Exempts the retail sale of food from state sales and use tax, subject to a 3 year sunset provision
Summary
HB1587 repeals and replaces Missouri’s existing food sales tax provision to phase out the state sales and use tax on retail food sales. Under the bill, the current 1% state tax on retail food sales would continue through December 31, 2025, with revenue still directed to the school district trust fund. Beginning January 1, 2026, the bill would eliminate state sales and use tax on retail food entirely, while preserving the ability of local governments to continue imposing local sales or use taxes where otherwise authorized by law.
The bill defines “food” by reference to items eligible under the federal Supplemental Nutrition Assistance Program, and it specifically includes food sold through vending machines. It excludes most prepared food sold by establishments such as restaurants, fast food restaurants, delicatessens, eating houses, and cafés when prepared-food receipts make up more than 80% of the business’s gross receipts. The exemption is also subject to Missouri’s sunset law, meaning it would automatically expire unless reauthorized, with a shorter initial sunset period and a longer sunset if renewed.
Impact
HB1587 would significantly change Missouri’s tax code by removing the state-level sales and use tax from qualifying retail food purchases after the transition period, while leaving local food-related sales taxes intact unless otherwise prohibited by existing law. It would amend section 144.014, RSMo, and affect the flow of revenue currently deposited into the school district trust fund from the 1% food tax. The bill would primarily affect consumers purchasing groceries, retailers selling eligible food items, and state revenue dedicated to school funding.
Sentiment
Based on the bill caption and the absence of recorded committee debate or votes in the provided materials, the bill appears to be framed positively as a tax relief measure for food purchases. The overall sentiment is likely favorable among supporters of reducing the tax burden on groceries, while the structure of the bill suggests an effort to balance that goal with revenue and school-funding considerations through a delayed implementation and sunset provisions. No formal vote history or transcript evidence is available here to show organized opposition or support.
Contention
The main points of contention would likely center on lost state revenue, especially because the current food tax revenue is deposited into the school district trust fund, and on whether removing the tax could affect education funding. Another likely issue is the bill’s scope: it exempts qualifying grocery-type food but excludes most prepared restaurant food, which may raise questions about fairness, classification, and administrative enforcement. Local governments may also be concerned that the bill preserves local sales and use taxes on food, limiting the relief to the state portion only.