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SB 1551

SB 1551 - This act authorizes any third class city with a city manager form of government to impose a transient guest tax at a rate not to exceed 5%. If the city elects to collect the tax rather than enter into an agreement for the Department of Revenue to collect the tax, then the city shall only use such tax revenues for the promotion of tourism. After the payment of initial bonds, the governing body of the city may submit the question of repealing the transient guest tax to the voters. This act is identical to HB 2595 (2026) and to a provision in SCS/HCS/HB 1790 (2026) and HCS/HB 2431 (2026). JOSH NORBERG

2026 Regular Session Introduced by Rusty Black

SB 1551 authorizes select third-class Missouri cities to levy taxes on short-term lodging guests, creating new municipal revenue from tourism.

Voted Do Pass S Local Government, Elections and Pensions Committee
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Bill Summary · SB 1551

Legislative bill overview

SB 1551 grants specific third-class cities in Missouri the authority to impose a tax on transient guests (short-term lodging visitors). The bill appears to be enabling legislation that allows municipalities to create a new revenue source without requiring state permission for each individual city.

Why is this important

Transient guest taxes are a common municipal revenue tool used to fund tourism infrastructure, convention centers, and local services without burdening permanent residents. This bill could allow economically disadvantaged third-class cities to generate revenue from tourism activity, though it may increase lodging costs for visitors and create administrative compliance burdens for hotels and short-term rental operators.

Potential points of contention

  • Which cities qualify: The bill's restriction to "certain" third-class cities raises questions about selection criteria—whether this is based on population size, economic conditions, or other factors that could create competitive disparities between similar municipalities
  • Tax rate and cap: Without seeing the bill text, it's unclear whether there are limits on the tax rate cities can impose, which could affect hotel competitiveness and tourism patterns
  • Short-term rental coverage: The scope of what qualifies as "transient guest" lodging (Airbnb, vacation rentals, hotels, bed-and-breakfasts) will determine how broadly the tax applies and which property owners must collect it

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

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