Governor Kehoe Signs Bold Tax Cuts and Pro-Business Legislation into Law

JULY 10, 2025

Jefferson City — During a bill signing ceremony at the Missouri State Capitol, today Governor Mike Kehoe signed two major pieces of legislation—House Bills (HB) 567 and 594—delivering on his commitment to lower taxes and defend small businesses.

"Conservative leadership is about keeping more money in the hands of Missouri families, and less in government coffers," said Governor Kehoe. "Today, we are protecting the people who make Missouri work—families, job creators, and small business owners—by cutting taxes, rolling back overreach, and eliminating costly mandates."

HB 567, sponsored by Representative Sherri Gallick and Senator Mike Bernskoetter, modifies provisions relating to employee compensation.

  • Maintains the state's minimum wage law at $15 per hour, repealing the annual Consumer Price Index adjustment, and extends the wage requirement to public employers as well as private.
  • Repeals onerous paid sick leave mandates on Missouri small businesses, including:
    • Requirements dictating when and how paid leave must be provided.
    • Burdensome record keeping and compliance obligations.

HB 594, sponsored by Representative Chad Perkins and Senator Curtis Trent, introduces or modifies provisions relating to taxation.

  • Authorizes an income tax deduction for all capital gains reported for federal tax purposes by individuals in tax years beginning on or after Jan. 1, 2025.
    • This tax cut will be extended to corporations once Missouri’s income tax rate falls to 4.5 percent or lower.
  • Makes several modifications to the Senior Citizens Property Tax (PTC) "Circuit Breaker" Program.
    • Increases the PTC for eligible taxpayers from $1,000 to $1,550 for homeowners and from $750 to $1,055 for renters, effective Jan. 1, 2026, with annual CPI adjustments moving forward.
  • Exempts diapers, incontinence products, and feminine hygiene products from state and local sales and use taxes.

Governor Kehoe also signed six additional pro-growth bills aimed at securing a brighter future for Missouri, including:

  • HB 516, sponsored by Representative Mark Matthiesen and Senator Nick Schroer, modifies criteria of radioactive waste investigations and allows for increased appropriations to the the radioactive waste investigations fund.
  • HB 754, sponsored by Representative Philip Oehlerking and Senator Sandy Crawford, modifies standards for certain financial organizations.
  • SB 2, sponsored by Senator Sandy Crawford and Representative Peggy McGaugh, modifies provisions relating to financial statements of certain local governments.
  • SB 3, sponsored by Senator Sandy Crawford and Representative Dave Hinman, modifies or enacts provisions relating to Department of Revenue fee offices.
  • SB 98, sponsored by Senator Sandy Crawford and Representative Bill Owen, modifies various provisions relating to financial institutions.
  • SB 221, sponsored by Senator Nick Schroer and Representative Ben Keathley, modifies the standard of review for agency interpretation of statutes, rules, regulations, and subregulatory document.

For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe's Flickr page. Additional bill signings will continue to take place over the next several days. For more information on the bill signings, view Governor Kehoe's schedule.

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