HCS SCS SB 238 -- LOCAL SALES TAX COLLECTION

SPONSOR:  Gross (Faith)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Ways and Means by a vote of 13 to 0.

This substitute clarifies that cities, in addition to counties,
may levy a sales tax and impose 25 cents on each $100 of assessed
valuation on taxable property for the purpose of providing
certain services including counseling, family support, and
temporary residential services to youth.  The substitute allows
for the lawful collection of the revenues derived from the local
sales tax by the Department of Revenue.  All revenues collected
under the property tax and all revenues collected under the local
sales tax, less 1% for the cost of collection, will be deposited
in the Community Children's Services Fund created in the
substitute.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill corrects an error in
the law when it was enacted.  The original bill authorized the
local sales tax and property tax in the cities of St. Louis and
St. Charles that has been passed at the county and city level.
The original bill did not provide for the collection of the sales
tax revenue by the Department of Revenue and did not mention the
word "city" in the section.  No local voter approval is needed.

Testifying for the bill was Senator Gross.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that it provides
authorization for the department to collect the tax, retain 1%
for administration, and remit the balance to the newly created
fund.  Currently, the department is collecting the tax under a
contractual agreement.

Others testifying on the bill was the Department of Revenue.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm