HB 293, HCA 1 -- MUNICIPAL BUSINESS LICENSE

SPONSOR:  Johnson (47)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 16 to 0.

This bill prohibits a village or city of the fourth class from
imposing a license tax greater than $5,000 per license.

The bill contains an emergency clause.

HCA 1 -- Increases the license fee to $10,000.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that it is unfair for a city to
increase a business license from $50 to millions of dollars.
Businesses also support cities with sales and property taxes.
Companies will be forced out of business because of excessive
business taxes.

Testifying for the bill were Representative Johnson (47); and
Ford Motor Company.

OPPONENTS:  Those who oppose the bill say that many cities depend
on business license fees for a large portion of their operating
revenue.  The bill will bankrupt fourth class cities.

Testifying against the bill was Missouri Municipal League.

Steve Bauer, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am