HCS HB 165 -- 2007 MUNICIPAL TELECOMMUNICATIONS BUSINESS LICENSE
TAX SIMPLIFICATION ACT (Cooper, 120)

COMMITTEE OF ORIGIN:  Ways and Means

This substitute establishes the 2007 Municipal Telecommunications
Business License Tax Simplification Act and changes the laws
regarding the telecommunications business license tax.  The
substitute limits a business license flat tax amount to $27,500
or less.  After July 1, 2008, any municipality may impose this
tax on a telecommunications company for the privilege of doing
business within its borders if the municipality amends its
business license tax ordinance to include the new tax rate, tax
base definitions, and provisions.

The maximum rate of the gross receipts percentage for any
municipality is 5% unless the actual calculated rate is greater
than 5%.  If the calculated rate is greater than 5%, the maximum
rate of the gross receipts percentage for the municipality is
adjusted to be revenue neutral based on revenues collected and
forecasted for July 1, 2008, to June 30, 2009; half of the
difference between the determined rate and 5% for July 1, 2009,
to June 30, 2010; and 5% for July 1, 2010, and thereafter.

If a telecommunications company pays its deemed past liability to
a municipality by January 1, 2008, it is entitled to full
immunity and any pending lawsuits with respect to all periods up
to and including July 1, 2008, will be dismissed.

FISCAL NOTE:  No impact on state funds 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