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Read. Follow. Verify.Missouri House Bill 1670 creates income tax exemptions for tips and specie capital gains
Last action · May 15, 2026: Referred: Emerging Issues(H)Sponsors: Brian Seitz and 2 others
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What This Bill Would Do
House Bill 1670 modifies calculations by exempting 100 percent of tips received by qualified tipped employees starting January 1, 2027, and exempting capital gains on the sale or exchange of beginning January 1, 2026. The legislation also eliminates employer tip withholding requirements under section 143.191 except where required by federal law.
Tipped workers and individuals engaging in transactions will see changes to their state income tax liabilities and reporting requirements once the respective provisions take effect in 2026 and 2027.
- House Bill 1670 was introduced during the 2026 Regular Session of the Missouri 103rd General Assembly by Representative Brian Seitz. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Tipped employees
Tipped employees engaged in occupations that customarily receive tips are eligible for a 100 percent subtraction of tips from their Missouri adjusted gross income starting January 1, 2027.
Employers of tipped staff
Key Facts
- For all tax years beginning on or after January 1, 2027, the bill provides a 100 percent subtraction from Missouri adjusted gross income for tips received by a tipped employee in an occupation that customarily receives tips.
- The bill eliminates employer withholding requirements under section 143.191 for employee tips, except as required by federal law.
- For all tax years beginning on or after January 1, 2026, the bill allows a subtraction for the portion of capital gain on the sale or exchange of specie as defined in section 408.010.
- The bill defines 'tip' according to 29 CFR Section 531.52 and 'tipped employee' under 29 U.S.C. Section 203(t) of the Fair Labor Standards Act.
Show all 5 facts
- The legislation repeals section 143.121, RSMo, and enacts a new section 143.121 relating to income tax exemptions and modifications.
Frequently Asked Questions
When does the income tax exemption for tips take effect?
Will employers still be required to withhold state income tax on employee tips?
How is a 'tip' defined under this bill?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
4 actions- May 15, 2026HouseCommitteeReferred: Emerging Issues(H)
- Jan 8, 2026HouseFloorRead Second Time (H)
- Jan 7, 2026HouseIntroducedRead First Time (H)
- Dec 1, 2025HouseIntroducedPrefiled (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Phased-in Income Tax Adjustments for Capital Gains and Tips
The bill schedules distinct tax exemptions starting in 2026 for specie capital gains and 2027 for employee tips.
Connected Entities
Sources
house.mo.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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