HCS SCS SB 894, 975 & 927 -- SALES TAX HOLIDAY

SPONSOR:  Kinder (O'Toole)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 7 to 3.

This substitute creates a state and local sales tax holiday for
items of clothing costing no more than $100 each, school supplies
costing no more than $50 per purchase, and personal computers
costing no more that $1,000 each sold during two three-day
periods in August, 2002 and 2003.  The holiday does not apply to
sales of personal computers to a business or corporation.  The
state will reimburse all local tax revenues lost in calendar year
2002 and individual political subdivisions may, by ordinance, opt
their local sales taxes out of the holiday exemption beginning in
calendar year 2003.  A joint legislative committee is created to
study and review the effect of the sales tax holiday and to
report its findings and recommendations to the General Assembly
by January 8, 2004.

The substitute also authorizes a tax amnesty program allowing
taxpayers to pay various back taxes owed prior to December 31,
2001, without penalty, additions to tax, or interest if the tax
liability is paid in full during the period of August 1, 2002,
through September 30, 2002.

The substitute also prohibits refunds of sales taxes to retailers
without crediting the original purchasers, except that it allows
over-collections of less than $1,000 to be refunded not to exceed
this threshold in aggregate over a five-year period.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Effect to All State Funds of an
Income of Less Than $18,376,260 in FY 2003, Unknown Income to a
Cost of $5,907,735 in FY 2004, and Unknown Income in FY 2005.

PROPONENTS:  Supporters say that the holiday will provide a
needed boost to the state's economy.

Testifying for the bill were Senator Steelman; Missouri
Retailers' Association; May Department Stores; and Consumer
Electronic Association.

OPPONENTS:  Those who oppose the bill say that they would rather
see an opt-in provision.

Testifying against the bill was Missouri Association of Counties.

Mark Pioli, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am