HCS HB 600 -- COLLECTION OF TAXES

SPONSOR:  Cooper (120)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tax Policy
by a vote of 17 to 0.

This substitute makes various changes to collection of various
taxes by the Department of Revenue.  The substitute:

(1)  Requires every vendor or affiliate of a vendor seeking to
contract to provide goods and services to the State of Missouri
to collect and properly pay all sales and use taxes;

(2)  Requires any amount of pension, annuity, or retirement
allowance deducted for state individual income tax purposes to be
included in the taxpayer's federal adjusted gross income and not
otherwise deducted in the calculation of Missouri taxable income;

(3)  Requires all lottery and other gaming winnings to be
included in Missouri nonresident adjusted gross income when the
winnings are from a Missouri source;

(4)  Allows the Director of Revenue to require the payment of
withholding taxes on quarter-monthly filers through an electronic
funds payment system;

(5)  Includes court costs in excess of $25 related to the State
Supreme Court, Court of Appeals, or any circuit court of Missouri
as amounts that can be offset against a refund of taxes owed to a
taxpayer;

(6)  Adds additional requirements on any article being traded in
for the purpose of receiving a sales or use tax credit against a
new article being purchased.  The article being traded in must
have originally had sales or use tax paid on it or have been
specifically exempted from sales and use taxes by law.  Grain and
livestock raised or produced by a purchaser may be traded in on a
motor vehicle or trailer used primarily for agricultural use by
the purchaser;

(7)  Requires a tax clearance from the Department of Revenue
prior to the issuance or renewal of any local government business
license;

(8)  Requires as a condition of employment with the state
government that all state taxes due be filed and paid by the
employee;

(9)  Requires all state taxes due to be paid by members of the
General Assembly, statewide elected officials, and members of the
judiciary; and

(10)  Requires a tax clearance from the Department of Revenue
prior to the issuance or renewal of any professional license
granted by the state.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Income to General Revenue Fund of
$19,110,408 to Unknown in FY 2004, $19,183,350 to Unknown in FY
2005, and $19,182,232 to Unknown in FY 2006.  Assumes Unknown
revenues will exceed Unknown costs.  Estimated Net Income to
Various State Funds of Unknown in FY 2004, FY 2005, and FY 2006.

PROPONENTS:  Supporters say that these changes will strengthen
the ability of the Department of Revenue to collect taxes owed to
the state and to generate needed money for funding critical
services.

Testifying for the bill were Representative Cooper (120);
Missouri Council of School Administrators; and Office of State
Court Administrators.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Deputy Director of Research

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am