Kansas City, Missouri, August 29, 2025
Missouri enacted a package of housing and tax changes that affect Kansas City renters, homeowners, small businesses and visitors. Key moves include repeal of the paid sick leave mandate, a conditional capital gains deduction tied to tax rates, sales tax exemptions for diapers and hygiene products, larger senior and homeowner deductions and credits, and continued FEMA temporary housing aid for disaster survivors. A state ban prevents local ordinances requiring landlords to accept housing vouchers, while HB 938 requires landlords to offer rent-reporting to credit bureaus. Residents should review leases, save receipts and update tax filings where applicable.
Kansas City Alert: Big Changes to Missouri Housing and Rental Rules — What KC Residents and Visitors Need to Know
Listen up, Kansas City — the housing rulebook in Missouri just got rewritten, and the changes hit renters, homeowners, small businesses, seniors and anyone shopping for toiletries while visiting KC. This is your local rundown with straight talk about what these moves mean for your wallet, your rental deal, and how you plan your next trip downtown or out to the Plaza.
Quick hits — the new rules that matter to you
- Paid sick leave mandate repealed — small businesses are no longer required by state law to provide paid sick leave after the repeal of Proposition A. That affects service workers across KC neighborhoods and could change how local employers handle time off.
- Capital gains deduction is on the table — a full 100% deduction for capital gains becomes available once the state’s top income tax rate dips below 4.5%. That’s conditional, so keep an eye on state tax updates if you trade investments or sell property.
- Sales tax exemptions for hygiene products — diapers, feminine hygiene, and incontinence products are no longer subject to state sales tax. That’s good news for families and anyone stocking up at a Kansas City pharmacy or grocery store.
- Bigger senior credits and deductions — rent and homeowner deductions rose: renters’ standard deduction increased from $2,000 to $2,800; homeowners’ deduction rose from $4,000 to $5,800. Property tax credits also increased to $1,055 for renters and $1,550 for homeowners, with inflation adjustments starting in 2027.
- FEMA rental and temporary housing help remains available — if you’re displaced by storms or other disasters in Missouri, renters and homeowners can apply for FEMA temporary housing assistance.
- New recovery programs in nearby St. Louis — the state has launched emergency stabilization, electricity reconnection help, and a contractor registry after recent tornado damage. While centered in St. Louis, these programs show what state disaster support looks like and might be relevant if you travel across Missouri.
- State ban on local rent protections — cities and counties in Missouri can no longer pass local rules that protect renters based on their source of income. That includes protections for people using housing vouchers like Section 8. The practical result: local ordinances in KC and surrounding counties cannot require landlords to accept vouchers if landlords choose not to.
- Landlord obligations under HB 938 — landlords must offer tenants the option to have on-time rent reported to consumer credit bureaus, helping renters build credit if they opt in. There are some exemptions for certain properties or situations, so ask your landlord or property manager for details.
What this means for Kansas City renters
If you rent in Midtown, the Crossroads, Westport or North KC, the big practical items are the voucher protections ban and HB 938. The voucher ban means fewer local tools to force landlords to accept Section 8, so voucher holders may face tougher searches. On the flip side, HB 938 gives renters a neat new way to build credit: opt in, pay on time, and your rent can help your credit score. Always ask your property manager for the opt-in form and get any agreement in writing.
What this means for Kansas City homeowners and seniors
Seniors and disabled homeowners in Kansas City just scored higher deductions and credits that can reduce property tax burden at tax time. Keep records of your adjusted gross income and check the new deduction thresholds when filing. Homeowners should also watch the capital gains rule — if the income tax trigger happens, selling an investment property could become much more tax-friendly.
Visitors and shoppers — sales tax relief on essentials
If you’re visiting KC and stocking up on diapers or personal care items during your stay, you’ll notice the state sales tax no longer applies to a list of hygiene products. That’s a small but welcome savings for parents and travelers who buy supplies at local stores.
Disaster help — renters and homeowners
Missouri continues to offer FEMA rental assistance and temporary housing aid to those displaced by disasters. If you’ve been affected by severe weather, don’t sleep on registering for help — FEMA assistance can cover short-term housing costs while you get back on your feet. Local emergency management offices in Kansas City can point you toward registration steps and local shelters if needed.
What you should do now — quick action checklist for KC residents
- Renters: Ask your landlord about the rent-reporting option under HB 938 and request written details. If you use a voucher, plan for tougher searching and document communications if a landlord refuses.
- Homeowners and seniors: Update your tax preparation with the new deductions and credits — bring your AGI details when you meet with a tax pro.
- Small business workers and owners: Review company policies on sick leave now that state mandates are gone; employers may still choose to offer paid sick leave.
- Everyone: Keep receipts for hygiene purchases to confirm tax exemptions, and if disaster strikes, contact FEMA and local emergency services quickly.
Bottom line
Missouri’s policy shake-up creates winners and losers. For Kansas City, the practical shifts are real: better tax breaks for seniors, new tools to build renter credit, tax-free basics at checkout, but fewer protections for voucher users and less statewide labor protection on paid sick leave. Stay informed, save receipts, and if you rent, get the new rent-reporting option on your radar.
FAQ — Kansas City Housing & Rental Changes
Q: Does the ban on local rent protections mean landlords in Kansas City can refuse Section 8 vouchers?
A: Yes. The new state law prevents cities and counties from passing ordinances that require landlords to accept renters based on the source of their income, including Section 8 vouchers. That means landlords can choose whether to accept vouchers.
Q: How do I get FEMA rental assistance if a storm damages my rental in KC?
A: Homeowners and renters displaced by qualifying disasters can apply for FEMA temporary housing assistance. Contact FEMA and your local emergency management office as soon as possible to start the registration and application process.
Q: What is HB 938 and how can it help my credit?
A: HB 938 requires landlords to offer tenants the option to have on-time rent payments reported to credit bureaus. If you opt in and your landlord reports your payments, consistent on-time rent can help build or improve your credit. Check for any exemptions that might apply to your rental unit.
Q: Are diapers and feminine hygiene products really tax-free in Missouri now?
A: Yes. Retail sales of hygiene items including diapers, feminine hygiene, and incontinence products are exempt from state sales tax, which applies when you shop in Kansas City stores.
Q: I’m a senior homeowner in Kansas City — how much did my property tax credit change?
A: The maximum property tax credit rose to $1,550 for homeowners, with renters’ maximum at $1,055. Standard deductions for adjusted gross income also increased. These credits will see annual inflation adjustments starting in 2027.
At-a-glance feature chart
| Feature | Who it affects | What to do in Kansas City |
|---|---|---|
| Rent-reporting (HB 938) | Renters & landlords | Ask landlord about opt-in; keep records; use to build credit |
| Ban on local rent protections | Voucher holders (Section 8) | Expect tougher voucher searches; document rejections |
| Sales tax exemption on hygiene products | Shoppers & visitors | Save at checkout on diapers and personal care items |
| Increased senior/homeowner credits | Seniors & disabled homeowners/renters | Update tax filings; bring AGI info to tax help |
| FEMA rental assistance | Disaster-displaced renters & homeowners | Register with FEMA; contact KC emergency services for local help |
Stay sharp, Kansas City. These rules can affect your next lease, tax return, or shopping trip. Keep copies of agreements and receipts, and check with local officials if you need clarification or assistance.
Deeper Dive: News & Info About This Topic
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Missouri government updates: 5 immediate steps renters should take
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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.
