"The Voice of Missouri Business®" Weekly Report- May 1, 2026
- Ray McCarty
- May 1
- 4 min read
By Matthew Smith and Ray McCarty
May 1, 2026 - Here is a recap highlighting some of our efforts on the highest profile issues on behalf of Missouri employers this week. There are two weeks remaining in the 2026 Legislative Session (not that we're counting).
Manufacturing Exemption is at risk (AIM opposes)
Last year, AIM successfully defeated an attempt by a few local government officials and their State Representative to eliminate the local sales and use tax exemption for manufacturing inputs under section 144.054. HB 2243 (Rep. Wolfin), an identical bill, will be heard Tuesday, May 5, in the House Rules - Legislative Committee.
There are good reasons to oppose HB 2243:
First and foremost, this bill would instantly increase taxes on companies that manufacture, mine, produce or compound products or taxable services by $35 million per year, according to the fiscal note; and,
Second, we enacted the local sales and use tax exemption to make Missouri's tax system simpler in compliance with the Wayfair v. South Dakota decision of the U.S. Supreme Court. That case allowed state and local governments to enforce collection and remittance of Missouri's state and local sales and use taxes on internet sales by out-of-state retailers that have no physical locations in Missouri. If Missouri's ability to collect such taxes is challenged by any out-of-state retailer and the tax system is found to be unconstitutional, Missouri cities and counties stand to lose $540 million in local use taxes per year ($369 million loss for cities and $171 million loss for counties, according to the Missouri Department of Revenue Annual Report FY 25). The state would also lose a significant amount of tax revenue in that scenario.
If you would like to watch the hearing, you may tune in at this link on Tuesday, May 5, at 8:45 a.m. and watch the hearing: CLICK HERE
Also, you are welcome to file written testimony against the bill. You simply enter your contact details and check the box that you are against the bill here:
AIM will aggressively oppose this bill and we will report back to you on the results.
Protecting Missouri enforcement of environmental laws (AIM supports)
This week, we testified in support of SB 1033 (Sen. Bean) , which includes the language found in SB 953 (Sen. Bean). These bills provide 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 bills also prevent 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 Missouri industries.
If the program is not adequately funded, permits would be slowed, preventing important projects from being completed. The bills would prevent encroachment from the EPA. If the state does not fund the program, the federal government would likely resume responsibility for enforcement of air pollution programs in Missouri. The next step for SB 1033 is to be voted out of the House Agriculture committee. SB 953 is scheduled for hearing in the Administrative Rules committee, where we hope it will be approved and put on the House calendar for debate.
Tax credit update for motion media industries (AIM supports)
We also testified in support of HB 2142 (Rep. Wellenkamp) in the Senate Economic and Workforce Development Committee. This bill would strengthen an existing tax credit for motion media companies, an industry that is in the early phases of development in Missouri.
Currently, Missouri allows a tax credit for those who film productions in Missouri up to $8 million for movies and $8 million for television productions. This bill would combine these two tax credits into one bucket, so film or television productions may utilize a shared total of $16 million. This would not increase the tax credit but would allow flexibility in the administration of the credits. For example, the state may need $12 million to incentivize movie productions and only $4 million for television productions. Currently, the $8 million cap for movie productions would be insufficient, but this bill would allow the $12 million to be awarded for the movie production and reduce the amount available for television productions.
Combining these two program limits will bring additional productions to Missouri and support the growing film industry in Missouri. The next step for these bills is to be voted out of the Senate committee, where it will be placed on the Senate calendar for debate.
Providing sovereign immunity for essential projects (AIM supports)
SB 916 (Sen. Burger) was approved by the Senate this week. This bill would provide sovereign immunity to contractors who are working within the scope of a government contract with the Missouri Department of Transportation. This bill is essential to Missouri, as it would prevent lawsuits from delaying important projects that all Missourians depend on.
The bill will likely be referred and heard by a House committee in the very near future.
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.
