CCS SS SS SCS HCS HB 600 -- TAXATION

This bill makes various changes relating to taxation.  The bill:

(1)  Creates the Joint Legislative Committee on Tax Policy
consisting of five members of the House of Representatives and
five members of the Senate.  The committee will be responsible
for continuous study and review of state tax policy and for
issuing reports on its findings and recommendations to the
General Assembly as deemed necessary;

(2)  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;

(3)  Increases the maximum levy allowed from five cents to 10
cents per $100 of assessed valuation for a property tax levy in
Buchanan County to provide senior citizen services;

(4)  Authorizes the City of Weston to impose a 0.5% sales tax to
fund tourism;

(5)  Limits the amount of municipal tax and license fee levied
against certain investment fund service corporations to an
aggregate amount of $25,000 after December 31, 2003;

(6)  Authorizes a tax amnesty program on taxes and motor vehicle
fees between the dates of August 1 and October 31, 2003, on
penalties, additions to tax, and interest against taxes and fees
levied on or before December 31, 2002;

(7)  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.
Persons who are 100% disabled, as defined by federal law, are
exempted from this provision;

(8)  Requires all lottery and other gaming winnings to be
included in Missouri nonresident adjusted gross income when the
winnings are from a Missouri source and requires withholdings by
gaming boats on those winnings resulting from electronic game
devices and table game jackpots;

(9)  Allows the Director of the Department of Revenue to require
the remittance of sales and use taxes and withholding taxes
through an electronic funds payment system for employers and
sellers who are required to file and pay on a quarter-monthly
frequency;

(10)  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;

(11)  Places an option on state income tax returns to donate any
part of a tax refund to the state general revenue account;

(12)  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 for agricultural purposes by the
purchaser;

(13)  Exempts natural gas used in the primary manufacture of fuel
ethanol from sales tax and modifies the farm machinery,
equipment, and supplies sales tax exemption;

(14)  Prohibits retailers from obtaining refunds of sales and use
taxes if the retailer has received a prior refund of the taxes
for the same specific issue.  Taxpayers are also allowed to
offset any deficiency with any amount of refund during an audit
resolution;

(15)  Authorizes the Department of Mental Health to establish
fees for persons enrolled in the Substance Abuse Traffic Offender
Program and requires interest to be paid on delinquent fees.
Administrators of the program must transfer the supplemental fees
each month or pay a penalty;

(16)  Reduces the reimbursement percentage for generic
prescription drugs under the Senior Rx Program from 15% to 11%;

(17)  Modifies the in-lieu tax schedule on watercraft documented
by the United States Coast Guard to include any purchase price;

(18)  Extends the pharmacy tax expiration date from June 30,
2003, to June 30, 2005.  The tax will also expire if dispensing
fees paid to pharmacists are less than Fiscal Year 2003 levels;

(19)  Requires transfers of certain funds held in escrow accounts
by real estate brokers which are in dispute by the parties in a
real estate transaction to the State Treasurer within 365 days of
the date of the initial projected closing date;

(20)  Allows the Secretary of State to dissolve corporations for
failure to pay corporate franchise taxes and income taxes;

(21)  Authorizes the Director of the Department of Revenue to
inform the Supreme Court Clerk of any attorney who is delinquent
on income taxes in the past three years;

(22)  Allows court costs to be paid in installments with a $25
surcharge;

(23)  Allows the courts to hire private collectors to collect
past due fines;

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

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

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

(27)  Repeals various outdated statutes related to inspection of
nonintoxicating beverages by the Department of Health and Senior
Services.

The bill contains an emergency clause.

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