HJR 21 -- TELECOMMUNICATION BUSINESS LICENSE TAX LIMITATIONS

SPONSOR:  Cooper (120)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Rules by a
vote of 7 to 0.

Upon voter approval, this proposed constitutional amendment
prohibits political subdivisions from imposing taxes on the gross
receipts of telecommunication providers at rates higher than the
business license tax imposed on retail establishments.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill will allow voters to
decide whether they want increases in the local telephone taxes.
Missouri has the highest tax rates in the nation on land line
telephone tax rates.

Testifying for the bill were Representative Cooper (120); and
Sprint Nextel.

OPPONENTS:  Those who oppose the bill say that the average rate
of local telephone taxes in Missouri is currently 6%.  Revenues
from local taxes on land line phones have gone down in recent
times.  Gross receipts taxes on phone, cable, and television are
the second most important source of local government revenues.
Local governments can already reduce taxes on telecommunication
services without this bill.  It is irresponsible of the General
Assembly to propose this bill without offering some sort of
replacement revenue.

Testifying against the bill was Missouri Municipal League.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am