HS HCS HB 1877 -- FUNDING FOR SCHOOLS (Foley)

This substitute changes various provisions of law to establish
additional funding for schools.  The substitute:

(1)  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;

(2)  Eliminates the timely filing allowance for employers who
submit withholding tax.  The allowances ranges from 0.5% to 2%
depending on the amount withheld;

(3)  Allows interest to be paid on state tax refunds only if
payment is delayed for more than 120 days;

(4)  Eliminates interest on tax credit carrybacks;

(5)  Disallows non-Missouri source income for corporate income
tax;

(6)  Requires the State Treasurer each calendar quarter to
calculate an annual rate of interest equal to the average rate of
return on all funds invested by the State Treasurer.  This
calculated interest rate will be forwarded to the Department of
Revenue and other applicable agencies and will be applied to
situations for which the State of Missouri pays interest to
entities on various overpayments received by the state.  Under
current law, interest applied to most overpayments is based on
the adjusted prime rate charged by banks;

(7)  Allows the use of certain regulated money market mutual
funds for investment of funds by the State Treasurer;

(8)  Expands the rate of interest required to be payed by banking
institutions on time deposits of state moneys;

(9)  Allows the State Treasurer to temporarily exchange certain
investment obligations acquired by the State Treasurer into cash.
Current law only allows exchange in other securities and not into
cash;

(10)  Increases the admission fee charged against an excursion
gambling boat for each patron entering from $2 to $3; and

(11)  Increases the adjusted gross receipts tax paid by excursion
gambling boats from 20% to 22%.

All revenues resulting from these changes will be deposited in
the Schools of the Future Fund, created in the substitute.  All
moneys in the fund will be used solely for the purpose of fully
funding state aid to public schools.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Cost to General Revenue of $241,399
to Unknown in FY 2003, $0 in FY 2004, and $0 in FY 2005.
Estimated Net Income to the Schools of the Future Fund of
$157,432,000 in FY 2003, $142,901,000 in FY 2004, and
$143,379,000 in FY 2005.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am