HCS HBs 934, 952, 1031 & 1293 -- TAXATION
COMMITTEE ACTION: Voted "do pass" by the Committee on Ways and
Means by a vote of 14 to 0, 1 present.
This substitute reenacts the wood energy tax credit for state
income tax purposes which expired on June 30, 1995. Changes from
previous law allow charcoal to be considered a processed wood
product for purposes of obtaining the credit and do not allow
any wood energy producer operating pursuant to an exemption to
the rules of the Air Conservation Commission to obtain the
credit. This provision will expire on December 31, 2000.
The substitute also exempts from state sales and use tax all
sales of livestock when either the seller is engaged in the
growing, producing, or feeding of livestock or the seller is
engaged in the business of buying and selling, bartering, or
leasing of livestock. Livestock is defined in the bill as
cattle, hogs, horses, mules, sheep, and goats.
The substitute also expands the senior citizen/disabled veteran
property tax credit for state income tax purposes to include
certain prescription drug expenses. Under the proposal, any
expenditure for qualified prescription drugs by a qualified
senior citizen/disabled veteran for the current property tax
credit would be allowed to use qualified prescription drug
expenditures to increase the tax credit. This part of the
substitute would become effective January 1, 1997, and applies
to all tax years beginning after December 31, 1996.
In addition, the substitute exempts the sales of barges used
primarily in the transportation of property or cargo on
interstate waterways from state and local sales and use tax and
exempts all gifts given to the state from state and local sales
and use tax.
FISCAL NOTE: Partial Estimated Net Cost to General Revenue
Fund* of $0 to $655,911* in FY 97, $24,436,338 to $50,260,390*
in FY 98, and $24,458,687 to $50,282,739 in FY 99. Partial Net
Cost to School District Trust Fund* of $0 to *$103,308 in FY 97,
$0 to *$123,970 in FY 98 and FY 99. Partial Net Cost to
Conservation Fund* of $0 to *$12,914 in FY 97, $0 to *$15,496 in
FY 98 and FY 98. Partial Net Cost to Parks and Soil Fund* of $0
to *$10,331 in FY 97, $0 to *$12,397 in FY 98 and FY 99.
* Does not include any potential loss of sales tax revenue on
the sale of feed or feed additives to horses, mules and goats or
the loss of revenue from tax-exempt donations, firebrick or
PROPONENTS: Supporters say that the proposed changes in this
substitute will give needed tax relief and will clarify
ambiguities in current tax law.
Testifying for the original bills were Representatives Hosmer,
Crump, Crum, Prost, and Shields; Taxpayers Research Institute of
Missouri; the Missouri Livestock Marketing Association;
Department of Agriculture; and the Silver-Haired Legislature.
OPPONENTS: There was no opposition voiced to the committee.
Bill Tucker, Research Analyst