Governor Mike Kehoe delivers State of the State Address

Tax reform and energy among issues discussed during annual speech

Before a joint session of the Missouri General Assembly, Gov. Mike Kehoe laid out his legislative agenda and budget priorities for 2026 during his annual State of the State address. At the top of the governor's agenda was setting Missouri on a path to eliminating the state's income tax.

Governor Mike Kehoe delivered his State of the State address on Tuesday, Jan. 13. Photo courtesy of the Governor's Office.

"If we are serious about building a foundation for growth, to compete rather than be complacent, then we must begin the work now to phase-out and eliminate Missouri's individual income tax," said Gov. Kehoe. "We can do both. We can maintain a balanced budget that supports essential services and pursue a bold tax policy that improves Missouri’s competitiveness."

The governor's plan to eliminate the state's income tax includes two parts. First, he is asking the General Assembly to pass a joint resolution to put the issue before voters, asking if the state should begin a phased elimination of the individual income tax with the goal of having it repealed within five years. If approved at the ballot box, the second part of his plan involves working with lawmakers to rewrite the state's tax code. During his address, the governor mentioned targeting current loopholes that fall outside of the current sales tax base, including digital services and online subscriptions.

"This plan is about aligning our tax code with today's economy and not yesterday's," said Gov. Kehoe. "Missouri's tax code was built for the past 100 years. Our economy demands one for the next 100 years."

Outside of tax policy, the governor asked lawmakers to consider "a sustainable, long-term solution for our growing energy needs." Specifically, the governor urged the General Assembly to consider legislation expanding nuclear generation in Missouri, including adding it to the state's Renewable Energy Standard (RES). Passed by voters at the ballot box in 2008, the RES mandates utilities generate 15 percent of their electricity from renewable sources. Additionally, he called on policymakers to support basic guardrails for solar generation.

"Nuclear energy will continue to be a vital part of Ameren Missouri’s safe, clean and reliable generation mix now and well into the future," said Rob Dixon, vice president of Regulatory and Legislative Affairs for Ameren Missouri. "As a company, we look forward to working with lawmakers to find ways we can continue to power the quality of life for our customers. A balanced mix of energy generation, including nuclear, natural gas, renewables and other sources, is what provides our customers with the energy they need while keeping bills as low as possible.” 

From a budget perspective, the governor's spending plan for Fiscal Year 2027 calls for $53.7 billion to meet the state's operational needs, including $16.1 billion in general revenue. To learn more about the governor's proposed budget, please click here. 

The 2026 legislative session concludes on Friday, May 15.