Missouri SB 1017: SCS/SBs 1017 & 1239 - Current law taxes retail sales of food, as defined in current law, at a rate of one percent. This act provides that retail sales of food shall be exempt from state sales taxes. (Section 144.014) This provision is identical to SB 688 (2025), SB 734 (2025), and SCS/SB 161 (2023), and to a provision in SB 57 (2025) and SCS/HCS/HB 154 (2023), and is substantially similar to SB 659 (2025), HB 345 (2025), HB 432 (2025), HB 872 (2025), HB 1587 (2025), HB 1418 (2024), HB 1464 (2024), HB 2174 (2024), HB 260 (2023), HB 452 (2023), HB 591 (2023), HB 896 (2023), HCS#2/HB 1992 (2022), HB 1817 (2022), and HB 2530 (2022), and to a provision in HB 1029 (2025), HB 2815 (2024), HB 2887 (2024), HB 377 (2023), HCS/HBs 876, 771, 676 & 551 (2023), HB 1136 (2023), HB 1779 (2022), and HB 2249 (2022). The act also provides that, of the 4% state sales tax rate, the revenue derived from a rate of 0.2% shall be deposited in the School District Trust Fund. (Section 144.020) JOSH NORBERG

Bill Text

4583S.04C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILLS NOS. 1017 & 1239
AN ACT
To repeal sections 144.014 and 144.020, RSMo, and to
enact in lieu thereof two new sections relating to
sales taxes.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 144.014 and 144.020, RSMo, are
repealed and two new sections enacted in lieu thereof, to be
known as sections 144.014 and 144.020, to read as follows:
144.014. 1. Notwithstanding other provisions of law
to the contrary, [beginning October 1, 1997, the tax levied
and imposed under this chapter on] all retail sales of food
shall be [at the rate of one percent. The revenue derived
from the one percent rate pursuant to this section shall be
deposited by the state treasurer in the school district
trust fund and shall be distributed as provided in section
144.701] exempted from the provisions of and from the
computation of the tax levied, assessed, or payable pursuant
to this chapter. The provisions of this subsection are
intended to exempt the sale of food from the state sales tax
imposed pursuant to this chapter, and the department of
revenue shall not construe the provisions of this subsection
as an exemption from the local sales tax law, as defined in
section 32.085. As required in sections 43(a) and 47(a) of
article IV of the Missouri constitution, the sales tax
imposed pursuant to such sections shall be imposed upon the
sales and services that are taxable pursuant to this
chapter, which shall not include the retail sale of food as
exempted in this section.

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2. For the purposes of this section, the term "food"
shall include only those products and types of food for
which food stamps may be redeemed pursuant to the provisions
of the Federal Food Stamp Program as contained in 7 U.S.C.
Section 2012, as that section now reads or as it may be
amended hereafter, and shall include food dispensed by or
through vending machines. For the purpose of this section,
except for vending machine sales, the term "food" shall not
include food or drink sold by any establishment where the
gross receipts derived from the sale of food prepared by
such establishment for immediate consumption on or off the
premises of the establishment constitutes more than eighty
percent of the total gross receipts of that establishment,
regardless of whether such prepared food is consumed on the
premises of that establishment, including, but not limited
to, sales of food by any restaurant, fast food restaurant,
delicatessen, eating house, or café.
144.020. 1. A tax is hereby levied and imposed for
the privilege of titling new and used motor vehicles,
trailers, boats, and outboard motors purchased or acquired
for use on the highways or waters of this state which are
required to be titled under the laws of the state of
Missouri and, except as provided in subdivision (9) of this
subsection, upon all sellers for the privilege of engaging
in the business of selling tangible personal property or
rendering taxable service at retail in this state. The rate
of tax shall be as follows:
(1) Upon every retail sale in this state of tangible
personal property, excluding motor vehicles, trailers,
motorcycles, mopeds, motortricycles, boats and outboard
motors required to be titled under the laws of the state of
Missouri and subject to tax under subdivision (9) of this
subsection, a tax equivalent to four percent of the purchase

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price paid or charged, or in case such sale involves the
exchange of property, a tax equivalent to four percent of
the consideration paid or charged, including the fair market
value of the property exchanged at the time and place of the
exchange, except as otherwise provided in section 144.025;
(2) A tax equivalent to four percent of the amount
paid for admission and seating accommodations, or fees paid
to, or in any place of amusement, entertainment or
recreation, games and athletic events, except amounts paid
for any instructional class;
(3) A tax equivalent to four percent of the basic rate
paid or charged on all sales of electricity or electrical
current, water and gas, natural or artificial, to domestic,
commercial or industrial consumers;
(4) (a) A tax equivalent to four percent on the basic
rate paid or charged on all sales of local and long distance
telecommunications service to telecommunications subscribers
and to others through equipment of telecommunications
subscribers for the transmission of messages and
conversations and upon the sale, rental or leasing of all
equipment or services pertaining or incidental thereto;
except that, the payment made by telecommunications
subscribers or others, pursuant to section 144.060, and any
amounts paid for access to the internet or interactive
computer services shall not be considered as amounts paid
for telecommunications services;
(b) If local and long distance telecommunications
services subject to tax under this subdivision are
aggregated with and not separately stated from charges for
telec