HCS SB 30 -- TAXATION

SPONSOR:  Nodler (Stevenson)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Tax Reform by a vote of 10 to 0.

This substitute changes the laws regarding taxation.  In its main
provisions, the substitute:

(1)  Changes the laws regarding the determination of whether a
substantial nexus exists for income tax and franchise tax
purposes with the state for certain corporations and individuals.
Substantial nexus will be determined without consideration of
whether an individual or a corporation owns, leases, or uses a
distribution or data storage facility in Missouri including those
selling property shipped from the facility or data stored at the
facility (Sections 32.130, 143.006, 144.605, and 147.010, RSMo);

(2)  Authorizes Perry County to levy, upon voter approval, a
sales tax of up to 1/4 of 1% to equally fund senior services and
youth programs.  The revenue received for senior services will be
administered by a senior services tax commission (Section
67.997);

(3)  Adds county assessors to the list of county officials who
must receive certified copies of the ordinances effecting a
concurrent detachment and annexation of property between
municipalities (Sections 71.011 and 71.012);

(4)  Requires operators of storage facilities beginning
January 1, 2008, to provide documentation including the owner's
name, address, county of residence, and a description of the
personal property to the county assessor where the rental or
leasing facility is located for property tax purposes.  The
substitute defines "personal property" as any house trailer,
manufactured home, boat, vessel, floating home, floating
structure, airplane, or aircraft.  Any storage facility that
fails to provide the required documentation will be assessed a
penalty and taxes for the personal property stored at its
location (Section 137.092);

(5)  Authorizes an exemption from the motor fuel tax for motor
fuel sold for use by an interstate transportation authority, a
city transit authority, or a city utilities board to operate a
public mass transportation facility (Section 142.817);

(6)  Eliminates the corporate income tax, beginning January 1,
2008, for the first five taxable years of a new manufacturer's
existence in Missouri as certified by the Department of Economic
Development (Section 143.432);

(7)  Removes the "solely in interstate commerce" requirement for
the trucking exemption and exempts personal property and
utilities used in the research and development of
agricultural/biotechnology and plant genomics products and
prescription pharmaceuticals from local sales tax (Section
144.030);

(8)  Authorizes an exemption from state and local sales and use
tax for the cost of all utilities, chemicals, machinery,
equipment, and materials used directly in television or radio
broadcasting or used in the manufacturing, processing,
compounding, mining, or production of a product; processing
recovered materials; or research and development related to
manufacturing (Section 144.054);

(9)  Authorizes an exemption from state and local sales tax,
beginning September 1, 2007, for the cost of temporarily using
coin-operated amusement devices and removes the exemption for the
purchase of the devices and parts.  Coin-operated amusement
devices include video, pinball, table, and redemption games.
Currently, amusement devices and parts for amusement devices are
exempt from state and local sales tax if a sales tax is paid on
the gross receipts derived from the use of the devices (Section
144.518);

(10)  Assigns school districts to metropolitan statistical areas
for the purpose of determining the dollar value modifier in the
school foundation formula.  When a school district contains
territory from more than one county, the district is assigned to
the county in which the district headquarters are located.  The
Monroe City R-I School District will be assigned to the county
that will yield the highest dollar value modifier (Section
163.016);

(11)  Revises the definition of "community-based organizations"
to include any nonprofit corporations formed under Chapter 355
for which the department can approve to implement the Family
Development Account Program.  Currently, no more than 20% of the
funds in the reserve fund account may be used for the
administrative costs of the program during its first two years
and 15% in subsequent years.  The amount will be reduced to 15%
for the first two years and 10% for subsequent years (Sections
208.750 and 208.755);

(12)  Allows household goods common carriers to file applications
with the Highways and Transportation Commission for approval of
rates to reflect increases and decreases in the carrier's costs.
The filing of the applications will be processed as rate
adjustment requests by electrical, gas, or water companies
(Section 387.075); and

(13)  Repeals the exemption, beginning January 1, 2008, that
currently allows intrastate household goods movers to operate
wholly in municipalities, between contiguous municipalities, or
commercial zones without obtaining operating authority from the
Department of Transportation (Section 390.030).

The substitute contains an emergency clause for Sections 144.006,
144.605, and 147.010 regarding substantial nexus determination
procedures.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of More than
$33,707 in FY 2008, More than $150,657 in FY 2009, and More than
$150,657 in FY 2010.  Estimated Cost on Other State Funds of More
than $825,000 in FY 2008, More than $1,238,000 in FY 2009, and
More than $1,238,000 in FY 2010.

PROPONENTS:  Supporters say that the bill expands the sales tax
exemption for common carriers.

Testifying for the bill was Representative Stevenson for Senator
Nodler.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am