Missouri Bill Would Cut Property Taxes for Disabled Veterans by Increasing Tobacco Taxes

[JohnS]

Missouri Bill Would Cut Property Taxes for Disabled Veterans by Increasing Tobacco Taxes

March 14, 2026 - Charlie Minato

For the most part, when an elected official wants to raise taxes on tobacco products, including cigars, it is done so under the justification of public health. Occasionally, a lawmaker might call for a tax increase to offset general budget shortfalls, but two state representatives in Missouri have introduced a tobacco tax bill with one of the more unique beneficiaries: the property taxes of disabled veterans.

Rep. Don Mayhew, R-Crocker, and Rep. Bill Lucas, R-De Soto, have introduced the “Veterans and Gold Star Family Property Tax Relief Act.” The bill would increase the state’s taxes on cigarettes, other tobacco products, and vaping products so that the revenue could provide homestead property tax exemptions for disabled veterans and Gold Star families.

The proposed added taxes would be:

• Cigarettes — 1/2 cent per cigarette
• Other Tobacco Products (Including cigars) — 2 percent of the wholesale price
• Vapor Products — 10 percent of the wholesale price

These are in addition to Missouri’s current taxes on these products. For cigars, the current tax rate is 10 percent, meaning if the bill passed, the tax rate paid by cigars would increase to 12 percent of the wholesale price.

A cigar with an MSRP of $9.50 likely retails for around $9.98 in Missouri, before sales tax. If the bill passed, halfwheel estimates that it would increase to around $10.07.

The bill would offer three different exemption levels:

• For a disabled veteran with a disability rating of at least 30 percent but less than 50 percent, they would get a proportional exemption ranging from $3,000-$5,000
• For a disabled veteran with a disability rating of at least 50 percent but less than 70 percent or a Purple Heart recipient, the exemption would range from $5,000-$10,000
• For a disabled veteran with a disability rating of 70 percent or more or Gold Star spouses, the exemption would be 100 percent of the property tax

In addition, if the veteran passes, the surviving spouse would continue to receive the benefit so long as they continue to own the property and do not remarry.

On Tuesday, the bill had a public hearing. It has only two sponsors.

Source: https://halfwheel.com/missouri-bill-would-cut-property-taxes-for-disabled-veterans-by-increasing-tobacco-taxes/464548/

[Nevrknow]

Politicians and tax promises = lies. Always have, always will.