FIRST REGULAR SESSION
HOUSE BILL NO. 545
91ST GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES BERKOWITZ, KREIDER, SMITH, BARRY, SELBY, RANSDALL, REYNOLDS, HAMPTON, BLACK, SHOEMYER, BRITT, CARNAHAN (Co-sponsors)
FROELKER, MOORE AND BOUCHER.
Read 1st time January 25, 2001, and 1000 copies ordered printed.
TED WEDEL, Chief Clerk
AN ACT
To repeal section 143.141, RSMo 2000, relating to tax relief, and to enact in lieu thereof three new sections relating to the same subject.
Section A. Section 143.141, RSMo 2000, is repealed and three new sections enacted in lieu thereof, to be known as sections 135.905, 135.910 and 143.141, to read as follows:
135.905. 1. There is hereby established the "Missouri Community Foundation Committee", which has the sole purpose of creating and incorporating a public, nonprofit organization pursuant to chapter 355, RSMo, to be known as the "Missouri Community Foundation" and to be recognized by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code. The objective of the Missouri community foundation, hereinafter referred to as "foundation", is to assist individuals, businesses and organizations with their philanthropic goals. The foundation's articles of incorporation shall require the foundation to perform the following duties:
(1) Create a permanent endowment fund to be funded through the charitable contributions of citizens of this state. The foundation shall return income earned from this endowment to communities and organizations in the form of grants for specific needs and projects;
(2) Administer and invest endowment funds established by other individuals, businesses and organizations. The foundation shall hire professional investment firms to administer the pooled endowment funds and shall make grants pursuant to the wishes of individual donors;
(3) Serve as a resource center for nonprofit organizations, providing assistance in the areas of organizational development, board and volunteer recruitment and training, resource development, fund raising, planned giving, financial planning and budgeting and feasibility studies; and
(4) Encourage and promote planned giving as a method for Missourians to leave a lasting legacy in their community and state.
The foundation shall educate Missourians, professional advisors and charitable organizations regarding planned giving. The foundation's articles of incorporation shall also set forth the names and addresses of the individuals who are to serve as the initial directors, and shall define, limit and regulate the board of directors.
2. The committee shall consist of nine members, including the governor or his or her designee, the president pro tem of the senate or his or her designee, the speaker of the house of representatives or his or her designee, the director of the department of economic development or his or her designee, the director of the department of revenue or his or her designee, two additional persons appointed by the governor, one additional person appointed by the president pro tem of the senate and one additional person appointed by the speaker of the house of representatives. The committee shall meet before April 1, 2002, select a chairman from among its members and develop articles of incorporation for the foundation. Prior to incorporating the foundation, the committee shall hold at least three public meetings in different areas of the state to invite public input. Members of the committee shall be reimbursed for their actual and necessary expenses incurred in the performance of their duties under this section out of funds appropriated for that purpose. The chairperson of the committee shall file the foundation's articles of incorporation with the secretary of state's office no later than July 1, 2002. The committee shall be dissolved upon completion of its duties under this section.
3. The department of economic development shall provide all necessary staff and support services as required by the committee to hold meetings, to maintain records and to conduct all other committee business. The committee shall meet at any such time that it deems necessary. Meetings may be called by the chairperson or by a petition signed by a majority of the members of the committee. Ten days' notice shall be given in writing to such members prior to the meeting date. A simple majority of the members of the committee shall be present to constitute a quorum. Proxy voting shall not be permitted.
135.910. 1. As used in this section, the following terms mean:
(1) "Department", department of revenue;
(2) "Director", director of the department of revenue;
(3) "Donation", cash, stocks, bonds, real estate, retirement assets such as individual retirement agreements, life insurance policies, motor vehicle, farm equipment, grain, livestock, art work, and other assets with a retail value;
(4) "Foundation", the Missouri Community Foundation incorporated by the Missouri community foundation committee established pursuant to section 135.905;
(5) "Tax liability", the tax due pursuant to chapter 143, 147 or 148, RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265, RSMo; and
(6) "Taxpayer" shall include any individual, partnership, corporation, trust or limited liability.
2. For all tax years beginning on or after January 1, 2002, any taxpayer who makes a donation of at least one hundred dollars to a foundation shall receive a tax credit equal to ten percent of the amount of such donation against his, her or its tax liability for the tax year in which a donation was made only if such taxpayer timely files a state income tax return for the same tax year. Notwithstanding any provision of law to the contrary, no taxpayer who claims a tax credit pursuant to this section for any donation to a foundation shall be allowed to claim an income tax deduction for the same donation.
3. The tax credit allowed by this section shall be claimed by the taxpayer at the time such taxpayer files a state income tax return for the year in which the donation was made. The amount of the tax credit claimed shall not exceed the taxpayer's tax liability for the tax year that the credit is claimed. The maximum tax credit allowed pursuant to this section per taxpayer per tax year is fifty thousand dollars. Any unused tax credit for a given tax year may be carried over to the four succeeding tax years until the full credit has been used, but shall not be transferrable.
4. The director shall promulgate rules and regulations to administer the provisions of this section. 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 chapter 536, RSMo.
143.141. If federal taxable income of a resident individual is determined by itemizing deductions from his or her federal adjusted gross income, he or she may elect to deduct his or her Missouri itemized deduction in lieu of his or her Missouri standard deduction. The Missouri itemized deduction of a resident individual means the allowable federal itemized deductions which consist of allowable federal deductions other than those allowable in arriving at federal adjusted gross income and other than the federal deductions for personal and dependency exemptions, with the following modifications:
(1) Reduced by the proportional amount thereof representing the tax imposed by sections 143.011 to 143.998;
(2) Reduced by the proportional amount thereof representing any income taxes imposed by another state of the United States or a political subdivision thereof or the District of Columbia;
(3) Increased by the fair market value of a literary, musical, scholarly, or artistic composition contributed to any tax exempt agency or institution which is operated on a not-for-profit basis by any taxpayer whose personal efforts created such composition less the amount deducted from federal adjusted gross income attributable to such contribution. The fair market value of such literary, musical, scholarly or artistic composition shall be determined by written appraisal of the property by a person qualified to make such an appraisal other than the taxpayer, the donee, or any "related taxpayer" within the meaning of such term as defined by sections 267(b) and 1313(c) of the Internal Revenue Code, as amended. The appraisal shall be made within one year of the date of the donation and attached to the taxpayer's income tax return;
(4) Increased to the extent not otherwise deductible, by the taxes for the same taxable year for which the return is being filed that are imposed by the following provisions of the Internal Revenue Code:
(a) Section 3101, relating to the tax on employees under the Federal Insurance Contributions Act;
(b) Sections 3201 and 3211, relating to the taxes on railroad employees and railroad employee representatives under the Railroad Retirement Tax Act;
(c) Section 1401, relating to tax on self-employment income, to the extent that such taxes were not deducted in the computation of the taxpayer's federal adjusted gross income under the Internal Revenue Code of 1986, as amended;
(5) Reduced by the amount of any donation to a foundation for which a tax credit is claimed pursuant to section
135.910, RSMo.
Missouri
House of Representatives