HCS HB 2250 -- SHOW-ME GREEN TAX HOLIDAY ACT

SPONSOR:  Sutherland

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

This substitute establishes the Show-Me Green Tax Holiday Act
which, beginning January 1, 2008, authorizes a state sales and
use tax exemption on the purchase of energy efficient products
costing $1,500 or less, purchased for personal use during a
seven-day period.  For 2008, the holiday will be in November; and
beginning in 2009, the holiday will be held in April each year.
Retailers with less than 2% of their sales for qualifying
merchandise during the holiday may offer a sales tax refund in
lieu of the sales tax holiday.  Any political subdivision may
adopt an ordinance or order to opt out of the holiday.  Energy
efficient products include dishwashers, refrigerators, washers,
dryers, air conditioners, furnaces, water heaters, ceiling fans,
light bulbs, dehumidifiers, and programmable thermostats that
meet or exceed the requirements of the federal Energy Star
Program.

A state and local sales and use tax exemption is authorized on
the purchase of any product costing $600 or less, purchased for a
three-day period beginning on June 27, 2008.  Retailers with less
than 2% of their sales for qualifying merchandise during the
holiday may offer a sales tax refund in lieu of the sales tax
holiday.

The substitute contains an emergency clause regarding the sales
tax holiday for June 2008.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of More than
$265,250 in FY 2009, More than $100,000 in FY 2010, and More than
$100,000 in FY 2011.  Estimated Cost on Other State Funds of More
than $400,000 in FY 2009, More than $100,000 in FY 2010, and More
than $100,000 in FY 2011.

PROPONENTS:  Supporters say that the bill authorizes a tax
holiday for residents to purchase energy star appliances.  Energy
star appliances reduce energy consumption, saving approximately
$435 per year and cutting electric consumption by 30%.  The bill
sets a seven-day period in November for the holiday.  A
substitute bill will move the date to correspond with Earth Day
in April for each year after 2008.  Local governments can opt out
of the holiday.

Testifying for the bill were Representative Sutherland;
Department of Natural Resources; and Missouri Retailers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say it uses the same
procedure as the school sales tax holiday with local governments
being able to opt out of the holiday.  Currently, some customers
purchasing appliances are not charged sales tax if they are
installed by the retailer.  The store pays the sales tax for
these customers.  The retailer will benefit from these purchases,
not the customer.  Lowe's and Home Depot will benefit greatly
from the bill.

Testifying on the bill was Missouri Municipal League.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm