HCS HB 2048 -- SALES TAX COLLECTIONS (Sutherland)

COMMITTEE OF ORIGIN:  Committee on Ways and Means

This substitute changes the laws regarding sales tax collections.
In its main provisions, the substitute:

(1)  Requires, beginning January 1, 2012, statements of no tax
due from the Department of Revenue as a prerequisite to the
issuance or renewal of state and local business and occupation
licenses or to the receipt of payments from the State Legal
Expense Fund.  The department director may enter into an
agreement with any state agency responsible for issuing business
and occupation licenses to provide the names and tax
identification numbers of applicants for these licenses.  Tax
delinquencies may result in the suspension of licenses;

(2)  Clarifies that certain purchases made for resale are not to
be considered as retail for sales and use tax purposes when the
subsequent sale is taxed in the state or another state, is for
resale, is excluded from tax, is subject to tax but is exempt, or
is exempt in another state where the subsequent sale occurs;

(3)  Clarifies that operators of amusement parks and places of
entertainment or recreation, including games or athletic events,
must charge sales taxes on the amount of gross receipts charged
for admission, but any subsequent sale of the admissions or
seating accommodations will not be subject to the taxes and
clarifies that operators of hotels, motels, taverns, restaurants,
drugstores, dining cars, or tourist camps must charge sales taxes
on the amount of gross receipts charged for all rooms, meals, and
drinks furnished at the establishment, but any subsequent sale of
those same rooms, meals, and drinks is exempt from sales and use
taxes;

(4)  Authorizes a state and local sales tax exemption for
gratuities, whether mandatory or voluntary, provided with the
receipt of property or services; and

(5)  Removes the amount charged by a travel agent or an
intermediary from all hotel or motel local transient guest taxes
or local occupancy taxes.

The substitute contains an emergency clause for the provisions
authorizing a sales tax exemption for gratuities, clarifying
sales that are not to be considered as retail for sales and use
tax purposes, clarifying when certain operators must charge sales
taxes, and removing amounts charged by a travel agent or
intermediary.

FISCAL NOTE:  Estimated Effect on General Revenue Fund of a cost
of More than $237,022 to an income of More than $100,000 in FY
2011, a cost of More than $244,590 to an income of More than
$100,000 in FY 2012, and a cost of More than $248,927 to an
income of More than $100,000 in FY 2013.  Estimated Effect on
Other State Funds of a cost of Unknown to an income of More than
$100,000 in FY 2011, FY 2012, and FY 2013.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm