CCS HS HCS SB 1394 -- TAXATION

This bill changes the laws regarding taxation.  The bill:

(1)  Relieves the Department of Revenue from notifying each local
taxing entity of a delinquency before turning the case over to
the Attorney General for collection and mandates the department
to include local taxes in its suit against a taxpayer;

(2)  States that if a county commission has not submitted a panel
of names to the Governor within 30 days of the expiration of a
county sports complex authority commissioner's term, the Governor
will immediately make an appointment with the advice and consent
of the Senate.  If the Governor does not appoint a replacement,
no commissioner will serve beyond the continuation of his or her
term;

(3)  Prohibits the City of Edmundson from collecting a license
fee on hotels and motels for more than $27 per room, per year and
prohibits the City of Woodson Terrace from collecting a license
fee on hotels and motels for more than $13.50 per room, per year.
If a license fee is more, it will automatically be reduced;

(4)  Allows the City of Salem to charge a transient guest tax,
upon voter approval, to promote tourism.  The tax cannot exceed
5% per occupied room, per night;

(5)  Allows the City of Gladstone to impose a local sales tax up
to one-half of 1% for public safety, upon voter approval.  The
department will collect and remit any sales tax collected less a
1% collection fee to the city's public safety sales tax trust
fund;

(6)  Expands the definition of "eligible industry" as it relates
to the Business Use Incentives for Large-Scale Development
(BUILD) Program to include a tax preparation company
headquartered in Kansas City as long as the company creates 100
new jobs for eligible employees and invests at least $15 million
in an economic development project.  The cap for the tax credit
is increased from $11 million to $11,950,000 for the benefit of
the tax preparation company headquartered in Kansas City;

(7)  Changes the cap on the tax credit for an accredited film or
video production produced in Missouri from $500,000 to $1 million
per taxpayer, per year, and total credits will not exceed
$1,500,000 per year;

(8)  Establishes depreciation tables for digital and analog
television broadcasting equipment based upon the cost of the item
for purposes of personal property taxation.  This section becomes
effective January 1, 2005;

(9)  Allows certain local governing bodies to require all charges
for parking and other vehicle-related fees and fines to be paid
before a county will issue a paid personal property tax receipt;

(10)  Reduces the penalty from 25% to 10% of the assessed value
for failure to deliver an accurate personal property assessment
list in a timely manner in the City of St. Louis;

(11)  Increases the credit for taxes paid to another state by
basing the amount of the credit on the tax liability in the
foreign state prior to the subtraction of any tax credits taken
in the state.  This section becomes effective January 1, 2005;

(12)  Allows an additional subtraction when assets that are
subject to bonus depreciation are disposed of before the end of
the assets' depreciable life;

(13)  Removes "employee" from the description of the responsible
party for a corporation.  The department assesses taxes against
the officers of the corporation as the responsible parties if the
corporation fails to file and pay its taxes.  The Missouri
Supreme Court ruled that the use of the word "and" permits the
department to assess responsible parties only if it fails to have
actually filed a return.  The bill changes the word "and" to "or"
so that an officer, director, or statutory trustee cannot avoid
being held responsible for taxes by having filed the return;

(14)  Allows a negative federal income to be reported on the
Missouri income tax return in certain circumstances for tax years
ending on or after July 1, 2002;

(15)  Allows the department to offset any property tax credit
refund against an income tax delinquency or a delinquency created
by a property tax credit claim;

(16)  Removes the restriction requiring a person trading in an
article to be the owner or holder of a properly assigned
certificate of ownership for trade-in credit or partial payment
on a motor vehicle, trailer, boat, or outboard motor;

(17)  Allows for the revocation of a retail sales tax license
when an employer fails to pay withholding taxes; and

(18)  Allows certain tax-exempt organizations to submit a form
verifying their tax-exempt status when registering motor vehicles
they own.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:17 am