HB 1306 -- Taxation

Sponsor:  Campbell

This bill makes changes to the laws regarding taxation.  The
bill:

(1)  Decouples automatically Missouri income tax provisions when
the federal government amends the Internal Revenue Code in a
manner that affects the determination of Missouri taxable income;

(2)  Decouples provisions of the federal Job Creation and Worker
Assistance Act of 2002 and the Jobs and Growth Tax Relief
Reconciliation Act of 2003 that relate to property purchased from
the determination of Missouri taxable income;

(3)  Imposes an individual income tax surcharge of 5% of income
taxes owed on taxpayers with a federal adjusted gross income of
$200,000 or more;

(4)  Modifies the way losses and operating expenses are deducted
among parties for various types of property, including
intellectual property.  Minimum standards are established
regarding what connections among various corporate entities
constitute related parties and affiliated groups for multistate
corporate income tax purposes;

(5)  Modifies the apportionment fraction allowed under Missouri
corporation income tax for determining the amount of income
apportioned to Missouri from business activities of the
corporation;

(6)  Restricts the current definition of "common carrier" for
purposes of qualifying for a state and local sales and use tax
exemption;

(7)  Prohibits retailers from obtaining refunds of sales and use
taxes without crediting the original purchasers, except for
over-collections of less than $1,000 to be refunded without the
higher burden of returning the funds to the purchaser.  The
$1,000 threshold is an aggregate sum over a five-year period.  A
retailer, upon submission of an approved plan by the Director of
the Department of Revenue, may offer fixed value coupons to
customers to satisfy the distribution of the over-collections;
and

(8)  Eliminates the timely filing allowance for employers
collecting and remitting state income tax withholdings.

The bill will become effective September 1, 2004.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am