SS SCS HCS HB 1150, 1237 & 1327 -- TAXATION

STATE TAX AMNESTY

This bill authorizes a state tax amnesty program on penalties,
additions to tax, and interest on delinquencies which occurred
prior to December 31, 2001.  To be eligible for the program the
taxpayer must submit and pay all unpaid taxes between August 1,
2002, and October 30, 2002.  All new revenues resulting from the
tax amnesty program will be deposited in the Schools for the
Future Fund, unless otherwise earmarked by the Missouri
Constitution or if the revenues do not belong to the state.

The bill also authorizes the Department of Revenue and the
Administrative Hearing Commission to negotiate with taxpayers or
their agents to compromise all or part of the tax liability of a
taxpayer in certain situations.

Before the Department of Revenue can abate any part of a
taxpayer's liability, the director must forward a copy of the
abatement agreement to the Attorney General.  The Attorney
General has up to 30 days to review the agreement for legal form
and content and may offer proposed revisions to protect the
interests of the state.  This provision will expire on January 1,
2005.

SALES AND USE TAX

The bill also authorizes the Simplified Sales and Use Tax
Administrative Act.  It allows the state to enter into multistate
discussions concerning the adoption of a conforming sales and use
tax system with other states.  Missouri will be represented by
seven delegates appointed by the majority and minority leaders in
both houses of the General Assembly.  The delegates need not be
members of the General Assembly.  The act contains requirements
for consideration of certain issues, voting, and reporting of
actions by the delegates.

PROPERTY TAX

The bill also makes various changes related to the assessment and
levy of property taxes.  The bill:

(1)  Requires separate levies to be calculated and rolled-back
within each subclass of real property and for personal property
using the assessed valuation of each subclass of real property
and of personal property.  If the separate levy process reduces
revenues to a political subdivision, it may adjust the levy to
produce the same amount of revenue as would have been produced
under a single levy process.  Under current law, the assessed
valuation of all subclasses of real property and personal
property are combined to calculate one levy to be applied to all
classes of property equally;

(2)  Allows state-assessed railroad and utility property to be
equally assessed among the four classes of property;

(3)  Requires the governing body of any political subdivision
that levies a tax rate lower than its tax rate ceiling to approve
by a majority vote of the governing body at a public meeting any
increase of that lowered rate up to the tax ceiling.  This
provision does not apply to school districts;

(4)  Sets a formula for determining a blended property tax rate
by school districts for purposes of receiving state aid for
public schools through the state foundation formula;

(5)  Requires each taxing jurisdiction to calculate its tax rate
out to four decimal points, except for those with a tax rate
under a dollar.  Current law requires the rate to be calculated
out to three decimal points;

(6)  Requires a physical inspection of property during
reassessment when the assessed value increases 15% or more.
Current law requires a physical inspection when property
increases 17% or more;

(7)  Defines physical inspection of property during reassessment
as an on-site personal observation of the land and the exterior
portions of the buildings available to the inspector.  "Drive-by"
inspections will not qualify.  The assessor's staff must notify
the owner or occupant that a physical inspection was performed.
These inspection requirements apply only to St. Louis County;

(8)  Allows credit cards to be used as a method for paying
property taxes; and

(9)  Requires the board of equalization in all charter counties
to provide written findings of fact and conclusions of law to any
taxpayer subject to hearing before the board.  This provision
will only apply to St. Louis County.

All of the provisions related to property taxation will become
effective January 1, 2003, for St. Louis County and will become
effective for all other taxing jurisdictions on January 1, 2005.

The bill contains an emergency clause and will be effective upon
approval or July 1, 2002, whichever occurs later.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:00 am