Bill > HB1538

This bill replaces local transient guest taxes with a statewide transient guest tax and lowers the state income tax by one-tenth of one percent. Specifically, the bill introduces a new section (144.951) that establishes a uniform 5% transient guest tax to be imposed on hotel and motel room charges statewide, effective January 1, 2027. The tax revenue will be distributed with one-fifth going to the state's general revenue fund and the remaining four-fifths split between county and municipal funds based on the location of the hotel or motel. Simultaneously, the bill modifies the state income tax rate schedule to reduce the top tax rate by one-tenth of one percent on January 1, 2027. This change consolidates the various existing local transient guest taxes into a single statewide tax and provides a modest income tax reduction. The bill also includes provisions for administering the new tax, creating dedicated funds for collected revenues, and ensuring the tax is collected and distributed by the state department of revenue.

Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB1538&year=2025&code=R