HS HB 286 -- SALES/USE AND INCOME TAX (Smith)

This substitute requires that any request for a refund of sales
taxes by a person who collects and remits the tax will only be
granted if the person demonstrates to the satisfaction of the
Director of the Department of Revenue that the amount will be
refunded or credited to the person who originally paid the sales
tax.  The restriction will not apply if the person seeking the
refund shows to the director's satisfaction that he or she
originally paid the tax and that it was not collected from the
purchasers.  Any additional revenue resulting from this
limitation will be transferred from general revenue to the
Mental Health Trust Fund.

The substitute disallows a state income tax deduction for an
annuity, pension, or retirement allowance to the extent the
amount is excluded from the federal gross adjusted income or is
otherwise deducted from the calculation of state taxable income.

The substitute also exempts from state and local sales and use
tax the sale of certain clothing when sold between the hours of
12:01 a.m., August 9, 2001, and midnight, August 12, 2001.  Each
individual item must sell for $100 or less to qualify for the
exemption.  Any loss of revenue by local taxing jurisdictions
will be reimbursed by the state.  This portion of the substitute
contains an emergency clause.

FISCAL NOTE:  Estimated Net Effect to General Revenue Fund of a
cost of $3,243,033 in FY 2002, an income of $1,616,490 in FY
2003 and an income of $1,616,490 in FY 2004.  Loss to School
District Trust Fund of $704,405 in FY 2002, $0 in FY 2003, and
$0 in FY 2004.  Loss to Conservation Fund of $88,051 in FY 2002,
$0 in FY 2003, and $0 in FY 2004.  Loss to Parks and Soil Funds
of $70,441 in FY 2002, $0 in FY 2003, and $0 in FY 2004.
Revenue to Mental Health Trust Fund of less than $22,000,000 in
FY 2002, Unknown in FY 2003, and Unknown in FY 2004.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am