Missouri Republicans are considering legislation that would exempt profits from the sale of assets like stocks, bonds, and real estate from state income taxes, starting in 2025 [4]. This proposal is part of a larger effort to potentially eliminate the state income tax [4].
If enacted, Missouri would be the only state with an income tax to fully exclude capital gains from taxation [3]. Proponents, including Republican Speaker Pro Tem Chad Perkins, argue the change would attract businesses and families to Missouri and energize the state's economy [4]. According to Perkins, the bill aims to create a fairer tax system that supports growth [4].
The Missouri House of Representatives approved the bill in February 2025, and the Senate is now considering it [4]. The bill's fiscal note estimates it will reduce state revenue by almost $430 million in the fiscal year starting July 1, 2025, and about $350 million annually thereafter [7]. However, some analysts estimate the revenue reduction could be significantly higher [7, 8].
Sources: Spectrum News, Missouri House of Representatives, Tax Foundation, KBIA, Missouri Independent, ITEP.