"The Voice of Missouri Business®" Weekly Report- April 6, 2026

By Matthew Smith and Ray McCarty

April 6, 2026 - Here is a recap highlighting some of our efforts on the highest profile issues on behalf of Missouri employers last week.

Governor Kehoe's tax shift/reform (AIM currently opposes, negotiations appear unlikely to provide protections for Missouri businesses)

Topping our agenda for the remainder of the legislative session is revising or opposing Governor Kehoe's tax reform proposal.

The bill asks voters for permission to increase sales and use tax rates and expand the taxes to services for the purpose of eliminating the individual income tax. If approved by voters, the legislature would be given complete authority to increase and expand sales and use taxes as much as needed to offset the $7.75 billion reduction in state revenues that would be caused by the elimination of the individual income tax without requiring any additional voter approval, provided such tax increases are enacted within three years of the effective date of the proposal.

The bill, HCS HJR 173 & 174, sponsored by Speaker of the House Jon Patterson and Rep. Bishop Davidson, was heard in the Senate Economic and Workforce Development Committee last week. Sen. Ben Brown is the Chairman of that committee. The bill is scheduled for a potential vote tomorrow, Tuesday, April 7, 2026. Associated Industries of Missouri (AIM) was the only statewide general business advocacy association to oppose the bill in the hearing. Read more in detailed article HERE.

Associated Industries of Missouri is currently the only business advocacy organization taking a stand against the bill, but we remain open to negotiating in good faith, as we have since the beginning of the session, in hopes of arriving at a compromise that protects Missouri businesses.

Legal reform (AIM supports)

We told you in previous reports about legislation that protects businesses from frivolous lawsuits in which trial attorneys claim business websites violate the Americans with Disabilities Act (ADA). Of course, this is just another way for these trial attorneys to target businesses for the sole purpose of gaining monetarily from the situation. SCS SBs 907, 1154 & 1272 (Sen. Hudson) received bipartisan support and was passed unanimously by the Missouri Senate. Last week, the bill was heard in the House Commerce Committee and a vote is expected soon. HB 1694 (Rep. Christensen), the House companion bill, remains under the jurisdiction of the Senate General Laws Committee.

Funding the Department of Natural Resources (AIM supports)

SB 953 (Sen. Bean) provides a steady stream of funds to the Air Pollution Control Program by allocating a portion of currently collected sales and use taxes from utility companies to a special dedicated fund that may be used solely to provide funding for the Air Pollution Control Program. The bill also prevents the "sweeping" of such funds into general revenue - a practice that defeats the purpose of having a dedicated fund. The Air Pollution Control Program is essential for providing permits for projects that industries perform in Missouri. If funding for the program is inadequate, permits would be slowed, preventing important projects from being completed. This also would prevent encroachment from the EPA because if the program is not adequately funded, the EPA could take over enforcement. This bill was heard in the House Conservation and Natural Resources Committee on March 30. A vote is expected in the near future.

Attempt to authorize illegal gambling machines (AIM opposes)

HB 2989 (Rep. Hardwick), which attempts to legalize Video Lottery Terminals (VLTs), was heard in the Senate Select Committee on Gaming. Operators of the illegal gambling devices now in many convenience stores and truck stops across Missouri are illegally and unfairly competing against legitimate, legal operators of amusement devices. Article III, Sec. 39 of the Missouri constitution prohibits the General Assembly from authorizing gambling in Missouri, except for a few exceptions (state lottery, casinos, horse racing etc.) There are no exceptions for VLTs, meaning the language in the bill authorizing VLTs is unconstitutional.

Enforcement of current law is lacking because the companies that produce these machines have a vast amount of resources to stall smaller county governments in court, putting the issue in limbo. Attorney General Catherine Hanaway has been enforcing the law in several areas across the state and some local prosecutors are doing the same.

The bill would allow VLTs to operate legally with no oversight. In our testimony, AIM pointed out outlawing the existing gambling devices and legalizing VLTs is not an option. Supporting this bill would be rewarding bad behavior and essentially telling criminals if they continue their illegal behavior long enough, the legislature will authorize their activity. Of course, this is unacceptable and the only solution to this issue is to support Attorney General Hanaway and our law enforcement officials in their attempts to remove these machines from Missouri. AIM would support clarifying the current machines are illegal, but not authorizing new gambling machines to take their place.

The next step for this bill is for a vote before committee. We hope the bill never advances from the committee.

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.