Kansas City, MO, August 27, 2025
Kansas City small businesses face a wave of state changes that affect payroll, taxes, disaster relief and access to capital. A paid sick-leave requirement has been repealed, requiring employers to review and update handbooks and payroll settings. Certain diapers and feminine hygiene products are now exempt from state and local sales taxes, so retailers should update point-of-sale systems. Disaster loan options and extended filing relief are available to businesses impacted by storms, and the MOBUCK$ low-interest loan program has expanded, increasing capital access. Local business owners should act quickly to adjust policies, tax collections, and explore relief and loan programs.
Big Changes for Missouri Small Businesses — What Kansas City Needs to Know Now
Heads up, Kansas City! The fight over worker leave, taxes, disaster help and small-business loans just got loud and fast. Whether you run a coffee shop in Westport, a brewery in the Crossroads, a downtown boutique, or you’re just visiting KC and wondering how this affects your wallet or purchases, here’s a straight-to-the-point breakdown with the dates and actions you can’t ignore.
Paid Sick Leave Repealed — Effective August 28, 2025
One of the biggest jolts: the paid sick leave law that voters approved in November 2024 has been repealed and the repeal takes effect on August 28, 2025. That earlier law required employees to accrue one hour of paid sick leave for every 30 hours worked, up to 56 hours a year at larger workplaces. If your business updated your handbook or payroll systems to follow that rule, now’s the time to review and revise your policies so you don’t get out of step on day one after the repeal.
Tax Changes That Matter — Capital Gains Deduction and More
Missouri also rolled out tax relief that could affect both business owners and shoppers. For individual taxpayers, all capital gains reported for federal purposes are now eligible for a state income tax deduction for tax years starting on or after January 1, 2025. That matters if you’re selling assets, real estate, or investments tied to your small business.
On the retail front, certain everyday items are now sales-tax-free as of August 28, 2025. Child and adult diapers, qualifying feminine hygiene products, and incontinence products are exempt from both state and local sales taxes. If you run a shop, grocery, or pharmacy in KC, you’ll need to update your point-of-sale systems and sales tax reporting to reflect the change.
Disaster Loans & Filing Flexibility
Severe storms and flash floods in late July 2025 triggered federal disaster loan approval for businesses in several counties. If your operations were impacted and you’re located in Lincoln, Montgomery, Pike, St. Charles, or Warren counties, you may be eligible for low-interest federal disaster loans. Kansas City businesses that suffered damage should also watch for any similar declarations that could expand assistance locally.
Additionally, the state extended temporary filing relief under the Filing Relief for Natural Disasters Act. Effective July 24, 2025, certain filings tied to disaster response (including some 5500 filings) can get extra time — the disaster relief filing window was extended from 60 days to 120 days. That’s extra breathing room if storm recovery disrupts your accounting or HR deadlines.
GovCon Event and Loan Program Boost
For Kansas City businesses interested in government contracting, there’s a government contracting event in Springfield on August 27, 2025 aimed at helping small firms become contract-ready. It’s a good opportunity to learn procurement basics and connect with buyers — worth considering if you want to expand into public-sector work.
Big money is being made available too: the MOBUCK$ low-interest loan program was expanded from $800 million to $1.2 billion to support small businesses and agri-businesses across Missouri. If you’re growing, rehabbing space, or need working capital in Kansas City, check with the Missouri State Treasurer’s office for program details and application steps.
What KC Business Owners and Visitors Should Do Right Now
- Review your employee handbook and payroll settings before August 28, 2025 so your sick-leave practices match the law.
- Update POS systems and sales tax collection to reflect the diaper and hygiene tax exemptions effective August 28, 2025.
- If storm damage affected you, check disaster loan eligibility and filing-extension options quickly — deadlines matter.
- Explore the MOBUCK$ loan program if you need capital, and speak with a trusted accountant or business advisor about the capital gains deduction for 2025 returns.
- If you sell affected items or do business across county lines, make sure your sales tax reporting accounts for local exemptions.
Why Kansas City Should Care
Kansas City’s small-business scene is tight-knit. Changes at the state level ripple into downtown shops, neighborhood eateries, and the visitor experience. Tourists and locals buying baby supplies and personal care items may notice lower prices at checkout. Employers will be watching payroll and HR costs closely. And anyone still recovering from weather events should know extra help and deadline extensions are available — but you need to act fast.
FAQ
Who needs to change sick leave policies because of the repeal?
Any Missouri employer who updated their sick leave policy to follow the earlier voter-approved law should review and, if necessary, revise their policies before August 28, 2025 to align with the repeal.
Are diapers and feminine hygiene products tax-free right away?
Yes. Sales of qualifying child and adult diapers, incontinence items, and qualifying feminine hygiene products are exempt from state and local sales taxes starting August 28, 2025. Retailers should update sales systems accordingly.
Does the capital gains tax change help business owners?
Potentially yes. Individuals can deduct capital gains reported for federal purposes on state income tax returns for tax years beginning January 1, 2025. This can benefit business owners selling assets or investments.
How can I apply for disaster loans if my business was damaged?
If your business was affected by the July storms, check eligibility and apply for low-interest federal disaster loans as soon as possible. There are deadlines for applications, so act quickly if you are in an eligible county.
Where do I find MOBUCK$ loan details?
Information and application details for the expanded MOBUCK$ program are available from the Missouri State Treasurer’s office. They can explain eligibility, terms, and how to apply.
Quick Reference Chart — Key Dates & Who’s Affected
| Topic | Effective Date | Who’s Affected |
|---|---|---|
| Paid Sick Leave Repeal | August 28, 2025 | Missouri employers & employees; update handbooks/payroll |
| Diaper & Hygiene Sales Tax Exemptions | August 28, 2025 | Retailers, pharmacies, shoppers across Missouri |
| Capital Gains State Deduction | Tax years beginning Jan 1, 2025 | Individuals reporting capital gains, small business owners |
| Filing Relief Extension | Effective July 24, 2025 | Businesses affected by declared disasters; extended to 120 days |
| MOBUCK$ Funding Increase | Announced 2025 | Small businesses, agri-businesses seeking low-interest loans |
| Disaster Loan Availability (Select Counties) | Post-July 26–27, 2025 storms | Businesses in Lincoln, Montgomery, Pike, St. Charles, Warren counties |
Bottom line for Kansas City: keep your HR and POS systems up to date, know your filing deadlines if storms hit, and check funding options if you need capital. If you’re visiting KC, expect some everyday items to be taxed differently — and enjoy the local flavor while the business community adapts fast.
Deeper Dive: News & Info About This Topic
HERE Resources
How to track Missouri government updates that affect your taxes and benefits
Why the Missouri economy is shifting and how small businesses can adapt
Best Kansas City restaurants for date night: romantic spots and reservation tips
How to Find Authentic Kansas City BBQ on Your First Visit
ScaleUP! Kansas City Launches 15th Cohort for Local Entrepreneurs
Independence Police Locate Missing 3-Year-Old Girl
Raven Space Systems Relocates Headquarters to Broomfield
Sandlot Goods Gains National Recognition
Economic Challenges and Opportunities for Latino Entrepreneurs in Kansas City
Handmade Pasta Revolutionizes Kansas City’s Dining Scene
Author: STAFF HERE KANSAS CITY WRITER
The KANSAS CITY STAFF WRITER represents the experienced team at HEREKansasCity.com, your go-to source for actionable local news and information in Kansas City, Jackson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as American Royal World Series of Barbecue, Dia De Los Muertos, and Planet Anime Kansas City. Our coverage extends to key organizations like the Greater Kansas City Chamber of Commerce and United Way of Greater Kansas City, plus leading businesses in healthcare, finance, and entertainment that power the local economy such as Children's Mercy Hospital, Government Employees Health Association, and AMC Entertainment. As part of the broader HERE network, including HEREStLouis.com, we provide comprehensive, credible insights into Missouri's dynamic landscape.
