Read 1st time January 26, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To repeal sections 143.781 and 143.811, RSMo 1994, and section 144.190, RSMo Supp. 1999, relating to income and sales tax credits and refunds, and to enact in lieu thereof three new sections relating to the same subject.
Section A. Sections 143.781 and 143.811, RSMo 1994, and section 144.190, RSMo Supp. 1999, are repealed and three new sections enacted in lieu thereof, to be known as sections 143.781, 143.811 and 144.190, to read as follows:
143.781. 1. The director of revenue within the applicable period of limitations may credit an overpayment of income tax and interest on such overpayment against any liability in respect of any tax imposed by the tax laws of this state on the person who made the overpayment, and the balance shall be credited or refunded if it exceeds one dollar. Overpayments shall be determined by taking into account any deposit made by a taxpayer [under] pursuant to section 143.631, except a deposit which has been returned to a taxpayer pursuant to a written request. Unless directed otherwise by a taxpayer, the director of revenue may credit all or part of the overpayment of a taxpayer on a joint or combined return against the amount of tax due from [his] the taxpayer's spouse.
2. If the amount allowable as a credit for tax withheld from the taxpayer exceeds [his] the taxpayer's tax to which the credit relates, the excess shall be considered an overpayment.
3. If there has been an overpayment of tax required to be deducted and withheld [under] pursuant to section 143.191, a credit or refund shall be made to the employer only to the extent that the amount of the overpayment was not deducted and withheld by the employer.
4. The director of revenue may prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined to be an overpayment of the income tax for a preceding taxable year.
5. If any amount of income tax is assessed or collected after the expiration of the period of limitations properly applicable thereto, such amount shall be considered an overpayment.
6. The provisions of sections 143.781 to 143.841 to the contrary notwithstanding, a credit or refund, or any portion thereof, shall be transferred to the state agency to set off a debt due and owing to the state agency as provided in sections 143.782 to 143.788. When any action is taken pursuant to sections 143.782 to 143.788, the provisions of sections 143.782 to 143.788 shall govern all aspects of any rights and entitlement to credits or refunds covered by such action. If there is a final determination that the taxpayer is entitled to receive all or part of the setoff pursuant to the provisions of sections 143.782 to 143.788, the amount to which the taxpayer is entitled shall bear interest as provided in section 143.811, beginning sixty days after such setoff.
143.811. 1. [Under] Pursuant to regulations prescribed by the director of revenue, interest shall be allowed and paid at the rate determined by section 32.065, RSMo, on any overpayment in respect of the tax imposed by sections 143.011 to 143.996[; except that, where the overpayment resulted from the filing of an amendment of the tax by the taxpayer after the last day prescribed for the filing of the return, interest shall be allowed and paid at the rate of six percent per annum]. With respect to the part of an overpayment attributable to a deposit made pursuant to subsection 2 of section 143.631, interest shall be paid thereon at the rate in section 32.065, RSMo, from the date of the deposit to the date of refund. No interest shall be allowed or paid if the amount thereof is less than one dollar.
2. For purposes of this section:
(1) Any return filed before the last day prescribed for the filing thereof shall be considered as filed on such last day determined without regard to any extension of time granted the taxpayer;
(2) Any tax paid by the taxpayer before the last day prescribed for its payment, any income tax withheld from the taxpayer during any calendar year, and any amount paid by the taxpayer as estimated income tax for a taxable year shall be deemed to have been paid by [him] the taxpayer on the fifteenth day of the fourth month following the close of [his] such taxpayer's taxable year to which such amount constitutes a credit or payment.
3. For purposes of this section with respect to any withholding tax:
(1) If a return for any period ending with or within a calendar year is filed before April fifteenth of the succeeding calendar year, such return shall be considered filed April fifteenth of such succeeding calendar year; and
(2) If a tax with respect to remuneration paid during any period ending with or within a calendar year is paid before April fifteenth of the succeeding calendar year, such tax shall be considered paid on April fifteenth of such succeeding calendar year.
4. If any overpayment of tax imposed by sections 143.011 to 143.996 is refunded within four months after the last date prescribed (or permitted by extension of time) for filing the return of such tax or within four months after the return was filed, whichever is later, no interest shall be allowed [under] pursuant to this section on overpayment.
5. Any overpayment resulting from a carryback, including a net operating loss and a corporate capital loss, shall be deemed not to have been made prior to the close of the taxable year in which the loss arises.
144.190. 1. If a tax has been incorrectly computed by reason of a clerical error or mistake on the part of the director of revenue, such fact shall be set forth in the records of the director of revenue, and the amount of the overpayment shall be credited on any taxes then due from the person legally obligated to remit the tax pursuant to sections 144.010 to 144.525, and the balance shall be refunded to the person legally obligated to remit the tax, such person's administrators or executors, as provided for in section 144.200.
2. If any tax, penalty or interest has been paid more than once, or has been erroneously or illegally collected, or has been erroneously or illegally computed, such sum shall, plus interest determined pursuant to section 32.065, RSMo, be credited on any taxes then due from the person legally obligated to remit the tax pursuant to sections 144.010 to 144.510, and the balance[, with interest as determined by section 32.065, RSMo,] shall be refunded to the person legally obligated to remit the tax, but no such credit or refund shall be allowed unless duplicate copies of a claim for refund are filed within three years from date of overpayment. The director of the department of revenue shall, within one hundred twenty days after receiving properly completed documentation from the taxpayer, refund taxes, plus interest from the date the tax was collected, to the taxpayer.
3. Every claim for refund must be in writing under oath, and must state the specific grounds upon which the claim is founded. Any refund or any portion thereof which is erroneously made, and any credit or any portion thereof which is erroneously allowed, may not be recovered in any action brought by the director of revenue against the person legally obligated to remit the tax, notwithstanding any other provision of law to the contrary, unless such action for recovery is filed within six months from date of the alleged erroneous refund, credit or portion of either. In the event that a tax has been illegally imposed against a person legally obligated to remit the tax, the director of revenue shall authorize the cancellation of the tax upon the director's record.
4. Notwithstanding the provisions of this section, the director of revenue shall authorize direct-pay agreements to
purchasers which have annual purchases in excess of seven hundred fifty thousand dollars pursuant to rules and
regulations adopted by the director of revenue. For the purposes of such direct-pay agreements, the taxes authorized
pursuant to chapters 66, RSMo, 67, RSMo, 92, RSMo, and 94, RSMo, shall be remitted based upon the location of the
place of business of the purchaser.
Missouri House of Representatives