HCS HB 1749 -- TAXATION

SPONSOR:  Munzlinger (Cooper, 120)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Agri-Business by a vote of 9 to 0.

This substitute authorizes an exemption from state and local
sales and use tax for the cost of all utilities used in the
manufacturing, processing, compounding, mining, or production of
pesticides, meat, petfood, livestock and poultry feed, purchases
for research and development of agricultural biotechnology
products, and prescription pharmaceuticals.  The substitute also
exempts the current sales tax on one half of the purchase price
of diesel fuel used for agricultural purposes.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $94,675
to Unknown in FY 2007, $113,610 to Unknown in FY 2008, and
$113,610 to Unknown in FY 2009.  Estimated Cost on Other State
Funds of $38,658 to Unknown in FY 2007, $46,390 to Unknown in
FY 2008, and $46,390 to Unknown in FY 2009.

PROPONENTS:  Supporters say that sales and use taxes should be
paid by the person purchasing the product.

Testifying for the bill were Representative Cooper (120);
Taxpayers Research Institute of Missouri; Associated Industries
of Missouri; Missouri Agriculture Industry Council; Jim Gray,
Bayer CropScience; and Missouri Chamber of Commerce and Industry.

OPPONENTS:  Those who oppose the bill say that counties and
cities cannot afford to have their tax base reduced and still
provide adequate services to their residents.  Missouri already
has low tax and utility rates.

Testifying against the bill was Missouri Municipal League.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am