Missouri Veterans Homestead Exemption and Tobacco/Nicotine Tax Bill
Missouri Legislative Events
Summary
Missouri House Bill HB2535 passed the House on January 7, 2026. The bill authorizes a homestead property tax exemption for certain qualifying veterans. To offset the anticipated loss in property tax revenue to local governments, the bill increases the cigarette tax and imposes new excise taxes on alternative nicotine products, vapor products, tobacco paraphernalia, and hemp-derived consumable products. The bill now proceeds to the Senate for consideration.
What changed
HB2535 introduces a homestead property tax exemption for certain veterans, which will reduce local government property tax revenues. To compensate for this revenue loss, the bill significantly expands the state's tobacco and nicotine tax base by raising cigarette taxes and applying excise taxes to alternative nicotine products, vapor products, tobacco paraphernalia, and hemp-derived consumable products for the first time.
Retailers and distributors of tobacco, vapor, and alternative nicotine products will face new tax compliance obligations. Veterans and their families should monitor eligibility requirements for the homestead exemption. Local governments in Missouri should prepare for potential adjustments to property tax collections as the bill works through the legislative process toward enactment.
What to do next
- Monitor HB2535 progress through the Missouri Senate
- Assess impact on tobacco and nicotine product pricing and sales
- Review veteran eligibility criteria for homestead exemption
Source document (simplified)
ChangeBridge / Missouri / HB2535 Passed HB2535 House Bill Passed 2026-01-07
Authorizes a homestead tax exemption for certain veterans, and to offset lost property tax revenue, increases the cigarette tax and subjects alternative nicotine products, vapor products, tobacco paraphernalia, and hemp-derived consumable products to an excise tax
Bill Details
State Missouri
Session 2026 Regular Session
Chamber House
Official Source house.mo.gov/Bill.aspx?bill=HB2535&year=20...
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Sponsors
Don Mayhew (Rep - R) Bill Lucas (Rep - R)
Action History
2026-04-07 H HCS Voted Do Pass (H) 2026-04-07 H Executive Session Completed (H) 2026-03-10 H Public Hearing Completed (H) 2026-02-18 H Referred: Veterans and Armed Forces(H) 2026-01-08 H Read Second Time (H) 2026-01-07 H Read First Time (H) 2025-12-18 H Prefiled (H)
Committee Referrals
2026-02-18 H Veterans and Armed Forces
Bill Text Versions
2025-12-18 Introduced Legislative data powered by LegiScan (CC BY 4.0)
Named provisions
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