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Missouri residents will soon see changes in their state tax laws as lawmakers push for new measures to increase revenue and support critical services. On July 3, 2025, Governor Sarah Miller signed into law a series of tax reforms that are expected to generate additional funds for infrastructure projects, education, and healthcare.One of the key changes in the new tax laws is an increase in the state sales tax rate from 4.225% to 5%. This adjustment, which will take effect starting in January 2026, is projected to generate an estimated $500 million in additional revenue annually.In addition to the sales tax increase, the state legislature also approved a new tax on vaping products, in response to the growing popularity of e-cigarettes among young people. Under the new law, a 5% tax will be imposed on all vaping products sold in the state, with the revenue earmarked for youth smoking prevention programs.Furthermore, the new tax package includes a provision for a tax on online marketplace sales. This measure aims to level the playing field for brick-and-mortar stores that have long argued they are at a disadvantage compared to online retailers. Starting next year, online marketplace platforms will be required to collect and remit sales tax on behalf of all third-party sellers using their services.Governor Miller expressed confidence that these tax reforms will not only boost state revenue but also help fund vital programs and services for Missouri residents. "These changes are necessary to ensure that our state remains economically competitive and well-positioned for future growth," Governor Miller stated during the signing ceremony.However, not everyone is in favor of the new tax laws. Some critics argue that the sales tax increase could disproportionately impact low-income families who already struggle to make ends meet. Others raise concerns about the potential effects of the vaping tax on small businesses that specialize in selling vaping products.Despite the criticism, Governor Miller and supporters of the tax reforms remain optimistic about the positive impact these changes will have on Missouri's finances. With these new measures in place, the state is poised to see a significant uptick in revenue, which will in turn support critical investments in infrastructure, education, and healthcare for years to come.