SECOND REGULAR SESSION
93RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES PORTWOOD (Sponsor), WRIGHT (137), AVERY AND LEMBKE (Co-sponsors).
Read 1st time March 16, 2006 and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
AN ACT
To amend chapter 135, RSMo, by adding thereto three new sections relating to personal property tax relief.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto three new sections, to be known as sections 135.840, 135.841, and 135.842, to read as follows:
135.840. 1. As used in sections 135.840 to 135.842, the following terms mean:
(1) "Assessor", the officer of a local taxing authority who is primarily responsible for assessing motor vehicles for purposes of personal property taxation;
(2) "Bill preparer", the officer of a local taxing authority who is responsible for preparing bills for tangible personal property taxes;
(3) "Collector", the officer of a local taxing authority who is responsible for the collection of tangible personal property taxes;
(4) "Department", the department of revenue;
(5) "Director", the director of the department of revenue;
(6) "Effective tax rate", the tax rate imposed by a local taxing authority on tangible personal property on the applicable class of tangible personal property multiplied by the assessment ratio;
(7) "Leased", leased by a natural person as lessee and used for nonbusiness purposes;
(8) "Percentage level", the percentage of the reimbursable amount to be reimbursed or paid by the state;
(9) "Privately owned", owned by a natural person and used for nonbusiness purposes;
(10) "Qualifying motor vehicle", any passenger car, motorcycle, or pickup truck, as those terms are defined in chapter 301, RSMo, that is determined by the assessor of the local taxing authority in which the vehicle has situs to be privately owned or leased under a contract requiring the lessee to pay the tangible personal property tax on such motor vehicle; provided that, no individual shall be determined to own, either solely or jointly, or lease more than two qualifying motor vehicles. In determining whether a motor vehicle is a qualifying motor vehicle, the assessor may rely on the registration of such vehicle with the department under chapter 301, RSMo. In the event an individual owns or leases more than two motor vehicles which would otherwise be classified as qualifying motor vehicles, the assessor shall classify the individual's two least valuable vehicles as the individual's qualifying motor vehicles;
(11) "Reimbursable amount", the value of a qualifying motor vehicle, up to the first twenty thousand dollars of value, multiplied by the effective tax rate in effect on September 30, 2007, in a local taxing authority;
(12) "Tangible personal property tax", the tax levied under chapter 137, RSMo;
(13) "Used for nonbusiness purposes", the primary use is for other than business purposes. A motor vehicle shall not be deemed "used for nonbusiness purposes" if:
(a) The motor vehicle is expensed as a depreciable business asset on the taxpayer's federal income tax return under Section 179 of the Internal Revenue Code of 1986, as amended;
(b) More than fifty percent of the basis for depreciation of the motor vehicle is depreciated for federal income tax purposes; or
(c) The allowable expense of total annual mileage in excess of fifty percent is deductible for federal income tax purposes or reimbursed under an arrangement between an employer and employee;
(14) "Value", the true value in money of a motor vehicle as determined under subsection 9 of section 137.115, RSMo.
2. For the taxable year beginning on January 1, 2007, the state shall, subject to the appropriation of funds under section 135.842, directly reimburse taxpayers for tangible personal property tax paid on any qualifying motor vehicle in an amount equal to twelve and one-half percent of the reimbursable amount for each qualifying motor vehicle. Any amount to be reimbursed to a taxpayer under this subsection shall be subject to setoff for debts owed a state agency under chapter 143, RSMo, and for delinquent child support owed under chapter 454, RSMo. Reimbursements for tax year 2007 levies paid on or before December 31, 2007, shall be sent to taxpayers by United States mail on or before May 15, 2008, under the following procedure:
(1) On or before May 31, 2007, the assessor shall certify the value of each qualifying motor vehicle to the bill preparer. No further certification shall be required if the assessor has, within the assessor's book provided to the bill preparer, identified each qualifying motor vehicle and its true value, as determined under subsection 9 of section 137.115, RSMo;
(2) On or before November 31, 2007, the bill preparer shall certify to the department, in a manner prescribed by the department, the reimbursable amount due each taxpayer;
(3) On or before January 31, 2008, the collector shall certify to the department, in a manner prescribed by the department, the names of those individuals who failed to remit payment for the tax assessed them by December 31, 2007;
(4) On or before March 31, 2008, after a review of the certifications submitted by the bill preparers and collectors, the director shall pay each taxpayer such taxpayer's reimbursable amount using money from the property tax relief fund created in section 135.842.
3. (1) For all taxable years beginning on or after January 1, 2008, the state shall, subject to the appropriation of funds under section 135.842, pay to collectors a percentage of the reimbursable amount of each taxpayer's personal property tax on any qualifying motor vehicle in an amount equal to the following percentages of the reimbursable amount:
(a) For taxable years beginning in calendar year 2008, twenty-seven and one-half percent;
(b) For taxable years beginning in calendar year 2009, forty-seven and one-half percent;
(c) For taxable years beginning in calendar year 2010, seventy percent; and
(d) For taxable years beginning in or after calendar year 2011, one hundred percent.
(2) In addition to all other information currently appearing on tangible personal property tax bills, the bill preparer of each local taxing authority shall ensure that each such bill shall state on its face whether the vehicle is:
(a) A qualifying motor vehicle;
(b) A deduction for the amount to be paid by the state as determined by this section; and
(c) The amount of tangible personal property tax levied on the vehicle.
(3) Reimbursement payments for levies in tax years beginning in or after 2008 shall be paid to collectors in the amount specified in this subsection for each qualifying motor vehicle, if the requirements of section 135.842 and the following requirements are met:
(a) The bill preparer shall include such amount as a deduction on the face of tangible personal property tax bills for qualifying motor vehicles and shall clearly designate such deduction as an amount to be paid by the state. In addition to tangible personal property taxes levied on property other than qualifying motor vehicles, the taxpayer shall pay to the collector any payment due for the difference between tangible personal property taxes levied on a qualifying motor vehicle and such deduction. Within the certified personal property tax book provided to the bill preparer, the assessor shall identify each qualifying motor vehicle and its true value, as determined under subsection 9 of section 137.115, RSMo;
(b) Except as provided in subsection 1 of section 135.841, upon full payment of the tangible personal property tax levied on a qualifying motor vehicle, less the amount of the deduction, as described in this subsection or in cases where a taxpayer is not required to return to the collector any payment of tangible personal property tax for a qualifying vehicle, the collector may make a request to the department of revenue for payment of the reimbursement amount. Such a request may be made monthly for all qualifying motor vehicles for which taxes were fully paid in the previous month or not required to be paid and shall include a summary of the information appearing on the related tangible personal property tax bills. The summary information to be included in the request and the form of such request shall be prescribed by the director. Upon receipt of such information or any other information required by the director, the director shall issue payment from the property tax relief fund.
(4) Each taxable year the department and each collector shall reconcile the amount paid by the state to such collector. The department may use the information described in this subsection and any other source or data it deems appropriate in making such a reconciliation. If the department determines that the correct amount has not been paid to such collector, the department shall, for any underpayments, make a payment for any underpayment, or, for any overpayment, reduce the respective local taxing authority's next payment or payments, in the current or succeeding years accordingly. Regulations promulgated by the director shall establish procedures for such reconciliations.
135.841. 1. Any taxpayer, except a taxpayer with whom a local taxing authority enters into an installment payment agreement under section 139.050, RSMo, or section 139.052, RSMo, for payment of current property taxes, who fails to timely pay such taxpayer's personal property taxes for any taxable year beginning after December 31, 2007, shall forfeit the right to property tax reimbursement for that tax year under sections 135.840 to 135.842. Additionally, for taxable years beginning in or after the calendar year 2008, the bill preparer or collector may send a supplemental bill in the amount of the reimbursement deduction which appeared on such taxpayer's personal property tax bill, plus interest at a rate prescribed by section 140.100, RSMo, and fees provided by law.
2. If the situs for the assessment and taxation of a qualifying motor vehicle changes in a given taxable year and the local taxing authority in which the qualifying motor vehicle first had situs in such taxable year levied a tangible personal property tax on such vehicle for all twelve months of such taxable year, the reimbursement shall be made only for tangible personal property taxes paid to such local taxing authority.
3. Any reimbursement required by sections 135.840 to 135.842 for a qualifying motor vehicle which is leased shall be paid directly to the lessee of such vehicle.
4. No reimbursement shall be made to a taxpayer by the director where the applicable reimbursement percentage multiplied by the reimbursable amount of the taxpayer's qualifying motor vehicle yields a payment of less than five dollars.
5. Notwithstanding the provisions of subsections 2 and 3 of section 135.840, the amount of the reimbursement to taxpayers for tax years beginning in 2007 and the amount of the payments to collectors for tax years beginning in or after calendar year 2008 shall be one hundred percent for qualifying motor vehicles with a value of one thousand dollars or less.
6. Payments to taxpayers and collectors under sections 135.840 to 135.842 shall not include interest.
7. For taxable year 2007 and to the end of taxable year 2010, the collector shall include a statement, prepared by the department, with or as part of the tangible personal property tax bills for such qualifying motor vehicles. The statement shall explain how the deduction for the percentage of the reimbursable amount was calculated, how the deduction shall be calculated in future years, and the taxpayer's liability for tangible personal property taxes on qualifying motor vehicles.
135.842. 1. The reimbursement allowed by sections 135.840 to 135.842 is subject to appropriation from moneys received by the state under the master settlement agreement entered into on November 23, 1998, by the state and leading United States tobacco product manufacturers, and deposited by the state treasurer to the credit of the tobacco settlement trust fund.
2. An amount equal to the percentage of the reimbursable amount as determined under subsection 3 of section 135.840 shall appear as a deduction on the tangible personal property tax bill for qualifying motor vehicles.
3. If the general assembly changes the percentage of the reimbursable amount as described in subsection 3 of section 135.840 for the current taxable year and a local taxing authority has already printed its tangible personal property tax bills for qualifying motor vehicles for the year that the percentage is changed, the following procedures shall apply:
(1) If the percentage of the reimbursable amount is decreased for the current taxable year and the taxpayer has paid the assessment, the local taxing authority may levy an additional amount for the amount of the difference between the percentage of the reimbursable amount for the taxable year reflected on the original assessment and the percentage of the reimbursable amount for the taxable year as modified by the general assembly in the current year or carry forward the additional levy and include it on the subsequent tax bill, provided such levy is not subject to penalty and interest; and
(2) If the percentage of the reimbursable amount is increased for the current taxable year and the taxpayer has paid the assessment, the local taxing authority shall issue a refund to the taxpayer for the amount of the difference between the percentage of the reimbursable amount for the taxable year reflected on the original assessment and the percentage of the reimbursable amount for the taxable year as modified by the general assembly in the current taxable year. Such refunds shall be issued by the collector no later than thirty days after receipt of the payment from the state under subsection 3 of section 135.840.
4. If the general assembly changes the percentage of the reimbursable amount as described in subsection 3 of section 135.840 before a local taxing authority prints its tangible personal property tax bills for qualifying motor vehicles, the following procedures shall apply:
(1) If the percentage of the reimbursable amount is decreased for the current taxable year, the local taxing authority may adjust each taxpayer's tangible personal property tax bill to reflect the changes made by the general assembly to the percentage of the reimbursable amount; and
(2) If the percentage of the reimbursable amount is increased for the current taxable year, the local taxing authority shall adjust each taxpayer's tangible personal property tax bill to reflect the changes made by the general assembly to the percentage of the reimbursable amount.
5. There is hereby created in the state treasury the "Personal Property Tax Relief Fund", which shall consist of money collected under sections 135.840 to 135.842. The state treasurer shall be custodian of the fund, and shall deposit to the credit of the fund all moneys which may be appropriated to it by the general assembly and also any gifts, contributions, grants, bequests or other aid received from any source. Upon appropriation, money in the fund shall be used solely for the purposes of sections 135.840 to 135.842. Notwithstanding the provisions of section 33.080, RSMo, to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund. The state treasurer shall invest moneys in the fund in the same manner as other funds are invested. Any interest and moneys earned on such investments shall be credited to the fund.
6. The department shall annually, with its budget request, make and deliver to the governor and the general assembly a statement indicating the sum necessary to fund the payments to collectors under sections 135.840 to 135.842. Upon the request of the governor or general assembly, the department shall also estimate and report the amount to be paid by the state in any taxable year to an individual local taxing authority.
7. The department shall promulgate regulations for the use of local governments in administering the provisions of sections 135.840 to 135.842. The department shall cooperate with and seek the counsel of local officials and interested groups. Such guidelines shall be available for distribution to local governments on July 1, 2007. Thereafter, the guidelines shall be updated annually. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2006, shall be invalid and void.
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