HB0046I - Introduced Bill Text
FIRST REGULAR SESSION
HOUSE BILL NO. 46
89TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE BLAND.
Pre-filed December 2, 1996 and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
To repeal sections 143.191, 143.201, 143.211, 143.221 and 143.241, RSMo 1994, relating to
taxation, and to enact in lieu thereof eighteen new sections for the purpose of establishing
a general assembly scholarship program, with an effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 143.191, 143.201, 143.211, 143.221 and 143.241, RSMo 1994, are
repealed and eighteen new sections enacted in lieu thereof, to be known as sections 143.191,
143.201, 143.211, 143.221, 143.241, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 and 13, to read as
143.191. 1. Every employer maintaining an office or transacting any business within this
state and making payment of any wages taxable [under] pursuant to sections 143.011 to
[143.998] 143.1012 to a resident or nonresident individual shall deduct and withhold from such
wages for each payroll period the amount provided in subsection 3 of this section.
2. The term "wages" referred to in subsection 1 of this section means wages as defined
by section 3401(a) of the Internal Revenue Code of 1986, as amended. The term "employer"
means any person, firm, corporation, association, fiduciary of any kind, or other type of
organization for whom an individual performs service as an employee, except that if the person
or organization for whom the individual performs service does not have control of the payment
of compensation for such service, the term "employer" means the person having control of the
payment of the compensation. The term includes the United States, this state, other states, and
all agencies, instrumentalities, and subdivisions of any of them.
3. The method of determining the amount to be withheld shall be prescribed by
regulations of the director of revenue. The prescribed table, percentages, or other method shall
result, so far as practicable, in withholding from the employee's wages during each calendar year
an amount substantially equivalent to the tax reasonably estimated to be due from the employee
under sections 143.011 to [143.998] 143.1012 with respect to the amount of such wages included
in [his] such employee's Missouri adjusted gross income during the calendar year.
4. For purposes of this section an employee shall be entitled to the same number of
personal and dependency withholding exemptions as the number of exemptions to which [he]
such employee is entitled for federal income tax withholding purposes. An employer may rely
upon the number of federal withholding exemptions claimed by the employee, except where the
employee provides the employer with a form claiming a different number of withholding
exemptions in this state.
5. The director of revenue may enter into agreements with the tax departments of other
states (which require income tax to be withheld from the payment of wages) so as to govern the
amounts to be withheld from the wages of residents of such states [under] pursuant to this
section. Such agreements may provide for recognition of anticipated tax credits in determining
the amounts to be withheld and, under regulations prescribed by the director of revenue, may
relieve employers in this state from withholding income tax on wages paid to nonresident
employees. The agreements authorized by this subsection are subject to the condition that the
tax department of such other states grant similar treatment to residents of this state.
6. The director of revenue shall enter into agreements with the Secretary of the Treasury
of the United States or with the appropriate secretaries of the respective branches of the armed
forces of the United States for the withholding, as required by subsections 1 and 2 of this section,
of income taxes due the state of Missouri on wages or other payments for service in the armed
services of the United States or on payments received as retirement or retainer pay of any member
or former member of the armed forces entitled to such pay.
7. Subject to appropriations for the purpose of implementing this section, the director of
revenue shall comply with provisions of the laws of the United States as amended and the
regulations promulgated thereto in order that all residents of this state receiving monthly
retirement income as a civil service annuitant from the federal government taxable by this state
may have withheld monthly from any such moneys, whether pension, annuities or otherwise, an
amount for payment of state income taxes as required by state law, but such withholding shall not
be less than twenty-five dollars per quarter.
143.201. Every employer required to deduct and withhold tax [under] pursuant to
sections 143.011 to [143.996] 143.1012 from the wages of an employee shall furnish to each
employee in respect to the wages paid by such employer to such employee during the calendar
year on or before January thirty-first of the succeeding year, or, if [his] the employee's
employment is terminated before the close of such calendar year, within thirty days from the date
on which the last payment of wages is made, a written statement in a form prescribed by the
director of revenue showing the amount of wages paid by the employer to the employee, the
amount if any deducted and withheld as tax, and such other information as the director of revenue
143.211. Any amount of tax actually deducted and withheld [under] pursuant to sections
143.011 to [143.996] 143.1012 in any calendar year shall be deemed to have been paid to the
director of revenue on behalf of the person from whom withheld. Such person shall be credited
with having paid that amount for [his] the person's taxable year beginning in such calendar year.
143.221. 1. Every employer required to deduct and withhold tax [under] pursuant to
sections 143.011 to [143.996] 143.1012 shall, for each calendar quarter, on or before the last day
of the month following the close of such calendar quarter, file a withholding return as prescribed
by the director of revenue and pay over to the director of revenue or to a depository designated
by the director of revenue the taxes so required to be deducted and withheld.
2. Where the aggregate amount required to be deducted and withheld by any employer
exceeds fifty dollars for at least two of the preceding twelve months, the director, by regulation,
may require a monthly return. The due dates of the monthly return and the monthly payment or
deposit for the first two months of each quarter shall be by the fifteenth day of the succeeding
month. The due dates of the monthly return and the monthly payment or deposit for the last
month of each quarter shall be by the last day of the succeeding month.
3. Where the aggregate amount required to be deducted and withheld by any employer
is less than twenty dollars in each of the four preceding quarters, the employer shall file a
withholding return for a calendar year. The director, by regulation, may also allow other
employers to file annual returns. The return shall be filed and the taxes, if any, paid on or before
January thirty-first of the succeeding year.
4. If the director of revenue finds that the collection of taxes required to be deducted and
withheld by an employer may be jeopardized by delay, [he] the director may require the employer
to pay over the tax or make a return at any time. A lien outstanding with regard to any tax
administered by the director shall be a sufficient basis for this action.
143.241. 1. Every employer required to deduct and withhold tax [under] pursuant to
sections 143.011 to [143.996] 143.1012 is hereby made liable for such tax. For purposes of
assessment and collection, any amount required to be withheld and paid over to the director of
revenue, and any penalties, interest, and additions to tax with respect thereto, shall be considered
the tax of the employer. Any amount of tax actually deducted and withheld [under] pursuant
to sections 143.011 to [143.996] 143.1012 shall be a special fund in trust for the director of
revenue. No employee shall have any right of action against [his] the employee's employer in
respect to any money deducted and withheld from [his] such employee's wages and paid over
to the director of revenue in compliance or in good faith compliance with sections 143.011 to
2. Any officer, director, statutory trustee or employee of any corporation, including
administratively dissolved corporations, or foreign corporations that have had their certificate of
authority revoked, subject to the provisions of sections 143.191 to 143.265, who has the direct
control, supervision or responsibility for filing returns and making payment of the amount of tax
imposed in accordance with sections 143.191 to 143.265, and who fails to file and pay such
return with the director of revenue shall be personally assessed for such amounts, including
interest, additions to tax and penalties thereon. This assessment shall be imposed only in the
event that the assessment on the corporation is final, and such corporation fails to pay such
amounts to the director of revenue. Notice shall be given of the director of revenue's intent to
make the assessment against such officers, directors, statutory trustees or employees. The
personal liability of such officers, directors, statutory trustees or employees as provided in this
section shall survive the administrative dissolution of the corporation or, if a foreign corporation,
the revocation of the corporation's certificate of authority.
3. If any employer required to withhold and remit tax [under] pursuant to sections
143.191 to 143.265 or [his] the employer's successors shall sell all or substantially all of [his or
their] the employer's business or shall quit the business, such employer or successor shall file a
final return within fifteen days after the date of selling or quitting business.
4. If any employer required to withhold and remit tax [under] pursuant to sections
143.191 to 143.265 or [his] the employer's successors shall contract to sell all or substantially
all of [his or their] the employer's business, the seller shall request from the director of revenue
a statement or certificate as provided in subsection 6 of this section. The seller shall present such
statement or certificate to the purchaser prior to consummation of the sale and secure the
purchaser's signature thereon as validation of receipt. Failure to comply with this provision shall
result in the seller being liable for an additional penalty equal to twenty-five percent of the seller's
delinquency at the time of the sale. The provisions of this section to the contrary notwithstanding, this additional penalty shall be the sole liability of the seller and shall not be a liability of the
5. Except as provided in subsections 6, 7, and 8 of this section, all successors, if any, shall
be required to withhold an amount of the purchase money sufficient to cover the taxes, interest,
additions to tax or penalties due and unpaid until such time as the former owner or predecessor,
whether immediate or not, shall produce a receipt from the director of revenue showing that the
taxes have been paid, or a certificate stating that no taxes are due. If the purchaser of a business
shall fail to withhold the purchase money as required by this section and remit at the time of
purchase all amounts so withheld to the director to pay all unpaid taxes, interest, additions to tax
and penalties due from the former owner or predecessor, the purchaser shall be personally liable
for the payment of the taxes, interest, additions to tax and penalties accrued and unpaid by the
former owner of the business.
6. The director of revenue shall, notwithstanding the provisions of section 32.057, RSMo,
upon written request, furnish within fifteen days from the receipt of such a request by certified
mail, return receipt requested, or such other methods as may be mutually agreed upon, to any
owner, successor, secured creditor, purchaser, or in the case of a proposed purchaser, if joined
in writing by the owner, a statement showing the amount of taxes, interest, additions to tax or
penalties due and owing or a certificate showing that no taxes, interest, additions to tax or
penalties are due [under] pursuant to this chapter, including the date for the last payment for
such taxes, interest, additions to tax or penalties as shown by the records of the director of
7. A secured creditor who shall enforce a lien against a business subject to the provisions
of this chapter shall be entitled to obtain from the director of revenue a statement of employer
withholding tax due and the status of the employer withholding tax payments from the director
of revenue in accordance with subsection 6 of this section. If the director of revenue does not
respond within fifteen days from the date of receipt of such request by the secured creditor
seeking to enforce its lien, it shall be conclusively presumed that all such employer withholding
tax has been paid as to the secured creditor or any successor of the secured creditor, whether
such successor be immediate or not. Nothing in this section shall eliminate the liability of the
owner of the business owing employer withholding tax from the liability to pay such employer
withholding tax. Any purchaser who acquires the business as a result of an enforcement action
by a creditor shall be exempt from the liability set forth in subsection 5 of this section, whether
such purchaser be immediate or subsequent thereto.
8. Any such creditor who shall enforce a lien against a business subject to the provisions
of this section shall be entitled to be paid the principal sums due, all accrued interest to the date
of the payment, and the expenses of enforcing the lien of the secured creditor including attorney's
fees. The balance, if any, shall be paid to the creditors having a priority interest thereto under the
laws of the state of Missouri or the United States of America. Any balance then remaining, up
to the amount of the tax, interest, additions to tax and penalties then due, shall be remitted to the
director of revenue as provided by this section. Nothing in this section shall affect the priority
of any lien filed by the director of revenue against the former owner or predecessor.
9. Mailing of notices or requests, by first class mail, postage prepaid, certified with return
receipt requested, or such other methods as may be mutually agreed upon, shall be prima facie
evidence that the party to whom it is addressed received the correspondence, notice or request.
Section 1. 1. An earnings tax is hereby imposed for every taxable year on the
salaries, wages, commissions and other compensation earned by nonresidents for work
done or services rendered or performed in this state.
2. An earnings tax is hereby imposed for every taxable year on the net profits of
associations, businesses and other activities conducted in this state by nonresidents. Net
profits shall be determined by deducting the necessary expenses of operation from the gross
3. The director of revenue shall make all rules and regulations necessary for the
enforcement of this section.
Section 2. The earnings tax on salaries, wages, commissions and other compensation of nonresidents and on the net profits of associations, businesses and other activities
conducted by nonresidents pursuant to section 1 of this act shall be one percent per annum.
Section 3. Income received by any of the following shall be exempt from the
earnings tax imposed pursuant to section 1 of this act:
(1) A corporation or association organized and operated exclusively for religious,
charitable, scientific or educational purposes, no part of the net income of which inures to
the benefit of any private stockholder or individual;
(2) A civic organization not organized for profit but operated exclusively for the
promotion of social welfare; and
(3) A club organized and operated exclusively for pleasure, recreation and other
nonprofitable purposes, no part of the net income of which inures to the benefit of any
private stockholder or member.
Section 4. The earnings or net profits subject to tax of any nonresident and of any
association or business conducted by nonresidents pursuant to section 1 of this act, in
which the work done or services performed are rendered both within and without this
state, shall be ascertained by formulae, rules and regulations set forth and determined by
the director of revenue.
Section 5. Every employer maintaining an office or transacting business within this
state and making payment of any wages to a nonresident whose wages are subject to the
earnings tax pursuant to section 1 of this act shall deduct and withhold from such wages
for each payroll period pursuant to sections 143.191 to 143.265, RSMo.
Section 6. There is hereby created a "General Assembly Scholarship Program
Fund". All revenues from the state earnings tax on nonresidents pursuant to sections 1 to
5 of this act shall be collected by the director of revenue and deposited in the state treasury
to the credit of the general assembly scholarship program fund. The provisions of section
33.080, RSMo, to the contrary notwithstanding, money in such fund shall not be
transferred and placed to the credit of the general revenue fund. The fund shall be used
by the coordinating board for higher education to provide all moneys necessary for the
administration of, and the scholarships provided by, the general assembly scholarship
program created pursuant to section 7 of this act.
Section 7. There is hereby established the "General Assembly Scholarship
Program". The incidental fees and other required fees at any public college or university
in the state shall be paid by the state on behalf of any student who enrolls in such a college
or university to pursue an academic undergraduate degree if the student:
(1) Has been a resident of the state for twenty-four months preceding college
enrollment, as evidenced by voter registration or possession of a Missouri motor vehicle
(2) Has a parent or guardian who is a resident of this state;
(3) Has graduated within the two years preceding the application from a Missouri
high school with a minimum cumulative grade point average of 2.5 calculated on a 4.0 scale
and is enrolling as a first-time freshman;
(4) Has successfully completed twenty units of high school course work, ninth grade
level or higher, which constitutes a core curriculum and meets standards for admission to
the desired college or university;
(5) Has participated in extracurricular activities;
(6) Has a composite score on the American college test of at least eighteen on the
1989 version or an equivalent concordant value on a subsequent version of such test;
(7) Has no criminal record, other than misdemeanor traffic violations; and
(8) Establishes such student has financial need pursuant to section 8 of this act.
Section 8. Students from families with an annual adjusted gross income of less than
twenty-five thousand dollars shall be eligible for a full scholarship pursuant to sections 6
to 13 of this act. Students from families with an annual adjusted gross income of more
than twenty-five thousand, but less than thirty-five thousand dollars, shall be eligible for
a partial scholarship on a sliding scale. Students whose families have an annual adjusted
gross income of more than thirty-five thousand dollars shall not be eligible for scholarships
pursuant to the provisions of sections 6 to 13 of this act without a showing of hardship
because of large medical bills, as determined by the coordinating board for higher
Section 9. To maintain continued state payment of incidental fees and other
required fees once enrolled in college or a university, a student shall meet all of the
(1) Make steady academic progress toward a degree, earning not less than the
minimum number of hours of credit required for full-time standing in each academic
(2) Maintain continuous enrollment for not less than two semesters or three
quarters in each successive academic year, unless granted an exemption for cause by the
coordinating board for higher education;
(3) Have a cumulative grade point average of at least 2.5 calculated on a 4.0 scale
at the end of the first academic year and thereafter maintain such a cumulative grade point
average as evaluated at the end of each academic year, unless granted an exemption by the
(4) Have no criminal record, other than misdemeanor traffic violations;
(5) Participate in a work study program approved by the coordinating board.
Section 10. 1. The coordinating board for higher education shall, by rule, provide
(1) A mechanism for informing students in this state of the availability of the
assistance provided pursuant to sections 6 to 13 of this act early enough in their schooling
that a salutary motivational effect is possible;
(2) Applications, forms, financial audit procedures, eligibility, program audit
procedures and other matters related to efficient operation of sections 6 to 13 of this act;
(3) A procedure for waiver through the 1997-98 academic year of the program
eligibility requirement for successful completion of a specified core curriculum upon proper
documentation by the applicant that failure to comply with such requirement is due solely
to the fact that the required course or courses were not available to the applicant at the
2. No rule or portion of a rule promulgated under the authority of this section shall
become effective unless it has been promulgated pursuant to the provisions of section
Section 11. All incidental fees and other fee payments shall be made directly to the
institution to which such incidental fees or other fees are due after notice to the college or
university that the state shall pay the required fees of a student and after notice from the
college or university that the student has actually enrolled.
Section 12. The coordinating board may seek, accept and expend funds from any
source, including private business, industry, foundations and other groups as well as any
federal or other governmental funding available for the purposes set forth in sections 6 to
13 of this act.
Section 13. The coordinating board shall coordinate and approve work study
programs for students receiving tuition and fee payments pursuant to sections 6 to 13 of
Section B. Section A of this act shall become effective on January 1, 1998, and shall
apply to all taxable years beginning after December 31, 1997.