Cathy Jo Loy Capitol Report: Advancing fiscal policy and investing in Missouri’s Future

We are now in Week 9 of session, and the Missouri House continues making progress on budget, property taxes, education, public safety, and support for veterans.

Some highlights from this week include:

Here I am pictured with Rebecca Maynar from Joplin, Mo. Photo provided

This week, I had the pleasure of meeting Rebecca. Like hundreds of Missourians, she receives support from Easterseals Midwest, an organization that ensures access to essential services for individuals with disabilities in every county across Missouri. The organization connects individuals with community-based providers and is working to increase funding to expand support for autism services.

The Missouri legislature is starting an important conversation about the future of our state’s tax system. Through HJR 173, lawmakers are asking the people of Missouri if they want the state to begin the process of eliminating the income tax. The proposal would first go to voters. If approved, the legislature would have several years to create a responsible plan to phase out the individual income tax while protecting schools and essential services.

Here I am pictured on the House Floor with Rep. Travis Wilson and Rep. Phillip Oehlerking. Photo provided

Voters would be asked whether the Missouri Constitution should be amended to:

  • Gradually phase out the individual income tax based on revenue growth
  • Reduce personal property taxes and other local tax rates
  • Modernize the sales and use tax to help replace the income tax
  • Protect funding for public schools

This proposal lets Missourians decide if this is the direction they want the state to take.

Economists like Arthur Laffer and Thomas Sowell have argued that high income taxes can discourage investment, job creation, and entrepreneurship. Several states that do not rely on income taxes, such as Texas, Florida, and Tennessee, have seen strong population growth as families and businesses move to these places.

Missouri is beginning to see the benefits of pro-growth tax policy. After eliminating the state’s capital gains tax on certain investments, more investors and businesses are showing interest in expanding here. When investment grows, jobs, wages, and opportunities grow too. Other states are now considering similar tax changes, which makes it important for Missouri to stay competitive.

This House Joint Resolution simply asks Missouri voters if they want the legislature to begin building a responsible path toward eliminating the income tax, this decision about Missouri’s tax future should start with the people.

Additionally, some of the legislation considered this week includes:

  • Property Tax Reform (HCS HBs 2780 & 2668) The bill would improve transparency and accountability in property taxes. The bill requires clearer ballot language showing the dollar impact of proposed property tax increases, requires physical inspections before assessments increase by more than 15%, and strengthens protections for seniors receiving homestead property tax credits.
  • School Accountability Report Cards (HCS HB 2710) This bill creates a new statewide school accountability system that would provide annual report cards for public schools and districts. Schools would receive a score on a 0–100 scale and a corresponding A–F letter grade based on academic performance, growth, and other measures to give parents clearer information about school performance.
  • Missouri National Guard and Veteran Support (HB 2593) This bill expands support for members of the Missouri National Guard and veterans. It extends certain federal protections to Guard members called to state duty, creates new service recognitions, authorizes cybersecurity operations to assist state and local governments, and establishes programs to support military families.
  • Unmanned Aircraft Safety (HCS HB 2587) This legislation updates Missouri law related to drones. It allows law enforcement officers to take action when a drone poses an immediate threat to public safety or is used in criminal activity and expands restrictions on flying drones over critical infrastructure.
  • Agricultural Education Expansion (HCS HBs 2097 & 1905) This bill allows agricultural education programs to expand to elementary schools statewide beginning in the 2027–2028 school year. Schools could choose whether to participate, helping introduce students to agriculture and related career opportunities.
  • Water and Sewer Billing Transparency (HCS HB 2105) This bill clarifies how landlords may bill tenants for water and sewer services. Charges must be based on meter readings or a disclosed formula, and fees must be clearly communicated before a lease is signed.
  • Real Estate Escrow Account Flexibility (HB 2473) This bill updates escrow account rules for real estate brokers. While brokers may still deposit up to $1,000 of personal funds to cover service charges, the bill clarifies that brokers may retain interest earned on the account if it is withdrawn within 30 days.
  • Modernizing CPA Licensing (HCS HB 1797) This legislation updates education and experience requirements for certified public accountants. The bill allows multiple degree pathways, streamlines licensing for accountants from other states, and clarifies peer review and fee structures while maintaining professional oversight.
  • Firearms Safety Instructor Certification (HB 2928) This bill recognizes instructors certified by the United States Concealed Carry Association as qualified firearms safety instructors in Missouri.
  • School Property Sales Transparency (HCS HBs 2404 & 2172) This legislation requires unused public school buildings to first be offered to other public entities before being sold or leased.

It’s an honor to serve.

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