HCS HB 448 -- TAX CREDIT ON SALES AND MANUFACTURING OF CERTAIN
AUTOMOBILES (Spreng)

COMMITTEE OF ORIGIN:  Special Committee on Job Creation and
Economic Development

This substitute authorizes a tax credit equal to 100% of the
state sales tax paid on any new motor vehicle assembled and
purchased in Missouri after January 1, 2008.  The tax credit may
be claimed against a taxpayer's income tax; corporate franchise
tax; financial institutions tax; and bridge, express, and public
utility companies tax.  Local sales taxes will continue to be
collected.  The provisions of the substitute relating to the tax
credit will expire on December 31 six years after the effective
date.

Currently, electricity used in the primary manufacturing of
automobiles cannot be assessed local or state sales taxes if the
raw materials used in the processing contain at least 25%
recovered materials.  The substitute specifies that the raw
materials used during the primary manufacturing of automobiles
will be assumed to contain at least 25% recovered materials.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$4,383,540 to Unknown in FY 2008, $8,736,773 to Unknown in
FY 2009, and $8,737,741 to Unknown in FY 2010.  Unknown expected
to exceed $100,000.  Estimated Cost on Other State Funds of
Unknown in FY 2008, FY 2009, and FY 2010.  Unknown expected to
exceed $100,000.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am