The Missouri Chamber of Commerce and Industry is opposing a tax increase on the state’s manufacturers.
Currently, manufacturing companies are exempt from paying local sales tax on the resources used to create their product, such as energy, chemicals and machinery. HB 321 would remove that exemption.
Kara Corches, president and CEO of the Missouri Chamber, testified before the House Special Committee on Intergovernmental Affairs.
“We know that manufacturing is the backbone of our economy, and our state has a rich history in manufacturing,” Corches said. “This bill is a tax increase that will be detrimental to the manufacturing industry, and we view it as a job killer.”
In 2024, the Missouri Chamber Foundation released a report called “Making Missouri a Manufacturing Powerhouse.” According to the report, Missouri has roughly 8,000 manufacturing businesses, and the industry accounts for 14% of the state’s Gross Domestic Product (GDP).
In the national and global competition for manufacturing jobs, HB 321 would put Missouri at a disadvantage, Corches said. Neighboring states such as Kansas and Iowa offer state and local sales tax exemptions on manufacturing inputs.
“We should be a state that is embracing and wrapping our arms around manufacturing right now and not deterring it,” Corches said.
Jan Haviland, president and CEO of Haviland Corporation in Linn, Mo., said the bill would cause additional hardship for her 79-year-old squeegee manufacturing company.
Haviland Corporation strives to buy most of its raw materials from Missouri businesses.
“We would have to obviously reconsider where our raw materials come from if there’s going to be additional taxes on every dollar we’re spending here in Missouri,” said Alice Andrews, executive vice president of Haviland Corporation.
Tracy King also spoke in opposition on behalf of AT&T.
“I’ll leave you with a quote from Ronald Reagan: ‘If you want less of something, tax it,’” King said. “If you want less manufacturing and production in this state, then support this bill.”
To learn more about HB 321, contact the Missouri Chamber at 573-634-3511.
