for these individuals may be $1,017.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$29,174,924 (28,695 x $1,017) in FY29.  
2030
In tax year 2023, the most recent complete year available, there were 47,730 individuals who 
claimed they were 65 years or older and 6,775 individuals who claimed they were disabled on 
their individual income tax forms, filed as married (combined), and had a Missouri Adjusted 
Gross Income (MAGI) between $30,000 and $51,957.  
Using the homeowner/homeowner split discussed above, B&P assumes that of those individuals 
– 28,484 age 65 and older and 1,534 disabled could potentially be homeowners.  Therefore, B&P 
estimates that 30,018 additional people could qualify for the homeowner PTC in calendar year 
2030.
In addition, based on the additional maximum credit and slower phase-out out discussed above, 
B&P estimates that the average PTC credit for these individuals may be $1,043.  Therefore, B&P 
estimates that increase the maximum income limit for homeowners could reduce TSR and GR by 
$31,301,270 (30,018 x $1,043) in FY30.  
B&P notes that the annual loss for years after FY30 will likely exceed this amount as the 
maximum income for homeowners will continue to be adjusted annually for inflation.
Maximum Income Changes Summary
B&P estimates that increasing the maximum income limits could reduce GR by $55,902,034 
($13,550,334 renters + $42,351,700 homeowners) in FY26.  By FY30, this provision could 
reduce GR by $77,237,211 ($19,415,746 renters + $57,821,465 homeowners) annually.  Table 7 
shows the estimated impact by filing/owning status. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 47 of 78
April 6, 2025
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Table 7: Higher Maximum Income LimitRenterHomeowner
Calendar 
Year
Fiscal 
Year
SingleMarriedSingleMarried 
Total
20262026($6,044,175)($7,506,159)($18,891,180)($23,460,520)($55,902,034)20272027($6,648,693)($8,141,053)($20,661,412)($25,243,304)($60,694,462)20282028($7,377,059)($8,917,813)($22,501,710)($27,162,630)($65,959,212)20292029($8,175,292)($9,748,672)($24,481,067)($29,174,924)($71,579,955)20302030($8,898,095)($10,517,651)($26,520,195)($31,301,270)($77,237,211)
Bill Summary
B&P estimates that this proposal could reduce GR by $72,061,901 in FY26.  By FY30, this 
provision could reduce GR by $97,700,493.  Table 8 shows the impact by fiscal year.
Table 8: Summary of GR ImpactRenterHomeowner
Fiscal 
Year
No 
Longer 
Qualify
Higher 
Income
Increased 
Credit
Higher 
Income
Increased 
Credit
Total GR 
Loss
2026$798,801 ($13,550,334)($7,168,231)($42,351,700)($9,790,437)($72,061,901)2027$798,801 ($14,789,746)($7,628,920)($45,904,716)($10,370,539)($77,895,120)2028$798,801 ($16,294,872)($8,112,243)($49,664,340)($10,970,702)($84,243,356)2029$798,801 ($17,923,964)($8,594,934)($53,655,991)($11,571,611)($90,947,699)2030$798,801 ($19,415,746)($9,076,056)($57,821,465)($12,186,027)($97,700,493)
Officials from the State Tax Commission (STC) assume the proposal will have no fiscal impact 
on their organization. Oversight does not have any information to the contrary. Therefore, 
Oversight will reflect a zero impact in the fiscal note for STC.  
Oversight will note the redemptions could be substantially lower or exceed the estimates 
provided by B&P and DOR each year thereafter depending on the increase or decrease in  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 48 of 78
April 6, 2025
KLP:LR:OD
homeowners and renters applying for the tax credit, future CPI adjustments, or home versus rent 
pattern behaviors in the markets.
Oversight notes that the B&P and DOR calculations are identical, therefore, Oversight will note 
the B&P & DOR estimated impact in the fiscal note.  
Oversight notes that this proposal will only impact state revenues, therefore, Oversight will 
reflect zero impact to the local political subdivisions in the fiscal note. 
Section 137.1050 - Emergency Services Sales Tax 
Oversight notes under current law, if in any tax year after the eligible taxpayer's initial credit 
year the taxpayer's real property tax liability is lower than such liability in the initial credit year, 
such tax year shall be considered the taxpayer's new initial credit year for all subsequent tax 
years. 
This provision clarifies that the taxpayer’s initial credit year for the calculation of the Homestead 
property tax credit shall not change if the taxpayer’s property tax liability is less than his/her tax 
liability in the initial credit year due to a levy adjustment made pursuant to 321.905.
Additionally, Oversight notes that 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)
Oversight assumes this proposal adds clarifying language for implementation measures for the 
property tax credit established in SB 190 (2023).  
Oversight notes this credit is optional and a county must submit the proposal to voters or pass a 
county ordinance in order to participate.
Section 143.121 - Income Tax Subtraction for Capital Gains
Officials from the Department of Revenue (DOR) starting January 1, 2025, this proposal would 
allow a taxpayer, both individuals and corporations, to subtract from their Federal adjusted gross 
income (FAGI) any amount reported as capital gains for determining their Missouri adjusted 
gross income (MAGI).  DOR notes this proposal would become effective on August 28, 2025, in 
the middle of the 2025 tax year.  DOR notes that these changes will begin January 1, 2025, 
however, they will not impact state revenue until the first tax returns are filed in January 2026 
(FY 2026).  DOR also notes this would limit the amount of time taxpayers have to adjust their 
withholdings for the tax year. 
All sources of income are reported on the federal return and only the total income amount (FAGI 
number) is reported on the Missouri return.  DOR used its internal Income Tax Model that  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 49 of 78
April 6, 2025
KLP:LR:OD
contains confidential taxpayer data from both the federal and state tax return to calculate the 
fiscal impact of this proposal to individuals.  
DOR notes that subtractions do not reduce revenues on a dollar-for-dollar basis, but rather in 
proportion to the top tax rate applied.  SB 3 adopted in 2022, lowers the individual income tax 
rate over a period of years based on certain revenue triggers.  The individual income tax rate for 
tax year 2025 is 4.7%.  For fiscal note purposes only, and based on the current consensus 
revenue estimates, DOR will show the next reduction of the individual income tax rate occurring 
in consecutive years starting in tax year 2028.
Individual Income Tax
Tax 
YearAmount
2025($111,051,234.18)2026($111,035,453.09)2027($111,028,327.15)2028($108,683,825.07)2029($106,287,765.44)
Based on the department’s collection data, the department knows that 42% of all individual 
income tax is received in the first fiscal year and 58% is received in the second year.  Therefore, 
the department would expect to see a loss to general revenue per fiscal year as follows:
Individual Income Tax
Fiscal 
YearLoss to GR
2026*($157,686,124.47)2027($111,032,460.20)2028($110,043,636.28)2029($107,677,480.02)2030($106,287,765.44)
*FY26 will be impacted by 100% of the subtraction for tax year 2025 and a portion of the 
subtraction for tax year 2026. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 50 of 78
April 6, 2025
KLP:LR:OD
Additionally, this proposal allows corporations to subtract their capital gains for determining 
MAGI.  The current corporate income tax rate is 4%.  DOR used its internal Income Tax Model 
that contains confidential taxpayer data from both the federal and state tax returns to calculate 
the fiscal impact of this proposal to corporations.  DOR notes the data was only able to pull 
information from the electronically filed returns and not those filed on paper.  Therefore, DOR 
notes the actual impact will be larger than estimated.  
This proposal will not become effective until August 2025 and taxpayers pay declaration 
payments on capital gains four times a year in anticipation of their final tax liability.  Corporate 
declarations are due in April, June, September, and December.  Therefore, corporations will have 
a limited time to adjust their declarations to account for this new subtraction.  Based on this, 
DOR will reflect the full impact of tax year 2025 in FY26.
Based on actual collections data, DOR notes that 45% of corporate income taxes are paid during 
fiscal year 1 and 55% are paid during fiscal year 2.  This will result in a loss to general revenue 
of greater than $183,626,879 in FY 2026 and of greater than $126,639,225 in FY 27 and beyond.
Summary
This proposal is estimated to impact general revenue by:
Table 3: Impact SummaryFiscal 
Year
Individual 
Income
Corporate IncomeTotal
FY26*($157,686,124)could exceed($183,626,876)could exceed($341,313,000)FY27($111,032,460)could exceed($126,639,225)could exceed($237,671,685)FY28($110,043,636)could exceed($126,639,225)could exceed($236,682,861)FY29($107,677,480)could exceed($126,639,225)could exceed($234,316,705)FY30($106,287,765)could exceed($126,639,225)could exceed($232,926,990)*FY26 will be impacted by 100% of the subtraction for tax year 2025 and a portion of the subtraction for 
tax year 2026.
This proposal will require DOR to modify the department’s MO-A and MO-1040 forms at a cost 
of $14,654 ($7,327 apiece), the department’s website at a cost of $2,200 and the department’s 
individual income tax computer programming system at a cost of $3,664.  These items are 
estimated to cost $20,518.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the 
above costs to DOR to implement this proposal in FY 2026.  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 51 of 78
April 6, 2025
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Officials from the Office of Administration - Budget and Planning (B&P) note the following:
Individual Income Tax
B&P notes that under Section 143.011, the top individual income tax rate will be 4.7% for tax 
year 2025.  In addition, based on current revenue forecasts and average revenue growth, B&P 
estimates that net general revenue growth will not be high enough to trigger another reduction 
until at least tax year 2028 (FY27 revenue).  For the purpose of this fiscal note, B&P will assume 
that the remaining two 0.1% reductions will occur for tax year 2028 (4.6%) and tax year 2029 
(4.5%).
Using tax year 2022 data, the most recent complete tax year available, B&P estimates that this 
proposal could reduce GR by $106,464,031.  Once SB 3 (2022) has fully implemented, this 
proposal could reduce GR by $101,915,438 annually.  Table 1 shows the estimated impact by tax 
year.
Table 1: Estimated 
Impact by Tax Year - 
Individual
Tax 
YearGR Impact
2025($106,464,031)2026($106,446,013)2027($106,438,634)2028($104,193,953)2029($101,915,438)
B&P notes that this proposal will not become effective until August 2025.  B&P further notes 
that taxpayers pay declarations payments on capital gains four times a year in anticipation of 
their final tax liability.  Individual declarations are due in January, April, June, and September.  
Therefore, individuals would only have September 2025 and January 2026 to adjust their 
declarations to account for this new subtraction.  Based on this, B&P will reflect the full impact 
from the tax year 2025 subtraction as occurring during FY26.
Beginning with tax year 2026, individuals will adjust their declarations payments.  Based on 
actual collections data, B&P estimates that 42% of individual income taxes are paid during fiscal 
year 1 and 58% are paid during fiscal year 2.  Therefore, B&P estimates that this proposal could 
reduce GR by $151,171,356 in FY26.  Once SB 3 (2022) has fully implemented, this proposal 
could reduce GR by $101,915,438 annually.  Table 2 shows the estimated impact by fiscal year. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 52 of 78
April 6, 2025
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Table 2: Estimated 
Impact by Fiscal Year - 
Individual
Fiscal 
YearGR Impact
FY26*($151,171,356)FY27($106,442,914)FY28($105,495,868)FY29($103,249,392)FY30($101,915,438)*FY26 will be impacted 
by 100% of the 
subtraction for tax year 
2025 and a portion of the 
subtraction for tax year 
2026.
Fiduciary Tax
B&P notes that trusts are allowed to take all subtractions afforded to individual taxpayers.  
Therefore, starting with tax year 2025 this provision would also allow a capital gains subtraction 
for the fiduciary tax.
Using federal and state tax data, B&P estimates that this provision could reduce GR by an 
amount that could exceed $34,628,318 in FY26 (for tax year 2025).  Once SB 3 (2022) has fully 
implemented, this provision may reduce GR by an amount that could exceed $33,154,773 
annually.
Corporate Income Tax 
This provision would allow corporations to subtract capital gains income from their Missouri 
taxable income the year after the top individual income tax rate (Section 143.011) is reduced to 
4.5% or lower.  Based on current forecasts and average revenue growth, B&P estimates that the 
individual income tax rate may be 4.5% starting with tax year 2029.  Therefore, this subtraction 
may be available for corporations starting with tax year 2030.
Using tax year 2022 data, the most recent complete tax year available, B&P estimates that this 
proposal could exempt at least $3,165,980,618 in capital gains from Missouri income tax.  B&P 
notes that this number only includes electronically filed corporate tax returns; therefore, the 
actual amount of capital gains exempted could exceed $3,165,980,618.  Using the corporate tax  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
KLP:LR:OD
rate of 4.0%, B&P estimates that this proposal could reduce GR by at least $126,639,225 per 
year.
Beginning with tax year 2030, corporations will adjust their declarations payments.  Based on 
actual collections data, B&P estimates that 45% of corporate income taxes are paid during fiscal 
year 1 and 55% are paid during fiscal year 2.  Therefore, B&P estimates that this proposal could 
reduce GR by an amount that could exceed $56,987,651 in FY30.  Beginning in FY31, this 
proposal could reduce GR by an amount that could exceed $126,639,225 annually.
Summary
B&P estimates that this proposal could reduce TSR and GR by an amount that could exceed 
$185,799,674 in FY26.  Once fully implemented, this proposal could reduce TSR and GR by an 
amount that could exceed $261,709,436.  Table 3 shows a summary of the estimated impacts by 
fiscal year.
Table 3: Capital Gains SummaryFiscal 
Year
Individual 
Income
Fiduciary IncomeCorporate IncomeTotal
FY26*($151,171,356)
could 
exceed($34,628,318)  
could 
exceed($185,799,674)FY27($106,442,914)
could 
exceed($34,628,318)  
could 
exceed($141,071,232)FY28($105,495,868)
could 
exceed($34,628,318)  
could 
exceed($140,124,186)FY29($103,236,977)
could 
exceed($33,891,545)  
could 
exceed($137,128,522)FY30($101,915,438)
could 
exceed($33,154,773)
could 
exceed($56,987,651)
could 
exceed($192,057,862)FY31($101,915,438)
could 
exceed($33,154,773)
could 
exceed($126,639,225)
could 
exceed($261,709,436)
*FY26 will be impacted by 100% of the subtraction for tax year 2025 and a portion of the subtraction 
for tax year 2026.
Oversight notes both DOR and B&P’s estimates include data from DOR’s internal Income Tax 
Model. 
Oversight notes that it does not currently have the resources and/or access to state tax data to 
produce a thorough independent revenue estimate and is unable to verify the revenue estimates  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 54 of 78
April 6, 2025
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provided by DOR and B&P. Therefore, for the purpose of this fiscal note, Oversight will note 
B&P’s estimated impact for this proposal.
Oversight notes the state individual income tax rate (4.7% in CY 2025) is to be reduced in 
annual increments (if certain triggers are met) until it reaches 4.5% pursuant to SB 3 (2022). 
Based on current revenue forecasts and average revenue growth, DOR and B&P project the next 
reduction(s) of the individual income tax rate occurring in consecutive years starting in tax year 
2028.
Section 144.029 – Diaper and Feminine Hygiene Sales Tax Exemption
Officials from the Department of Revenue (DOR) note: 
Sales Tax Law Changes
DOR notes Section 144.029.2(1) changes the reference from the Missouri pesticide registration 
law to the Missouri pesticide registration act.  It also expands the sections covered by this act 
from 281.220 to 281.310 to 281.210 to 281.310, RSMo.  These changes will not fiscally impact 
DOR.
Section 144.029.2(18) updates an out-of-date statutory reference.  This will not fiscally impact 
DOR.
Section 144.029.2(25) removes the sectional reference 4091, which was repealed by Congress. 
This will not fiscally impact DOR.
Diaper Sales Tax Exemption
DOR notes beginning August 28, 2025, the tax levied and imposed under Chapter 144 (Section 
144.029.2(47)) on all retail sales of kid’s diapers and adult diapers shall be exempt from taxation.  
This exemption extends to the local sales tax rate as well as the state sales tax rate. The current 
state sales tax rate of is 4.225%.  The current state tax rate is distributed as:
General Revenue is                             3%
School District Trust Fund is              1%       (Section 144.701)
Conservation Commission Fund is     .125%  (Article IV, Section 43(a))
Parks, Soil & Water Funds                 .1%      (Article IV, Section 47(a))
In an effort to more accurately reflect the estimated local impact, B&P and DOR have moved 
from a population weighted average local sales tax rate to a location weighted average local sales 
tax rate. This change was made to reflect where sales actually occur, rather than exclusively 
where people live. For fiscal note purposes, the local sales tax rate will be 4.46%.
Kid Diapers L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 55 of 78
April 6, 2025
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DOR notes that the average child wears diapers for three years before becoming fully toilet 
trained.  DOR found the price of diapers vary from $0.16 per diaper for generics to $0.60 for 
name brand.  Prices of diapers also depend on the size of the diaper.  Estimates by various 
children’s organizations indicate that an infant in the first year of life goes through 2,500 diapers.  
The next two years as toddlers they go through 1,500 diapers annually.  
Wearing DiaperHow Many
Low Price 
per Diaper
High Price 
per Diaper
Total Cost 
Low
Total Cost 
High
First Year (Size 1)2,5000.160.31400775Second Year (Size 3)1,5000.180.38270570Third Year (Size 5)1,5000.290.60435900
Based on information from the MO Dept of Health & Senior Services, the average number of 
children born in the last three years was 69,167.  Given that 3 years’ worth of children are 
wearing diapers in any one year (1 set of infants and 2 sets of toddlers) the DOR estimate the 
following:
Births Annually69,167# of kids in Diapers Annually207,500# of Diapers Annually    infant172,916,667   toddler (2yrs)207,500,000 total (kids * diapers)380,416,667 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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Since this would start on August 28, 2025, and sales tax is remitted one month behind collection, 
this would result in 9 months collected in FY 2026. This would result in a loss to the state sales 
tax funds and local funds as follows:
State FundsFY 2026 (9 months)FY 2027+ LowHighLow HighGeneral Revenue($1,719,656)($3,493,781)($2,292,875)($4,658,375)School Districts($573,219)($1,164,594)($764,292)($1,552,792)Conservation ($70,219)($142,663)($93,626)($190,217)Park, Soil & 
Water($57,322)($116,459)($76,429)($155,279)
     Local Funds($2,556,556)($5,194,088)($3,408,741)($6,925,451)
Adult Diapers
DOR notes that approximately one third of adults aged 65 and older have moderate to severe 
urinary incontinence and 6 percent had moderate to severe bowl incontinence.  According to the 
United State Census Bureau 2020 population report, 1,077,757 individuals residing in Missouri 
were 65 or over.  The Department notes that it is estimated that people with minor to moderate 
incontinence wear approximately 4 diapers per day while those with those with full urinary or 
fecal incontinence wear 6 diapers per day. The Department estimates that approximately 290,994 
individuals aged 65 and over would utilize the four adult urinary incontinence diapers while 
64,665 would wear 6 adult diapers daily.  
The average cost for urinary incontinence diapers is $1.33 per diaper.  
Number of 
people
# of 
Diapers
Days per 
year
Total 
Diapers 
per personPrice per diaperTotal Sales
290,994436514601.33565,052,90764,665636521901.33188,350,969     753,403,875
Since this would start on August 28, 2025, and sales tax is remitted one month behind 
implementation, this would result in 9 months collected in FY 2026. This would result in a loss 
to the state sales tax funds and local funds as follows: L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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State Funds
FY 2026 (9 
months)FY 2027+
General 
Revenue($16,951,587)($22,602,116)
School Districts($5,650,529)($7,534,039)Conservation ($706,316)($941,755)Park, Soil & 
Water($565,053)($753,404)
   Local Funds($25,201,360)($33,601,813)
Feminine Hygiene Sales Tax Exemption
DOR notes that information from numerous sources indicates that a woman menstruates 500 
times in her lifetime, usually between the ages of 12-51. The average length of a period is 3-7 
days. Sources indicate that a woman uses the following:
 
Number per 
cycle
Number per 
year
Number 
in BoxBoxes per year
Tampons 20260367.22Pads/Panty 
Liners 565361.81
Note a woman has 13 cycles a year (28-day cycle) / 352 days a year.
The price per tampons and pads varies. The DOR used a low and high price when determining 
the fiscal impact.
 Price LowPrice HighTotal Cost LowTotal Cost HighTampons$7.00 $10.00 $50.56 $72.22 Pads/Panty Liners$7.00 $10.00 $12.64 $18.06    $63.19 $90.28 
Using information from the US Census Bureau (2020), DOR calculated the number of women 
having a period in Missouri (those between 12-51) as 1,555,626.
 
Total Cost 
Low
Total Cost 
High
Total estimated cost per year$98,306,921 $140,438,458  L.R. No. 1683S.04F 
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This proposal begins August 28, 2025 (FY 2026).  Sales tax is remitted one month behind 
collection and therefore, this will impact state and local revenue for only 9 months in FY 2026.
  FY 2026 (9 months)FY 2027 + Tax Rate LowHigh LowHighTSR4.225%($3,115,101)($4,450,144)($4,153,467)($5,933,525)General Revenue3.00%($2,211,906)($3,159,865)($2,949,208)($4,213,154)School1.00%($737,302)($1,053,288)($983,069)($1,404,385)Conservation0.125%($92,163)($146,290)($122,884)($175,548)Park, Soil & Water0.100%($73,730)($105,329)($98,307)($140,438)  $0 $0 $0 $0 Locals*4.46%($3,288,367)($4,697,666)($4,384,489)($6,263,555)
Summary of All Sales Tax Exemptions
DOR concludes that this proposal will result in the need for DOR to do one time computer 
programming changes ($1,832) and form changes ($2,200).  Therefore, this is estimated to cost 
$4,032.  Notification through various means will have to occur to notify the vendors to stop 
collecting tax on diapers.
This will reduce state and local revenues by the following:
State FundsFY 2026 (9 months)FY 2027+ LowHighLowHighGeneral Revenue($20,883,149)($23,605,234)($27,844,199)($31,473,645)School Districts($6,961,050)($7,868,411)($9,281,400)($10,491,215)Conservation($868,698)($980,640)($1,158,264)($1,307,520)Park, Soil & 
Water($696,105)($786,841)($928,140)($1,049,122)
     Local Funds($31,046,282)($35,093,114)($41,395,042)($46,790,819)
These changes will require the DOR modify forms ($2,200), website, and the DOR computer.
Oversight notes DOR requests a one-time cost for website income-tax changes and updates to 
comply with the proposed language; however, Oversight notes that DOR receives appropriation 
for routine website updates and will not show those costs in the fiscal note.
Officials from the Office of Administration – Budget & Planning (B&P) note: 
B&P assumes that this proposal would exempt all sales of diapers, incontinence products, and 
feminine hygiene products from sales tax beginning August 28, 2025. 
B&P notes that it is unclear whether the language in subdivision 144.029.2(47) is attempting to 
only exempt these purchases from state sales tax and not local sales tax.  However, all items  L.R. No. 1683S.04F 
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under subsection 144.029.2 are exempted from both local and state sales tax.  Therefore, B&P 
will reflect both a state and local revenue loss from the proposed sales tax exemptions.
Feminine Hygiene Products
B&P assumes that tased on information from multiple sites, B&P estimates that women purchase 
an average of 6.8 to 7.2 boxes of tampons (average price $7 to $15) and 1.7 to 1.8 boxes 
(average price $6 to $15) of pads and liners per year (using the average cycle length of 28 to 30 
days).  B&P was also able to determine that the average age for menstruation is 12-51 and based 
on data provided by the United State Census 2023 population estimates (the most recent 
complete year available), there are approximately 1,565,677 woman between those ages residing 
in Missouri.  
Therefore, B&P estimates total sales of $89,953,942 ($57.45 cost per year x 1,565,677 women) 
to $212,601,230 ($135.79 cost per year x 1,565,677 women) may be impacted by this proposal.  
B&P estimates that this provision could reduce TSR by $3,800,554 to $8,982,402 annually.  
Using the sales location weighted average local sales tax rate of 4.46% for 2024, B&P further 
estimates that this provision could reduce local sales tax collections by $4,011,946 to $9,482,015 
annually.  
Table 1: Estimated Loss by Fund - Feminine Hygiene ProductsState FundFY26FY27+General Revenue($2,023,964)($4,783,528)($2,698,618)($6,378,037)Education($674,655)($1,594,509)($899,539)($2,126,012)Conservation($84,332)($199,314)($112,442)($265,752)DNR($67,465)($159,451)($89,954)($212,601)Total TSR Loss($2,850,416)($6,736,801)($3,800,554)($8,982,402)
    
Local Funds($3,008,959)($7,111,511)($4,011,946)($9,482,015)
Diaper (Child) Sales Tax Exemption
B&P assumes that based on research, B&P found that the average amount spent on diapers was 
$1,000 during the first year and then $500 to $900 per year until toilet trained.  Based on 
information from the University of Michigan Hospital, the average age until children are toilet 
trained is 2.5 years.  Based on information provided by the United State Census 2023 population 
estimates (the most recent complete year available), there were approximately 206,138 children 
living in Missouri ages 0-2 years old, with 67,996 being less than one year old.  
Therefore, B&P estimates total sales of $137,067,000 [(67,996 infants x $1,000 cost per year) + 
(138,142 toddlers x $500 cost per year)] up to $184,035,280 [(67,996 infants x $1,000 cost per 
year) + (138,142 toddlers x $900 cost per year)] may be impacted by this proposal.   L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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B&P estimates that this provision could reduce TSR by $5,791,081 to $7,775,491 annually.  
Using the sales location weighted average sales tax rate of 4.46% for 2024, B&P further 
estimates that this provision could reduce local sales tax collections by $6,113,188 to $8,207,973 
annually.  
Table 2: Estimated Loss by Fund - Child Diapers
State FundFY26FY27+General Revenue(3,084,008)(4,140,794)(4,112,010)(5,521,058)Education(1,028,003)(1,380,265)(1,370,670)(1,840,353)Conservation(128,500)(172,533)(171,334)(230,044)DNR(102,800)(138,026)(137,067)(184,035)Total TSR Loss($4,343,311)($5,831,618)($5,791,081)($7,775,491)    
Local Funds(4,584,891)(6,155,980)(6,113,188)(8,207,973)
Diaper (Adult) Sales Tax Exemption
B&P assumes that according to research completed by the CDC, approximately 25% of adults 
age 65 and up had moderate to severe urinary incontinence and 8% had moderate to severe 
bowel incontinence.  B&P notes that according the United State Census 2023 population (the 
most recent complete year available) estimates there were approximately 1,136,615 individuals 
residing in Missouri age 65 and over.  
Based on these numbers, B&P estimates that approximately 284,154 (1,136,615 x 25%) 
individual age 65 and over would utilize adult urinary incontinence diapers.  B&P further 
estimates that approximately 90,929 (1,136,615 x 8%) individuals residing in Missouri age 65 
and over would utilize adult bowel incontinence diapers.  
Based on information from a budgeting website, the average cost for urinary incontinence 
diapers is $100 to $240 per month, for a yearly cost of $1,200 to $2,880.  Further information 
from the budgeting website lists the average monthly bowel incontinence diapers is $70 to $210 
per month, for a yearly cost of $840 to $2,520.  
B&P estimates that total annual sales for urinary incontinence adult diapers could be 
approximately $340,984,500 (284,154 people x $1,200 annual cost) up to $818,362,800 (284,154 
people x $2,880 annual cost).  
B&P further estimates that the total annual sales for bowel incontinence adult diapers could be 
$76,380,528 (90,929 people x $840 annual cost) up to $229,141,584 (90,929 people x $2,520 
annual cost).   L.R. No. 1683S.04F 
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Therefore, B&P estimates total sales of $417,365,028 ($340,984,500 urinary incontinence + 
$76,380,528 bowl incontinence) up to $1,047,504,384 ($818,362,800 urinary incontinence + 
$229,141,584 bowl incontinence) may be impacted by this proposal.  
B&P estimates that this provision could reduce TSR by $17,633,672 to $44,257,060 annually.  
Using the sales location weighted average sales tax rate of 4.46% for 2024, B&P further 
estimates that this provision could reduce local sales tax collections by $18,614,480 to 
$46,718,696 annually.
Table 3: Estimated Loss by Fund - Adult DiapersState FundFY26FY27+General Revenue(9,390,713)(23,568,849)(12,520,951)(31,425,132)Education(3,130,238)(7,856,283)(4,173,650)(10,475,044)Conservation(391,280)(982,035)(521,706)(1,309,380)DNR(313,024)(785,628)(417,365)(1,047,504)Total TSR Loss($13,225,254)($33,192,795)($17,633,672)($44,257,060)
   
Local Funds(13,960,860)(35,039,022)(18,614,480)(46,718,696)
Summary
B&P estimates that this proposal may reduce TSR by $20,418,980 to $45,761,215 during FY26.  
Once fully implemented in FY27, this proposal may reduce TSR by $27,225,307 to $61,014,953 
annually.  In addition, this proposal could reduce local sales taxes by $28,739,614 to 
$64,408,684 annually once fully implemented.  Table 1 shows the estimated impact by provision 
and fund. L.R. No. 1683S.04F 
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Table 1: Total Estimated Loss by Provision and FundState FundFY26FY27+General RevenueLowHighLowHighFeminine Hygiene(2,023,964)(4,783,528)(2,698,618)(6,378,037)Diapers - Child(3,084,008)(4,140,794)(4,112,010)(5,521,058)Diapers - Adult(9,390,713)(23,568,849)(12,520,951)(31,425,132)Total GR Loss(14,498,684)(32,493,170)(19,331,579)(43,324,227)
    Education   
Feminine Hygiene(674,655)(1,594,509)(899,539)(2,126,012)Diapers - Child(1,028,003)(1,380,265)(1,370,670)(1,840,353)Diapers - Adult(3,130,238)(7,856,283)(4,173,650)(10,475,044)Total Education Loss(4,832,895)(10,831,057)(6,443,860)(14,441,409)
    Conservation   
Feminine Hygiene(84,332)(199,314)(112,442)(265,752)Diapers - Child(128,500)(172,533)(171,334)(230,044)Diapers - Adult(391,280)(982,035)(521,706)(1,309,380)Total Conservation Loss(604,112)(1,353,882)(805,482)(1,805,176)
    DNR   
Feminine Hygiene(67,465)(159,451)(89,954)(212,601)Diapers - Child(102,800)(138,026)(137,067)(184,035)Diapers - Adult(313,024)(785,628)(417,365)(1,047,504)Total DNR Loss(483,289)(1,083,106)(644,386)(1,444,141)     Total TSR Loss(20,418,980)(45,761,215)(27,225,307)(61,014,953)
    Local Funds   
Feminine Hygiene(3,008,959)(7,111,511)(4,011,946)(9,482,015)Diapers - Child(4,584,891)(6,155,980)(6,113,188)(8,207,973)Diapers - Adult(13,960,860)(35,039,022)(18,614,480)(46,718,696)Total Local Loss(21,554,711)(48,306,513)(28,739,614)(64,408,684)
Oversight notes officials from B&P and DOR have conducted independent research and both 
assume the proposal will have a direct fiscal impact on state revenues. Oversight does not have 
any information to the contrary. Therefore, Oversight will reflect a fiscal impact that could 
exceed DOR’s estimated impacts in the fiscal note. L.R. No. 1683S.04F 
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Lastly,  notes this proposal includes a sales tax exemption for incontinence products 
“designed specifically for hygiene matters related to urinary incontinence”. Oversight assumes 
there could be additional exempt items aside from the diapers included in the estimates provided 
by DOR and B&P. Therefore, Oversight will show an unknown loss of sales tax revenue for the 
sales tax exemption of “incontinence products” for state and local funds beginning in FY 2026.
Officials from the Department of Health and Senior Services and the Department of Social 
Services  assume the proposal will have no fiscal impact on their organization. Oversight 
does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in 
the fiscal note for both respective organizations.
Officials from the City of Kansas City assume this proposal would have a negative fiscal impact 
on the City of Kansas City. 
Oversight notes the above local political subdivisions stated this proposal would have a negative 
fiscal impact on their respective city/county of an indeterminate amount. Therefore, Oversight 
will note the DOR’s estimates for all local political subdivisions on the fiscal note.
Oversight notes that the Conservation Sales Tax funds are derived from one-eighth of one 
percent sales and use tax of the Missouri Constitution, thus MDC’s sales taxes are constitutional 
mandates. Oversight notes the proposed sales tax exemption would decrease the amount of sales 
tax revenue distributed to the Conservation Sales Tax Fund. Therefore, Oversight will reflect the 
B&P’s and DOR’s fiscal impact estimates for MDC’s funds.
Officials from the Department of Natural Resources defer to the Department of Revenue for 
the potential fiscal impact of this proposal. 
Oversight notes the Park, Soil, and Water Sales Tax funds are derived from the one-tenth of one 
percent sales and use tax pursuant to Article IV Section 47 (a) thus DNR’s sales taxes are 
constitutional mandates. Oversight notes the proposed sales tax exemption would decrease the 
amount of sales tax revenue distributed to the Park, Soil, and Water Sales Tax Fund. Therefore, 
Oversight will reflect the DOR’s fiscal impact estimates for DNR’s funds.
Section 144.812 - Sales and Use Tax Exemption for Certain Broadband Equipment
Officials from the Office of Administration - Budget and Planning (B&P) note beginning tax 
year 2026, this proposal would exempt all machinery and equipment used to provide broadband 
from state and local sales/use tax.  B&P notes that this proposal would include equipment used at 
the broadband service provider (such as software and hub equipment), equipment used outside 
(such as fiber and poles), and equipment used within a customer’s house (such as modems).
B&P is unable to determine exactly how much is spent each year to provide broadband internet 
service.  However, B&P does have data on the amount of federal grants received by broadband 
providers since 2019.  Based on industry research, labor accounts for approximately 60% of 
broadband production costs.   L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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For the purpose of this fiscal note, B&P will use federal grant data to estimate the potential sales 
tax loss.  However, B&P notes that this is only partial data and does not account for continuing 
costs faced by service providers running networks.  Therefore, it is likely that the actual impact 
will exceed (maybe significantly) the impacts estimated below.
Based on multiple sources, B&P was able to determine the following federal grants were 
awarded to Missouri broadband providers.  B&P then split the grants between labor (60%) and 
equipment (40%).
Table 1: Estimated Broadband GrantsTax 
YearFederal GrantsEst. LaborEst. Equipment
2019$30,301,421 $18,180,853 $12,120,568 2020$137,577,527 $82,546,516 $55,031,011 2021$39,629,766 $23,777,860 $15,851,906 2022$94,975,079 $56,985,047 $37,990,032 2023$364,829,766 $218,897,860 $145,931,906 2024$457,790,308 $274,674,185 $183,116,123 2025$421,776,466 $253,065,880 $168,710,586 2026$395,565,663 $237,339,398 $158,226,265 
B&P notes that total investment amounts for 2026 and later are not yet known.  Therefore, for 
tax year 2026, B&P will reflect the potential loss as the range between current known grants and 
the highest amount awarded (TY 2024).  For tax years 2027 and later, B&P will reflect a range 
between the lowest (TY 2019) and highest (TY 2024) grant years.
Using only the portion of the federal grants used on the purchase of equipment (i.e. 40%), B&P 
estimates that this proposal could exempt between $158,226,265 and $183,116,123 in taxable 
sales during calendar year 2026.  For calendar years 2027 and beyond, B&P estimates that this 
proposal could exempt $12,120,568 to $183,116,123 from taxable sales annually.  Table 2 shows 
the estimated impact by calendar year. L.R. No. 1683S.04F 
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Table 2: Estimated Sales Tax Loss by Calendar Year CY 2026CY 2027 +State FundsLowHighLowHighGeneral Revenue($4,746,788)($5,493,484)($363,617)($5,493,484)Education($1,582,263)($1,831,161)($121,206)($1,831,161)Conservation($197,783)($228,895)($15,151)($228,895)DNR($158,226)($183,116)($12,121)($183,116)Total State 
Revenues($6,685,060)($7,736,656)($512,095)($7,736,656)
     Local Funds    Local Sales Tax($7,056,891)($8,166,979)($540,577)($8,166,979)
Based on historical sales tax data, sales tax collections in a calendar year are split 50/50 between 
fiscal years, with revenue distributions running one month behind collections.  Therefore, B&P 
estimates that this proposal could reduce TSR by and amount that could exceed $2,785,442 to 
$3,223,607 in FY26.  In future years, this proposal could reduce TSR by an amount that may 
exceed $512,095 to $7,736,656 annually.  Table 3 shows the estimated impact by fiscal year.
Table 3: Estimated Sales Tax Loss by Fiscal Year FY 2026FY 2027State FundsLowHighLowHighGeneral Revenue($1,977,828)($2,288,952)($363,617)($5,493,484)Education($659,276)($762,984)($121,206)($1,831,161)Conservation($82,410)($95,373)($15,151)($228,895)DNR($65,928)($76,298)($12,121)($183,116)Total State 
Revenues($2,785,442)($3,223,607)($512,095)($7,736,656)
    Local Funds   
Local Sales Tax($2,940,371)($3,402,908)($540,577)($8,166,979)
Officials from the Department of Revenue (DOR) note This will provide a sales tax exemption 
for all machinery and equipment used to provide broadband communication services.  DOR is 
unable to determine how much of the product outlined in this proposal is sold annually in 
Missouri.
DOR, however, can find data on the amount of federal grants received by broadband providers.  
Below is a chart of the federal grants received in Missouri and split between labor costs and 
estimated equipment costs.  Based on additional research DOR knows that about 60% of 
broadband production costs is labor.  Therefore, the department assumes the grants are split as 
follows: L.R. No. 1683S.04F 
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Table 1: Estimated Broadband GrantsTax 
YearFederal GrantsEst. LaborEst. Equipment
2019$30,301,421 $18,180,853 $12,120,568 2020$137,577,527 $82,546,516 $55,031,011 2021$39,629,766 $23,777,860 $15,851,906 2022$94,975,079 $56,985,047 $37,990,032 2023$364,851,264 $218,910,758 $145,940,506 2024$457,790,308 $274,674,185 $183,116,123 2025$421,776,466 $253,065,880 $168,710,586 2026$395,565,663 $237,339,398 $158,226,265 
DOR notes that these grants are given to install and create a broadband network.  It should be 
noted that these networks will take ongoing maintenance in future years.  Therefore, any impact 
projected estimate could be exceeded. 
DOR notes that the amount of funding spent on broadband in the future is unknown.  As shown 
above the amount of funding can vary widely year over year. For the fiscal note, DOR will show 
the impact for each year as the lowest year (2019) to the highest year (2024) of grants received in 
Missouri. 
The exemption will begin on January 1, 2026.  Using the data above DOR estimates the impact 
as follows:
Estimated Sales Tax Loss by Tax Year
  TY 2026 +
 LowHigh
 Est. Investment$12,120,568 $183,116,123 General Revenue3%($363,617)($5,493,484)School District1%($121,206)($1,831,161)Conservation0.125%($15,151)($228,895)Park, Soil & Water0.10%($12,121)($183,116)
TSR($512,095)($7,736,656)  
Local Sales Tax4.46%($540,577)($8,166,979)
It should be noted that sales tax is remitted one month behind collection and therefore this will 
impact state revenue for only 5 months in FY 2026.  When converting from tax year to fiscal 
year DOR uses a 50% in the first year and 50% in the second fiscal year.   L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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Estimated Sales Tax Loss by Fiscal Year FY 2026 (5 months)FY 2027+State FundsLowHighLowHighGeneral Revenue($151,507)($2,288,952)($363,617)($5,493,484)School District($50,503)($762,984)($121,206)($1,831,161)Conservation($6,313)($95,373)($15,151)($228,895)Park, Soil & Water($5,050)($76,298)($12,121)($183,116)Total State 
Revenues($213,373)($3,223,607)($512,095)($7,736,656)
    Local Funds   
Local Sales Tax($225,240)($3,402,908)($540,577)($8,166,979)
This will require DOR to update the department’s forms ($2,200), DOR’s website and its 
computer programs ($7,327).   
Oversight notes the DOR requests one-time cost for website income-tax changes and updates to 
comply with the proposed language; however, Oversight notes that DOR receives appropriation 
for routine website updates and will not show those costs in the fiscal note.
Oversight notes using the data provided by Office of Administration - Budget and Planning, the 
average amount of federal grants used on the purchase of equipment from 2023-2025 was 
$165,919,538. For purposes of this fiscal note, Oversight assumes this proposal could exempt at 
least $165,919,538 in taxable sales each year. Oversight notes the following estimated impact by 
fund/fiscal year:
FundFY 2026 (5 months)FY 2027+General Revenue($2,073,994)($4,977,586)School District Trust Fund($691,331)($1,659,195)Conservation($86,416)($207,399)Parks & Soils($69,133)($165,920)   Locals($3,083,338)($7,400,011)
Oversight is unable to determine the amount of qualifying items sold in the future, therefore, 
Oversight will show a fiscal impact that could exceed the figures estimated above.  
Officials from the Department of Natural Resources defer to the Department of Revenue for 
the potential fiscal impact of this proposal.  L.R. No. 1683S.04F 
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Oversight notes the Park, Soil, and Water Sales Tax funds are derived from the one-tenth of one 
percent sales and use tax pursuant to Article IV Section 47 (a) thus DNR’s sales taxes are 
constitutional mandates. Oversight assumes the proposed sales tax exemption may decrease the 
amount of sales tax revenue distributed to this fund. Therefore, Oversight will reflect the fiscal 
impact estimated above for DNR’s funds.
Officials from the Missouri Department of Conservation assume an unknown fiscal impact. 
The Conservation Sales Tax funds are derived from one-eighth of one percent sales and use tax 
pursuant to Article IV Section 43 (a) of the Missouri Constitution. The Department defers to the 
Department of Revenue as it is responsible for tax collection and would be better able to estimate 
the anticipated fiscal impact that would result from this proposal.
Oversight notes that the Conservation Sales Tax funds are derived from one-eighth of one 
percent sales and use tax of the Missouri Constitution, thus MDCs sales taxes are constitutional 
mandates. Oversight assumes the proposed sales tax exemption may decrease the amount of sales 
tax revenue distributed to this fund. Therefore, Oversight will reflect the fiscal impact estimated 
above for MDC’s funds.
Officials from the City of Kansas City assume the proposed legislation has a negative fiscal 
impact of an indeterminate amount.
Oversight notes the above local political subdivision stated this proposal would have a negative 
fiscal impact on their respective city of an indeterminate amount. Oversight assumes the 
proposed sales tax exemption may decrease the amount of sales tax revenue distributed to 
various local political subdivisions. Therefore, Oversight will note the fiscal impact estimated 
above for all local political subdivisions on the fiscal note.
Oversight only reflects the responses received from state agencies and political subdivisions; 
however, other local political subdivisions were requested to respond to this proposed legislation 
but did not. A listing of political subdivisions included in the Missouri Legislative Information 
System (MOLIS) database is available upon request.
Section 321.552 & 321.554 & 321.556 Sales Tax for Fire & Ambulance Districts
In response to a similar proposal from this year, (HCS for HB 1268) officials from the 
Department of Revenue (DOR) assume this proposal would allow any governing body of an 
ambulance or fire protection district to impose a sales tax in an amount up to one-half of one 
percent on all retail sales made in such district. In order to have the sales tax, the district would 
be required to hold an election and notify the Department of the increase.  The first available 
election would be April 2026, so the tax would not be collected until October 2026 (FY 2027) 
and remitted starting November 2026. 
DOR notes that DOR is able to retain 1% of all sales tax collected as reimbursement of DOR’s 
collection costs. The amount retained is deposited into general revenue.   L.R. No. 1683S.04F 
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DOR notes that some districts already have a sales tax that varies from 0.375% to 0.5%.  DOR is 
unable to predict how many ambulance and fire districts that don’t have this sales tax will adopt 
one. This will not have a fiscal impact on the DOR to administer unless a political subdivision 
adopts the sales tax rate.  At that time, it would cost $7,327 to update DOR’s computer system 
per political subdivision rate change. 
This proposal also requires that if a district passes a sales tax, they must adjust their levy to 
account for this additional funding.  Additionally, this proposal establishes procedures that allow 
citizens to repeal this sales tax in the future.  These provisions will not impact DOR.  
Officials from the Office of Administration - Budget and Planning (B&P) assume this 
provision would increase the allowable sales tax rate from 0.5% to 1.0%.  To the extent that this 
provision results in additional sales tax collections, this provision may impact TSR through the 
2% DOR cost of collection Fee.
Oversight does not have information to the contrary and therefore, Oversight will reflect the 
estimates as provided by DOR for the potential increase in revenue from the 1% administration 
fee and the cost for computer updates to DOR’s system for each political subdivision. Oversight 
notes in order for the updates to DOR’s computer system to reach the $250,000 threshold, 34 
($250,000/$7,327) political subdivisions would need to adopt a new sales tax rate. Those cost 
would also be offset by the 1% administration fee. Oversight does not have enough information 
at this time to determine the amount of revenue that would be generated from these political 
subdivisions if a new sales tax on emergency services is adopted. Therefore, until more 
information is available, Oversight will assume the unknown impact to GR will not meet the 
$250,000 threshold.
Oversight notes the provisions of this proposal would only impact the local political 
subdivisions’ (LPS) emergency services within Clay County and St. Louis County since the 
original exception language was repealed in this version of the bill. Oversight is unclear how 
many additional governing bodies of these counties would impose a sales tax. Therefore, 
Oversight will reflect a $0 (no sales tax adopted) or unknown revenue to these LPS for this 
proposal. 
Officials from the Kansas City Election Board state that depending on when the election is 
held, costs could range up to $800,000. The state would pay their pro-rata share based on 
registered voters. 
Oversight assumes the timing for an election to adopt a sales tax for emergency services would 
take place during a regular election cycle (April or November) to streamline any election costs 
that would be impacted. Therefore, Oversight will assume no direct fiscal impact from this 
proposal. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDPotential Revenue Gain - §67.547 & 
§67.582 - DOR 1% Collection Fee, if 
approved by voters - p. (3)
$0 or 
Unknown 
$0 or
 Unknown 
$0 or 
Unknown 
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Sunrise 
Beach, approved by voters - p. (6)$0 
$0 or up to 
$1,950 
$0 or up to 
$2,984
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Hannibal, if 
approved by voters - p. (7)$0 
$0 or up to 
$14,449
$0 or up to 
$22,108
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Sikeston, if 
approved by voters - p. (8)$0 
$0 or up to 
$14,358
$0 or up to 
$21,967
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Moberly, if 
approved by voters - p. (9)$0 
$0 or up to 
$10,921
$0 or up to 
$16,710
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Joplin, if 
approved by voters - p. (10)$0
$0 or up to 
$61,755
$0 or up to 
$94,485
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Nevada, if 
approved by voters - p. (11)
$0 or up to 
$7,596
$0 or up to 
$11,622
Potential Costs - §94.900 - DOR - 
System updates, sales/use map changes, 
and website updates, if approved by 
voters $0
$0 or up to 
($43,968)$0 
Cost – Property Tax Credit – Sections 
135.010, 135.025 & 135.030 
p. (28)
More or 
Less than 
($72,061,901)
More or 
Less than 
($77,895,120) 
More or 
Less than 
($84,243,356)
Costs - §143.121 - DOR - Income Tax 
Subtraction for Capital Gains - p. (49)($20,518)$0$0 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028Revenue Reduction - §143.121 - 
Individual Income Tax - Income Tax 
Subtraction for Capital Gains - p. (50)($151,171,356)*($106,442,914)($105,495,868)
Revenue Reduction - §143.121 - 
Corporate Income Tax - Income Tax 
Deduction for Capital Gains - pp. (51-
52)
Could exceed
($183,626,876)*
Could exceed
($126,639,225)
Could exceed
($126,639,225)
Revenue Reduction - §144.029 
Exemption on child diapers - p. (54)
Could Exceed 
($1,719,656)
Could Exceed 
($2,292,875)
Could Exceed 
($2,292,875)
Revenue Reduction - §144.029 
Exemption on adult diapers - p. (54)
Could Exceed 
($16,951,587)
Could Exceed 
($22,602,116)
Could Exceed 
($22,602,116)
Revenue Reduction - §144.029 
Exemption on adult incontinent 
products - p. (60)(Unknown)(Unknown)(Unknown)
Revenue Reduction - §144.029 
Exemption on feminine hygiene 
products - p. (55)
Could Exceed 
($2,211,906)
Could Exceed 
($2,949,208)
Could Exceed 
($2,949,208)
Revenue Reduction - §144.812 - Sales 
& Use Tax Exemption for Certain 
Broadband Equipment - p. (64)
Could exceed 
($2,073,994)
Could exceed 
($4,977,586)
Could exceed 
($4,977,586)
Potential Revenue Gain - §321.552 - 
DOR - potential collection of 1% 
administration fee on the adoption of a 
sales tax for emergency services, if 
approved by voters - p. (66)$0$0 or Unknown $0 or Unknown
Cost – DOR – updates to computer 
system per local political subdivision’s 
rate change $0
$0 or 
(Unknown)
$0 or 
(Unknown)
ESTIMATED NET EFFECT ON 
GENERAL REVENUE FUND
Could exceed
($429,837,794)
Could exceed 
($342,776,824 
Could exceed 
($347,663,571  L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 72 of 78
April 6, 2025
KLP:LR:OD
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028to 
($343,843,012)
to 
$349,200,234)
SCHOOL DISTRICT TRUST FUNDRevenue Reduction - §144.029 
Exemption on child diapers - p. (54)
Could Exceed 
(573,219)
Could Exceed 
($764,292)
Could Exceed 
($764,292)
Revenue Reduction - §144.029 
Exemption on adult diapers - p. (54)
Could Exceed 
($5,650,529)
Could Exceed 
($7,534,039)
Could Exceed 
($7,534,039)
Revenue Reduction - §144.029 
Exemption on adult incontinent 
products - p. (60)(Unknown)(Unknown)(Unknown)
Revenue Reduction - §144.029 
Exemption on feminine hygiene 
products  - p. (55)
Could Exceed 
($737,302)
Could Exceed 
($983,069)
Could Exceed 
($983,069)
Revenue Reduction - §144.812 - Sales 
& Use Tax Exemption for Certain 
Broadband Equipment - p. (64)
Could exceed 
($691,331)
Could exceed 
($1,659,195)
Could exceed 
($1,659,195)
ESTIMATED NET EFFECT ON 
SCHOOL DISTRICT TRUST FUND 
Could exceed 
($7,652,381)
Could exceed 
($10,940,595)
Could exceed 
($10,940,595)
PARKS AND SOILS STATE SALES 
TAX FUNDS
Revenue Reduction - §144.029 
Exemption on child diapers - p. (54)
Could Exceed 
($57,322)
Could Exceed 
($76,429)
Could Exceed 
($76,429)
Revenue Reduction - §144.029 
Exemption on adult diapers - p. (54)
Could Exceed 
($565,053)
Could Exceed 
($753,404)
Could Exceed 
($753,404)
Revenue Reduction - §144.029 
Exemption on adult incontinent 
products - p. (60)(Unknown)(Unknown)(Unknown) L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 73 of 78
April 6, 2025
KLP:LR:OD
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028Revenue Reduction - §144.029 
Exemption on feminine hygiene 
products  - p. (55)
Could Exceed 
($73,730)
Could Exceed 
($98,307)
Could Exceed 
($98,307)
Revenue Reduction - §144.812 - Sales 
& Use Tax Exemption for Certain 
Broadband Equipment - p. (64)
Could exceed 
($69,133)
Could exceed 
($165,920)
Could exceed 
($165,920)
ESTIMATED NET EFFECT ON 
PARKS AND SOILS STATE SALES 
TAX FUNDS 
Could Exceed 
($765,238)
Could Exceed 
($1,094,060)
Could Exceed 
($1,094,060)
CONSERVATION COMMISSION 
FUND 
Revenue Reduction - §144.029 
Exemption on child diapers - p. (54)
Could Exceed 
($70,219)
Could Exceed 
($93,626)
Could Exceed 
($93,626)
Revenue Reduction - §144.029 
Exemption on adult diapers - p. (54)
Could Exceed 
($706,316)
Could Exceed 
($941,755)
Could Exceed 
($941,755)
Revenue Reduction - §144.029 
Exemption on adult incontinent 
products - p. (60)(Unknown)(Unknown)(Unknown)
Revenue Reduction - §144.029 
Exemption on feminine hygiene 
products  - p. (55)
Could Exceed 
($92,163)
Could Exceed 
($122,884)
Could Exceed 
($122,884)
Revenue Reduction - §144.812 - Sales 
& Use Tax Exemption for Certain 
Broadband Equipment - p. (64)
Could exceed 
($86,416)
Could exceed 
($207,399)
Could exceed 
($207,399)
ESTIMATED NET EFFECT ON 
CONSERVATION COMMISSION 
FUND 
Could Exceed 
($955,114)
Could Exceed 
($1,365,664)
Could Exceed 
($1,365,664) L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 74 of 78
April 6, 2025
KLP:LR:OD
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL POLITCAL 
SUBDIVISIONS
Potential Revenue Gain - §67.547 - 
County Sales Tax Rate Limit Increase, 
if approved by voters - p. (3)
$0 or 
Unknown 
$0 or
 Unknown 
$0 or 
Unknown 
Potential Revenue Gain - §67.582 - 
Law Enforcement County Sales Tax 
Rate Limit Increase, if approved by 
voters - p. (4)
$0 or 
Unknown 
$0 or
 Unknown 
$0 or 
Unknown 
Revenue – §67.1367 - potential income 
from transient guest tax, if
voters - p. (5)
$0 or 
Unknown
$0 or
 Unknown
$0 or 
Unknown
Potential Revenue Gain - §67. 1367- 
Ste. Genevieve County - Potential 
income from transient guest tax, if 
approved by voters - p. (5)$0$0 or Unknown$0 or Unknown
Potential Revenue Gain - §67.1367 - 
Perry County - Potential income from 
transient guest tax, if approved by 
voters p. (5)$0$0 or Unknown$0 or Unknown
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Sunrise 
Beach, approved by voters - p. (6)$0 
$0 or up to 
$193,088
$0 or up to 
$295,424
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Hannibal, if 
approved by voters - p. (7)$0 
$0 or up to 
$1,430,489
$0 or up to 
$2,188,649
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Sikeston, if 
approved by voters - p. (8)$0 
$0 or up to 
$1,421,410
$0 or up to 
$2,174,757
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Moberly, if 
approved by voters - p. (9)$0 
$0 or up to 
$1,081,226
$0 or up to 
$1,654,277 L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
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April 6, 2025
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FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Joplin, if 
approved by voters - p. (10)$0 
$0 or up to 
$6,113,733
$0 or up to 
$9,354,011
Potential Revenue Gain - §94.900 - 
DOR 1% Collection Fee - Nevada, if 
approved by voters - p. (11)$0 
$0 or up to 
$752,017
$0 or up to 
$1,150,586
Revenue Reduction - §144.029 
Exemption on adult incontinent 
products - p. (62)(Unknown)(Unknown)(Unknown)
Revenue Loss - §144.029 Diaper & 
Feminine Hygiene Product Sales Tax 
Exemption* - p. (56)
Could Exceed 
($31,046,283)
Could Exceed 
($41,395,043)
Could Exceed 
($41,395,043)
Potential Revenue - §321.552 - 
Revenue on new sales taxes adopted for 
emergency services if approved by 
voters - p. (66)$0$0 or Unknown$0 or Unknown
ESTIMATED NET EFFECT ON 
LOCAL POLITCAL 
SUBDIVISIONS
More or Less 
than 
($31,046,283)
More or Less 
than 
($30,403,080)
More or Less 
than 
($24,577,399)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 76 of 78
April 6, 2025
KLP:LR:OD
FISCAL DESCRIPTION
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)
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 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)
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)
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) L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 77 of 78
April 6, 2025
KLP:LR:OD
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)
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)
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)
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)
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)
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)
This legislation is not federally mandated, would not duplicate any other program and would not 
require additional capital improvements or rental space. L.R. No. 1683S.04F 
Bill No. SS No.2 for HCS for HB Nos. 594 & 508  
Page 78 of 78
April 6, 2025
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SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Department of Natural Resources
Missouri Department of Conservation
City of Kansas City
Julie MorffJessica HarrisDirectorAssistant DirectorApril 6, 2025April 6, 2025