SECOND REGULAR SESSION

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1237

88TH GENERAL ASSEMBLY

Reported from the Committee on Agriculture and Local Government, May 2, 1996, with recommendation that the Senate Committee Substitute do pass.

TERRY L. SPIELER, Secretary.

S2836.09C

AN ACT

To repeal sections 32.105, 67.641, 67.1000, 94.875, 135.350, 135.403, 135.405, 274.030, 274.220, 274.230, 620.014, 620.158, 620.1039, 700.010, 700.100 and 700.450, RSMo 1994, and sections 71.012, 100.296, 108.510, 135.100, 135.110, 135.207, 135.225, 135.230, 135.245, 135.247, 135.326, 144.030 and 447.708, RSMo Supp. 1995, and both versions of section 135.400, RSMo Supp. 1995, as enacted in house bill no. 414 and in senate bill no. 445 by the eighty-eighth general assembly, relating to economic development, and to enact in lieu thereof sixty-two new sections relating to the same subject, with an effective date for certain sections.

Be it enacted by the General Assembly of the State of Missouri, as follows:

Section A.  Sections 32.105, 67.641, 67.1000, 94.875, 135.350, 135.403, 135.405, 274.030, 274.220, 274.230, 620.014, 620.158, 620.1039, 700.010, 700.100 and 700.450, RSMo 1994, and sections 71.012, 100.296, 108.510, 135.100, 135.110, 135.207, 135.225, 135.230, 135.245, 135.247, 135.326, 144.030 and 447.708, RSMo Supp. 1995, and both versions of section 135.400, RSMo Supp. 1995, as enacted in house bill no. 414 and in senate bill no. 445 by the eighty-eighth general assembly, are repealed and sixty-two new sections enacted in lieu thereof to be known as sections 32.105, 32.127, 67.641, 67.1000, 71.012, 94.875, 100.296, 108.510, 135.100, 135.110, 135.207, 135.225, 135.230, 135.245, 135.247, 135.326, 135.350, 135.400, 135.401, 135.403, 135.405, 144.030, 172.274, 274.030, 274.220, 274.230, 274.310, 447.708, 620.014, 620.158, 620.1039, 700.009, 700.010, 700.012, 700.100, 700.450, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 and 26, to read as follows:

32.105.  As used in sections 32.100 to [32.125] 32.127, the following terms mean:

(1)  "Affordable housing assistance activities", money, real or personal property, or professional services expended or devoted to the construction, or rehabilitation of affordable housing units;

(2)  "Affordable housing unit", a residential unit generally occupied by persons and families with incomes at or below the levels described herein and bearing a cost to the occupant no greater than thirty percent of the maximum eligible household income for the affordable housing unit.  In the case of owner occupied units, the cost to the occupant shall be considered the amount of the gross monthly mortgage payment, including casualty insurance, mortgage insurance, and taxes.  In the case of rental units, the cost to the occupant shall be considered the amount of the gross rent.  The cost to the occupant shall include the cost of any utilities, other than telephone.  If any utilities are paid directly by the occupant, the maximum cost that may be paid by the occupant is to be reduced by a utility allowance prescribed by the commission.  Persons or families are eligible occupants of affordable housing units if the household combined, adjusted gross income as defined by the commission is equal to or less than the following percentages of the median family income for the geographic area in which the residential unit is located, or the median family income for the state of Missouri, whichever is larger; ("geographic area" means the metropolitan area or county designated as an area by the federal Department of Housing and Urban Development under Section 8 of the United States Housing Act of 1937, as amended, for purposes of determining fair market rental rates):

Percent of State or

Geographic Area Family

Size of Household Median Income

One Person 35%

Two Persons 40%

Three Persons 45%

Four Persons 50%

Five Persons 54%

Six Persons 58%

Seven Persons 62%

Eight Persons 66%

(3)  "Business firm", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state;

(4)  "Commission", the Missouri housing development commission;

(5)  "Community services", any type of counseling and advice, emergency assistance or medical care furnished to individuals or groups in the state of Missouri;

(6)  "Crime prevention", any activity which aids in the reduction of crime in the state of Missouri;

(7)  "Defense industry contractor", a person, corporation or other entity which will be or has been negatively impacted as a result of its status as a prime contractor of the Department of Defense or as a second or third tier contractor.  A "second tier contractor" means a person, corporation or other entity which contracts to perform manufacturing, maintenance or repair services for a prime contractor of the Department of Defense, and a "third tier contractor" means a person, corporation or other entity which contracts with a person, corporation or other entity which contracts with a prime contractor of the Department of Defense;

(8)  "Doing business", among other methods of doing business in the state of Missouri, a partner in a firm or a shareholder in an S corporation shall be deemed to be doing business in the state of Missouri if such firm or S corporation, as the case may be, is doing business in the state of Missouri;

(9)  "Earned credits", credits approved and issued by the commission pursuant to sections 32.100 through 32.127 for which property or services have been contributed and not yet claimed as a credit against any tax by any business firm;

[(9)]  (10)  "Economic development", the acquisition, renovation, improvement, or the furnishing or equipping of existing buildings and real estate in distressed or blighted areas of the state when such acquisition, renovation, improvement, or the furnishing or equipping of the existing buildings and real estate will result in the creation or retention of jobs within the state; or, until June 30, 1996, a defense conversion pilot project located in a standard metropolitan statistical area which contains a city with a population of at least three hundred fifty thousand inhabitants, which will assist Missouri­based defense industry contractors in their conversion from predominately defense related contracting to nondefense oriented manufacturing.  Only neighborhood organizations, as defined in subdivision (13) of this section, may apply to conduct economic development projects. Prior to the approval of an economic development project, the neighborhood organization shall enter into a contractual agreement with the department of economic development.  Credits approved for economic development projects may not exceed two million dollars from within any one fiscal year's allocation;

[(10)]  (11)  "Education", any type of scholastic instruction or scholarship assistance to an individual who resides in the state of Missouri that enables him to prepare himself for better opportunities or community awareness activities rendered by a statewide organization established for the purpose of archeological education and preservation;

[(11)]  (12)  "Homeless assistance pilot project", the program established pursuant to section 32.117;

[(12)]  (13)  "Job training", any type of instruction to an individual who resides in the state of Missouri that enables him to acquire vocational skills so that he can become employable or be able to seek a higher grade of employment;

[(13)]  (14)  "Neighborhood organization", any organization performing community services or economic development activities in the state of Missouri and:

(a)  Holding a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code; or

(b)  Incorporated in the state of Missouri as a not for profit corporation under the provisions of chapter 355, RSMo; or

(c)  Designated as a community development corporation by the United States government under the provisions of Title VII of the Economic Opportunity Act of 1964;

[(14)]  (15)  "Physical revitalization", furnishing financial assistance, labor, material, or technical advice to aid in the physical improvement or rehabilitation of any part or all of a neighborhood area;

[(15)]  (16)  "S corporation", a corporation described in section 1361(a)(1) of the United States Internal Revenue Code and not subject to the taxes imposed by section 143.071, RSMo, by reason of section 143.471, RSMo.

32.127.  Notwithstanding any provision of law to the contrary, any taxpayer may sell, assign, exchange, convey or otherwise transfer the earned credits authorized by sections 32.100 through 32.127 in accordance with this section.  Any taxpayer holding earned credits, hereinafter the assignor for the purpose of this section, may sell, assign, exchange or otherwise transfer all or any portion of such earned credits:

(1)  For consideration in an amount not less than seventy­five percent of the par value of such earned credits being sold, assigned, exchanged or otherwise transferred; and

(2)  In an amount not to exceed the par value of such earned credits being sold, assigned, exchanged or otherwise transferred.

The taxpayer acquiring earned credits, hereinafter the assignee for the purpose of this section, may use the acquired credits to offset up to one hundred percent of the tax liabilities otherwise imposed on such taxpayer described in section 32.115.  Any unused earned credits in the hands of the assignee not used in the year of the assignor's contribution with respect to such earned credits may be carried over for the next five succeeding calendar or fiscal years until the full credit has been claimed, provided that earned credits issued pursuant to proposals approved under section 32.111 may be carried over for the next ten succeeding calendar or fiscal years following the tax year in which the original contribution by assignor was made until the full credit has been allowed.  The assignor and assignee shall enter into a written agreement setting forth the terms and conditions of the transfer and shall provide a copy of the agreement, together with an application for transfer of tax credits, to the commission within thirty calendar days following the effective date of the transfer.  The application for transfer of tax credits shall be in a form proscribed by the commission.  The assignor shall provide any additional information as may be required by the commission and the director of revenue to administer and carry out the provisions of this section.  Upon approval of such transfer of the earned credits, the commission shall transmit a copy of the approval to the director of revenue and the assignee and thereafter the earned credits shall be available to assignee as set forth in sections 32.100 and 32.127, as if the credits had originally been issued to the assignee.

67.641.  1.  The general assembly may annually appropriate up to [two] three million dollars from the state general revenue fund to each convention and sports complex fund created pursuant to section 67.639, provided that for an existing sports facility located in a first class county with a charter form of government which contains part of a city having a population of three hundred fifty thousand inhabitants or more or any city with a population greater than three hundred fifty thousand, located in more than one county, such county or city has entered into a contract or lease with a professional sports team affiliated with or franchised by the National Football League, the National Basketball Association, the National Hockey League, or the American League or the National League of Major League Baseball.  No moneys shall be transferred [under] pursuant to this section to the benefit of a sports complex for a county in any year unless each professional sports team which leases playing facilities within the county continue to lease the same playing facilities which were leased on August 28, 1989.  Each convention and sports complex fund shall be administered by the county or city and used to carry out the provisions of sections 67.638 to 67.645.

2.  Each city or county which has a convention and sports complex fund established pursuant to the laws of this state which administers a convention and sports complex fund, prior to receipt of any appropriations pursuant to this section shall enact or promulgate ordinances, or rules and regulations which provide, pursuant to the terms and provisions of section 70.859, RSMo, for the purchase of goods and services and for construction of capital improvements for the sports complex.  In no event shall more than [two] three million dollars be transferred from the state to any one such convention and sports complex fund in any fiscal year pursuant to this section, and in no event shall any moneys be transferred from the state to any convention and sports complex fund for the planning, development, construction, maintenance or operation of any facility after June 30, 1997, provided that any convention and sports complex fund which was appropriated state moneys prior to July 1, 1997, for the construction, maintenance or operation of a facility shall continue to receive state moneys, subject to appropriation.

3.  This section shall not become effective unless and until the applicable county or the applicable city which has created a convention and sports complex fund has commenced paying into the convention and sports complex fund amounts at a rate sufficient for the county or city to contribute the sum of [two] three million dollars per calendar year, except that this section shall become effective with respect to any first class county not having a charter form of government and with respect to any charter city located in a first class county not having a charter form of government at the time at which such county or city has commenced paying any moneys into its convention and sports complex fund.  The appropriations made pursuant to subsection 1 of this section to any convention and sports complex fund shall not exceed the amounts contributed by the county or city to the fund.  The county or city's proportional amount specified in this section may come from any source.  Once the county or city has commenced paying such appropriate proportional amounts into its convention and sports complex fund, the county or city shall so notify the state treasurer and the director of revenue and, thereafter, subject to annual appropriation, transfers shall commence and continue each month pursuant to this section until such monthly transfers are made for thirty years.  Moneys appropriated from general revenue shall not be expended until such first class charter county or a city located in such first class charter county has paid [two] three million dollars into its fund, or until such first class county not having a charter form of government or until such charter city within a first class county not having a charter form of government has commenced payment of moneys into its fund.

67.1000.  The governing body of any [second class] county of the second classification which is north of the Missouri River and which adjoins a county with a population of more than one hundred thousand inhabitants which contains a campus of the University of Missouri, or the governing body of any county with a township form of government with a population of less than nine thousand inhabitants which adjoins at least six other counties with a township form of government, or the governing body of any county with a township form of government which adjoins at least four other counties with a township form of government and at least one, but not more than one, [third class] county of the third classification without a township form of government with a population of less than three thousand inhabitants, or the governing body of any county which contains a state educational institution described as a state teachers college, as defined in paragraph (c) of subdivision (5) of section 176.010, RSMo, other than a county which adjoins the Mississippi River, or a county with a population of more than one hundred fifty thousand inhabitants, or any city which is the county seat of any [third class] county of the third classification which borders the state of Arkansas and contains a branch of Southwest Missouri State University, or in any third class city with a population of at least six thousand inhabitants which is the county seat of a county of the third classification with a township form of government which has a population of at least ten thousand inhabitants but not more than twelve thousand inhabitants, or any fourth class city which is the county seat of any county of the third classification which borders the state of Iowa and has at least five counties of the third classification bordering it, or any city with a special charter that is the county seat of a county of the third classification with at least six counties of the third classification bordering it, or any third class city located in two counties of the third classification only one of which has a township form of government but both of which border the same county of the first classification or any third class city with a population of at least twelve thousand inhabitants but not more than fifteen thousand inhabitants located in a county of the third classification which contains a medium security state correctional facility, or any third class city with a population of at least fifteen thousand but not more than seventeen thousand inhabitants which is the county seat of a county of the fourth classification which is operating as a county of the second classification and has a state university located in such city, or any city which is the county seat of any county of the third classification with a population of at least twenty-one thousand five hundred inhabitants which borders a county of the third classification with a population of less than three thousand inhabitants, or any city of the third classification with a population of at least eleven thousand inhabitants in a county of the first classification without a charter form of government with a population less than one hundred fifty thousand which borders two counties of the first classification with a charter form of government, or any city which is the county seat of any county of the third classification with a population not greater than nine thousand inhabitants which borders only two counties of the third classification, may impose a tax on the charges for all sleeping rooms paid by the transient guests of hotels or motels situated in the city or county, which shall be more than two percent but not more than five percent per occupied room per night, except that such tax shall not become effective unless the governing body of the city or county submits to the voters of the city or county at a state general, primary or special election, a proposal to authorize the governing body of the city or county to impose a tax under the provisions of this section and section 67.1002.  The tax authorized by this section and section 67.1002 shall be in addition to the charge for the sleeping room and shall be in addition to any and all taxes imposed by law and the proceeds of such tax shall be used by the city or county solely for funding a convention and visitors bureau which shall be a general not for profit organization with whom the city or county has contracted, and which is established for the purpose of promoting the city or county as a convention, visitor and tourist center.  Such tax shall be stated separately from all other charges and taxes.

71.012.  1.  Notwithstanding the provisions of sections 71.015 and 71.860 to 71.920, the governing body of any city, town, or village may annex unincorporated areas which are contiguous and compact to the existing corporate limits of the city, town, or village as provided in this section.  The term "contiguous and compact" does not include a situation whereby the unincorporated area proposed to be annexed is contiguous to the annexing city, town or village only by a railroad line, trail, pipeline or other strip of real property less than one­quarter mile in width within the city, town or village so that the boundaries of the city, town or village after annexation would leave unincorporated areas between the annexed area and the prior boundaries of the city, town or village connected only by such railroad line, trail, pipeline or other such strip of real property. Notwithstanding the provisions of this section, the governing body of any city, town, or village in any county of the third classification which borders a county of the fourth classification, a county of the second classification and the Mississippi River, or any third class city with a population of at least fifteen thousand but not more than seventeen thousand inhabitants which is the county seat of a county of the fourth classification which is operating as a county of the second classification and has a state university located in such city, may annex areas along a road or highway up to two miles from existing boundaries of the city, town or village.

2.  (1)  When a verified petition, requesting annexation and signed by the owners of all fee interests of record in all tracts of real property located within the area proposed to be annexed, is presented to the governing body of the city, town, or village, the governing body shall hold a public hearing concerning the matter not less than fourteen nor more than sixty days after the petition is received, and the hearing shall be held not less than seven days after notice of the hearing is published in newspapers of general circulation qualified to publish legal matters.

(2)  At the public hearing any interested person, corporation or political subdivision may present evidence regarding the proposed annexation.  If, after holding the hearing, the governing body of the city, town, or village determines that the annexation is reasonable and necessary to the proper development of the city, town, or village, and the city, town, or village has the ability to furnish normal municipal services to the area to be annexed within a reasonable time, it may, subject to the provisions of subdivision (3) of this subsection, annex the territory by ordinance without further action.

(3)  If a written objection to the proposed annexation is filed with the governing body of the city, town, or village not later than fourteen days after the public hearing by at least two percent of the qualified voters of the city, town, or village, or two qualified voters of the area sought to be annexed if the same contains two qualified voters, the provisions of sections 71.015 and 71.860 to 71.920, shall be followed.

3.  If no objection is filed, the city, town, or village shall extend its limits by ordinance to include such territory, specifying with accuracy the new boundary lines to which the city's, town's, or village's limits are extended.  Upon duly enacting such annexation ordinance, the city, town, or village shall cause three certified copies of the same to be filed with the clerk of the county wherein the city, town, or village is located, and one certified copy to be filed with the election authority, if different from the clerk of the county which has jurisdiction over the area being annexed, whereupon the annexation shall be complete and final and thereafter all courts of this state shall take judicial notice of the limits of that city, town, or village as so extended.

94.875.  All taxes authorized and collected under sections 94.870 to 94.881 shall be deposited by the political subdivision in a special trust fund to be known as the "Tourism Tax Trust Fund".  The moneys in such tourism tax trust fund shall not be commingled with any other funds of the political subdivision.  [Except as otherwise provided in this section,] The taxes collected shall be used, upon appropriation by the political subdivision, solely for the purpose of constructing, maintaining or operating convention and tourism facilities, and at least twenty­five percent of such taxes collected shall be used for tourism marketing and promotional purposes.  The moneys in the tourism tax trust fund of any city with a population of at least fifteen thousand located partially but not wholly within a county of the third classification with a population of at least thirty­nine thousand inhabitants shall be used solely for tourism marketing and promotional purposes.  The tax authorized by section 94.870 shall be in addition to any and all other sales taxes allowed by law, but no ordinance or order imposing a tax under section 94.870 shall be effective unless the governing body of the political subdivision submits to the voters of the political subdivision at a municipal or state general, primary or special election a proposal to authorize the governing body of the political subdivision to impose such tax.

100.296.  1.  Sections 100.250 to 100.297 shall not be subject to the provisions of sections 109.200 to 109.310, RSMo, the state and local records law, or the provisions of sections 610.010 to 610.030, RSMo, relating to the meetings of governmental bodies, and a member appointed pursuant to section 100.265 shall be exempt from the provisions of chapter 105, RSMo, provided that the member shall not vote or participate in any matter in which the member has a direct or indirect interest.  For the purposes of sections 100.250 to 100.297, a "direct or indirect interest" means the ownership of ten percent or more of any class of equity securities in any corporation seeking a guarantee [under] pursuant to the provisions of sections 100.250 to 100.297, occupying the office of vice president or other office senior to the office of vice president, or a director, of any corporation seeking a guarantee [under] pursuant to the provisions of sections 100.250 to 100.297; provided, nothing contained in sections 100.250 to 100.297, nor the provisions of chapter 105, RSMo, shall prevent any corporation, bank, or trust company from purchasing, selling, or otherwise dealing in bonds or notes or mortgages guaranteed [under] pursuant to the provisions of sections 100.250 to 100.297.  The development and reserve fund may be pledged to secure loans made through a participating lender with which a member of the board is affiliated so long as the member does not participate in or attempt to influence the approval of any such loan.

2.  The board shall not knowingly extend or secure a loan or grant a tax credit to, or issue any bonds or enter into any other agreement with or on behalf of any business entity in which a board member, statewide elected official, state legislator or employee of this state has a substantial interest as defined in section 105.450, RSMo.

[3.  The board shall not knowingly extend or secure a loan or grant a tax credit to, or issue any bonds or enter into any other agreement with or on behalf of any business entity until each officer of the business entity has notified the board of all campaign contributions such officer has made within the previous two years which are reportable under the provisions of chapter 130, RSMo.  For the purposes of this section, "an officer" means a person who is employed by the business entity in a policy­making capacity.]

108.510.  1.  Prior to any issuance of any private activity bonds, all issuers, whether state or local, shall first make a request for an allocation by filing a signed application for each project with the director in the form prescribed by the director.  Such applications for allocations shall be considered by the director in accordance with the provisions of sections 108.500 to 108.532 and, in making such allocations, the director shall consider the economic development objectives of the state, including:

(1)  The mobility of the project for which the allocation is being sought, including the ability of the prospective beneficiary of the allocation to locate the project in a state other than Missouri;

(2)  The potential impact of the project upon existing businesses in the local market;

(3)  The type of project or financing for which the allocation is sought;

(4)  The number of persons, families or businesses which would benefit from the proposed project or financing.  The director may in his discretion, promulgate rules or regulations to be followed in considering such applications for allocations of the state ceiling.

2.  No rule or portion of a rule promulgated under the authority of sections 108.500 to 108.532 shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

3.  Other provisions of the law to the contrary notwithstanding, the allocation for private activity bonds beginning in 1996 and continuing until the year 2006, inclusive, shall include an annual allocation equal to or greater than fifty million dollars directed to a mortgage credit certificate program for all counties, except for any city not within a county, and county of the first classification with a charter form of government adjoining any city not within a county and any county of the first classification with a charter form of government which contains a portion of a city with a population of three hundred thousand or more, to be operated by a Missouri corporation organized under chapter 351, RSMo, and incorporated prior to May 1, 1996, and evidencing expertise drawn from any other presently existing mortgage credit certificate program.

135.100.  As used in sections 135.100 to 135.150 the following terms shall mean:

(1)  "Commencement of commercial operations" shall be deemed to occur during the first taxable year for which the new business facility is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue producing enterprise in which the taxpayer intends to use the new business facility;

(2)  "Existing business facility", any facility in this state which was employed by the taxpayer claiming the credit in the operation of a revenue producing enterprise immediately prior to an expansion, acquisition, addition, or replacement;

(3)  "Facility", any building used as a revenue producing enterprise located within the state, including the land on which the facility is located and all machinery, equipment and other real and depreciable tangible personal property acquired for use at and located at or within such facility and used in connection with the operation of such facility;

(4)  "New business facility", a facility which satisfies the following requirements:

(a)  Such facility is employed by the taxpayer in the operation of a revenue producing enterprise.  Such facility shall not be considered a new business facility in the hands of the taxpayer if the taxpayer's only activity with respect to such facility is to lease it to another person or persons.  If the taxpayer employs only a portion of such facility in the operation of a revenue producing enterprise, and leases another portion of such facility to another person or persons or does not otherwise use such other portions in the operation of a revenue producing enterprise, the portion employed by the taxpayer in the operation of a revenue producing enterprise shall be considered a new business facility, if the requirements of paragraphs (b), (c), (d) and (e) of this subdivision are satisfied;

(b)  Such facility is acquired by, or leased to, the taxpayer after December 31, 1983.  A facility shall be deemed to have been acquired by, or leased to, the taxpayer after December 31, 1983, if the transfer of title to the taxpayer, the transfer of possession pursuant to a binding contract to transfer title to the taxpayer, or the commencement of the term of the lease to the taxpayer occurs after December 31, 1983, or, if the facility is constructed, erected or installed by or on behalf of the taxpayer, such construction, erection or installation is commenced after December 31, 1983;

(c)  If such facility was acquired by the taxpayer from another person or persons and such facility was employed immediately prior to the transfer of title to such facility to the taxpayer, or to the commencement of the term of the lease of such facility to the taxpayer, by any other person or persons in the operation of a revenue producing enterprise, the operation of the same or a substantially similar revenue producing enterprise is not continued by the taxpayer at such facility;

(d)  Such facility is not a replacement business facility, as defined in subdivision (10) of this section; and

(e)  The new business facility investment exceeds one hundred thousand dollars during the tax period in which the credits are claimed;

(5)  "New business facility employee", a person employed by the taxpayer in the operation of a new business facility during the taxable year for which the credit allowed by section 135.110 is claimed, except that truck drivers and rail and barge vehicle operators shall not constitute new business facility employees.  A person shall be deemed to be so employed if such person performs duties in connection with the operation of the new business facility on:

(a)  A regular, full­time basis; or

(b)  A part­time basis, provided such person is customarily performing such duties an average of at least twenty hours per week; or

(c)  A seasonal basis, provided such person performs such duties for at least eighty percent of the season customary for the position in which such person is employed;

(6)  "New business facility income", the Missouri taxable income, as defined in chapter 143, RSMo, derived by the taxpayer from the operation of the new business facility.  For the purpose of apportionment as prescribed in this subdivision, the term "Missouri taxable income" means, in the case of insurance companies, direct premiums as defined in chapter 148, RSMo.  If a taxpayer has income derived from the operation of a new business facility as well as from other activities conducted within this state, the Missouri taxable income derived by the taxpayer from the operation of the new business facility shall be determined by multiplying the taxpayer's Missouri taxable income, computed in accordance with chapter 143, RSMo, or in the case of an insurance company, computed in accordance with chapter 148, RSMo, by a fraction, the numerator of which is the property factor, as defined in paragraph (a) of this subdivision, plus the payroll factor, as defined in paragraph (b) of this subdivision, and the denominator of which is two:

(a)  The property factor is a fraction, the numerator of which is the new business facility investment certified for the tax period, and the denominator of which is the average value of all the taxpayer's real and depreciable tangible personal property owned or rented and used in this state during the tax period.  The average value of all such property shall be determined as provided in chapter 32, RSMo;

(b)  The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the taxpayer for compensation to persons qualifying as new business facility employees, as determined by subsection 4 of section 135.110, at the new business facility, and the denominator of which is the total amount paid in this state during the tax period by the taxpayer for compensation.  The compensation paid in this state shall be determined as provided in chapter 32, RSMo.  For the purpose of this subdivision, "other activities conducted within this state" shall include activities previously conducted at the expanded, acquired or replaced facility at any time during the tax period immediately prior to the tax period in which commencement of commercial operations occurred;

(7)  "New business facility investment", the value of real and depreciable tangible personal property, acquired by the taxpayer as part of the new business facility, which is used by the taxpayer in the operation of the new business facility, during the taxable year for which the credit allowed by section 135.110 is claimed, except that trucks, truck­trailers, truck semitrailers, rail and barge vehicles and other rolling stock for hire, track, switches, barges, bridges, tunnels and rail yards and spurs shall not constitute new business facility investments.  The total value of such property during such taxable year shall be:

(a)  Its original cost if owned by the taxpayer; or

(b)  Eight times the net annual rental rate, if leased by the taxpayer.  The net annual rental rate shall be the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.  The new business facility investment shall be determined by dividing by twelve the sum of the total value of such property on the last business day of each calendar month of the taxable year.  If the new business facility is in operation for less than an entire taxable year, the new business facility investment shall be determined by dividing the sum of the total value of such property on the last business day of each full calendar month during the portion of such taxable year during which the new business facility was in operation by the number of full calendar months during such period;

(8)  "Office", a regional, national or international headquarters, a telemarketing operation, a computer operation, an insurance company, a passenger transportation ticket/reservation system or a credit card billing and processing center.  For the purposes of this subdivision, "headquarters" means the administrative management of at least four integrated facilities operated by the taxpayer or related taxpayer.  An office, as defined in this subdivision, when established must create and maintain positions for a minimum number of twenty­five new business facility employees as defined in subdivision (5) of this section;

(9)  "Related taxpayer" shall mean:

(a)  A corporation, partnership, trust or association controlled by the taxpayer;

(b)  An individual, corporation, partnership, trust or association in control of the taxpayer; or

(c)  A corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association in control of the taxpayer.  For the purposes of sections 135.100 to 135.150, "control of a corporation" shall mean ownership, directly or indirectly, of stock possessing at least fifty percent of the total combined voting power of all classes of stock entitled to vote; "control of a partnership or association" shall mean ownership of at least fifty percent of the capital or profits interest in such partnership or association; and "control of a trust" shall mean ownership, directly or indirectly, of at least fifty percent of the beneficial interest in the principal or income of such trust; ownership shall be determined as provided in section 318 of the U.S. Internal Revenue Code;

(10)  "Replacement business facility", a facility otherwise described in subdivision (4) of this section, hereafter referred to in this subdivision as "new facility", which replaces another facility, hereafter referred to in this subdivision as "old facility", located within the state, which the taxpayer or a related taxpayer previously operated but discontinued operating on or before the close of the first taxable year in which the credit allowed by this section is claimed.  A new facility shall be deemed to replace an old facility if the following conditions are met:

(a)  The old facility was operated by the taxpayer or a related taxpayer during the taxpayer's or related taxpayer's taxable period immediately preceding the taxable year in which commencement of commercial operations occurs at the new facility; and

(b)  The old facility was employed by the taxpayer or a related taxpayer in the operation of a revenue producing enterprise and the taxpayer continues the operation of the same or substantially similar revenue producing enterprise at the new facility. Notwithstanding the preceding provisions of this subdivision, a facility shall not be considered a replacement business facility if the taxpayer's new business facility investment, as computed in subsection 5 of section 135.110, in the new facility during the tax period in which the credits allowed in sections 135.110, 135.225 and 135.235 and the exemption allowed in section 135.220 are claimed exceed one million dollars or, if less, two hundred percent of the investment in the old facility by the taxpayer or related taxpayer, and if the total number of employees at the new facility exceeds the total number of employees at the old facility by at least two except that the total number of employees at the new facility exceeds the total number of employees at the old facility by at least twenty­five if an office as defined in subdivision (8) of this section is established by a revenue producing enterprise other than a revenue producing enterprise defined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) of this section;

(11)  "Revenue producing enterprise" means:

(a)  Manufacturing activities classified as SICs 20 through 39;

(b)  Agricultural activities classified as SIC 025;

(c)  Rail transportation terminal activities classified as SIC 4013;

(d)  Motor freight transportation terminal activities classified as SIC 4231;

(e)  Public warehousing and storage activities classified as SICs 422 and 423 except SIC 4221, miniwarehouse warehousing and warehousing self­storage;

(f)  Water transportation terminal activities classified as SIC 4491;

(g)  Wholesale trade activities classified as SICs 50 and 51;

(h)  Insurance carriers activities classified as SICs 631, 632 and 633;

(i)  Research and development activities classified as SIC 873, except 8733;

(j)  Farm implement dealer activities classified as SIC 5999;

(k)  Interexchange telecommunications services as defined in subdivision (20) of section 386.020, RSMo, or training activities conducted by an interexchange telecommunications company as defined in subdivision (19) of section 386.020, RSMo;

(l)  Recycling activities classified as SIC 5093;

(m)  Office activities as defined in subdivision (8) of this section, notwithstanding SIC classification;

(n)  Mining activities classified as SICs 10 through 14;

(o)  The administrative management of any of the foregoing activities; or

(p)  Any combination of any of the foregoing activities;

(12)  "Same or substantially similar revenue producing enterprise", a revenue producing enterprise in which the nature of the products produced or sold, or activities conducted, are similar in character and use or are produced, sold, performed or conducted in the same or similar manner as in another revenue producing enterprise;

(13)  "SIC", the standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the Executive Office of the President, Office of Management and Budget;

(14)  "Taxpayer", an individual proprietorship, corporation described in section 143.441 or 143.471, RSMo, and partnership or an insurance company subject to the tax imposed by chapter 148, RSMo, or to any obligation imposed pursuant to section 375.916, RSMo.

135.110.  1.  Any taxpayer who shall establish a new business facility shall be allowed a credit, each year for ten years, in an amount determined under subsection 2 or 3 of this section, whichever is applicable, against the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or an insurance company which shall establish a new business facility by satisfying the requirements in subdivision (8) of section 135.100 shall be allowed a credit against the tax otherwise imposed by chapter 148, RSMo, and against any obligation imposed pursuant to section 375.916, RSMo, except that no taxpayer shall be entitled to multiple ten­year periods for subsequent expansions at the same facility, except as otherwise provided in this section.  For the purpose of this section, the term "facility" shall mean, and be limited to, the facility or facilities which are located on the same site in which the new business facility is located, and in which the business conducted at such facility or facilities is directly related to the business conducted at the new business facility. Notwithstanding the provisions of this subsection, a taxpayer may be entitled to an additional ten­year period if a new business facility is expanded in the eighth, ninth or tenth year of the current ten­year period or in subsequent years following the expiration of the ten­year period, if the number of new business facility employees attributed to such expansion is at least twenty­five and the amount of new business facility investment attributed to such expansion is at least one million dollars.  Credits may not be carried forward but shall be claimed for the taxable year during which commencement of commercial operations occurs at such new business facility, and for each of the nine succeeding taxable years.  The initial application for claiming tax credits must be made in the taxpayer's tax period immediately following the tax period in which commencement of commercial operations began at the new business facility.  This provision shall have effect on all initial applications filed on or after August 28, 1992.  No credit shall be allowed under this section unless the number of new business facility employees engaged or maintained in employment at the new business facility for the taxable year for which the credit is claimed equals or exceeds two; except that the number of new business facility employees engaged or maintained in employment by a revenue producing enterprise other than a revenue producing enterprise defined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) of section 135.100 which establishes an office as defined in subdivision (8) of section 135.100 shall equal or exceed twenty­five.

2.  For tax periods beginning after August 28, 1991, in the case of a taxpayer operating an existing business facility, the credit allowed by subsection 1 of this section shall offset the greater of:

(1)  Some portion of the income tax otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or in the case of an insurance company, the tax on the direct premiums, as defined in chapter 148, RSMo, [on] and any obligation imposed pursuant to section 375.916, RSMo, with respect to such taxpayer's new business facility income for the taxable year for which such credit is allowed; or

(2)  Up to fifty percent of the business income tax otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or in the case of an insurance company, the tax on the direct premiums, as defined in chapter 148, RSMo, and any obligation imposed pursuant to section 375.916, RSMo, if the business operates no other facilities in Missouri.  In the case of an existing business facility operating more than one facility in Missouri, the credit allowed in subsection 1 of this section shall offset up to the greater of the portion prescribed in subdivision (1) of this subsection or twenty­five percent of the business' tax, except that no taxpayer operating more than one facility in Missouri shall be allowed to offset more than twenty­five percent of the taxpayer's business income tax in any tax period under the method prescribed in this subdivision.  Such credit shall be an amount equal to the sum of one hundred dollars for each new business facility employee plus one hundred dollars for each one hundred thousand dollars, or major fraction thereof (which shall be deemed to be fifty­one percent or more) in new business facility investment.  For the purpose of this section, tax credits earned by a taxpayer, who establishes a new business facility because it satisfies the requirements of paragraph (c) of subdivision (4) of section 135.100, shall offset the greater of the portion prescribed in subdivision (1) of this subsection or up to fifty percent of the business' tax provided the business operates no other facilities in Missouri.  In the case of a business operating more than one facility in Missouri, the credit allowed in subsection 1 of this section shall offset up to the greater of the portion prescribed in subdivision (1) of this subsection or twenty­five percent of the business' tax, except that no taxpayer operating more than one facility in Missouri shall be allowed to offset more than twenty­five percent of the taxpayer's business income tax in any tax period under the method prescribed in this subdivision.

3.  For tax periods beginning after August 28, 1991, in the case of a taxpayer not operating an existing business facility, the credit allowed by subsection 1 of this section shall offset the greater of:

(1)  Some portion of the income tax otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or in the case of an insurance company, the tax on the direct premiums, as defined in chapter 148, RSMo, [on] and any obligation imposed pursuant to section 375.916, RSMo, with respect to such taxpayer's new business facility income for the taxable year for which such credit is allowed; or

(2)  Up to one hundred percent of the business income tax otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or in the case of an insurance company, the tax on the direct premiums, as defined in chapter 148, RSMo, and any obligation imposed pursuant to section 375.916, RSMo, if the business has no other facilities operating in Missouri.  In the case of a taxpayer not operating an existing business and operating more than one facility in Missouri, the credit allowed by subsection 1 of this section shall offset up to the greater of the portion prescribed in subdivision (1) of this subsection or twenty­five percent of the business' tax, except that no taxpayer operating more than one facility in Missouri shall be allowed to offset more than twenty­five percent of the taxpayer's business income tax in any tax period under the method prescribed in this subdivision.  Such credit shall be an amount equal to the sum of seventy­five dollars for each new business facility employee plus seventy­five dollars for each one hundred thousand dollars, or major fraction thereof (which shall be deemed to be fifty­one percent or more) in new business facility investment.

4.  The number of new business facility employees during any taxable year shall be determined by dividing by twelve the sum of the number of individuals employed on the last business day of each month of such taxable year.  If the new business facility is in operation for less than the entire taxable year, the number of new business facility employees shall be determined by dividing the sum of the number of individuals employed on the last business day of each full calendar month during the portion of such taxable year during which the new business facility was in operation by the number of full calendar months during such period.  For the purpose of computing the credit allowed by this section in the case of a facility which qualifies as a new business facility because it qualifies as a separate facility under subsection 6 of this section, and, in the case of a new business facility which satisfies the requirements of paragraph (c) of subdivision (4) of section 135.100, or subdivision (10) of section 135.100, the number of new business facility employees at such facility shall be reduced by the average number of individuals employed, computed as provided in this subsection, at the facility during the taxable year immediately preceding the taxable year in which such expansion, acquisition, or replacement occurred and shall further be reduced by the number of individuals employed by the taxpayer or related taxpayer that was subsequently transferred to the new business facility from another Missouri facility and for which credits authorized in this section are not being earned, whether such credits are earned because of an expansion, acquisition, relocation or the establishment of a new facility.

5.  For the purpose of computing the credit allowed by this section in the case of a facility which qualifies as a new business facility because it qualifies as a separate facility under subsection 6 of this section, and, in the case of a new business facility which satisfies the requirements of paragraph (c) of subdivision (4) of section 135.100 or subdivision (10) of section 135.100, the amount of the taxpayer's new business facility investment in such facility shall be reduced by the average amount, computed as provided in subdivision (7) of section 135.100 for new business facility investment, of the investment of the taxpayer, or related taxpayer immediately preceding such expansion or replacement or at the time of acquisition.  Furthermore, the amount of the taxpayer's new business facility investment shall also be reduced by the amount of investment employed by the taxpayer or related taxpayer which was subsequently transferred to the new business facility from another Missouri facility and for which credits authorized in this section are not being earned, whether such credits are earned because of an expansion, acquisition, relocation or the establishment of a new facility.

6.  If a facility, which does not constitute a new business facility, is expanded by the taxpayer, the expansion shall be considered a separate facility eligible for the credit allowed by this section if:

(1)  The taxpayer's new business facility investment in the expansion during the tax period in which the credits allowed in this section are claimed exceeds one hundred thousand dollars, or, if less, one hundred percent of the investment in the original facility prior to expansion and if the number of new business facility employees engaged or maintained in employment at the expansion facility for the taxable year for which credit is claimed equals or exceeds two, except that the number of new business facility employees engaged or maintained in employment at the expansion facility for the taxable year for which the credit is claimed equals or exceeds twenty­five if an office as defined in subdivision (8) of section 135.100 is established by a revenue producing enterprise other than a revenue producing enterprise defined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) of section 135.100 and the total number of employees at the facility after the expansion is at least two greater than the total number of employees before the expansion, except that the total number of employees at the facility after the expansion is at least greater than the number of employees before the expansion by twenty­five, if an office as defined in subdivision (8) of section 135.100 is established by a revenue producing enterprise other than a revenue producing enterprise defined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) of section 135.100; and

(2)  The expansion otherwise constitutes a new business facility.  The taxpayer's investment in the expansion and in the original facility prior to expansion shall be determined in the manner provided in subdivision (7) of section 135.100.

7.  No credit shall be allowed under this section to a public utility, as such term is defined in section 386.020, RSMo.  Notwithstanding any provision of this subsection to the contrary, motor carriers, barge lines or railroads engaged in transporting property for hire, or any interexchange telecommunications company that establishes a new business facility shall be eligible to qualify for credits allowed in this section.

8.  For the purposes of the credit described in this section, in the case of a corporation described in section 143.471, RSMo, or partnership, in computing Missouri's tax liability, this credit shall be allowed to the following:

(1)  The shareholders of the corporation described in section 143.471, RSMo;

(2)  The partners of the partnership.  This credit shall be apportioned to the entities described in subdivisions (1) and (2) of this subsection in proportion to their share of ownership on the last day of the taxpayer's tax period.

9.  Notwithstanding any provision of law to the contrary, any employee­owned engineering firm classified as SIC 8711, architectural firm as classified SIC 8712, or accounting firm classified SIC 8721 establishing a new business facility because it qualifies as a headquarters as defined in subsection 10 of this section, shall be allowed the credits described in subsection 11 of this section under the same terms and conditions prescribed in sections 135.100 to 135.150; provided:

(1)  Such facility maintains an average of at least five hundred new business facility employees as defined in subdivision (5) of section 135.100 during the taxpayer's tax period in which such credits are being claimed; and

(2)  Such facility maintains an average of at least twenty million dollars in new business facility investment as defined in subdivision (7) of section 135.100 during the taxpayer's tax period in which such credits are being claimed.

10.  For the purpose of the credits allowed in subsection 9 of this section:

(1)  "Employee­owned" means the business employees own directly or indirectly, including through an employee stock ownership plan or trust at least:

(a)  Seventy­five percent of the total business stock, if the taxpayer is a corporation described in section 143.441, RSMo; or

(b)  One hundred percent of the interest in the business if the taxpayer is a corporation described in section 143.471, RSMo, a partnership, or a limited liability company; and

(2)  "Headquarters" means:

(a)  The administrative management of at least three integrated facilities operated by the taxpayer or related taxpayer; and

(b)  The taxpayer's business has been headquartered in this state for more than fifty years.

11.  The tax credits allowed in subsection 9 of this section shall be the greater of:

(1)  Four hundred dollars for each new business facility employee as computed in subsection 4 of this section and four percent of new business facility investment as computed in subsection 5 of this section; or

(2)  Five hundred dollars for each new business facility employee as computed in subsection 4 of this section, and five hundred dollars of each one hundred thousand dollars of new business facility investment as computed in subsection 5 of this section.

12.  For the purpose of the credit described in subsection 9 of this section, in the case of a small corporation described in section 143.471, RSMo, or a partnership, or a limited liability company, the credits allowed in subsection 9 of this section shall be apportioned in proportion to the share of ownership of each shareholder, partner or stockholder on the last day of the taxpayer's tax period for which such credits are being claimed.

13.  Tax credits earned, to the extent such credits exceed the taxpayer's Missouri tax on taxable business income, shall constitute an overpayment of taxes and in such case, be refunded to the taxpayer provided such refunds are used by the taxpayer to purchase specified facility items.  For the purpose of the refund as authorized in this subsection, "specified facility items" means equipment, computers, computer software, copiers, tenant finishing, furniture and fixtures installed and in use at the new business facility during the taxpayer's taxable year.  The taxpayer shall perfect such refund by attesting in writing to the director, subject to the penalties of perjury, the requirements prescribed in this subsection have been met and submitting any other information the director may require.

14.  Notwithstanding any provision of law to the contrary, any taxpayer may sell, assign, exchange, convey or otherwise transfer tax credits allowed in subsection 9 of this section under the terms and conditions prescribed in subdivisions (1) and (2) of this subsection.  Such taxpayer, referred to as the assignor for the purpose of this subsection, may sell, assign, exchange or otherwise transfer earned tax credits:

(1)  For no less than seventy­five percent of the par value of such credits; and

(2)  In an amount not to exceed one hundred percent of such earned credits.  The taxpayer acquiring the earned credits referred to as the assignee for the purpose of this subsection may use the acquired credits to offset up to one hundred percent of the tax liabilities otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, or chapter 148, RSMo, or any obligations imposed pursuant to section 375.916, RSMo.  Unused credits in the hands of the assignee may be carried forward for up to five tax periods, provided all such credits shall be claimed within ten tax periods following the tax period in which commencement of commercial operations occurred at the new business facility.  The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the director in writing within thirty calendar days following the effective date of the transfer and shall provide any information as may be required by the director to administer and carry out the provisions of this subsection.  Notwithstanding any other provision of law to the contrary, the amount received by the assignor of such tax credit shall be taxable as income of the assignor, and the difference between the amount paid by the assignee and the par value of the credits shall be taxable as income of the assignee.

135.207.  1.  (1)  Any city with a population [in excess of four hundred thousand inhabitants which is partially contained within a county of the first class with a charter form of government] of at least three hundred fifty thousand inhabitants which is located in more than one county and any city not within a county, which includes an existing state designated enterprise zone within the corporate limits of the city may each, upon approval of the local governing authority of the city and the director of the department of economic development, designate up to three satellite zones within its corporate limits[, except that any city not within a county may have only two satellite enterprise zones designated under this section].  A prerequisite for the designation of a satellite zone shall be the approval by the director of a plan submitted by the local governing authority of the city describing how the satellite zone corresponds to the city's overall enterprise zone strategy.

(2)  Any Missouri community classified as a village whose borders lie adjacent to a city with a population in excess of [four hundred] three hundred fifty thousand inhabitants as described in subdivision (1) of this subsection, and which has within the corporate limits of the village a factory, mining operation, office, mill, plant or warehouse which has at least three thousand employees and has an investment in plant, machinery and equipment of at least two hundred million dollars may, upon securing approval of the director and the local governing authorities of the village and the adjacent city which contains an existing state designated enterprise zone, designate one satellite zone to be located within the corporate limits of the village, such zone to be in addition to the [three] six authorized in subdivision (1) of this subsection.

(3)  Any geographical area partially contained within any city not within a county and partially contained within any county of the first classification with a charter form of government with a population of nine hundred thousand or more inhabitants, which area is comprised of a total population of at least thirty­two thousand inhabitants but not more than thirty­eight thousand inhabitants, and which area consists of at least one fourth class city, and has within its boundaries a military reserve facility and a utility pumping station having a capacity of ten million cubic feet, may, upon securing approval of the director and the appropriate local governing authorities as provided for in section 135.210, be designated as a satellite zone, such zone to be in addition to the [three] six authorized in subdivision (1) of this subsection.

2.  For satellite zones designated [under] pursuant to the provisions of [subdivision] subdivisions (1) and (3) of [this] subsection 1 of this section, the satellite zones, in conjunction with the existing state designated enterprise zone shall meet the following criteria:

(1)  The area is one of pervasive poverty, unemployment, and general distress, or one in which a large number of jobs have been lost, a large number of employers have closed, or in which a large percentage of available production capacity is idle.  For the purpose of this subdivision, "large number of jobs" means one percent or more of the area's population according to the most recent decennial census, and "large number of employers" means over five;

(2)  [The area is located wholly within an area which meets the requirements for federal assistance under section 119 of the Housing and Community Development Act of 1974, as amended;

(3)]  At least fifty percent of the residents living in the area have incomes below eighty percent of the median income of all residents within the state of Missouri according to the last decennial census or other appropriate source as approved by the director;

[(4)]  (3)  The resident population of the existing state designated enterprise zone and its satellite zones must be at least four thousand but not more than [thirty­nine] fifty-nine thousand at the time of designation except that the population requirement prescribed in this subdivision shall not apply to satellite zones designated pursuant to subdivision (3) of subsection 1 of this section;

[(5)]  (4)  The level of unemployment of persons, according to the most recent data available from the division of employment security or from the United States Bureau of Census and approved by the director, within the area exceeds one and one­half times the average rate of unemployment for the state of Missouri over the previous twelve months, or the percentage of area residents employed on a full­time basis is less than sixty percent of the statewide percentage of residents employed on a full­time basis.

3.  A qualified business located within a satellite zone shall be subject to the same eligibility criteria and can be eligible to receive the same benefits as a qualified facility in sections 135.200 to 135.255.

[4.  Other provisions of the law notwithstanding, communities which have not located an enterprise zone in or near their community may apply for an enterprise zone designation provided application is made to the department of economic development by January 1, 1990.]

135.225.  1.  The credits otherwise provided by sections 135.100 to 135.150 shall be available to any taxpayer who shall establish and operate a new business facility located within an enterprise zone, except one designated pursuant to subsection 5 of section 135.230, on the same terms and conditions specified in those sections, except that:

(1)  The credit otherwise allowed for each new business facility employee employed within an enterprise zone shall be four hundred dollars;

(2)  An additional credit of four hundred dollars shall be granted for each twelve­month period that a new business facility employee is a resident of the enterprise zone;

(3)  An additional credit of four hundred dollars shall be granted for each twelve­month period that the person employed as a new business facility employee is a person who, at the time of such employment by the new business facility, met the criteria as set forth in section 135.240;

(4)  The credit otherwise allowed for new business facility investment shall be equal to the sum of ten percent of the first ten thousand dollars of such qualifying investment, plus five percent of the next ninety thousand dollars of such qualifying investment, plus two percent of all remaining qualifying investments within an enterprise zone;

(5)  In the case of a small corporation described in section 143.471, RSMo, or a partnership, the credits granted by this section shall be apportioned in proportion to the share of ownership of the taxpayer on the last day of the taxpayer's tax period for which such tax credits are being claimed, to the following:

(a)  The shareholders of a small corporation described in section 143.471, RSMo;

(b)  The partners in a partnership;

(6)  In the case of financial institutions described under the provisions of chapter 148, RSMo, the credits allowed in subdivisions (1), (2), (3) and (4) of this subsection and the credit allowed in section 135.235 may be used to offset the tax imposed by chapter 148, RSMo, and, in the case of an insurance company exempt from the thirty percent employee requirement of section 135.230, and obligations imposed pursuant to section 375.916, RSMo, subject to the same method of apportionment as prescribed for taxes imposed by chapter 143, RSMo, and as provided in subdivision (6) of section 135.100 and subsections 2 and 3 of section 135.110;

(7)  If a facility within an enterprise zone, which does not constitute a new business facility, is expanded or improved by the taxpayer within the enterprise zone, the expansion or improvement shall be considered a separate facility eligible for the credits allowed in this section and section 135.235, and the exemption allowed in section 135.220, if:

(a)  The new business facility investment in the expansion or improvement during the tax period in which such credits and the exemption are claimed exceeds one hundred thousand dollars or, if less than one hundred thousand dollars, is twenty­five percent of the investment in the original facility prior to expansion or improvement; and

(b)  The expansion or improvement otherwise constitutes a new business facility; and

(c)  The number of new business facility employees engaged or maintained in employment at the expanded or improved facility for the taxable year for which the credit is claimed equals or exceeds two and the total number of employees at the facility after expansion or improvement is at least two greater than the total number of employees before expansion or improvement.  The taxpayer's investment in the expansion or improvement and in the original facility prior to expansion or improvement shall be determined in the manner provided in subdivision (7) of section 135.100;

(8)  For the purpose of sections 135.200 to 135.256, an office as defined in subdivision (8) of section 135.100, when established, must create and maintain at least two new business facility employees as defined in subdivision (5) of section 135.100;

(9)  In the case where a person employed by the new business facility is a resident of the enterprise zone for less than a twelve­month period, or in the case where a person employed as a new business facility employee is a person who, at the time of such employment by the new business facility, met the criteria as set forth in section 135.240, is employed for less than a twelve­month period, the credits allowed by subdivisions (2) and (3) of this subsection shall be determined by multiplying four hundred dollars by a fraction, the numerator of which is the number of calendar days during the taxpayer's tax year for which such credits are claimed, in which the person met the requirements prescribed in subdivision (2) or (3) of this subsection, and the denominator of which is three hundred and sixty­five, except that such credit shall not exceed four hundred dollars per employee in any one taxable year;

(10)  The deferment of tax credit authorized in section 135.120 shall not be available to taxpayers establishing a new business facility in an enterprise zone;

(11)  The allowance for additional ten­year periods to certain new business facilities as prescribed in subsection 1 of section 135.110 shall not be available to taxpayers expanding a new business facility in an enterprise zone;

(12)  Taxpayers who establish a new business facility by operating a revenue producing enterprise as defined in paragraph (d) of subdivision (6) of section 135.200 shall not be required to create and maintain new business facility employees.

2.  The tax credits described in subdivisions (1), (2), (3) and (4) of subsection 1 of this section, the training credit allowed in section 135.235, and the income exemption allowed in section 135.220, shall be allowed to any taxpayer, under the same terms and conditions specified in such sections, who establishes a new business facility in an enterprise zone designated pursuant to subsection 5 of section 135.230, except that all such tax benefits shall be removed not later than seven years after the enterprise zone is designated as such.

3.  Notwithstanding any provision of law to the contrary, any taxpayer who establishes a new business facility in an enterprise zone, may elect to forfeit the tax credits otherwise allowed in section 135.235 and this section and the exemptions otherwise allowed in sections 135.215 and 135.220 and the refund otherwise allowed in section 135.245, and in lieu thereof, claim the tax credits allowed in section 135.110, under the same terms and conditions prescribed in sections 135.100 to 135.150.  To perfect the election, the taxpayer shall attach written notification of such election to the taxpayer's initial application for claiming tax credits.  The election shall be irreversible once perfected.

135.230.  1.  The exemption or credit established and allowed by section 135.220 and the credits allowed and established by subdivisions (1), (2), (3) and (4) of subsection 1 of section 135.225 shall be granted with respect to any new business facility located within an enterprise zone for a period not to exceed ten years following the date upon which the new business facility commences operation within the enterprise zone, provided that all such credits allowed in sections 135.225 and 135.235 and the exemption allowed in section 135.220 shall be removed not later than fifteen years after the enterprise zone is designated as such.  No credits shall be allowed [under] pursuant to subdivision (1), (2), (3) or (4) of subsection 1 of section 135.225 or section 135.235 and no exemption shall be allowed under section 135.220 unless the number of new business facility employees engaged or maintained in employment at the new business facility for the taxable year for which the credit is claimed equals or exceeds two or the new business facility is a revenue producing enterprise as defined in paragraph (d) of subdivision (6) of section 135.200.  In order to qualify for either the exemption pursuant to section 135.220 or the credit pursuant to subdivision (4) of subsection 1 of section 135.225, or both, it shall be required that at least thirty percent of new business facility employees, as determined by subsection 4 of section 135.110, meet the criteria established in section 135.240 or are residents of the enterprise zone or some combination thereof, except taxpayers who establish a new business facility by operating a revenue producing enterprise as defined in paragraph (d) of subdivision (6) of section 135.200 or any taxpayer that is an insurance company that established a new business facility satisfying the requirements of subdivision (8) of section 135.100 located within an enterprise zone after June 30, 1993, and before December 31, 1994, and that employs in excess of three hundred fifty new business facility employees at such facility each tax period for which the credits allowable pursuant to subdivisions (1) to (4) of subsection 1 of section 135.225 are claimed shall not be required to meet such requirement.  For the purpose of satisfying the thirty percent requirement, residents must have lived in the enterprise zone for a period of at least one full calendar month and must have been employed at the new business facility for at least one full calendar month, and persons qualifying because they meet the requirements of section 135.240 must have satisfied such requirement at the time they were employed by the new business facility and must have been employed at the new business facility for at least one full calendar month.  In addition, the taxpayer shall certify to the director that the taxpayer fulfills the requirements of this section each tax period such benefits are being claimed.  The director may temporarily reduce or waive this requirement for any business in an enterprise zone with ten or less full­time employees, and for businesses with eleven to twenty full­time employees this requirement may be temporarily reduced.  No reduction or waiver may be granted for more than one tax period and shall not be renewable.  The exemptions allowed in sections 135.215 and 135.220 and the credits allowed in sections 135.225 and 135.235 and the refund established and authorized in section 135.245 shall not be allowed to any "public utility", as such term is defined in section 386.020, RSMo.

2.  Notwithstanding the provisions of subsection 1 of this section, motor carriers, barge lines or railroads engaged in transporting property for hire or any interexchange telecommunications company that establish a new business facility shall be eligible to qualify for the exemptions allowed in sections 135.215 and 135.220, and the credits allowed in sections 135.225 and 135.235 and the refund established and authorized in section 135.245, except that trucks, truck­trailers, truck semitrailers, rail or barge vehicles or other rolling stock for hire, track, switches, bridges, barges, tunnels, rail yards and spurs shall not constitute new business facility investment nor shall truck drivers or rail or barge vehicle operators constitute new business facility employees.

3.  Notwithstanding any other provision of sections 135.200 to 135.256 to the contrary, motor carriers establishing a new business facility on or after January 1, 1993, but before January 1, 1995, may qualify for the tax credits available pursuant to sections 135.225 and 135.235 and the exemption provided in section 135.220, even if such new business facility has not satisfied the employee criteria, provided that such taxpayer employs an average of at least two hundred persons at such facility, exclusive of truck drivers and provided that such taxpayer maintains an average investment of at least ten million at such facility, exclusive of rolling stock, during the tax period for which such credits and exemption are being claimed.

4.  Any governing authority having jurisdiction of an area that has been designated an enterprise zone may petition the department to expand the boundaries of such existing enterprise zone.  The director may approve such expansion if the director finds that:

(1)  The area to be expanded meets the requirements prescribed in section 135.207 or 135.210, whichever is applicable;

(2)  The area to be expanded is contiguous to the existing enterprise zone;

(3)  The number of expansions do not exceed three after August 28, 1994.

5.  Notwithstanding the fifteen­year limitation as prescribed in subsection 1 of this section, any governing authority having jurisdiction of an area that has been designated as an enterprise zone by the director, except one designated pursuant to this subsection, may file a petition, as prescribed by the director, for redesignation of such area for an additional period not to exceed seven years following the fifteenth anniversary of the enterprise zone's initial designation date; provided:

(1)  The petition is filed with the director within three years prior to the date the tax credits authorized in sections 135.225 and 135.235 and the exemption allowed in section 135.220 are required to be removed pursuant to subsection 1 of this section;

(2)  The governing authority identifies and conforms the boundaries of the area to be designated a new enterprise zone to the political boundaries established by the latest decennial census, unless otherwise approved by the director;

(3)  The area satisfies the requirements prescribed in subdivisions (3), (4) and (5) of section 135.205 according to the latest decennial census or other appropriate source as approved by the director;

(4)  The governing authority satisfies the requirements prescribed in sections 135.210, 135.215 and 135.255;

(5)  The director finds that the area is unlikely to support reasonable tax assessment or to experience reasonable economic growth without such designation; and

(6)  The director's recommendation that the area be designated as an enterprise zone, is approved by the joint committee on economic development policy and planning, as otherwise required in subsection 3 of section 135.210.

6.  Any taxpayer having established a new business facility in an enterprise zone except one designated pursuant to subsection 5 of this section, who did not earn the tax credits authorized in sections 135.225 and 135.235 and the exemption allowed in section 135.220 for the full ten­year period because of the fifteen­year limitation as prescribed in subsection 1 of section 135.230, shall be eligible to earn such benefits for ten tax years, less the number of tax years the benefits were claimed or could have been claimed prior to the expiration of the original fifteen­ year period, except that such tax benefits shall not be earned for more than [five] seven tax periods during the ensuing [five­year] seven-year period, provided the taxpayer continues to operate the new business facility in an area that is designated an enterprise zone pursuant to subsection 5 of this section.  Any taxpayer who establishes a new business facility subsequent to the commencement of the ensuing [five­year] seven-year period, as authorized in subsection 5 of this section, may qualify for the tax credits authorized in sections 135.225 and 135.235, and the exemptions authorized in sections 135.215 and 135.220, under the same terms and conditions as prescribed in sections 135.100 to 135.256.  The designation of any enterprise zone pursuant to subsection 5 of this section shall not be subject to the fifty enterprise zone limitation imposed in subsection 4 of section 135.210.

135.245.  1.  Notwithstanding any other provision of Missouri law, some portion of the tax credits earned by a newly established new business facility within an enterprise zone through the provisions of sections 135.200 to 135.256, except one designated pursuant to subsection 5 of section 135.230, which exceeds its total income tax liability shall be considered an overpayment of the income tax and shall be refunded to the taxpayer as provided by this section, except that such refund shall only apply to taxpayers subject to the tax imposed [under] pursuant to chapter 143, RSMo.  The refund allowed by this section shall be limited to taxpayers who establish new facilities in enterprise zones.  The refund shall not be allowed to a taxpayer who establishes a new business facility because it qualifies as a separate facility [under] pursuant to subsection 6 of section 135.110 or subdivision (7) of subsection 1 of section 135.225 or because it satisfies the requirements of paragraph (c) of subdivision (4) of section 135.100 or subdivision (10) of section 135.100.  The provisions of this section shall have effect on all initial applications filed on or after August 28, 1992.  The provisions of this section shall only be available to a taxpayer for the first two consecutive years during which the taxpayer is eligible for the credits provided by sections 135.200 to 135.256, and the portion of tax credit which is considered an overpayment of the income tax shall be limited to fifty percent or fifty thousand dollars, whichever is less, in the first year and twenty­five percent or twenty­five thousand dollars, whichever is less, in the second year in which the taxpayer is eligible.  The overpayment of the income tax for the first year shall not be refunded to the taxpayer until the third taxable year of operation by the new business facility and the overpayment of the income tax for the second year shall not be refunded to the taxpayer until the fourth taxable year of operation by the new business facility.

2.  The portion of tax credit which is considered an overpayment of the income tax by any taxpayer who establishes a new business facility in an enterprise zone designated pursuant to subsection 5 of section 135.230 shall be limited to twenty­five percent or twenty­five thousand dollars, whichever is less, in the first year of the ensuing [five­year] seven-year period.  Such overpayment of tax shall not be refunded to the taxpayer until the third taxable year of operation by the new business facility.

3.  Such refunds to the taxpayer shall be made as otherwise provided by law.  In the case of a small corporation described in section 143.471, RSMo, or a partnership, all refunds allowed by this section shall be apportioned in proportion to the share of ownership of the business on the last day of the taxpayer's tax period for which such tax credits are being claimed, to the following:

(1)  The shareholders of the corporation described in section 143.471, RSMo; or

(2)  The partners in a partnership.

135.247.  1.  Notwithstanding the provisions of sections 135.205, 135.207, and 135.210 or any other provisions to the contrary, any area having been designated by the United States Department of Housing and Urban Development as a federal empowerment zone or by the United States Department of Agriculture as an enterprise community pursuant to the federal Omnibus Budget Reconciliation Act of 1993, title XIII, chapter I, subchapter c, shall immediately upon such federal designation become and remain a state enterprise zone until the expiration of such federal designation.

2.  The credits otherwise provided by sections 135.225 and 135.235, the exemption provided by section 135.220, and the refund provided by section 135.245 shall be available to any taxpayer who establishes and operates a new business facility located within a federal empowerment zone or enterprise community on the same terms and conditions specified in sections 135.100 to 135.256.  The exemption provided in section 135.215 shall be available to any taxpayer who makes improvements to real property after the date the area is designated as a federal empowerment zone or enterprise community under the same terms and conditions specified in section 135.215.

3.  Notwithstanding any provision of law to the contrary, retail businesses, as defined by SICs 52 through 59, and historical hotels and motels, as defined by SIC 7011, shall be eligible for all benefits provided [under] pursuant to the provisions of sections 135.200 to 135.256, if:

(1)  Such retail business is located within a state­designated enterprise zone [located wholly or partially within a federal empowerment zone or enterprise community]; [or]

(2)  Such retail business is located within a satellite enterprise zone, established pursuant to subdivision (1) or (3) of subsection 1 of section 135.207, whether or not such satellite zone is contained within a federal empowerment zone or enterprise community.

135.326.  As used in sections 135.325 to 135.339, the following terms shall mean:

(1)  "Business entity", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or any retaliatory obligations or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or section 375.916, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo;

(2)  "Handicap", a mental, physical, or emotional impairment that substantially limits one or more major life activities, whether the impairment is congenital or acquired by accident, injury or disease, and where the impairment is verified by medical findings;

(3)  "Nonrecurring adoption expenses", reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are directly related to the legal adoption of a special needs child and which are not incurred in violation of federal, state, or local law;

(4)  "Special needs child", a child for whom it has been determined by the division of family services, by a child placing agency licensed by the state, or by a court of competent jurisdiction to be a child:

(a)  That cannot or should not be returned to the home of his or her parents; and

(b)  Who has a specific factor or condition such as ethnic background, age, membership in a minority or sibling group, medical condition, or handicap because of which it is reasonable to conclude that such child cannot be easily placed with adoptive parents; and

(c)  Except where it would be against the best interests of the child because of such factors as the existence of significant emotional ties with prospective adoptive parents while in the care of such parents as a foster child, a reasonable, but unsuccessful, effort has been made to place the child with appropriate adoptive parents;

(5)  "State tax liability", any liability incurred by a taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, section 375.916, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions.

135.350.  As used in this section, unless the context clearly requires otherwise, the following words and phrases shall mean:

(1)  "Commission", the Missouri housing development commission, or its successor agency;

(2)  "Director", director of the department of revenue;

(3)  "Eligibility statement", a statement authorized and issued by the commission certifying that a given project qualifies for the Missouri low­income housing tax credit.  The commission shall promulgate rules establishing criteria upon which the eligibility statements will be issued.  The eligibility statement shall specify the amount of the Missouri low­income housing tax credit allowed.  The commission shall only authorize the tax credits to qualified projects which begin after June 18, 1991;

(4)  "Federal low­income housing tax credit", the federal tax credit as provided in section 42 of the 1986 Internal Revenue Code, as amended;

(5)  "Low­income project", a housing project which has restricted rents that do not exceed thirty percent of median income for at least forty percent of its units occupied by persons of families having incomes of sixty percent or less of the median income, or at least twenty percent of the units occupied by persons or families having incomes of fifty percent or less of the median income;

(6)  "Median income", those incomes which are determined by the federal Department of Housing and Urban Development guidelines and adjusted for family size;

(7)  "Qualified Missouri project", a qualified low­income building as that term is defined in section 42 of the 1986 Internal Revenue Code, as amended, which is located in Missouri;

(8)  "Taxpayer", person, firm or corporation subject to the state income tax imposed by the provisions of chapter 143, RSMo, (except withholding imposed by sections 143.191 to 143.265, RSMo) or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or any obligations pursuant to section 375.916, RSMo, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state.

135.400.  As used in sections 135.400 to 135.430, the following terms mean:

(1)  "Certificate", a tax credit certificate issued by the department of economic development in accordance with sections 135.400 to 135.430;

(2)  "Community bank", either a bank community development corporation or development bank, which are financial organizations which receive investments from commercial financial institutions regulated by the federal reserve, the office of the comptroller of the currency, the office of thrift supervision, or the Missouri division of finance.  Community banks, in addition to their other privileges, shall be allowed to make loans to businesses or equity investments in businesses or in real estate provided that such transactions have associated public benefits;

(3)  "Community development corporation", a not for profit corporation and a recipient of Community Development Block Grant (CDBG) funds pursuant to the Housing Community Development Act of 1974.  Such corporations design specific, comprehensive programs to stimulate economic development, housing or other public benefits leading to the development of economically sustainable neighborhoods or communities;

[(3)]  (4)  "Department", the Missouri department of economic development;

[(4)]  (5)  "Director", the director of the department of economic development, or a person acting under the supervision of the director;

[(5)]  (6)  "Investment", a transaction in which a Missouri small business or a community bank receives a monetary benefit from an investor under the provisions of sections 135.403 to 135.414;

[(6)]  (7)  "Investor", an individual, partnership, financial institution, trust or corporation meeting the eligibility requirements of sections 135.403 to 135.414.  In the case of partnerships and nontaxable trusts, the individual partners or beneficiaries shall be treated as the investors;

[(7)]  (8)  "Missouri small business", an independently owned and operated business as defined in Title 15 U.S.C. section 632(a) and as described by Title 13 C.F.R. Part 121, which is headquartered in Missouri and which employs at least eighty percent of its employees in Missouri, except that no such small business shall employ more than one hundred employees.  Such businesses must be involved in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, insurance or professional services;

[(8)]  (9)  "Primary employment", work which pays at least the minimum wage and which is not seasonal or part­time;

[(9)]  (10)  "Principal owners", one or more persons who own an aggregate of fifty percent or more of the Missouri small business and who are involved in the operation of the business as a full­time professional activity;

[(10)]  (11)  "Project", any commercial or industrial business or other economic development activity undertaken in a target area, designed to reduce conditions of blight, unemployment or widespread reliance on public assistance which creates permanent primary employment opportunities;

[(11)]  (12)  "State tax liability", any liability incurred by a taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, section 375.916, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions;

[(12)]  (13)  "Target area", a group of blocks or a self­defined neighborhood where the rate of poverty in the area is greater than twice the national poverty rate and as defined by the department of social services in conjunction with the department of economic development.  Areas of the state satisfying the criteria of this subdivision may be designated as a "target area" following appropriate findings made and certified by the departments of economic development and social services.  In making such findings, the departments of economic development and social services may use any commonly recognized records and statistical indices published or made available by any agency or instrumentality of the federal or state government.  No area of the state shall be a target area until so certified by the department of social services and the revitalization plan submitted pursuant to section 208.335, RSMo, has received approval.

[135.400.  As used in sections 135.400 to 135.430, the following terms mean:

(1)  "At risk", the repayment of an investment is entirely dependent upon the success of the business operations;

(2)   "Certificate", a tax credit certificate issued by the department of economic development in accordance with sections 135.400 to 135.430;

(3)  "Community bank", either a bank community development corporation or development bank, which are financial organizations which receive investments from commercial financial institutions regulated by the federal reserve, the office of the comptroller of the currency, the office of thrift supervision, or the Missouri division of finance.  Community banks shall be allowed to make loans to businesses or equity investments in businesses or in real estate provided that such transactions have associated public benefits;

(4)  "Department", the Missouri department of economic development;

(5)  "Director", the director of the department of economic development, or a person acting under the supervision of the director;

(6)  "Investment", a transaction in which a Missouri small business or a community bank receives a monetary benefit from an investor under the provisions of sections 135.403 to 135.414;

(7)  "Investor", an individual, partnership, financial institution, trust or corporation meeting the eligibility requirements of sections 135.403 to 135.414.  In the case of partnerships and nontaxable trusts, the individual partners or beneficiaries shall be treated as the investors;

(8)  "Missouri small business", an independently owned and operated business as defined in Title 15 U.S.C. section 632(a) and as described by Title 13 C.F.R. Part 121, which is headquartered in Missouri and which employs at least eighty percent of its employees in Missouri, except that no such small business shall employ more than one hundred employees.  Such businesses must be involved in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, insurance or professional services;

(9)  "Primary employment", work which pays at least the minimum wage and which is not seasonal or part time;

(10)  "Principal owners", one or more persons who own an aggregate of fifty percent or more of the Missouri small business and who are involved in the operation of the business as a full­time professional activity;

(11)  "Project", any commercial or industrial business or other economic development activity undertaken in a target area, designed to reduce conditions of blight, unemployment or widespread reliance on public assistance which creates permanent primary employment opportunities;

(12)  "State tax liability", any liability incurred by a taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions;

(13)  "Target area", a group of blocks or a self­defined neighborhood where the rate of poverty in the area is greater than twice the national poverty rate and as defined by the department of social services in conjunction with the department of economic development.  No area of the state shall be a target area until so certified by the department of social services and the revitalization plan submitted as required in section 208.335, RSMo, has received approval.]

135.401.  There is hereby created in the state treasury a revolving fund to be administered by the department of economic development to be known as the "Community Development Fund".  The fund shall consist of all moneys which may be appropriated to it by the general assembly, gifts, contributions, grants or bequests received from federal, private or other sources.  Moneys in the fund shall be used for the programs and activities implemented by community development corporations to stimulate economic development in neighborhoods or communities.  Notwithstanding the provisions of section 33.080, RSMo, money in the fund at the end of any biennium shall not be transferred to the general revenue fund.

135.403.  1.  Any investor who makes a qualified investment in a Missouri small business shall be entitled to receive a tax credit equal to fifty percent of the amount of the investment and any investor who makes a qualified investment in a community bank shall be entitled to receive a tax credit equal to thirty percent of the amount of the investment.  The tax credit shall be equal to forty percent of the investment if the investment is made in a community bank for direct investment into a targeted area as defined in this section.  At least eighty percent of the additional five million tax credits authorized by this section, and certified by the department of economic development, shall be for direct investment in targeted areas.  Certification of these credits shall be limited to one million five hundred thousand in the first full year of authorization, an additional one million five hundred thousand in the second year of authorization and the final two million available in the third year.  To the extent that tax credits certified are less than the maximums prescribed in this subsection, such credits may be certified in succeeding years.  No more than twenty percent of the tax credits available each year for investments in community banks for direct investment into a targeted area shall be certified for any one project, as defined in section 135.400.  The tax credit shall be evidenced by a tax credit certificate in accordance with the provisions of sections 135.400 to 135.430 and may be used to satisfy the state tax liability of the owner of the certificate that becomes due in the tax year in which the qualified investment is made, or in any of the ten tax years thereafter.  No investor may receive a tax credit pursuant to sections 135.400 to 135.430 unless that person presents a tax credit certificate to the department of revenue for payment of such state tax liability.  The department of revenue shall grant tax credits in the same order as established by subsection 1 of section 32.115, RSMo.  Subject to the provisions of sections 135.400 to 135.430, certificates of tax credit issued in accordance with these sections may be transferred, sold or assigned by notarized endorsement thereof which names the transferee.

2.  The amount of qualified investments which can be made is limited so that the aggregate of all tax credits authorized [under] pursuant to the provisions of sections 135.400 to 135.430 shall not exceed ten million dollars nor shall the aggregate of all tax credits authorized in the first full year of authorization exceed two million dollars.  Five million dollars of this amount in tax credits shall be available as a result of investments in community banks.  Aggregate investments eligible for tax credits in any one Missouri small business shall not be more than [five hundred thousand] one million dollars.  Aggregate investments eligible for tax credits in any one Missouri small business shall not be less than five thousand dollars as of the date of issuance of the first tax credit certificate for investment in that business.

135.405.  The total amount of tax credit evidenced by certificates of tax credit issued to or owned, directly or indirectly, by a single taxpayer authorized by the department who has invested in a Missouri small business shall be not less than one thousand five hundred dollars nor more than an aggregate of [fifty] one hundred thousand dollars in any one business, except that this section shall not be interpreted to limit other investment.  These limits shall not apply to financial institutions' investments in community banks.

144.030.  1.  There is hereby specifically exempted from the provisions of sections 144.010 to 144.525 and from the computation of the tax levied, assessed or payable under sections 144.010 to 144.525 such retail sales as may be made in commerce between this state and any other state of the United States, or between this state and any foreign country, and any retail sale which the state of Missouri is prohibited from taxing under the Constitution or laws of the United States of America, and such retail sales of tangible personal property which the general assembly of the state of Missouri is prohibited from taxing or further taxing by the constitution of this state.

2.  There are also specifically exempted from the provisions of the local sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to 144.745 and from the computation of the tax levied, assessed or payable under the local sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to 144.745:

(1)  Motor fuel or special fuel subject to an excise tax of this state, unless all or part of such excise tax is refunded pursuant to section 142.584, RSMo; or upon the sale at retail of fuel to be consumed in manufacturing or creating gas, power, steam, electrical current or in furnishing water to be sold ultimately at retail; or feed for livestock or poultry which is to be used in the feeding of livestock or poultry to be sold ultimately in processed form or otherwise at retail; or grain to be converted into foodstuffs which are to be sold ultimately in processed form at retail; or seed, limestone or fertilizer which is to be used forseeding, liming or fertilizing crops which when harvested will be sold at retail or will be fed to livestock or poultry to be sold ultimately in processed form at retail; economic poisons registered under the provisions of the Missouri pesticide registration law (sections 281.220 to 281.310, RSMo) which are to be used in connection with the growth or production of crops, fruit trees or orchards applied before, during, or after planting, the crop of which when harvested will be sold at retail or will be converted into foodstuffs which are to be sold ultimately in processed form at retail;

(2)  Materials, manufactured goods, machinery and parts which when used in manufacturing, processing, compounding, mining, producing or fabricating become a component part or ingredient of the new personal property resulting from such manufacturing, processing, compounding, mining, producing or fabricating and which new personal property is intended to be sold ultimately for final use or consumption; and materials and manufactured goods which are ultimately consumed in the manufacturing process by becoming, in whole or in part, a component part or ingredient of steel products intended to be sold ultimately for final use or consumption;

(3)  Materials, replacement parts and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers of persons or property;

(4)  Machinery and equipment, and the materials and supplies solely required for the installation or construction of such machinery and equipment, replacing [and used for the same purposes as the] machinery and equipment [replaced by reason of design or product changes], which is purchased for and used directly for manufacturing or fabricating a product which is intended to be sold ultimately for final use or consumption; and machinery and equipment, and the materials and supplies required solely for the operation, installation or construction of such machinery and equipment, purchased and used to establish new, or to replace or expand existing, material recovery processing plants in this state.  For the purposes of this subdivision, a "material recovery processing plant" means a facility which converts recovered materials into a new product, or a different form which is used in producing a new product, and shall [not] include a facility or equipment which is used [solely] exclusively for the collection of recovered materials for delivery to a material recovery processing plant;

(5)  Machinery and equipment, and the materials and supplies solely required for the installation or construction of such machinery and equipment, purchased and used to establish new or to expand existing manufacturing, mining or fabricating plants in the state if such machinery and equipment is used directly in manufacturing, mining or fabricating a product which is intended to be sold ultimately for final use or consumption;

(6)  Tangible personal property which is used exclusively in the manufacturing, processing, modification or assembling of products sold to the United States government or to any agency of the United States government;

(7)  Animals or poultry used for breeding or feeding purposes;

(8)  Newsprint used in newspapers published for dissemination of news to the general public;

(9)  The rentals of films, records or any type of sound or picture transcriptions for public commercial display;

(10)  Pumping machinery and equipment used to propel products delivered by pipelines engaged as common carriers;

(11)  Railroad rolling stock for use in transporting persons or property in interstate commerce and motor vehicles licensed for a gross weight of twenty­four thousand pounds or more or trailers used by common carriers, as defined in section 390.020, RSMo, solely in the transportation of persons or property in interstate commerce;

(12)  Electrical energy used in the actual primary manufacture, processing, compounding, mining or producing of a product, or electrical energy used in the actual secondary processing or fabricating of the product, if the total cost of electrical energy so used exceeds ten percent of the total cost of production, either primary or secondary, exclusive of the cost of electrical energy so used;

(13)  Anodes which are used or consumed in manufacturing, processing, compounding, mining, producing or fabricating and which have a useful life of less than one year;

(14)  Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring air pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices, and so certified as such by the director of the department of natural resources, except that any action by the director under this subdivision may be appealed to the air conservation commission which may uphold or reverse such action;

(15)  Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring water pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices, and so certified as such by the director of the department of natural resources, except that any action by the director under this subdivision may be appealed to the Missouri clean water commission which may uphold or reverse such action;

(16)  Tangible personal property purchased by a rural water district;

(17)  All amounts paid or charged for admission or participation or other fees paid by or other charges to individuals in or for any place of amusement, entertainment or recreation, games or athletic events, including museums, zoos and planetariums, owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation;

(18)  All sales of insulin and prosthetic or orthopedic devices as defined on January 1, 1980, by the federal medicare program under Title XVIII of the Social Security Act of 1965, including the items specified in section 1862(a)(12) of that act, and also specifically including hearing aids and hearing aid supplies and all sales of drugs which may be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed to administer those items;

(19)  All sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities and all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities;

(20)  All sales of aircraft to common carriers for storage or for use in interstate commerce and all sales made by or to not for profit civic, social, service or fraternal organizations, including fraternal organizations which have been declared tax exempt organizations under section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as amended, solely in their civic or charitable functions and activities and all sales made to eleemosynary and penal institutions and industries of the state, and all sales made to any private not for profit institution of higher education not otherwise excluded under subdivision (19) of this subsection or any institution of higher education supported by public funds, and all sales made to a state relief agency in the exercise of relief functions and activities;

(21)  All ticket sales made by benevolent, scientific and educational associations which are formed to foster, encourage, and promote progress and improvement in the science of agriculture and in the raising and breeding of animals, and by nonprofit summer theater organizations if such organizations are exempt from federal tax under the provisions of the Internal Revenue Code;

(22)  All sales made to any private not for profit elementary or secondary school, all sales of feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber, all sales of pesticides used in the production of crops, livestock or poultry for food or fiber, all sales of bedding used in the production of livestock or poultry for food or fiber, all sales of propane or natural gas, electricity or diesel fuel used exclusively for drying agricultural crops, and all sales of farm machinery, other than airplanes, motor vehicles and trailers.  As used in this subdivision, the term "feed additives" means tangible personal property which, when mixed with feed for livestock or poultry, is to be used in the feeding of livestock or poultry.  As used in this subdivision, the term "farm machinery" means new or used farm tractors and such other new or used farm machinery and equipment and repair or replacement parts thereon and one­half of each purchaser's purchase of diesel fuel therefor which is:

(a)  Used exclusively for agricultural purposes;

(b)  Used on land owned or leased for the purpose of producing farm products; and

(c)  Used directly in producing farm products to be sold ultimately in processed form or otherwise at retail or in producing farm products to be fed to livestock or poultry to be sold ultimately in processed form at retail;

(23)  Except as otherwise provided in section 144.032, all sales of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil for domestic use and in any city not within a county, all sales of metered or unmetered water service for domestic use;

(a)  "Domestic use" means that portion of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil, and in any city not within a county, metered or unmetered water service, which an individual occupant of a residential premises uses for nonbusiness, noncommercial or nonindustrial purposes.  Utility service through a single or master meter for residential apartments or condominiums, including service for common areas and facilities and vacant units, shall be deemed to be for domestic use.  Each seller shall establish and maintain a system whereby individual purchases are determined as exempt or nonexempt;

(b)  Regulated utility sellers shall determine whether individual purchases are exempt or nonexempt based upon the seller's utility service rate classifications as contained in tariffs on file with and approved by the Missouri public service commission.  Sales and purchases made pursuant to the rate classification "residential" and sales to and purchases made by or on behalf of the occupants of residential apartments or condominiums through a single or master meter, including service for common areas and facilities and vacant units, shall be considered as sales made for domestic use and such sales shall be exempt from sales tax.  Sellers shall charge sales tax upon the entire amount of purchases classified as nondomestic use.  The seller's utility service rate classification and the provision of service thereunder shall be conclusive as to whether or not the utility must charge sales tax;

(c)  Each person making domestic use purchases of services or property and who uses any portion of the services or property so purchased for a nondomestic use shall, by the fifteenth day of the fourth month following the year of purchase, and without assessment, notice or demand, file a return and pay sales tax on that portion of nondomestic purchases.  Each person making nondomestic purchases of services or property and who uses any portion of the services or property so purchased for domestic use, and each person making domestic purchases on behalf of occupants of residential apartments or condominiums through a single or master meter, including service for common areas and facilities and vacant units, under a nonresidential utility service rate classification may, between the first day of the first month and the fifteenth day of the fourth month following the year of purchase, apply for credit or refund to the director of revenue and the director shall give credit or make refund for taxes paid on the domestic use portion of the purchase.  The person making such purchases on behalf of occupants of residential apartments or condominiums shall have standing to apply to the director of revenue for such credit or refund;

(24)  All sales of handicraft items made by the seller or his spouse if the seller or his spouse is at least sixty­five years of age, and if the total gross proceeds from such sales do not constitute a majority of the annual gross income of the seller;

(25)  Excise taxes, collected on sales at retail, imposed by sections 4041, 4061, 4071, 4081, 4091, 4161, 4181, 4251, 4261 and 4271 of Title 26, United States Code.  The director of revenue shall promulgate rules pursuant to chapter 536, RSMo, to eliminate all state and local sales taxes on such excise taxes;

(26)  Sales of fuel consumed or used in the operation of ships, barges, or waterborne vessels which are used primarily in or for the transportation of property or cargo, or the conveyance of persons for hire, on navigable rivers bordering on or located in part in this state, if such fuel is delivered by the seller to the purchaser's barge, ship, or waterborne vessel while it is afloat upon such river;

(27)  All sales made to an interstate compact agency created under sections 70.370 to 70.440, RSMo, or sections 238.010 to 238.100, RSMo, in the exercise of the functions and activities of such agency as provided under the compact;

(28)  Computers, computer software and computer security systems purchased for use by architectural, engineering or accounting firms headquartered in this state.  For the purposes of this subdivision, "headquartered in this state" means the office for the administrative management of at least four integrated facilities operated by the taxpayer is located in the state of Missouri.

172.274.  The exemption from assessment and taxation provided by subsection 3 of section 172.273 for leaseholds in property owned by the university in a research park project shall not be available for leases entered into from and after the effective date of this act.  Notwithstanding the foregoing and any provision of section 172.273 to the contrary, all leaseholds in property in such parks leased by the university to tenants for research, development, office or any other non-recreational use prior to the effective date of this act, shall be exempt from assessment and taxation for the term of such lease, provided that leaseholds in property used for recreational purposes shall be subject to assessment and taxation as determined by the assessor of the local political subdivision, and all lands and improvements in such parks, by whomsoever owned, shall be subject to land use and local regulation by the university and shall be exempt from other local zoning, subdivision and regulatory ordinances.

274.030.  1.  Eleven or more persons, except corporations excluded from engaging in farming pursuant to the provisions of section 350.015, RSMo, a majority of whom are residents of this state, engaged in the production of agricultural products, may form a nonprofit cooperative association without capital stock, under the provisions of this chapter, for the following purpose or purposes: To engage in any activity in connection with the marketing or selling of the agricultural products of its members or with the harvesting, preserving, drying, processing, canning, packing, grading, storing, handling, shipping or utilization thereof or the manufacturing or marketing of the by­products thereof; or in connection with the manufacturing, selling or supplying to its members of machinery, equipment or supplies; or in the financing of the above enumerated activities; or in any one or more of the activities specified herein.

2.  Five or more owners or operators of a family farm or a family farm corporation as those terms are defined in section 350.010, RSMo, all of whom are residents of this state, engaged in the production of agricultural products, may form a nonprofit cooperative association without capital stock, pursuant to the provisions of this chapter, to engage in the production of livestock.

274.220.  1.  An association may organize, form, operate, control, have an interest in, or be a member of [any other] a corporation or [corporations, without capital stock,] other entity and engage in preserving, drying, processing, canning, packing, storing, handling, shipping, utilizing, manufacturing, marketing or selling of the agricultural products handled by the association, or the by­products thereof.

2.  If such corporations are warehousing corporations, they may issue legal warehouse receipts to the association against the commodities delivered by it, or to any other person and such legal warehouse receipts shall be considered as adequate collateral to the extent of the usual and current value of the commodity represented thereby.

3.  In case such warehouse is licensed or licensed and bonded under the laws of this or any other state or the United States, its warehouse receipt delivered to the association on commodities of the association or its members, or delivered by the association or its members, shall not be challenged or discriminated against because of ownership or control, wholly or in part, by the association.

274.230.  Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts, and arrangements with any other cooperative, corporation, [association or associations, formed in this or in any other state] person or other entity, for the [cooperative and] more economical carrying on of its business or any part or parts thereof.  Any two or more associations may, by agreement between them, unite in employing and using or may separately employ and use the same personnel, methods, means and agencies for carrying on and conducting their respective business.

274.310.  1.  The department of agriculture shall provide assistance to persons engaged in agricultural production in the following areas:

(1)  Cooperative marketing of agricultural products;

(2)  Cooperative processing of agricultural products;

(3)  Development of regional and niche markets for the marketing of agricultural products;

Such assistance shall have as its primary focus the provision of assistance to small, independent family-owned or operated agricultural producers or processors.

2.  An annual report on the activities engaged in, number of persons served and evaluation of project effectiveness shall be submitted by the department of agriculture to the general assembly, no later than December 1, 1996, and each year thereafter by December first.

447.708.  1.  For eligible projects which meet the following criteria, the director of the department of economic development, with notice to the directors of the departments of natural resources and revenue, and subject to the other provisions of sections 447.700 to 447.718, may not create a new enterprise zone but may decide that a prospective purchaser and operator of a facility being remedied and renovated [under] pursuant to sections 447.700 to 447.718 may receive the tax credits and exemptions [under] pursuant to sections 135.100 to 135.150, RSMo, and 135.200 to 135.256, RSMo.  The tax credits allowed pursuant to this subsection shall be used to offset the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo.  The criteria to be met include:

(1)  The eligible project is located in an area [of pervasive poverty, unemployment and general distress, or one] in which:

(a)  A large number of jobs have been lost[,];

(b)  A large number of employers have closed[, or in which];

(c)  A large percentage of available production capacity is idle [and otherwise]; or

(d)  Meets the requirements [defined for satellite enterprise zones] prescribed in subdivisions [(1) to] (3) and (5) of subsection 2 of section 135.207, RSMo[;].

For the purpose of paragraph (a) of this subdivision, "large number of jobs" means one percent or more of the area's population according to the most recent decennial census.  For the purpose of paragraph (b) of this subdivision, "large number of employers" means over five if the area is not located in a metropolitan statistical area and over ten if the area is in a metropolitan statistical area.  "Metropolitan statistical area" includes those areas prescribed by the United States Department of Commerce;

(2)  For receipt of the ad valorem tax exemption, in whole or in part, from one or more of the affected political subdivisions, pursuant to section 135.215, RSMo, the eligible project must create at least ten new jobs [that provide an average of thirty­five hours of employment per week per job] or retain businesses which supply at least twenty­five existing jobs [which provide not less than average of thirty­five hours of employment per week per job at the new or expanded and renovated facility];

(3)  For receipt of the income tax exemption pursuant to section 135.220, RSMo, and tax credit for new or expanded business facilities pursuant to sections 135.100 to 135.150, and 135.225, RSMo, the eligible project must create at least ten new jobs [providing not less than an average of thirty­five hours of employment per week per job] or retain businesses which supply at least twenty­five existing jobs [which provide not less than an average of thirty­five hours of employment per week per job].  For purposes of sections 447.700 to 447.718, the tax credits described in section 135.225, RSMo, are modified as follows: the tax credit shall be four hundred dollars per employee per year, an additional four hundred dollars per year for each employee exceeding the minimum employment thresholds of ten and twenty­five jobs for new and existing businesses, respectively, an additional four hundred dollars per year for each person who is "a person difficult to employ" as defined by section 135.240, RSMo, and investment tax credits at the same amounts and levels as provided in subdivision (4) of section 135.225, RSMo;

(4)  For eligibility to receive the income tax refund pursuant to section 135.245, RSMo, the eligible project must create at least ten new jobs [that provide an average of thirty­five hours of employment per week per job] or retain businesses which supply at least twenty­five existing jobs [which provide not less than an average of thirty­five hours of employment per week per job at the new or expanded and renovated facility] and otherwise comply with the provisions of section 135.245, RSMo, for application and use of the refund and the eligibility requirements of this section;

(5)  The eligible project facility operates in compliance with applicable environmental laws and regulations, including permitting and registration requirements, of this state as well as the federal and local requirements;

(6)  The project facility operator shall file such reports as may be required by the director of economic development or the director's designee; [and]

(7)  [An eligible project facility owner and operator may obtain the tax credits and exemptions described in this section from the state for each year for a period not to exceed ten years.  With respect to their applicability to state taxes, the credits and exemptions described in this section shall not be granted for any longer period, nor may they be extended.  The affected municipal or county governmental agency may continue or extend the credits and exemptions beyond the initial period for a length of time not to exceed fifteen years.]  The taxpayer may claim state tax credits and the state income exemption for a period not in excess of ten consecutive tax years.  For the purpose of this section, "taxpayer" means an individual proprietorship, partnership or corporation described in section 143.441 or 143.471, RSMo, who operates an eligible project facility.  The director shall determine the number of years the taxpayer may claim the state tax credits and the state income exemption.  The director's determination shall be made annually, and shall be based on the economic benefits attributed to the eligible project; except that, the minimum number of tax periods for which the taxpayer may claim the state tax credits and the state income exemption shall be four.  Incentives provided by local governing authorities may be provided for a period not to exceed fifteen years;

(8)  For the purpose of meeting the new job requirement prescribed in subdivisions (2), (3) and (4) of this subsection and subsection 3 of this section, it shall be required that at least ten new jobs be created and maintained during the taxpayer's tax period for which the credits are earned, in the case of an eligible project that does not replace a similar facility in Missouri.  "New job" means a person who was not previously employed by the taxpayer or related taxpayer within the twelve-month period immediately preceding the time the person was employed by that taxpayer to work at, or in connection with, the eligible project on a full-time basis.  "Full-time basis" means the employee works an average of at least thirty-five hours per week during the taxpayer's tax period for which the tax credits are earned.  For the purposes of this section, "related taxpayer" has the same meaning as defined in subdivision (9) of section 135.100, RSMo;

(9)  For the purpose of meeting the existing job retention requirement, if the eligible project replaces a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, it shall be required that at least twenty-five existing jobs be retained at, and in connection with the eligible project, on a full-time basis during the taxpayer's tax period for which the credits are earned.  "Retained job" means a person who was previously employed by the taxpayer or related taxpayer, at a facility similar to the eligible project that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, within the tax period immediately preceding the time the person was employed by the taxpayer to work at, or in connection with, the eligible project on a full-time basis.  "Full-time basis" means the employee works an average of at least thirty-five hours per week during the taxpayer's tax period for which the tax credits are earned;

(10)  In the case where an eligible project replaces a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, the owner and operator of the eligible project shall provide the director with a written statement explaining the reason for discontinuing operations at the closed facility.  The statement shall include a comparison of the activities performed at the closed facility prior to the date the facility ceased operating, to the activities performed at the eligible project, and a detailed account describing the need and rationale for relocating to the eligible project.  If the director finds the relocation to the eligible project significantly impaired the economic stability of the area in which the closed facility was located, and that such move was detrimental to the overall economic development efforts of the state, the director may deny the taxpayer's request to claim tax benefits;

(11)  Notwithstanding any provision of law to the contrary, for the purpose of this section, the number of new jobs created and maintained, the number of existing jobs retained, and the value of new qualified investment used at the eligible project during any tax year shall be determined by dividing by twelve, in the case of jobs, the sum of the number of individuals employed at the eligible project, or in the case of new qualified investment, the value of new qualified investment used at the eligible project, on the last business day of each full calendar month of the tax year.  If the eligible project is in operation for less than the entire tax year, the number of new jobs created and maintained, the number of existing jobs retained, and the value of new qualified investment created at the eligible project during any tax year shall be determined by dividing the sum of the number of individuals employed at the eligible project, or in the case of new qualified investment, the value of new qualified investment used at the eligible project, on the last business day of each full calendar month during the portion of the tax year during which the eligible project was in operation, by the number of full calendar months during such period;

(12)  For the purpose of this section, "new qualified investment" means new business facility investment as defined and as determined in subdivision (7) of section 135.100, RSMo, which is used at and in connection with the eligible project.  "New qualified investment" shall not include small tools, supplies and inventory.  "Small tools" means tools that are portable and can be hand held.

2.  The determination of the director of economic development [under] pursuant to subsection 1 of this section, shall not affect requirements for the prospective purchaser to obtain the approval of the granting of such tax credits and exemptions by the municipal or county government where the eligible project is located.

3.  The director of the department of economic development, with the approval of the directors of the department of natural resources and the department of revenue, may, in addition to the tax credits allowed in subsection 1 of this section, grant a tax credit to the purchaser and operator of an eligible project facility, whether such facility is owned by a governmental agency as defined in subdivision (6) of section 447.700 or by a private party for the full costs of materials, supplies, equipment, labor, professional engineering, consulting and architectural fees, permitting fees and expenses, and direct utility charges for performing the voluntary remediation activities for the preexisting hazardous substance contamination and releases, including, but not limited to, the costs of performing operation and maintenance of the remediation equipment at the property beyond the year in which the systems and equipment are built and installed at the eligible project and the costs of performing the voluntary remediation activities over a period [of time exceeding one year.] not in excess of four tax years following the taxpayer's tax year in which the system and equipment were first put into use at the eligible project, provided the remediation activities are the subject of a plan submitted to, and approved by, the director of natural resources pursuant to sections 260.565 to 260.575, RSMo.  The director may, with the approval of the director of natural resources, extend the tax credits allowed for performing voluntary remediation maintenance activities, in increments of three-year periods, not to exceed five consecutive three-year periods.  The tax credits allowed in this subsection shall be used to offset the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, or the tax otherwise imposed by chapter 147, RSMo, or the tax otherwise imposed by chapter 148, RSMo.  The remediation tax credit may be taken in the same [calendar] tax year in which the costs are incurred or may be taken in equal installments over a period not to exceed twenty years; provided that, once such an election has been made it cannot be changed.  The project facility shall otherwise comply with the employment conditions described in subdivisions (2) and (3) of subsection 1 of this section.  Earned remediation tax credits may be approved only after the director of natural resources issues a "No Further Action" letter or covenant not to sue following completion of the voluntary remediation activities, or at the end of the tax period in which the voluntary remediation costs were incurred and the remediation equipment was capable of being operated, whichever is earlier.  It shall not include any costs associated with ongoing operational environmental compliance of the facility or remediation costs arising out of spills, leaks, or other releases arising out of the ongoing business operations of the facility.

4.  In the exercise of the sound discretion of the director of the department of economic development or the director's designee, the tax credits and exemptions described in this section may be terminated, suspended or revoked, if the eligible project facility fails to continue to meet the condition set forth in this section.  In making such a determination, the director shall consider the severity of the condition violation, actions taken to correct the violation, the frequency of any condition violations and whether the actions exhibit a pattern of conduct by the eligible facility owner and operator.  The director shall also consider changes in general economic conditions and the recommendation of the director of the department of natural resources, or their designee, concerning the severity, scope, nature, frequency and extent of any violations of the environmental compliance conditions.  The qualified project facility owner or operator may appeal the decision regarding termination, suspension or revocation of any tax credit or exemption in accordance with the procedures outlined in subsections 4 to 6 of section 135.250, RSMo.  The director of the department of economic development shall notify the directors of the departments of natural resources and revenue of the termination, suspension or revocation of any tax credits as determined in this section or pursuant to the provisions of section 447.716.

5.  For purposes of sections 447.700 to 447.718, an eligible facility owner and operator is assumed to be the same person, as that term is defined in sections 447.700 to 447.718.  If the facility operator and the facility owner are separate persons, then the operator who directly creates the jobs shall be eligible to qualify for the credits and exemptions described.

6.  Notwithstanding any provision of law to the contrary, no taxpayer shall earn the tax credits, exemptions or refund otherwise allowed in subdivisions (2), (3) and (4) of subsection 1 of this section and the tax credits otherwise allowed in section 135.110, RSMo, or the tax credits, exemptions and refund otherwise allowed in sections 135.225, 135.215, 135.220 and 135.245, RSMo, respectively, for the same facility for the same tax period.

7.  The total amount of the tax credits allowed in section 447.708 may not exceed the greater of:

(1)  That portion of the taxpayer's income attributed to the eligible project; or

(2)  One hundred percent of the total business' income tax if the eligible facility does not replace a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the tax credits are earned, and further provided the taxpayer does not operate any other facilities besides the eligible project in Missouri; fifty percent of the total business' income tax if the eligible facility replaces a similar facility that closed elsewhere in Missouri prior to the end of the taxpayer's tax period in which the credits are earned, and further provided the taxpayer does not operate any other facilities besides the eligible project in Missouri; or twenty-five percent of the total business income if the taxpayer operates, in addition to the eligible facility, any other facilities in Missouri.  In no case shall a taxpayer operating more than one eligible project in Missouri be allowed to offset more than twenty-five percent of the taxpayer's business income in any tax period.  That portion of the taxpayer's income attributed to the eligible project as referenced in subdivision (1) of this subsection, for which the credits allowed in sections 135.110 and 135.225, RSMo, and subsection 3 of section 447.708, may apply, shall be determined in the same manner as prescribed in subdivision (6) of section 135.100, RSMo.  That portion of the taxpayer's franchise tax attributed to the eligible project for which the remediation tax credit may offset, shall be determined in the same manner as prescribed in paragraph (a) of subdivision (6) of section 135.100, RSMo.

8.  Taxpayers claiming the state tax benefits allowed in subdivisions (3) and (4) of subsection 1 of this section shall be required to file all applicable tax credit applications, forms and schedules prescribed by the director during the taxpayer's tax period immediately after the tax period in which the eligible project was first put into use.  Otherwise, the taxpayer's right to claim such state tax benefits shall be forfeited.  Unused business facility and enterprise zone tax credits shall not be carried forward but shall be initially claimed for the tax period during which the eligible project was first capable of being used, and during any applicable subsequent tax periods.  Taxpayers claiming the remediation tax credit allowed in subsection 3 of this section shall be required to file all applicable tax credit applications, forms and schedules prescribed by the director during the taxpayer's tax period immediately after the tax period in which the eligible project was first put into use, or during the taxpayer's tax period immediately after the tax period in which the voluntary remediation activities were performed.

9.  An operator of an eligible project, for the purpose of this subsection referred to as assignor, may assign, sell or transfer, in whole or in part, the remediation tax credit allowed in subsection 3 of this section, to any other person, for the purpose of this subsection referred to as assignee, who performed voluntary remediation activities at the eligible project, or to a third party provided that the operator of the eligible project who sells, assigns or transfers such credits uses not less than seventy percent of the proceeds of such transaction to finance, develop or improve the eligible project facility or another property approved by the director as an eligible project.  To perfect the transfer, the assignor shall provide written notice to the director of the assignor's intent to transfer the tax credits to the assignee, the date the transfer is effective, the assignee's name, address and the assignee's tax period and the amount of tax credits to be transferred.  The assignee shall provide written notice to the director specifying the number of consecutive tax periods the transferred tax credits are to be claimed; except that, the number of tax periods during which the assignee may subsequently claim the tax credits shall not exceed twenty tax periods, less the number of tax periods the assignor previously claimed the credits before the transfer occurred.  In the case where an operator and assignor of an eligible project has been certified to claim state tax benefits allowed in subdivisions (3) and (4) of subsection 1 of this section, and sells or otherwise transfers title of the eligible project to another taxpayer or assignee who continues the same or substantially similar operations at the eligible project, the director shall allow the assignee to claim the credits for a period of time to be determined by the director; except that, the total number of tax periods the tax credits may be earned by the assignor and the assignee shall not exceed ten.  To perfect the transfer, the assignor shall provide written notice to the director of the assignor's intent to transfer the tax credits to the assignee, the date the transfer is effective, the assignee's name, address, and the assignee's tax period, and the amount of tax credits to be transferred.

10.  For the purpose of the state tax benefits described in this section, in the case of a corporation described in section 143.471, RSMo, or partnership, in computing Missouri's tax liability, such state benefits shall be allowed to the following:

(1)  The shareholders of the corporation described in section 143.471, RSMo;

(2)  The partners of the partnership.

The credit provided in this subsection shall be apportioned to the entities described in subdivisions (1) and (2) of this subsection in proportion to their share of ownership on the last day of the taxpayer's tax period.

620.014.  Records and documents submitted to the department of economic development, to the Missouri [economic development, export and infrastructure board] development finance board, or to a regional planning commission formed pursuant to chapter 251, RSMo, relating to financial investments in a business, or sales projections or other business plan information which may endanger the competitiveness of a business, or records and documents submitted to the department of economic development, or to a regional planning commission formed pursuant to chapter 251, RSMo, relating to tax credits [except for the amount and recipient of any tax credits that are awarded] may be deemed a "closed record" as such term is defined in section 610.010, RSMo.

620.158.  1.  The council, after appropriate study, shall adopt a comprehensive state rural investment guide consisting of policy statements, objectives, standards, and program criteria to guide state agencies in establishing and implementing programs relating to rural development.  The guide must recognize the community and economic needs, and food and agricultural policy, and the resources of rural Missouri, and provide a plan to coordinate and allocate public and private resources to the rural areas of the state.  The council shall submit the guide to the appropriate committees of the general assembly.

2.  Sections 620.155 to 620.158 shall expire on June 30, [2000] 2010.

620.1039.  1.  As used in this section, the term "taxpayer" means an individual, a partnership, or a corporation as described in section 143.441 or 143.471, RSMo, and the term "qualified research expenses" has the same meaning as prescribed [under] in 26 U.S.C. 41.

2.  Beginning January 1, 1994, a taxpayer shall be allowed a tax credit against the tax otherwise due [under] pursuant to chapter 143, RSMo, other than the taxes withheld pursuant to sections 143.191 to 143.265, RSMo, in an amount equal to six and one­half percent of the excess of the taxpayer's qualified research expenses, as certified by the director of the department of economic development, within this state during the taxable year over the average of the taxpayer's qualified research expenses within this state over the immediately preceding three taxable years; except that, no tax credit shall be allowed on that portion of the taxpayer's qualified research expenses incurred within this state during the taxable year in which the credit is being claimed, to the extent such expenses exceed two hundred percent of the taxpayer's average qualified research expenses incurred during the immediately preceding three taxable years.  In order to receive a tax credit [under] pursuant to this section, certification by the director of the department of economic development shall be required as proof that the taxpayer made qualified research expenses during the taxable year.

3.  The director of [revenue] economic development shall prescribe the manner in which the tax credit may be claimed[; however,].  The tax credit allowed by this section shall be claimed by the taxpayer [at the time the taxpayer files the return and shall be applied against] to offset the income tax liability imposed by chapter 143, RSMo, that becomes due in the tax year during which such qualified research expenses were incurred.  Where the amount of the credit exceeds the tax liability, the difference between the credit and the tax liability may only be carried forward for the next five succeeding taxable years or until the full credit has been claimed, whichever first occurs.  The application for claiming tax credits allowed in subsection 2 of this section shall be made in the taxpayer's tax period immediately following the tax period for which the credits are being claimed.

700.009.  Notwithstanding any other provision of law, nothing in sections 700.015 to 700.115 shall apply to a manufactured home, recreational vehicle, or modular unit after the first purchase of it in good faith for purposes other than resale.

700.010.  As used in sections 700.010 to 700.500, for the purpose of sections 700.010 to 700.500, the following terms mean:

(1)  "Authorized representative", any person, firm or corporation, or employee thereof, approved or hired by the commission to perform inspection services;

(2)  "Code", the standards relating to manufactured homes, recreational vehicles, or modular units as adopted by the commission.  The commission, in its discretion, may incorporate, in whole or in part, the standards codes promulgated by the American National Standards Institute, the United States Department of Housing and Urban Development or other recognized agencies or organizations;

(3)  "Commission", the [public service commission] manufactured housing commission created in section 700.012;

(4)  "Dealer", any person, other than a manufacturer, who sells or offers for sale four or more manufactured homes, recreational vehicles, or modular units in any consecutive twelve­month period;

(5)  "Manufactured home", a factory­built structure or structures which, in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or, when erected on site, contains three hundred twenty or more square feet, equipped with the necessary service connections and made so as to be readily movable as a unit or units on its or their own running gear and designed to be used as a dwelling unit or units with or without a permanent foundation.  The phrase "without a permanent foundation" indicates that the support system is constructed with the intent that the manufactured home placed thereon may be moved from time to time at the convenience of the owner;

(6)  "Manufacturer", any person who manufactures manufactured homes, recreational vehicles, or modular units, including persons who engage in importing manufactured homes, recreational vehicles, or modular units for resale;

(7)  "Modular unit", a transportable building unit designed to be used by itself or to be incorporated with similar units at a point­of­use into a modular structure to be used for residential, commercial, educational or industrial purposes. This definition shall not apply to structures under six hundred fifty square feet used temporarily and exclusively for construction site office purposes;

(8)  "New", being sold or offered for sale to the first purchaser for purposes other than resale;

(9)  "Park trailer", a modular type unit built on a single chassis mounted on wheels, designed primarily as temporary living quarters for seasonal or destination camping, and having a gross trailer area not exceeding four hundred square feet and not less than two hundred forty square feet in the setup mode;

(10)  "Person", an individual, partnership, corporation or other legal entity;

(11)  "Premises", a lot, plot, or parcel of land including the buildings, structures, and manufactured homes thereon;

(12)  "Recreational vehicle", a vehicular­type unit primarily designed to provide temporary living quarters for recreational, camping or travel use, that either has its own motive power, or is mounted on or towed by another vehicle.  Notwithstanding any provisions of sections 700.010 to 700.115 to the contrary, the public service commission shall be the regulatory agency responsible for the application of sections 700.010 to 700.115 to recreational vehicles, and as used in sections 700.010 to 700.115, the term "commission" as used in relation to recreational vehicles shall mean the public service commission;

(13)  "Seal", a device, label or insignia issued by the [public service commission] manufactured housing commission, U.S. Department of Housing and Urban Development, or its agent, to be displayed on the exterior of the manufactured home, recreational vehicle, or modular unit to evidence compliance with the code;

(14)  "Setup", the operations performed at the occupancy site which renders a manufactured home or modular unit fit for habitation, which operations include, but are not limited to, moving, blocking, leveling, supporting, and assembling multiple or expandable units.

700.012.  1.  The "Manufactured Housing Commission" is hereby created with the department of economic development.

2.  The commission shall consist of five members appointed by the governor with the advice and consent of the senate, each of whom shall be a citizen of this state.

3.  The members of the commission shall include the following:

(1)  A representative of the manufactured housing industry;

(2)  A member of a financial institution;

(3)  An at-large member from the general public;

(4)  A registered professional engineer;

(5)  A registered professional architect.

4.  The term of each member shall be three years.  A vacancy in the office of a member shall be filled by the governor for the remainder of the unexpired term, not more than one hundred eighty days after the vacancy is created, in the same manner as the original appointment.  The initial commission to be appointed by the governor shall have staggered terms as follows:

(1)  Two members shall be appointed for a two-year term; and

(2)  Three members shall be appointed for a three-year term.

5.  The per diem compensation of the commission and the reimbursement of all reasonable and necessary expenses shall be paid out of the manufactured housing fund.

6.  Three members of the commission shall constitute a quorum for all purposes notwithstanding the existence of a vacancy in the commission's membership.  Action may be taken by the commission by a vote of a majority of the members appointed and serving.  Meetings of the commission may be called by the chairperson at anytime or by three members on three business day's actual notice.  At least one meeting shall be held each calendar quarter.  The commission may hold meetings anywhere in the state.

7.  The commission shall elect a member of the commission as its chairperson and another member as its vice chairperson.  The duties and powers of the chairperson and vice chairperson shall be as prescribed in the commission's rules.

8.  A member of the commission may be removed from office by the governor for inefficiency, neglect of duty, or misconduct or malfeasance in office.  A member of the commission who has a direct pecuniary interest in a matter before the commission shall disclose that interest before the commission taking action with respect to the matter, which disclosure shall become a part of the record of the commission's official proceedings, and such member shall not participate in that particular matter before the commission.

9.   The members of the commission designated in subdivisions (2), (3), (4), and (5) of subsection 3 of this section shall not in any manner have any financial interest in the manufactured housing industry, nor shall such members be related within three degrees of consanguinity or affinity to any person who has any such financial interest in the manufactured housing industry.

700.100.  1.  The commission may refuse to register or refuse to renew the registration of any person who fails to comply with the provisions of section 700.090 or this section.  Notification of unfavorable action by the commission on any application for registration or renewal of registration must be delivered to the applicant within thirty days from date it is received by the commission.  Notification of unfavorable action by the commission on any application for registration or renewal of registration must be accompanied by a notice informing the recipient that the decision of the commission may be appealed [as provided in chapter 386, RSMo] to the administrative hearing commission in the manner prescribed in chapter 536, RSMo.

2.  The commission may consider a complaint filed with it charging a registered manufacturer or dealer with a violation of the provisions of this section, which charges, if proven, shall constitute grounds for revocation or suspension of his registration, or the placing of the registered manufacturer or dealer on probation.

3.  The following specifications shall constitute grounds for the suspension, revocation or placing on probation of a manufacturer's or dealer's registration:

(1)  If required, failure to comply with the provisions of section 301.250, RSMo, or section 301.280, RSMo;

(2)  Failing to be in compliance with the provisions of section 700.090;

(3)  If a corporation, failing to file all franchise or sales tax forms required by Missouri law;

(4)  Engaging in any conduct which constitutes a violation of the provisions of section 407.020, RSMo;

(5)  Failing to comply with the provisions of sections 2301­2312 of Title 15 of the United States Code (Magnuson­Moss Warranty Act);

(6)  As a dealer, failing to arrange for the proper initial setup of any new or used manufactured home or modular unit sold from or in the state of Missouri, unless the dealer receives a written waiver of that service from the purchaser or his authorized agent and an amount equal to the actual cost of the setup is deducted from the total cost of the manufactured home or modular unit;

(7)  Requiring any person to purchase any type of insurance from that manufacturer or dealer as a condition to his being sold any manufactured home, recreational vehicle, or modular unit;

(8)  Requiring any person to arrange financing or utilize the services of any particular financing service as a condition to his being sold any manufactured home, recreational vehicle, or modular unit; provided, however, the registered manufacturer or dealer may reserve the right to establish reasonable conditions for the approval of any financing source;

(9)  Engaging in conduct in violation of section 700.045;

(10)  Failing to comply with the provisions of section 301.210, RSMo.

700.450.  As used in sections 700.450 to 700.470, the following terms shall mean:

(1)  "Commission", the [public service commission] manufactured housing commission created in section 700.012;

(2)  "Dealer", any person, including, but not limited to, real estate brokers and salespersons, other than a manufacturer, who sells or offers for sale four or more manufactured homes in any consecutive twelve­month period;

(3)  "Manufactured home", a factory­built structure or structures which, in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or, when erected on site, contains three hundred twenty or more square feet, equipped with the necessary service connections and made so as to be readily movable as a unit or units on its or their own running gear and designed to be used as a dwelling unit or units with or without a permanent foundation.  The phrase "without a permanent foundation" indicates that the support system is constructed with the intent that the manufactured home placed thereon may be moved from time to time at the convenience of the owner;

(4)  "Manufacturer", any person who manufactures manufactured homes, including persons who engage in importing manufactured homes for resale;

(5)  "Person", any individual, partnership, corporation or other legal entity.

Section 1.  1.  Except in any city not within a county or any county of the first classification with a charter form of government with a population of nine hundred thousand or more inhabitants or in any county of the first classification with a charter form of government and containing part of a city with a population of three hundred thousand or more inhabitants, the governing body of any county or any municipality may impose, by ordinance or order, a sales tax on all retail sales made in such county or municipality which are subject to taxation pursuant to the provisions of sections 144.010 to 144.525, RSMo, for economic development.

2.  For purposes of this section, the term "economic development" is limited to the following:

(1)  Operations of economic development or community development offices, including the salary of employees;

(2)  Provision of training for job creation or retention;

(3)  Provision of infrastructure and site for industrial development or for public infrastructure projects; and

(4)  Refurbishing of existing structures and property relating to community development.

3.  The maximum rate for a sales tax pursuant to this section shall be as follows:

(1)  One-half of one percent for municipalities with a population of three thousand five hundred or less;

(2)  One-quarter of one percent for municipalities with a population of not less than three thousand five hundred one and of not more than twenty-five thousand;

(3)  One-eighth of one percent for municipalities with a population of not less than twenty-five thousand and one;

(4)  One-half of one percent for counties with a population of twenty-five thousand or less;

(5)  One-quarter of one percent for counties with a population of not less than twenty-five thousand one and of not more than fifty thousand; or

(6)  One-eighth of one percent for counties with a population of not less than fifty thousand and one.

4.  The tax authorized by this section shall be in addition to any and all other sales taxes allowed by law, except that no ordinance or order imposing a sales tax pursuant to the provisions of this section shall be effective unless the governing body of the county or municipality submits to the voters of the county or municipality, at a regularly scheduled county, municipal or state general or primary election, a proposal to authorize the governing body of the county or municipality to impose a tax.  Any sales tax imposed pursuant to this section shall not be authorized for a period of more than five years.

5.  Such proposal shall be submitted in substantially the following form:

Shall the (city, town, village or county) of ................ impose a sales tax of ............. (insert amount) for the purpose of economic development in the (city, town, village or county)?

G Yes G No

If a majority of the votes cast on the proposal by the qualified voters voting thereon are in favor of the proposal, then the ordinance or order and any amendments thereto shall be in effect on the first day of the second quarter after the director of revenue receives notice of adoption of the tax.  If a majority of the votes cast by the qualified voters voting are opposed to the proposal, then the governing body of the county or municipality shall not impose the sales tax authorized in this section until the governing body of the county or municipality resubmits another proposal to authorize the governing body of the county or municipality to impose the sales tax authorized by this section and such proposal is approved by a majority of the qualified voters voting thereon; however no such proposal shall be resubmitted to the voters sooner than twelve months from the date of the submission of the last such proposal.

6.  All revenue received by a county or municipality from the tax authorized pursuant to the provisions of this section shall be deposited in a special trust fund and shall be used solely for economic development purposes within such county or municipality for so long as the tax shall remain in effect.

7.  Once the tax authorized by this section is abolished or is terminated by any means, all funds remaining in the special trust fund shall be used solely for economic development purposes within the county or municipality.  Any funds in such special trust fund which are not needed for current expenditures may be invested by the governing body in accordance with applicable laws relating to the investment of other county or municipal funds.

8.  All sales taxes collected by the director of revenue pursuant to this section on behalf of any county or municipality, less one percent for cost of collection which shall be deposited in the state's general revenue fund after payment of premiums for surety bonds as provided in section 32.087, RSMo, shall be deposited in a special trust fund, which is hereby created, to be known as the "Local Economic Development Sales Tax Trust Fund".

9.  The moneys in the local economic development sales tax trust fund shall not be deemed to be state funds and shall not be commingled with any funds of the state.  The director of revenue shall keep accurate records of the amount of money in the trust fund and which was collected in each county or municipality imposing a sales tax pursuant to this section, and the records shall be open to the inspection of officers of the county or municipality and the public.

10.  Not later than the tenth day of each month the director of revenue shall distribute all moneys deposited in the trust fund during the preceding month to the county or municipality which levied the tax.  Such funds shall be deposited with the county treasurer of each such county or the appropriate municipal officer in the case of a municipal tax, and all expenditures of funds arising from the local economic development sales tax trust fund shall be by an appropriation act to be enacted by the governing body of each such county or municipality.  Expenditures may be made from the fund for any economic development purposes authorized in the ordinance or order adopted by the governing body submitting the tax to the voters.

11.  The director of revenue may authorize the state treasurer to make refunds from the amounts in the trust fund and credited to any county or municipality for erroneous payments and overpayments made, and may redeem dishonored checks and drafts deposited to the credit of such counties and municipalities.

12.  If any county or municipality abolishes the tax, the county or municipality shall notify the director of revenue of the action at least ninety days prior to the effective date of the repeal and the director of revenue may order retention in the trust fund, for a period of one year, of two percent of the amount collected after receipt of such notice to cover possible refunds or overpayment of the tax and to redeem dishonored checks and drafts deposited to the credit of such accounts.  After one year has elapsed after the effective date of abolition of the tax in such county or municipality, the director of revenue shall remit the balance in the account to the county or municipality and close the account of that county or municipality.  The director of revenue shall notify each county or municipality of each instance of any amount refunded or any check redeemed from receipts due the county or municipality.

13.  Except as modified in this section, all provisions of sections 32.085 and 32.087, RSMo, shall apply to the tax imposed pursuant to this section.

Section 2.  1.  There is hereby established the "Missouri Film Commission" to advise the director of the department of economic development on the promotion of the development of film production and facilities in Missouri.

2.  The commission shall be composed of nine members as follows:

(1)  Two members shall be a state senator appointed in a bipartisan manner by the president pro tem of the senate;

(2)  Two members shall be a state representative appointed in a bipartisan manner by the speaker of the house; and

(3)  Five members, who have knowledge and experience with the motion picture industry, shall be appointed by the director of the department of economic development.

3.  The members of the board appointed by the director shall be appointed to serve terms of three years; except that, of the members first appointed, two shall be appointed for a term of three years, two shall be appointed for a term of two years and one shall be appointed for a one-year term.  Any legislative member shall serve only as long as such person holds such legislative office.  The legislative members shall serve during their current term of office but may be reappointed.

4.  The members of the commission shall receive no compensation for serving on the commission but shall be reimbursed for their actual and necessary expenses incurred in the performance of their official duties.

5.  The commission shall provide oversight and guidance to the director of the department of economic development in administering the office of the Missouri film commission, established in section 3 of this act.  The commission shall make recommendations to the governor and the general assembly on:

(1)  The removal of barriers so that film production in Missouri may be more easily promoted; and

(2)  The development of state incentives to attract private investment in film production in the state.

6.  The commission shall submit its recommendations by January first of each year, beginning January 1, 1998.

Section 3.  1.  There is hereby established within the department of economic development the "Office of the Missouri Film Commission".  The objectives of this office shall be to:

(1)  Explain the benefits and advantages of producing motion pictures in Missouri, and describe the services and assistance available from the state and local governments for the producers of motion pictures;

(2)  Scout potential film locations for national and international film prospects, and prepare and distribute promotional, informational and advertising material, which describe and promote locations within the state for the production of motion pictures;

(3)  Encourage cooperation between local, state and federal government agencies in the location and production of motion pictures in the state;

(4)  Serve as a liaison between film makers, community leaders and federal, state and local authorities;

(5)  Assist motion picture companies in securing permits to film at specific locations within the state, and assist such companies in obtaining other needed services related to the production of motion pictures;

(6)  Escort film production prospects on scouting trips;

(7)  Prepare a directory of the persons, firms and governmental agencies available to assist in the production of motion pictures;

(8)  Sponsor workshops on topics relating to film making, including screen writing, film financing and the preparation of communities to attract and assist motion picture productions;

(9)  Represent the state at film industry trade shows and film festivals;

(10)  Produce and maintain a video library which depicts the variety and extent of the locations within Missouri, including rural locations, available for the production of motion pictures.

2.  The office of the film commission, and any satellite office or offices, shall closely coordinate its efforts with any local film office.  A "local film office" shall include any film office, tourism bureau or other economic development agency that seeks to promote film production funded principally by local governments in Missouri.

Section 4.  The office of the Missouri film commission shall be located in Jefferson City and shall replace any state agency, division or staff which, on the effective date of sections 2 to 6 of this act, provides services to the film industry or is organized to promote film production in Missouri.

Section 5.  The department of economic development shall provide the necessary personnel, within appropriations available therefor, to staff the office of the film commission, which shall be located in Jefferson City.  Subject to appropriations, up to three satellite offices shall be established in various locations throughout the state, to help meet the stated objectives of the office of the Missouri film commission.

Section 6.  The director of the department of economic development shall administer sections 3 to 6 of this act.  The director may issue such orders and promulgate such administrative rules that, in the opinion of the director, are necessary to execute and enforce the purposes of sections 3 to 6 of this act.  No rule or portion of a rule promulgated pursuant to the authority of sections 3 to 6 of this act shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.

Section 7.  The department of economic development shall promulgate rules providing for the coordination of state and federal job training resources administered by the department of economic development, including the service delivery areas established in the state to administer federal funds pursuant to the federal Job Training Partnership Act, for the provision of assistance to any business in this state which has received or will receive any state tax credit, abatement or benefit related to the creation of new jobs in the state.  The department shall include in these rules the methods to be followed by any business receiving any state tax credit abatement or benefit related to the creation of new jobs in state to ensure that economically disadvantaged citizens receive opportunities for employment in the new jobs created.  No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

Section 8.  Sections 8 to 23 of this act shall be known as the "Missouri Business Use Incentives for Large-Scale Development Act".

Section 9.  As used in sections 8 to 23 of this act, the following terms mean:

(1)  "Board", the Missouri development finance board as created by section 100.265, RSMo;

(2)  "Certificates", the revenue bonds or notes authorized to be issued by the board pursuant to section 22 of this act;

(3)  "Credit", the amount agreed to between the board and an eligible industry, but not to exceed the incremental income tax withholding attributable to the eligible industry=s project;

(4)  "Department", the Missouri department of economic development;

(5)  "Director", the director of the department of economic development;

(6)  "Economic development project":

(a)  The acquisition of any real property by the board, the eligible industry, or its affiliate; or

(b)  The fee ownership of real property by the eligible industry or its affiliate; and

(c)  The development of the real property including construction, installation, or equipping of a project, including fixtures and equipment, and facilities necessary or desirable for improvement of the real property, including surveys; site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries and other surface obstructions; filling, grading and provision of drainage, storm water retention, installation of utilities such as water, sewer, sewage treatment, gas, electricity, communications and similar facilities; off-site construction of utility extensions to the boundaries of the real property; and the acquisition, installation, or equipping of facilities on the real property, for use and occupancy by the eligible industry or its affiliates;

(7)  "Eligible employee", a person employed on a full-time basis in a new job at the economic development project averaging at least thirty-five hours per week who was not employed by the eligible industry or a related taxpayer in this state at any time during the twelve-month period immediately prior to being employed at the economic development project;

(8)  "Eligible industry", a business located within the state of Missouri which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, health, or professional services.  "Eligible industry" does not include a business which closes or substantially reduces its operation in one area of the state and relocates substantially the same operation in another area of the state.  This does not prohibit a business from expanding its operations in another area of the state provided that existing operations of a similar nature are not closed or substantially reduced.  An eligible industry must:

(a)  Invest a minimum of two hundred million dollars in an economic development project; and

(b)  Create a minimum of one hundred new jobs for eligible employees at the economic development project;

(9)  "Financing agreement", any agreement entered into, pursuant to sections 8 to 23 of this act, on behalf of the board and an eligible industry with respect to an economic development project.  No such agreement shall be for a period longer than fifteen years;

(10)  "Incremental income tax withholding", the total amount withheld pursuant to sections 143.191 to 143.265, RSMo, by the employer during the taxable year from the compensation of eligible employees;

(11)  "New job", a job in a new or expanding eligible industry not including jobs of recalled workers, replacement jobs or jobs that formerly existed in the eligible industry in the state;

(12)  "Program costs", all necessary and incidental costs of providing program services including payment of the principal of premium and interest on certificates, including capitalized interest, issued to finance a project, and funding and maintenance of a debt service reserve fund to secure such certificates.  Program costs shall include:

(a)  Obligations incurred for labor and obligations incurred to contractors, subcontractors, builders and materialmen in connection with the acquisition, construction, installation or equipping of an economic development project;

(b)  The cost of acquiring land or rights in land and any cost incidental thereto, including recording fees;

(c)  The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation or equipping of an economic development project which is not paid by the contractor or contractors or otherwise provided for;

(d)  All costs of architectural and engineering services, including test borings, surveys, estimates, plans and specifications, preliminary investigations and supervision of construction, as well as the costs for the performance of all the duties required by or consequent upon the acquisition, construction, installation or equipping of an economic development project;

(e)  All costs which are required to be paid under the terms of any contract or contracts for the acquisition, construction, installation or equipping of an economic development project; and

(f)  All other costs of a nature comparable to those described in this subdivision;

(13)  "Program services", administrative expenses of the board, including contracted professional services, and the cost of issuance of certificates.

Section 10.  1.  The Missouri development finance board shall have, in addition to the powers provided to it in sections 100.250 to 100.297, RSMo, and with the approval of the department, all the powers necessary or convenient to carry out and effectuate the purposes and provisions of sections 8 to 23 of this act, including, but not limited to, the power to:

(1)  Provide and finance economic development projects, pursuant to the provisions of sections 8 to 23 of this act, and cooperate with eligible industries in order to promote, foster and support economic development within the state;

(2)  Conduct hearings and inquiries, in the manner and by the methods as it deems desirable, for the purpose of gathering information with respect to eligible industries and economic development projects, and for the purpose of making any determinations necessary or desirable in the furtherance of sections 8 to 23 of this act; and

(3)  Negotiate the terms of, including the amount of project costs, and enter into financing agreements with eligible industries, and in connection therewith to acquire, convey, sell, mortgage, finance or otherwise dispose of any property, real or personal, loan bond proceeds, and permit the use of incremental income tax withholding, in connection with an economic development project, and to pay, or cause to be paid, in accordance with the provisions of a financing agreement, the program costs of an economic development project from any funds available therefor.

2.  Certificates issued by the board pursuant to the provisions of sections 8 to 23 of this act shall not constitute an indebtedness or liability of the state of Missouri within the meaning of any state constitutional provision or statutory limitation and shall not constitute a pledge of the faith and credit of the state of Missouri.

Section 11.  1.  The department, in conjunction with the board, shall establish the procedures and standards for the determination and approval of eligible industries and their economic development projects by the promulgation of rules or regulations in accordance with sections 8 to 23 of this act, chapter 536, RSMo, and section 620.1066, RSMo.  These rules or regulations shall mandate the evaluation of the credit worthiness of eligible industries, the number of new jobs to be provided by an economic development project to residents of the state, and the likelihood of the economic success of the economic development project.  No economic development project which will result in the replacement of facilities existing in the state shall be approved by the board.

2.  With respect to each eligible industry making an application to the board for incentives, and with respect to the economic development project described in the application, the board shall request relevant information, documentation and other materials and make inquiries of the applicant as necessary or appropriate.  After a diligent review of relevant materials and completion of its inquiries, the board may by resolution designate an economic development project.

Section 12.  The board may enter into, with the approval of the department and in consultation with the office of administration, with any eligible industry, a financing agreement with respect to its economic development project.  Subject to the inclusion of the mandatory provisions set forth in sections 8 to 23 of this act, the terms and provisions of each financing agreement shall be determined by negotiations between the board and the eligible industry.

Section 13.  The financing agreement shall provide in substance that:

(1)  It may be assigned by the eligible industry only upon the prior written consent of the board following the adoption of a resolution by the board to such effect; and

(2)  Upon default by the eligible industry in any obligations under the financing agreement or other documents evidencing, securing or related to the eligible industry=s obligations, the board shall have the right, at its option, to:

(a)  Declare the financing agreement or other such documents in default;

(b)  Accelerate and declare the total of all such payments due by the eligible industry and sell the economic development project at public, private, or judicial sale;

(c)  Pursue any remedy provided under the financing agreement or other such documents;

(d)  Be entitled to the appointment of a receiver by the circuit court wherein any part of the economic development project is located; and

(e)  Pursue any other applicable legal remedy.

Section 14.  After receipt of an application, the board may with the approval of the department, enter into an agreement with an eligible industry for a credit pursuant to sections 8 to 23 of this act if the board determines that all of the following conditions exist:

(1)  The applicant=s project will create new jobs that were not jobs previously performed by employees of the applicant in Missouri;

(2)  The applicant=s project is economically sound and will benefit the people of Missouri by increasing opportunities for employment and strengthening the economy of Missouri;

(3)  The political subdivisions affected by the project have committed significant local incentives with respect to the project;

(4)  Receiving the credit is a major factor in the applicant=s decision to go forward with the project and not receiving the credit will result in the applicant not creating new jobs in Missouri; and

(5)  Awarding the credit will result in an overall positive fiscal impact to the state.

Section 15.  In determining the credit that should be awarded, the board shall take into consideration the following factors:

(1)  The economy of the county where the projected investment is to occur;

(2)  The potential impact on the economy of Missouri;

(3)  The incremental payroll attributable to the project;

(4)  The capital investment attributable to the project;

(5)  The amount the average wage paid by the applicant exceeds the average wage paid within the county in which the project will be located;

(6)  The costs to Missouri and the affected political subdivisions with respect to the project;

(7)  The financial assistance that is otherwise provided by Missouri and the affected political subdivisions.

Section 16.  The board shall determine the amount and duration of a credit awarded pursuant to sections 8 to 23 of this act.  The credit amount may not exceed the incremental income tax withholding.

Section 17.  An agreement between the board and an eligible industry shall include all of the following:

(1)  A detailed description of the project that is the subject of the agreement;

(2)  A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee of the eligible industry;

(3)  A requirement that the taxpayer shall annually report to the board the number of new employees who are performing jobs not previously performed by an employee, the new income tax revenue withheld in connection with the new employees, and any other information the board needs to perform its duties pursuant to sections 8 to 23 of this act;

(4)  A requirement that the taxpayer shall provide written notification to the director and the board not more than thirty days after the taxpayer makes or receives a proposal that would transfer the taxpayer=s state tax liability obligations to a successor taxpayer; and

(5)  Any other performance conditions that the board and the director determine are appropriate.

Section 18.  If the board determines that an eligible industry which has received a credit pursuant to sections 8 to 23 of this act is not complying with the requirements of the credit agreement or all of the provisions of sections 8 to 23 of this act, the board shall, after giving the industry an opportunity to explain the noncompliance, notify the department of revenue of the noncompliance and request an assessment.  The board shall state the amount of the assessment, which may not exceed the sum of any previously allowed incremental income tax withholding pursuant to sections 8 to 23 of this act.  After receiving such a notice, the department of revenue shall make an assessment against the taxpayer for the amount stated in the board's notice.

Section 19.  On an annual basis, the director shall provide for an evaluation of the program.  The evaluation shall include an assessment of the effectiveness of the program in creating new jobs in Missouri and of the revenue impact of the program.  The director shall submit a report on the evaluation to the governor, the president pro tem of the senate, and the speaker of the house of representatives.

Section 20.  An agreement between the board and an eligible industry shall provide that all or part of program costs are to be met by receipt of incremental income tax withholding.  Incremental income tax withholding shall be based upon wages paid to eligible employees.  A portion or all of the total payments made by the employer pursuant to section 143.221, RSMo, shall be designated as the incremental income tax withholding.  If business or employment conditions cause the amount of the incremental income tax withholding to be less than the amount projected in the agreement for any time period, then other withholding tax paid by the employer pursuant to section 143.221, RSMo, shall be credited to the Missouri large-scale development fund by the amount of such difference.  The employer shall remit the amount of the incremental income tax withholding to the department of revenue in the manner prescribed in section 23 of this act.  When all program costs, including the principal of, premium, if any, and interest on the certificates have been paid, the employer credits shall cease.

Section 21.  1.  The board shall establish a special fund for and in the name of each project.  All funds appropriated by the general assembly to the department of economic development from the large-scale development fund and disbursed by the board for the project and other amounts received by the board in respect of the project and required by the agreement to be used to pay program costs for the project shall be deposited in the special fund.  Amounts held in the special fund may be used and disbursed by the board only to pay program costs for the project.

2.  Any disbursement in respect of a project received from the department of economic development pursuant to the provisions of sections 8 to 23 of this act, and the special fund into which it is paid, may be irrevocably pledged by the board for the payment of the principal of, premium, if any, and interest on the certificate issued by the board to finance or refinance, in whole or in part, the project.

3.  The employer shall certify to the department of revenue that the credit from withholding is in accordance with an agreement and shall provide other information the department may require.

4.  An employee participating in a project shall receive full credit for the amount designated as incremental income tax withholding and withheld as provided in section 143.221, RSMo.

5.  If an agreement provides that all or part of program costs are to be met by receipt of incremental income tax withholding, the provisions of this section shall also apply to any successor to the original employer until such time as the principal and interest on the certificates have been paid.

Section 22.  1.  To provide funds for the present payment of the costs of economic development projects, the board may borrow money and issue and sell certificates payable from a sufficient portion of the future receipts of payments authorized by the agreement including disbursements from the Missouri large-scale development fund to the special fund established by the board for each project.  The certificates shall be marketed through financial institutions authorized to do business in Missouri.  The receipts shall be pledged to the payment of principal of and interest on the certificates.  Certificates may be sold at public sale or at private sale at par, premium, or discount of not less than ninety-five percent of the par value thereof, at the discretion of the board, and may bear interest at such rate or rates as the board shall determine, notwithstanding the provisions of section 108.170, RSMo, to the contrary.  Certificates may be issued with respect to a single project or multiple projects and may contain terms or conditions as the board may provide by resolution authorizing the issuance of the certificates.

2.  Certificates issued to refund other certificates may be sold at public sale or at private sale as provided in this section with the proceeds from the sale to be used for the payment of the certificates being refunded.  The refunding certificates may be exchanged in payment and discharge of the certificates being refunded, in installments at different times or an entire issue or series at one time.  Refunding certificates may be sold or exchanged at any time on, before, or after the maturity of the outstanding certificates to be refunded.  They may be issued for the purpose of refunding a like, greater or lesser principal amount of certificates and may bear a higher, lower or equivalent rate of interest than the certificates being renewed or refunded.

3.  The board shall determine if revenues provided in the agreement are sufficient to secure the faithful performance of obligations in the agreement.

4.  Certificates issued pursuant to this section shall not be deemed to be an indebtedness of the state or the board or of any political subdivision of the state and the principal and interest on such certificates shall be payable only from the incremental income tax withholding which is pledged in the agreement.

Section 23.  1.  There is hereby established within the state treasury a special fund, to be known as the "Missouri Large-Scale Development Fund", to be administered by the department of economic development.  The department of revenue shall credit to the large-scale development fund, as received, all incremental income tax withholding remitted by employers.  The fund shall also consist of any gifts, contributions, grants or bequests received from federal, private or other sources.  The general assembly, however, shall not provide for any transfer of general revenue funds into the large-scale development fund.  Moneys in the Missouri large-scale development fund shall be disbursed to the department of economic development pursuant to regular appropriations by the general assembly.  The department shall disburse such appropriated funds in a timely manner into the special funds established by the board for projects, which funds shall be used to pay program costs, including the principal of, premium, if any, and interest on certificates issued by the board to finance or refinance, in whole or in part, a project.  Such disbursements by the department of economic development shall be made to the special fund for each project in the same proportion as the incremental income tax withholding remitted by the employer participating in such project bears to the total remitted by all employers participating in projects during the period for which the disbursement is made.  Moneys for economic development projects established pursuant to the provisions of sections 8 to 23 of this act shall be obtained from appropriations made by the general assembly from the Missouri large-scale development fund.  All moneys remaining in the Missouri large-scale development fund at the end of any fiscal year shall not lapse into the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri large-scale development fund.

2.  The department of revenue shall develop such forms as are necessary to demonstrate accurately each employer=s incremental income tax withholding paid into the Missouri large-scale development fund.  The incremental income tax withholding shall be accounted as separate from the normal withholding tax paid to the department of revenue by the employer.  Reimbursements made by all employers to the Missouri large-scale development fund shall be no less than all allocations made by the department of economic development to the board for all projects.  The employer shall remit the amount of the incremental income tax withholding to the department of revenue in the same manner as provided in sections 143.191 to 143.265, RSMo.

Section 24.  Any district providing emergency services pursuant to chapters 190 or 321, RSMo, upon the provision of evidence to the governing body of the municipality that direct costs incurred by such district in providing emergency services to the redevelopment area are directly attributable to the operation of redevelopment projects as these terms are defined in section 99.805, RSMo, in the redevelopment area, shall be entitled to reimbursement from the special allocation fund for direct costs to the extent that such district can demonstrate that the increased tax revenues it receives from such projects in such areas are insufficient to fund such direct costs.  However, such reimbursement shall not be less than twenty-five percent nor more than one-hundred percent of the district's tax increment.

Section 25.  1.  As used in this section, the following terms shall mean:

(1)  "Shelter for victims of domestic violence", a facility located in this state which meets the definition of a shelter for victims of domestic violence under section 455.200, RSMo, and which meets the requirements of section 455.220, RSMo;

(2)  "State tax liability", in the case of a business taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions, and in the case of an individual taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo;

(3)  "Taxpayer", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.

2.  A taxpayer shall be allowed to claim a tax credit against the taxpayer's state tax liability, in an amount equal to fifty percent of the amount such taxpayer contributed to a shelter for victims of domestic violence.

3.  The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the taxable year that the credit is claimed, and such taxpayer shall not be allowed to claim a tax credit in excess of fifty thousand dollars per taxable year.  However, any tax credit that cannot be claimed in the taxable year the contribution was made may be carried over to the next four succeeding taxable years until the full credit has been claimed.

4.  A taxpayer shall not be allowed to claim a tax credit unless the total amount of such taxpayer's contribution or contributions to a shelter or shelters for victims of domestic violence in such taxpayer's taxable year is at least one hundred dollars.

5.  The director of public safety shall determine, at least annually, which facilities in this state may be classified as shelters for victims of domestic violence.  The director of public safety may require of a facility seeking to be classified as a shelter for victims of domestic violence whatever information is reasonably necessary to make such a determination.  The director of public safety shall classify a facility as a shelter for victims of domestic violence if such facility meets the definition set forth in subsection 1 of this section.

6.  The director of public safety shall establish a procedure by which a taxpayer can determine if a facility has been classified as a shelter for victims of domestic violence, and by which such taxpayer can then contribute to such shelter for victims of domestic violence and claim a tax credit.  The cumulative amount of tax credits which may be claimed by all the taxpayers contributing to shelters for victims of domestic violence in any one fiscal year shall not exceed two million dollars.

7.  The director of public safety shall establish a procedure by which, from the beginning of the fiscal year until some point in time later in the fiscal year to be determined by the director of public safety, the cumulative amount of tax credits are equally apportioned among all facilities classified as shelters for victims of domestic violence.  If a shelter for victims of domestic violence fails to use all, or some percentage to be determined by the director of public safety, of its apportioned tax credits during this predetermined period of time, the director of public safety may reapportion these unused tax credits to those shelters for victims of domestic violence that have used all, or some percentage to be determined by the director of public safety, of their apportioned tax credits during this predetermined period of time.  The director of public safety may establish more than one period of time and reapportion more than once during each fiscal year.  To the maximum extent possible, the director of public safety shall establish the procedures described herein in such a manner as to ensure that taxpayers can claim all the tax credits possible up to the cumulative amount of tax credits available for the fiscal year.

8.  The director of public safety shall promulgate such rules as are necessary to achieve the purposes of this section.  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 536.024, RSMo.

Section 26.  1.  As used in this section, the following terms shall mean:

(1)  "Maternity home", a residential facility located in this state established for the purpose of providing housing and assistance to pregnant women who are carrying their pregnancies to term, and which is exempt from income taxation under the United States Internal Revenue Code;

(2)  "State tax liability", in the case of a business taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions, and in the case of an individual taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo;

(3)  "Taxpayer", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.

2.  A taxpayer shall be allowed to claim a tax credit against the taxpayer's state tax liability, in an amount equal to fifty percent of the amount such taxpayer contributed to a maternity home.

3.  The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the taxable year that the credit is claimed, and such taxpayer shall not be allowed to claim a tax credit in excess of fifty thousand dollars per taxable year.  However, any tax credit that cannot be claimed in the taxable year the contribution was made may be carried over to the next four succeeding taxable years until the full credit has been claimed.

4.  A taxpayer shall not be allowed to claim a tax credit unless the total amount of such taxpayer's contribution or contributions to a maternity home or homes in such taxpayer's taxable year is at least one hundred dollars.

5.  The director of the department of health shall determine, at least annually, which facilities in this state may be classified as maternity homes.  The director of the department of health may require of a facility seeking to be classified as a maternity home whatever information is reasonably necessary to make such a determination.  The director of the department of health shall classify a facility as a maternity home if such facility meets the definition set forth in subsection 1 of this section.

6.  The director of the department of health shall establish a procedure by which a taxpayer can determine if a facility has been classified as a maternity home, and by which such taxpayer can then contribute to such maternity home and claim a tax credit.  The cumulative amount of tax credits which may be claimed by all the taxpayers contributing to maternity homes in any one fiscal year shall not exceed two million dollars.

7.  The director of the department of health shall establish a procedure by which, from the beginning of the fiscal year until some point in time later in the fiscal year to be determined by the director of the department of health, the cumulative amount of tax credits are equally apportioned among all facilities classified as maternity homes.  If a maternity home fails to use all, or some percentage to be determined by the director of the department of health, of its apportioned tax credits during this predetermined period of time, the director of the department of health may reapportion these unused tax credits to those maternity homes that have used all, or some percentage to be determined by the director of the department of health, of their apportioned tax credits during this predetermined period of time.  The director of the department of health may establish more than one period of time and reapportion more than once during each fiscal year.  To the maximum extent possible, the director of the department of health shall establish the procedures described herein in such a manner as to ensure that taxpayers can claim all the tax credits possible up to the cumulative amount of tax credits available for the fiscal year.

8.  The director of the department of health shall promulgate such rules as are necessary to achieve the purposes of this section.  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 536.024, RSMo.

Section B.  Section 700.012 of this act shall become effective July 1, 1997.

Section C.  Sections 135.100, 135.110, 135.207, 135.225, 135.230, 135.245, 135.247, 135.326, 135.350, 135.400, 135.401, 135.403, 135.405, 447.708, 620.014, 620.158, 620.1039, 700.012, 25 and 26 of this act shall become effective January 1, 1997, and the provisions of sections 135.100, 135.110, 135.207, 135.225, 135.230, 135.245, 135.247, 135.326, 135.350, 135.400, 135.401, 135.403, 135.405, 447.708, 620.014, 620.158, 620.1039, 25 and 26 of this act shall apply to all tax periods beginning on or after January 1, 1997.

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