INTRODUCED BY REPRESENTATIVES KREIDER, LUETKENHAUS (Co-sponsors), HOSMER, SALLEE AND OSTMANN.

Pre-filed December 31, 1997 and 1000 copies ordered printed.

ANNE C. WALKER, Chief Clerk

L2433.01I

AN ACT

To repeal section 67.582, RSMo Supp. 1997, relating to sales taxation, and to enact in lieu thereof one new section relating to the same subject.

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

Section A. Section 67.582, RSMo Supp. 1997, is repealed and one new section enacted in lieu thereof, to be known as section 67.582, to read as follows:

67.582. 1. The governing body of any county, except a county of the first class with a charter form of government with a population of greater than four hundred thousand inhabitants, or the governing body of any city is hereby authorized to impose, by ordinance or order, a sales tax in the amount of up to one-half of one percent on all retail sales made in such county or city which are subject to taxation [under] pursuant to the provisions of sections 144.010 to 144.525, RSMo, for the purpose of providing law enforcement services for such county or city. 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 [under] pursuant to the provisions of this section shall be effective unless the governing body of the county or city submits to the voters of the county or city, at a county, city or state general, primary or special election, a proposal to authorize the governing body of the county or city to impose a tax.

2. The ballot of submission shall contain, but need not be limited to, the following language:

(1) If the proposal submitted involves only authorization to impose the tax authorized by this section the ballot shall contain substantially the following:

Shall the .......... (insert county or city) of .............. (county's or city's name) impose a .......... (insert countywide or citywide) sales tax of ............. (insert amount) for the purpose of providing law enforcement services for the ............. (insert county or city)?

Yes No

If you are in favor of the question, place an "X" in the box opposite "Yes". If you are opposed to the question, place an "X" in the box opposite "No"; or

(2) If the proposal submitted involves authorization to enter into agreements to form a regional jail district and obligates the county or city to make payments from the tax authorized by this section the ballot shall contain substantially the following:

Shall the .......... (insert county or city) of .............. (county's or city's name) be authorized to enter into agreements for the purpose of forming a regional jail district and obligating the ............ (insert county or city) to impose a ......... (insert countywide or citywide) sales tax of ............. (insert amount) to fund ............. dollars of the costs to construct a regional jail and to fund the costs to operate a regional jail, with any funds in excess of that necessary to construct and operate such jail to be used for law enforcement purposes?

Yes No

If you are in favor of the question, place an "X" in the box opposite "Yes". If you are opposed to the question, place an "X" in the box opposite "No".

If a majority of the votes cast on the proposal by the qualified voters voting thereon are in favor of the proposal submitted pursuant to subdivision (1) of this subsection, then the ordinance or order and any amendments thereto shall be in effect on the first day of the second quarter immediately following the election approving the proposal. If the constitutionally required percentage of the voters voting thereon are in favor of the proposal submitted pursuant to subdivision (2) of this subsection, then the ordinance or order and any amendments thereto shall be in effect on the first day of the second quarter immediately following the election approving the proposal. If a proposal receives less than the required majority, then the governing body of the county or city shall have no power to impose the sales tax herein authorized unless and until the governing body of the county or city shall again have submitted another proposal to authorize the governing body of the county or city to impose the sales tax authorized by this section and such proposal is approved by the required majority of the qualified voters voting thereon. However, in no event shall a proposal pursuant to this section be submitted to the voters sooner than twelve months from the date of the last proposal pursuant to this section.

3. All revenue received by a county or city from the tax authorized [under] pursuant to the provisions of this section shall be deposited in a special trust fund and shall be used solely for providing law enforcement services for such county or city for so long as the tax shall remain in effect.

4. 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 providing law enforcement services for the county or city. 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 city funds.

5. All sales taxes collected by the director of revenue [under] pursuant to this section on behalf of any county, 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 "County Law Enforcement Sales Tax Trust Fund". The moneys in the county law enforcement 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 and which was collected in each county imposing a sales tax [under] pursuant to this section, and the records shall be open to the inspection of officers of the county and the public. 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 which levied the tax; such funds shall be deposited with the county treasurer of each such county, and all expenditures of funds arising from the county law enforcement sales tax trust fund shall be by an appropriation act to be enacted by the governing body of each such county. Expenditures may be made from the fund for any law enforcement functions authorized in the ordinance or order adopted by the governing body submitting the law enforcement tax to the voters.

6. All sales taxes collected by the director of revenue pursuant to this section on behalf of any city, 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 "City Law Enforcement Sales Tax Trust Fund". The moneys in the city law enforcement 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 from which city the amounts were collected, and the records shall be open to the inspection of officers of the city and the public. 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 city which levied the tax; such funds shall be deposited with the city treasurer of each such city, and all expenditures of funds arising from the city law enforcement sales tax trust fund shall be by appropriation by the governing body of each such city. Expenditures may be made from the fund for any law enforcement functions authorized in the ordinance or order adopted by the governing body submitting the law enforcement tax to the voters.

[6.] 7. The director of revenue may authorize the state treasurer to make refunds from the amounts in the trust [fund] funds created in this section and credited to any county or city for erroneous payments and overpayments made, and may redeem dishonored checks and drafts deposited to the credit of such counties or cities. If any county or city abolishes the tax, the county or city 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 appropriate county or city 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 city, the director of revenue shall remit the balance in the account to the county or city and close the account of that county or city. The director of revenue shall notify each county or city of each instance of any amount refunded or any check redeemed from receipts due the county or city.

[7.] 8. Except as modified in this section, all provisions of sections 32.085 and 32.087, RSMo, shall apply to the tax imposed [under] pursuant to this section.

Return to the Missouri House of Representatives