Mo. becomes 1st state to repeal capital gains tax
JEFFERSON CITY, Mo. - Capital gains taxes are no longer being collected following the enactment of HB 594, making Missouri the first state to ban these taxes.
The new law, which took effect this week, repeals state taxes on profits from stock trades, real estate, and other financial transactions.
“The department is already preparing for next year’s tax season and we are making the adjustments required to accommodate this and other new laws that affect taxpayers,” Director of Revenue Trish Vincent said. “It is always a good thing when we can implement changes that put more money back into the pockets of hardworking Missouri citizens.”
Residents, however, will still be required to pay federal taxes on these profits.
The repeal of capital gains taxes is part of a larger tax bill passed by the Missouri legislature and signed into law earlier this year by Governor Mike Kehoe. This legislative change has sparked discussions about its potential impact on the state's economy.
A report indicates that the repeal could result in Missouri losing more than $600 million in tax revenue.
More information about HB 594 can be found here.
All facts in this report were gathered by journalists employed by KTVI. Artificial intelligence tools were used to reformat from a broadcast script into a news article for our website. This report was edited and fact-checked by KTVI staff before being published.
