"The Voice of Missouri Business®" Weekly Report April 28 - May 2, 2025

By Ray McCarty and Matthew Smith

May 2, 2025 - Here is a quick recap of some of our activities on your behalf this week. We have two weeks remaining in the 2025 Regular Legislative Session.

Proposition A - Minimum Wage and Paid Sick/Domestic Violence Leave Revisions (AIM supports)

By now you know Associated Industries of Missouri has joined other business groups in supporting bills aimed at reducing the burden on employers due to the passage of Proposition A. The Supreme Court dismissed our challenge that the measure contained multiple subjects - an obvious fact to anyone reading the ballot title - on a technicality saying that argument must have been raised at a lower level court first. This is a new position by the Supreme Court and we were disappointed, especially that the Court waited until two days before the law was effective to issue their decision. The law was effective May 1. We are continuing our push to address the issue in the Missouri Senate. Watch your inbox for an opportunity to engage and support our position with Senators next week.

Protecting Transportation Funding (AIM opposes bill threatening reduction in highway funds)

This week, Associated Industries of Missouri opposed HB 572 (Hurlbert) in the Senate Transportation, Infrastructure, and Public Safety Committee , which could lead to reduced transportation funding, depending on how much money the Department of Transportation expends internally versus how much is spent externally. Specifically, this bill would require a one-half cent reduction per gallon of the gas tax each year MoDOT internal expenditures exceed 20% of total expenditures. While we understand the frustration expressed by legislators with the Missouri Department of Transportation, we cannot put at risk transportation funds that provide resources for projects that support Missouri industries and all citizens of the state.

Protecting the Hazardous Waste Fund (AIM opposes transfer from Hazardous Waste Fund)

AIM also opposed HB 516 (Matthiesen) in the Senate Commerce Committee, which requires funding from the Hazardous Waste Fund to be transferred to the Radioactive Waste Investigation Fund. This is very concerning to the business community because the Hazardous Waste Fund is funded by Missouri companies and provides money used for administration of the Hazardous Waste program in the Missouri Department of Natural Resources as businesses perform cleanups of this waste. Unfortunately, the fund is not healthy and is at risk of becoming insolvent in the next few years. While we agree with the intent of HB 516, we cannot support legislation that further draws down the Hazardous Waste Fund. We support using General Revenue or federal funds so Missouri businesses are not negatively impacted by this legislation.

Supporting Tax Relief for Broadband Equipment (AIM supports)

AIM supported HB 493 (Van Schoiack) in a hearing of the Senate Commerce committee on Tuesday of this week. The bill clarifies that machinery and equipment used to provide broadband communications services are exempt from state and local sales and use taxes. As internet services becomes more and more essential, it is important that we provide as much tax relief possible, so as many Missourians have fast and affordable internet connection. This language guarantees a future Department of Revenue will not try to tax equipment that is used solely for broadband, as most is also used today for telecommunications and is exempt from tax under current law.

Supporting American Breweries (AIM supports)

AIM also supported HB 1041 (Diehl) in the Senate Rules, Joint Rules, and Resolutions Committee this week. This bill cuts the excise taxes for beer companies in the United States. Currently, the Department of Revenue collects $1.86 per barrel on all malt liquors, for the inspection and gauging of malt liquors. HB 1041 provides that, beginning January 1, 2026, the Department must collect $0.62 per barrel for all malt liquor manufactured in an American brewery, and $1.86 per barrel for all foreign import malt liquor. AIM supports the bill because it would provide a benefit to American breweries.

We intend to provide these legislative updates to you on a weekly basis on Fridays as we track the progress of these and other bills affecting Missouri businesses.