CCS HS HCS SS SCS SB 1099 -- TAX CREDITS

Regarding the Tax Credit Accountability Act, this bill:

(1)  Classifies all tax credit programs by subject.  These
subjects are agricultural, business recruitment, community
development, domestic and social, entrepreneurial, environmental,
housing, redevelopment, and training and educational;

(2)  Requires specific additional information be included in all
tax credit applications submitted after January 1, 2005.  The
bill explains these requirements.  If the tax credit is given to
someone who makes a contribution to a group, the application
requirements apply to the recipient of the contribution, not the
contributor;

(3)  Requires that specified follow-up information be reported
for three years after tax credits have been issued.  All of these
reports are due on June 30.  If the tax credit is given to
someone who makes a contribution to a group, the reporting
requirements apply to the recipient of the contribution, not the
contributor;

(4)  Assesses penalties for failure to report;

(5)  Requires the departments of Revenue and Insurance to verify
that tax credit applicants do not owe any delinquent taxes.  If
the applicant is delinquent, the amount of tax credits awarded
will be reduced by the amount of taxes owed;

(6)  Requires the administering agencies of all tax credit
programs to implement a system that will track the amount of tax
credits that are issued and redeemed except credits that are
issued and redeemed simultaneously;

(7)  Expands the duties of the Joint Committee on Tax Policy by
requiring it to examine and assess the public benefit of any tax
credit program that is subject to an audit by the State Auditor
and provide a report to the General Assembly and the Governor
with its findings and recommendations within six months of
receiving the audit report;

(8)  Allows a variety of information to be disclosed in a civil
investigation, action, or proceeding.  Current law only allows
this information to be disclosed in criminal and quasi-criminal
investigations, actions, or proceedings;

(9)  States that records and documents related to tax credits
that are submitted as part of the application will be considered
closed records until a decision has been rendered regarding the
application;

(10)  Requires the Department of Economic Development to prepare
an annual report regarding all economic incentives administered
in the previous calendar year and specifies what must be included
in the report;

(11)  Requires the department to perform a cost-benefit analysis
evaluating the effectiveness of all tax credit programs every
four years;

(12)  Prohibits tax credits for donations to the Missouri Higher
Education Scholarship Fund and the Advantage Missouri Program
from being approved, awarded, or issued after January 1, 2005;
and

(13)  Prohibits the owner or new owner of a business located in
an enterprise zone from receiving the tax abatement or exemption
if the business is closed for 30 days or more.  The owner or new
owner can reapply to receive the abatement or exemption, but
cannot receive these benefits for longer than the original life
of the enterprise zone.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am