Rep. Brian H. Seitz Capitol Report

Income tax elimination takes center stage

Income tax reform is emerging as a central fiscal issue this session following the governor’s proposal to phase out Missouri’s individual income tax. Two House joint resolutions were heard this week would place constitutional amendments before voters to authorize a gradual reduction and eventual elimination of the individual income tax beginning in 2031, contingent on revenue growth triggers.

Both House Joint Resolution 173 and House Joint Resolution 174 would end the state individual income tax if the top rate is reduced below 1.4 percent and authorize the expansion of state and local sales and use taxes to offset lost revenue. The proposals also require adjustments to constitutionally imposed sales tax rates beginning in 2029, with reduced rates calculated by the state auditor and taking effect in 2029.

Seitz (FILE)

Eliminating the individual income tax should improve the state’s competitiveness and align Missouri with neighboring states that rely more heavily on consumption-based taxes. The debate is occurring amid tighter budget projections and smaller anticipated surpluses than in recent years. Lawmakers are expected to continue evaluating revenue triggers, fiscal safeguards, and the structure of any expanded sales tax authority as the proposals advance through the legislature. I will continue to advocate for lower taxes, while maintaining the structures that provide for necessary services including infrastructure, police, fire and maintaining our standards of life, especially in southwest Missouri. Taking this Constitutional change to the voters is paramount, as ‘we the people’ should be able to help decide these important issues.

Employment of unauthorized aliens

The House Commerce Committee heard HB 2366 and HB 2511 this week, both addressing the employment of unauthorized aliens. These bills would make general contractors or subcontractors liable if they know or should have known that a subcontractor employed an unauthorized worker. The measures also expand the Attorney General’s authority to investigate alleged violations, including powers under the Merchandising Practices Act, and allow the AG to bring actions seeking injunctions and monetary penalties equal to twice the wages paid to unauthorized employees. Courts would be required to enter judgments in favor of the state when violations are proven, and the AG may negotiate consent judgments with employers. These bills aim to strengthen enforcement and accountability for the employment of unauthorized workers on public and private projects.

Video lottery terminals

I have voted no on issues dealing with the proliferation of gaming in the past, but now is the time for regulation, especially to protect our youth. The House Emerging Issues Committee heard HB 2989 this week, establishing a statewide framework for video lottery terminals (VLTs). The bill creates the “Missouri Video Lottery Regulatory Act” and an “Illegal Gaming Enforcement Fund,” funded by fees on VLTs to support investigations and prosecutions of illegal gaming. HB 2989 directs the Lottery Commission to license and regulate VLT manufacturers, operators and retailers, implement a centralized system for terminals, and set rules on wagers, payouts and responsible gaming measures. Revenue from VLTs would support education programs and local governments, and municipalities and counties may adopt ordinances regulating VLT placement. The legislation also updates criminal provisions relating to gambling and establishes the Missouri Gaming Bureau within the Department of Public Safety to oversee enforcement.

Firearms and self-defense

The House General Laws Committee heard HB 2176 a wide-ranging public safety proposal that would prohibit the enforcement of “red flag” gun seizure laws in Missouri and significantly expand state firearms preemption. The bill would bar state and local agencies from enforcing or assisting with the enforcement of red flag laws and prohibit the use of federal funds for that purpose, while creating civil penalties and private causes of action for violations. It also repeals local authority to regulate open carry and allows individuals to sue political subdivisions that enact firearm regulations, with damages and attorney’s fees available. In addition, HB 2176 revises Missouri’s self-defense statutes by establishing a presumption that the use or threatened use of force was reasonable and by limiting both criminal prosecution and civil liability in most cases. The proposal repeals provisions allowing separate civil actions even when force is found legally justified and raises the burden to overcome claims of self-defense immunity. The bill further lowers the minimum age for concealed carry permits and endorsements from 19 to 18 and updates related revocation procedures.

No-Call List and Caller ID Anti-Spoofing Legislation

The House Commerce Committee heard several bills this week aimed at strengthening Missouri’s No-Call List and addressing caller ID spoofing. HB 2147, HB 2472, HB 2546, and HB 2658 would expand the No-Call List to include business subscribers and remove the requirement for individuals to renew objections to receiving solicitations. Three of the bills also establish a “Caller ID Anti-Spoofing Act,” requiring telecommunications providers to implement STIR/SHAKEN or equivalent protocols to verify caller identification and imposing escalating fines for noncompliance. Under these proposals, callers using false information with intent to deceive, defraud or mislead recipients would be subject to civil penalties, allowing call recipients to seek punitive damages up to $5,000 per call, including through class-action suits. The Attorney General would have authority to investigate violations, initiate enforcement actions and intervene in related lawsuits. One bill also eliminates certain exemptions for telemarketers responding to referrals or licensed professionals attempting to schedule appointments. Collectively, these bills aim to reduce unwanted and fraudulent telemarketing while providing recipients and the state with stronger legal remedies.

Elementary student literacy

The House Elementary and Secondary Education Committee heard HB 2872 this week, focusing on literacy for elementary students. The bill requires educator preparation programs to use high-quality, evidence-based reading curricula and prohibits instruction in the three-cueing system. It repeals the literacy advisory council and sets new reporting requirements for DESE to annually review and publicly report on compliance of teacher preparation programs. The measure establishes the “Missouri Universal Reading Screener,” administered three times per year in grades one through three to identify reading deficiencies, and mandates parental notification and intervention plans for students with substantial reading deficiencies. Schools must provide intensive reading instruction that excludes the three-cueing system, and state aid is tied to improvements in student literacy outcomes, including funding for tutoring programs during the school day and performance-based payments for students who advance to proficient reading levels.

Could Missouri scale back vehicle safety inspections?

Last week, the House Government Efficiency Committee voted “do pass” on several bills that would significantly reduce or eliminate Missouri’s mandatory motor vehicle safety inspection requirements. Taken together, the proposals would narrow the scope of inspections, expand exemptions based on vehicle age or mileage, and eliminate inspections entirely for most noncommercial vehicles beginning in 2027.

Several bills would repeal the safety inspection requirement for noncommercial vehicles, while retaining inspections for certain categories such as commercial vehicles and prior salvage vehicles. Other measures would adjust existing exemptions by tying inspection requirements to specific model years or mileage thresholds, effectively exempting newer vehicles with fewer than 150,000 miles. Additional proposals would create new exemptions for limited-use farm vehicles and modify odometer reporting requirements. One bill would also authorize multi-year vehicle registrations for newer vehicles and repeal the current odd-even year renewal system.

Need to contact my office?

Please call my office at 573-751-1309 if we can ever be of assistance to you or stop by our office in Jefferson City in room 118. I or my legislator assistant are happy to help.

Brian H. Seitz

State Representative of the 156th District

201 W. Capitol Ave., Room 118, Jefferson City, MO 65101

Phone 573-751-1309