HB 1442 -- LOCAL TAXES (Jones, 89)

COMMITTEE OF ORIGIN:  Special Committee on General Laws

Currently, under the general city sales tax law, cities may
impose a 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:

(1)  The City of North Kansas City to impose, upon voter
approval, a transient guest tax of one-half of 1% per room, per
night for the promotion of tourism and infrastructure
improvements;

(2)  The City of Grandview to impose, upon voter approval, a
transient guest tax not to exceed 5% per room, per night for the
promotion of tourism; and

(3)  The cities of Ashland and Sugar Creek and the county of
Montgomery to impose, upon voter approval, a transient guest tax
of between 2% and 5% per room, per night for the promotion of
tourism.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:10 pm