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HB 3475

Authorizes Vernon County to collect a 1% sales tax for hospital services upon a favorable vote by the people

2026 Regular Session Introduced by Dane Diehl

Vernon County may levy a 1% countywide sales tax, but only if residents vote to approve it, with the revenue dedicated to hospital services.

Referred: Emerging Issues(H)
#counties #hospitals #taxationandrevenue-salesanduse
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Bill Summary · HB 3475

Bill overview

HB 3475 (2026) from Missouri authorizes Vernon County to levy a 1% sales tax dedicated to hospital services, contingent on a favorable vote by the residents of the county. The bill has been referred to the Emerging Issues committee, with co-sponsor Dane Diehl.

Purpose and intent

  • Enable Vernon County to fund hospital services through a dedicated sales tax.
  • The tax rate proposed is 1% (one cent on each dollar of taxable sale).
  • The imposition of the tax requires approval by the voters in Vernon County, indicating a local-option process rather than a state-wide mandate.

Key provisions and changes

  • Authorization: Vernon County may impose a countywide sales tax of 1% specifically for hospital services.
  • Voter approval: The tax is not automatic; it requires a favorable vote from the electorate in Vernon County before the tax can be enacted.
  • Revenue use: Funds collected from the tax must be used to support hospital services. The bill text (as summarized) indicates the revenue is targeted for hospitals, though the bill may include standard be built-out provisions typically seen in county sales tax measures (e.g., administration, collection, auditing, and reporting requirements). The summary provided does not specify any sunset clause or allocation formulas beyond the general purpose.
  • Administration and collection: As a county sales tax, collection would generally follow Missouri sales tax administration rules unless otherwise specified in the bill. The bill is likely to define responsibilities for the county and possibly the hospital system in terms of financial reporting and oversight.
  • Duration and renewal: The summary does not indicate a fixed term for the tax; if not they may include a sunset or renewal mechanism, but that detail is not provided here.

Who is affected

  • Vernon County residents and businesses: A 1% increase in taxable sales within the county would affect consumer prices and business costs for affected transactions.
  • Vernon County government and hospital system: Receipts from the tax would be dedicated to hospital services, potentially funding operations, capital improvements, or other hospital-related needs, depending on local appropriations and governance.
  • Potential impact on healthcare access and capacity: If approved and collected efficiently, the funds could improve hospital resources, emergency services, and overall patient care in the county.

Procedural and timeline notes

  • Introduction and first reading: February 26, 2026.
  • Second reading: February 27, 2026.
  • Referral to committee: Emerging Issues (H) on May 15, 2026.
  • Next steps (not specified in the provided history): If the bill advances, it would likely proceed through further committee consideration, potential amendments, and floor votes before any statewide or local referendum as required. Since the tax is local to Vernon County, final authorization depends on voter approval within the county.

Potential impacts and considerations

  • Fiscal impact: The tax would raise revenue for hospital services in Vernon County, subject to taxpayer acceptance and economic activity. The exact revenue estimate would depend on local sales volumes and exemptions.
  • Economic considerations: A new countywide sales tax can affect retail activity and consumer prices; local policymakers typically assess exemptions (e.g., groceries or medication) and administrative costs.
  • Accountability: Local control implies Vernon County would be responsible for administering the tax, reporting revenues, and ensuring funds are used for hospital services as intended.

If you’d like, I can add a comparison to similar local-option hospital-sales taxes in Missouri or outline typical voter information materials and potential ballot language for a county referendum.

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

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