"The Voice of Missouri Business®" Weekly Report- April 24, 2026

By Matthew Smith and Ray McCarty

April 24, 2026 - Here is a recap highlighting some of our efforts on the highest profile issues on behalf of Missouri employers this week. There are three weeks remaining in the 2026 Legislative Session.

Tax shifting proposal (TAFP)

SS SCS HCS HJR 173 & 174 (Rep. Davidson and Speaker Patterson), Governor Kehoe’s proposal to shift funding for state government from individual income tax to sales and use taxes, received a final vote and will now be on the ballot for voter approval in November 2026 unless moved to the August election by Governor Kehoe.

Associated Industries of Missouri, the Voice of Missouri Business®, appreciates the leadership of the Missouri legislature and Governor Kehoe and their continued commitment to making Missouri the best place in the nation to do business. While we remain concerned that the recently passed income tax elimination proposal does not yet include adequate safeguards to prevent unintended financial impacts on Missouri employers and job creators, we value the collaborative approach reflected throughout the process. Should this measure be approved by Missouri voters, Associated Industries stands ready to work openly and constructively with state leaders and stakeholders to help ensure its implementation supports economic growth, protects employers, and strengthens Missouri’s long‑term competitiveness.

Associated Industries of Missouri was the only statewide business advocacy organization that worked to make the proposal better for Missouri businesses throughout its passage through the General Assembly.

Protecting businesses from frivolous lawsuits (AIM supports)

We are happy to announce SB 907 (Sen. Hudson) has been Truly Agreed to and Finally Passed by the legislature and sent to the Governor’s desk where we expect approval. This bill prevents frivolous litigation in Missouri that claims businesses that do not have specific software for blind individuals are out of compliance with the Americans with Disabilities Act (ADA.) This is of course not true, as the ADA says nothing about requirements for websites for the blind.

Regardless, this has become an issue in Missouri because a few clever attorneys have taken advantage of this idea, extracting thousands of dollars from many businesses in Missouri. The legislature agreed that this was unacceptable and passed this language through both chambers. We would like to thank Senator Brad Hudson, Representative Mazzie Christiansen, and Representative Brian Sietz for their leadership on this issue.

Brain cancer treatment devices and other durable medical equipment exemption (AIM supports)

The Senate Economic and Workforce Development Committee this week heard HB 1883 (Rep. Van Schoiack). While the main bill eliminates sales tax from auctions, the bill was amended in the House Ways and Means Committee to include our language that clarifies the sales tax exemption for durable medical equipment, including brain cancer treatment devices. The exemption has been consistently denied by the Department of Revenue under three governors over a misreading of the statute and a misunderstanding of the definition of "durable medical equipment" as it existed in 1980. In fact, the definition has not changed since 1980 and would then include, and now includes, brain cancer treatment devices. This bill clarifies the exemption by removing all doubt this exemption should be allowed. The bill needs committee approval and then full Senate debate in the final weeks of this legislative session.

Child Care Tax Credits Heard in Committee (AIM Supports)

HB 2409 (Rep. Shields) was heard in the Senate Emerging Issues Committee this week, which provides tax credits for childcare. This includes a tax credit for parents and employers providing contributions for childcare. Childcare has become a large burden on Missouri families who have children and want to return to the workforce. We support these incentives that can make it financially possible for a mother or a father to return to the workforce to provide for their families. This will help ensure Missouri workers have the flexibility to return to work and help our state grow.  

We expect the bill to be voted out of the committee next week. After this, it will be placed on the Senate calendar to be debated by the full Senate.

We intend to provide legislative updates to you on a weekly basis as we track the progress of these and other bills affecting Missouri businesses.