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SB 1656

SB 1656 - 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. This act 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 HB 2079 (2026), HB 2253 (2026), HB 2568 (2026), 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 SS/SCS/SB 1534 (2026), SCS/SBs 1017 & 1239 (2026), 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). JOSH NORBERG

2026 Regular Session Introduced by Stephen Webber

Missouri bill exempts food from state sales tax, eliminating revenue but reducing grocery costs for all residents, especially lower-income households.

Second Read and Referred S Economic and Workforce Development Committee
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Bill Summary · SB 1656

Legislative bill overview

SB 1656 would create a state sales tax exemption for food purchases in Missouri, removing the current sales tax applied to groceries and food items. This represents a significant change to Missouri's tax structure, as the state currently taxes most food purchases at the standard sales tax rate.

Why is this important

Food tax exemptions directly affect household budgets, particularly for lower-income families who spend a larger percentage of their income on groceries. Missouri's current food tax generates substantial state revenue, so removing it would require either budget cuts or alternative revenue sources, making this a consequential fiscal policy decision.

Potential points of contention

  • Revenue impact: Eliminating food sales tax would reduce state revenue by an estimated $500+ million annually, requiring lawmakers to identify compensating budget adjustments or tax increases elsewhere
  • Equity questions: While lower-income households benefit most from food tax elimination, some argue targeted assistance programs are more efficient than broad exemptions that also benefit wealthier households
  • Implementation complexity: Defining what qualifies as "food" (prepared vs. unprepared, beverages, supplements, etc.) creates administrative and enforcement challenges that could lead to disputes and inconsistency

Compiled from official sources — confirm details with the bill’s official record.

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