Bill > HB521

This bill proposes to increase the cigarette tax in Missouri by adding a new five mills (0.5 cents) per cigarette tax effective January 1, 2027, which would be subject to voter approval in the November 2026 election. If approved, the additional tax revenue would be distributed as follows: 23.5% to the fair share fund (which supports school districts), 23.5% to the health initiatives fund, and 53% to the state school moneys fund. Currently, the cigarette tax is 8.5 mills per cigarette, which would remain in place, meaning the total tax would become 13.5 mills per cigarette after the proposed increase. The bill requires that cigarette tax stamps be purchased from the state director and affixed to each cigarette package, with the intent that the tax cost will be absorbed by the consumer. The tax increase is designed to generate additional funding for public education and health care initiatives, and it will only take effect if a majority of voters approve it in the 2026 election.

https://house.mo.gov/Bill.aspx?bill=HB521&year=2025&code=R