HB 1394 -- SALES AND USE TAX HOLIDAY

CO-SPONSORS:  Murray, Troupe, Foley, Leake, Chrismer, Gaw,
Skaggs, Hickey, Carter

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 14 to 0.

This bill exempts from state and local sales and use tax the
sale of certain clothing when sold between the hours of 12:01
a.m., August 12, 2000, and midnight, August 20, 2000.  Each
individual item must sell for $100 or less to qualify for the
exemption.

The bill contains an emergency clause.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$3,597,845 in FY 2001, and $0 in FY 2002 and FY 2003.  Loss to
School District Trust Fund of $1,183,462 in FY 2001, and $0 in
FY 2002 and FY 2003.  Loss to Conservation Fund of $147,933 in
FY 2001, and $0 in FY 2002 and FY 2003.  Loss to Parks and Soil
Funds of $118,346 in FY 2001, and $0 in FY 2002 and FY 2003.

PROPONENTS:  Supporters say that the sales tax holiday has gone
over very well in other states and saves parents a little money
when they buy necessary clothing for their children before
school starts.  They also point out that the sales tax is a
regressive one that has a big impact on lower income families.

Testifying for the bill were Representative Murray; Missouri
Retailers Association; Famous Barr/The Jones Store; Payless
Shoesource Inc.; and Missouri Chamber of Commerce.

OPPONENTS:  There was no opposition voiced to the committee.

Donna Schlosser, Legislative Analyst

HB 1394 -- Sales/Use Tax:  Temporary Exemption of Clothing

Co-Sponsors:  Murray, Carter, Troupe, Foley, Leake, Chrismer,
Gaw, Skaggs, Hickey

This bill exempts from state and local sales and use tax the
sale of certain clothing when sold between the hours of 12:01
a.m., August 12, 2000, and midnight, August 20, 2000.  Each
individual item must sell for $100 or less to qualify for the
exemption.

The bill contains an emergency clause.