HB 952 -- SALES TAX ON PERSONAL CARE SERVICES

SPONSOR:  Icet

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 15 to 0.

This bill authorizes a state sales tax on personal care services
beginning July 1, 2005, and ending June 30, 2006.  Personal care
services are specified as medically oriented tasks having to do
with a person's physical requirements which enable the person to
be treated as an outpatient rather than an inpatient of a
hospital, intermediate care facility, or skilled nursing
facility.  Personal care services are exempt from local sales
taxes.

The bill contains an emergency clause.

FISCAL NOTE:  Estimated Income on General Revenue Fund of Unknown
in FY 2006, Unknown in FY 2007, and $0 in FY 2008.  Estimated
Income on Other State Funds of Unknown in FY 2006, Unknown in FY
2007, and $0 in FY 2008.

PROPONENTS:  Supporters say that the bill attempts to help
Missouri's budget shortage by charging a 4% state sales tax on
Medicaid-recipient, in-home services.  No local tax will be
collected, and the federal government will provide 60% matching
funds.

Testifying for the bill were Representative Icet; Missouri
Assisted Living Association; Pyramid Group, Incorporated;
Missouri Council for In-Home Services; and Cooperative Attendant
Services.

OPPONENTS:  There was no opposition voiced to the committee.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm