HCS HB 131 -- TAXATION (Cooper, 120)

COMMITTEE OF ORIGIN:  Special Committee on Tax Reform

This substitute changes the laws regarding various sales and use,
property, and motor fuel taxes.  In its main provisions, the
substitute:

(1)  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;

(2)  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;

(3)  Authorizes an exemption from sales tax for all purchases and
leases of tangible personal property by any county, city,
incorporated town, or village for industrial development;

(4)  Authorizes an exemption from sales tax for any tangible
personal property brought into this state for processing,
fabrication, or other modification for use outside the state in
the regular course of business;

(5)  Authorizes an exemption from sales tax for all purchases
made by the County Sports Complex Authority including
construction materials for the purpose of constructing,
repairing, or remodeling its facility;

(6)  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 sales tax is paid on the
gross receipts derived from the use of the devices;

(7)  Authorizes a property tax credit for expenses incurred to
manufacture, maintain, or improve a freight line company's
qualified rolling stock up to the amount of their tax liability.
Any loss in revenue from a political subdivision will be
reimbursed by the state; and

(8)  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.  The Department of Revenue
is required to simplify the motor fuel exemption process by
reducing the administrative burden, reducing the time to receive
a refund, and splitting the refund between the fuel
wholesaler/retailer and the tax exempt entity.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2008, FY 2009, and FY 2010.  Estimated Cost on Other State
Funds of Unknown in FY 2008, FY 2009, and FY 2010.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am