Committee hears HB 35-18 to earmark entertainers’ income tax for arts, libraries and humanities

Representative Renee Reuter presented House Bill 35-18 to the Ways and Means Committee, proposing that Missouri’s athletes-and-entertainers income tax be routed into a dedicated fund with set percentage distributions intended for the Missouri Arts Council (60%), Missouri Humanities (10%), the State Library networking fund (10%), Missouri Public Broadcasting (10%) and Historic Preservation (10%). Reuter said the original statute (RSMo 143.183) intended those distributions but, in practice, much of the revenue has flowed into general revenue and only a fraction reached those accounts.

The sponsor told members that in fiscal year 2025 only about 43.1% of the money collected was apportioned to the intended accounts (she cited $43,100,000 in receipts and approximately $18,000,000 actually distributed to designated accounts in the year cited). HB 35-18 would create the Artists and Entertainers Income Tax Fund, remove the statutory language that subjects the money to the regular appropriation process and extend the sunset from 2030 to 2060.

Committee members probed oversight and appropriation mechanics. Several members expressed concern that moving funds into an earmarked account makes it harder for the legislature to reallocate money during fiscal stress; the sponsor and multiple witnesses said the legislature would retain appropriation authority but would need a conscious act to draw money out of an earmarked fund. Representative Taylor and others compared the proposal to existing special-purpose funds such as the lottery fund.

More than a dozen witnesses spoke in support, including Kaina (Kina) Eiman (Missouri Citizens for the Arts / Missouri Humanities Council), Robin Westphal (Daniel Boone Regional Library, former state librarian), representatives of regional library districts, Missouri Arts and Humanities boards, and statewide arts-education organizations. Witnesses described the fund as a predictable revenue source that supports programming across all 114 counties, helps libraries pay for ebooks, databases and courier systems, and produces a reported economic return on investment in prior state studies. Several witnesses stressed grant guidelines and reporting requirements as existing guardrails and said the change would improve planning and long-term programming.

No opposition witnesses were recorded. Sponsors said they were open to amendment on the sunset length and to safeguards that would allow the legislature to withhold funds if statutory spending restrictions were violated.