HB 1679 -- City Sales Taxes

Sponsor:  Roorda

Currently, under the general city sales tax law, cities may
impose a city sales tax, upon voter approval, at a rate of
one-half of 1%, seven-eighths of 1%, or 1%; and the City of St.
Louis may impose the tax at a rate not to exceed one and
three-eighths percent for the benefit of the city.  This bill
specifies that the combined rate of sales taxes adopted under the
city sales tax law cannot exceed 2%.  This change is not to be
construed as a new tax or an increase in the current levy of an
existing tax for the purpose of Article X, Section 22, of the
Missouri Constitution, commonly known as the Hancock Amendment,
which requires voter approval.  Cities that have already imposed
and collected taxes under the city sales tax law can continue to
do so without voter approval as a continuation of a tax
previously approved by the voters of the city.

Currently, under the capital improvements city sales tax law,
cities not in St. Louis County may impose a sales tax, upon voter
approval, at a rate of one-eighth, one-fourth, three-eighths, or
one-half of 1% for the purpose of funding, operating, and
maintaining capital improvements.  Municipalities in charter
counties are authorized to impose a capital improvements tax
under Section 94.890, RSMo.  The bill specifies that the combined
rate of sales taxes adopted under the capital improvement city
sales tax law cannot exceed 1%.  This change is not to be
construed as a new tax or an increase in the current levy of an
existing tax for the purpose of the Hancock Amendment which
requires voter approval.  Cities that have already imposed and
collected taxes under the city sales tax law can continue to do
so without voter approval as a continuation of a tax previously
approved by the voters of the city.

The bill also authorizes the City of Peculiar and any city in
Jefferson County to impose, upon voter approval, a sales tax of
up to one-half of 1% for the operation of public safety
departments including compensation, pension programs, health
care, and additional equipment and facilities.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm