CCS SS SCS HB 1442 -- LOCAL TAXES

This bill changes the laws regarding local taxes.  In its main
provisions, the bill:

(1)  Authorizes the City of Jefferson City to impose, upon voter
approval, a transient guest tax of up to 7% per occupied room per
night for funding a convention and visitors bureau to promote the
city as a convention, visitor, and tourist center.  Currently,
the city is allowed to impose a tax of up to 5% per occupied room
per night (Section 67.1000, RSMo);

(2)  Authorizes Carter County to impose, upon voter approval, a
transient guest tax of up to 5% per occupied room per night with
50% of the proceeds to fund law enforcement and 50% to fund
tourism (Section 67.1018);

(3)  Authorizes the cities of Ashland and Sugar Creek and
Montgomery County to impose, upon voter approval, a transient
guest tax of between 2% and 5% per occupied room per night for
the promotion of tourism (Section 67.1360);

(4)  Allows the City of St. Joseph and Buchanan County to use
transient guest tax revenue for capital expenditures related to
the promotion of tourism and convention facilities.  Currently,
the tax revenue may only be used for the promotion of tourism and
convention facilities (Section 67.1361);

(5)  Authorizes real property owners located in the counties of
Caldwell, Clinton, Daviess, and DeKalb to petition the governing
body of their county to seek voter approval for the creation of
an exhibition center and recreational facility district in their
county and to impose a 0.25% sales tax for a period of up to 25
years to fund the district (Section 67.2000);

(6)  Authorizes the City of St. Joseph to contract with Buchanan
County to share transient guest tax revenues to promote tourism
and for the construction, maintenance, and improvement of a
convention center and recreational facilities (Section 70.220);

(7)  Authorizes the City of Grandview to impose, upon voter
approval, a transient guest tax of up to 5% per occupied room per
night for the promotion of tourism (Section 94.271);

(8)  Requires a city that abolishes its general revenue or
capital improvement tax to notify the Department of Revenue at
least 90 days prior to the effective date of the expiration.  The
repeal of the tax will become effective December 31 of the year
in which the abolishment was approved (Sections 94.510 and
94.577);

(9)  Authorizes the City of North Kansas City to impose, upon
voter approval, a transient guest tax of up to 5% per occupied
room per night to fund tourism and infrastructure improvements
(Section 94.832);

(10)  Authorizes the City of Raytown to impose, upon voter
approval, a transient guest tax of up to 5% per occupied room per
night for the promotion, operation, and development of tourism
and convention facilities (Section 94.840);

(11)  Authorizes the cities of Peculiar, Blue Springs, and
Grandview to impose, upon voter approval, a sales tax of up to
.5% to fund public safety improvements including equipment,
employment expenditures, and facility construction for fire,
police, and emergency medical providers (Sections 94.900 and
94.902);

(12)  Authorizes the City of Waynesville to impose, upon voter
approval, a transient guest tax of up to 3% per occupied room per
night for the construction, maintenance, and repair of a
multipurpose conference and convention center (Section 94.1011);

(13)  Allows the voters of any city, town, or village to impose a
property tax of up to one-fourth of one cent on each $100
assessed valuation on all taxable real property to fund the
upkeep and maintenance of cemeteries located within the city,
town, or village (Section 137.1040);

(14)  Authorizes each party to an appeal that is scheduled to be
heard before the State Tax Commission to request one change of
the assigned hearing officer by filing a written application to
disqualify the officer within 30 days of the assignment (Section
138.431);

(15)  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
(Section 144.019.1);

(16)  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 if it was
an arms length transaction for fair market value with an
unaffiliated entity and clarifies that operators of hotels,
motels, taverns, restaurants, drugstores, dining cars, tourist
camps, or similar businesses 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
if it was an arms length transaction for fair market value with
an unaffiliated entity (Sections 144.019.2 and 144.019.3);

(17)  Authorizes a state and local sales and use tax exemption
for any sale of utilities at cost by a sports complex authority
which is ultimately consumed in the operation of a sports complex
leased to a professional sports team (Section 144.030); and

(18)  Specifies that any state or local tax imposed on transient
accommodations will only apply to amounts actually received by
the operator of an establishment in which rooms are furnished to
the public.  Under no circumstances will a travel agent or
intermediary be deemed an operator of a hotel, motel, inn,
tourist camp, or similar business unless the travel agent or
intermediary actually operates the facility (Section 1).

The bill contains an emergency clause for the provisions
clarifying sales that are not to be considered as retail for
sales and use tax purposes and for the provisions clarifying when
certain operators must charge sales taxes.

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