HCS SB 582 -- TAXATION

SPONSOR:  Shoemyer (Sutherland)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 7 to 0.

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

(1)  Allows Jackson County to collect a 3% fee on the face value
of delinquent taxes and St. Charles County to increase its
population threshold;

(2)  Allows first classification counties without a charter form
of government and second classification counties to collect
property taxes using electronic records and disbursements,
requires taxing authorities to request notification of current
taxes paid under protest by February 1, and requires the county
collector to provide the information by March 1.  Delinquent
personal property taxes are subject to the same interest and
penalties as delinquent real property taxes;

(3)  Allows the City of Gladstone to impose a transient guest tax
of up to 5% and allows the City of Sullivan and the portion of
the Sullivan C-II School District located in Franklin County to
levy a 2% to 5% transient guest tax on charges for sleeping rooms
paid by guests of hotels, motels, bed and breakfast inns, and
campgrounds or docking facilities, upon voter approval;

(4)  Allows cities, towns, and villages within the counties of
Clay, Franklin, Boone, Jasper, or Jackson; these counties and St.
Charles County; and counties, cities, towns, and villages that
adopt transect-based zoning to form a theater, cultural arts, and
entertainment district.  The district must be at least 25
contiguous acres in size and the governing body of the city or
county must pass a resolution describing the district when a
petition for its creation is filed;

(5)  Allows any community development district to fill positions
on its board by appointing additional representatives when less
than five landowners live within the district and requires that a
district's revenues be used to reimburse the costs of new
construction in blighted areas only;

(6)  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;

(7)  Removes, beginning August 28, 2007, the requirement that
both St. Louis City and St. Louis County must approve a
transportation sales tax before a transportation sales tax can go
into effect in either jurisdiction;

(8)  Changes the qualifications and amount of credit allowed
under the senior citizen/disabled person property tax credit,
commonly known as circuit breaker, and renames the program the
Senior Citizens' Homestead Tax Relief Act;

(9)  Authorizes a refundable individual income tax credit for tax
years beginning on or after January 1, 2008, for the amount of
real property taxes paid on a homestead by the surviving spouse
of certain public safety officers killed in the line of duty;

(10)  Authorizes a nonrefundable income tax credit for volunteer
firefighters who complete a firefighter training program approved
by the State Fire Marshal;

(11)  Changes the laws regarding the Missouri Homestead
Preservation Act by specifying the use of the term "base year,"
extending the deadline to file an application from September 30
to October 15, and requiring the Department of Revenue to
determine the apportionment percentage by equally distributing it
among all eligible applicants;

(12)  Changes the laws regarding the collection of delinquent
real estate taxes, foreclosure sales, third offerings of lands
and lots, redemptions, purchases by counties or cities, deed, and
possession;

(13)  Allows the county collector to send an individual a notice
of foreclosure on his or her property by regular mail;

(14)  Changes the way corporate net operating losses are
calculated, removes the restriction for specific depreciation
deductions, and removes the requirement that 50% or more of the
income of an affiliated group of corporations be derived from
sources within this state to file a consolidated Missouri income
tax return;

(15)  Creates a rebuttable presumption that the raw materials
used in the primary manufacture of automobiles contain at least
25% recovered materials;

(16)  Removes the "solely in interstate commerce" requirement for
the trucking exemption as it relates to the sales tax exemption;

(17)  Authorizes a state and local sales and use tax exemption
for fencing materials used for agricultural purposes and for
textbooks purchased for use by a person at a Missouri institution
of higher education, including Internet classes;

(18)  Authorizes an exemption from sales tax on all purchases of
tangible personal property, utilities, services, and other
transactions made for fulfilling United States government
contracts and for all purchases and leases of tangible personal
property by any county, city, incorporated town, or village for
industrial development;

(19)  Specifies that the purchase price for calculating the sales
tax of a motor vehicle excludes the cost to modify the vehicle
for use by an individual with a disability;

(20)  Exempts amounts paid for the temporary use of coin-operated
amusement devices from state and local sales tax and removes the
exemption for the purchase of the devices and parts, beginning
September 1, 2007.  Coin-operated amusement devices include
video, pinball, table, and redemption games;

(21)  Transfers from the Department of Economic Development to
the Department of Public Safety the duty of certifying when a dry
fire hydrant system meets the requirements to obtain an income
tax credit and extends the expiration date of the credit from
August 28, 2003, to August 28, 2011; and

(22)  Clarifies that the sales tax applies only to the sales
price paid by the final purchaser and not to any off-invoice
discounts or other pricing discounts.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $193,602
to Unknown in FY 2008, $8,337,806 to Unknown in FY 2009, and
$12,103,117 to Unknown in FY 2010.  Estimated Cost on Other State
Funds of Unknown in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that the bill has cleanup language to
reflect current practices relating to county assessors and
foreclosure sales.

Testifying for the bill were Senator Shoemyer; and Missouri
Assessor's Association.

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 11:22 am