JEFFERSON CITY – Missourians could see their utility bills jump even higher after Thursday when a host of new state laws goes into effect.
Among the more than 60 new statutes is a significant change in state utility law that consumer advocates warn will raise electric bills by at least $600 annually for most St. Louis residents.
Other laws going into effect include a tax cut, protections for foster children and expanded rights for landlords.
The utility measure was among the first bills approved by lawmakers this year as they worked to break a yearslong logjam on a measure pushed by Ameren Missouri and other power companies.
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Key to the projected increase in bills is a policy change allowing companies to charge ratepayers for construction projects while they are being built instead of waiting until they are completed.
Missourians overwhelmingly voted to outlaw the practice in 1976, but electric companies say they need the money to address growing power needs for data centers and factories.
In signing Senate Bill 4 earlier this year, Gov. Mike Kehoe said the change will help maintain affordable and reliable energy for citizens while also helping to attract new industry and jobs.
The new law comes as spiking utility bills already are causing pain for Missouri customers.
In June, new electric rates from Ameren kicked in, sending bills up by about 12%, or $14 per month for an average household, according to the company.
Rate hikes also are affecting Missouri American Water customers across suburban St. Louis, as well as customers of the Metropolitan St. Louis Sewer District.
Gas bills also are set to rise as Spire prepares for a rate hike that has been agreed to but not yet finalized by state regulators.
Other new laws going into effect include:
- Tax cuts: House Bill 594, which will eliminate the state’s portion of the capital gains tax.
The law applies to income received this year from the sale of real estate or investments and could cost state coffers more than $400 million at a time when Kehoe has warned future budgets will be tight.
The new law includes an expanded tax credit for low-income seniors and the elimination of sales tax on period products and diapers for infants and adults.
The elimination of the so-called tampon tax will reduce the sales tax rate from 4.2% to 1.2%, which is the rate for most groceries.
Advocates say diapers and menstrual product are necessities for women and families and should not be taxed at the higher rate.
“This new law provides meaningful relief for Missouri families by removing sales tax on certain essential health and hygiene products,†said Trish Vincent, director of the Missouri Department of Revenue. “We encourage both consumers and businesses to familiarize themselves with the exemption to ensure compliance and maximize savings.â€
- Protection of children: Missouri’s child welfare agency no longer will be allowed to use foster children’s benefits, such as Social Security, for their care. The legal age for marriage also will be raised to 18, with no exceptions. The bill also eliminates legal standing for nondisclosure agreements involving childhood sexual abuse. A separate law will make it easier for college students to be proactive in stopping hazing before potentially dangerous situations.
- First responder recruitment and retention: Public safety professionals, including police officers, firefighters and paramedics, will be able to get free tuition to a Missouri college when they reach six or more years of service. Their dependents can get free tuition after reaching 10 years of service. The number of people who utilize the program will be limited to how well funded it is by the Legislature.
- Landlords’ rights: Missouri municipalities no longer can require landlords to rent to people who receive federal housing assistance.
- Expanded access for homeschoolers: Homeschooled kids now will be allowed to participate in public school sports. Their academic eligibility is determined by whoever is in charge of instructing them.
- Radioactive waste investigations: The state will have more tools and fewer financial restrictions when investigating radioactive contamination in the St. Louis region.
Missouri's Legislature reflects the federal structure in many ways. Video by Beth O'Malley