MO HB3503

Creates the "Business Enterprise Tax Act" imposing a 0.75% tax on the "taxable enterprise value tax base" of every business enterprise in Missouri, effective for tax years beginning on or after August 28, 2026

Eliminates state sales and use tax on retail food sales beginning August 28, 2026, with local sales/use taxes on food phased out in four equal annual increments starting January 1, 2027 and ending January 1, 2031

Defines "enterprise value tax base" as the sum of all compensation paid, interest paid, and dividends paid by a business enterprise, with apportionment rules for businesses operating in multiple states

Requires businesses with gross receipts or enterprise value tax base exceeding $250,000 to file returns; estimated tax declarations required when estimated tax is $260 or more

Revenue from the new business enterprise tax deposits into the school district trust fund, replacing the 1% state sales tax on food that currently funds school districts