What Missouri Senate Bill 46 Could Mean for Your Real Estate Portfolio

BLOG // April 2025

In April 2025, Missouri Senate Bill 46 (SB 46) gained momentum in Jefferson City — and it could bring a major tax advantage to commercial real estate owners and investors across the state.

The bill proposes a change that would allow 100% of capital gains income to be deducted from Missouri state income taxes, starting in 2025. If passed, it could have wide-ranging implications for exit strategy, 1031 exchanges, and long-term portfolio planning.

Why It Matters for CRE Investors
Today, commercial property owners typically owe 4.8% Missouri state income tax on any capital gains realized through a sale. If SB 46 becomes law, that state tax burden could drop to $0.

This shift could:

  • Increase after-tax ROI on investment sales
  • Encourage longer-term holds and strategic exits
  • Influence 1031 exchange decisions
  • Make Missouri more attractive to out-of-state capital

“If passed, SB 46 would significantly improve Missouri’s tax environment for long-term commercial real estate investors.”
— NAI DESCO Strategic Insight Team

Real-World Example
Let’s say you sell a property with a $1.2 million capital gain:

  • Under current law, you’d owe ~$57,600 in Missouri income tax.
  • If SB 46 passes, your state tax liability could drop to $0 on that same gain.*
    *Always consult your tax advisor. This post is for informational purposes only and does not constitute tax or legal advice.

What to Do Now
SB 46 is not yet law — but it’s gaining traction. Now is the time to:

  • Review your portfolio and exit strategy
  • Evaluate hold vs. sell timing
  • Model how your tax position could shift under the proposed law
  • Talk to your NAI DESCO advisor about next steps

Even proposed legislation can offer a window for strategic planning — especially when the impact is this significant.

Stay Ahead with NAI DESCO
At NAI DESCO, we’re closely tracking policy updates that impact our clients and the broader Missouri commercial real estate market. As SB 46 evolves, we’ll keep you informed with timely insights and practical takeaways.

Want to know how this could affect your specific portfolio?
We’re here to help you run the numbers and make informed decisions.Let me know if you’d like: