CCS HS HCS SS SB 1248 -- SCHOOLS OF THE FUTURE FUND

This bill:

(1)  Authorizes a tax amnesty program allowing taxpayers to pay
various back taxes owed prior to December 31, 2001, during the
period of August 1, 2002, through October 31, 2002;

(2)  Temporarily disallows certain federal deductions for net
operating losses and deductions allowed under the Job Creation
and Worker Assistance Act of 2002 for the period of July 1, 2002,
to July 1, 2003, for purposes of calculating Missouri adjusted
gross income.  Twenty-seven million dollars of this additional
revenue will be transferred to the Schools of the Future Fund,
established in the bill;

(3)  Eliminates interest on tax credit carrybacks;

(4)  Transfers $5 million from the Lottery Proceeds Fund and
unclaimed lottery prize money for Fiscal Year 2003 to the Schools
of the Future Fund;

(5)  Imposes a tax upon licensed retail pharmacies in Missouri at
a rate based on monthly gross retail prescription receipts of
pharmacies, not to exceed 6%.  The Department of Social Services
will notify each individual pharmacy of the amount of quarterly
tax due, and the Department of Revenue will promulgate rules to
carry out these provisions.  The bill allows a credit against the
tax on pharmacies for certain taxes paid to the federal
government and provides for offsets against any Medicaid payment
due the pharmacy from the state.  The Medicaid pharmacy tax
expires on June 30, 2003;

(6)  Revises the law regarding unclaimed, abandoned, and seized
money and property held by the state so that it may be used more
quickly.  Additional revenue gained by these changes will go to
the Schools of the Future Fund for Fiscal Year 2003; and

(7)  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.

All increased revenues resulting from these changes, unless
limited to a particular time period, are to go to the Schools of
the Future Fund.

The bill contains an emergency clause.

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