SB 898 Modifies provisions pertaining to the administration of agriculture incentives and programs
Sponsor: Clemens
LR Number: 3929S.07P Fiscal Note: 3929-07
Committee: Agriculture, Conservation, Parks & Natural Resources
Last Action: 5/16/2008 - S Formal Calendar S Bills for Third Reading--SS for SCS for SB 898-Clemens (In Fiscal Oversight) Journal Page:
Title: SS SCS SB 898 Calendar Position: 1
Effective Date: August 28, 2008

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Current Bill Summary


SS/SCS/SB 898 - This act modifies provisions pertaining to the administration of agriculture incentives and programs.

SECTIONS 32.057 and 105.485 - State Tax Credit Reporting

This act requires all members of the General Assembly to file a financial interest statement with the Missouri Ethics Commission disclosing any state tax credits claimed on the most recent state income tax return of the member, the member's spouse, or the member's dependent child. The Department of Revenue must make information regarding state tax credits claimed by a member of the General Assembly available to the public.

SECTION 135.633 - Tax Credit for Odor Abatement

This act creates a tax credit for agricultural odor abatement activities. The tax credit shall be equal to either the lesser of $25,000 or 50% of the eligible expenses incurred by a Class IC or smaller concentrated animal feeding operation to implement certain odor abatement best management practices. The cumulative amount of tax credits issued by the Missouri Agricultural and Small Business Development Authority (MASBDA) to all taxpayers in any fiscal year shall not exceed $300,000. The tax credit shall not take effect until rules are promulgated by the Department of Natural Resources, the Department of Agriculture, and MASBDA.

This section is similar to HB 881 (2007) and SB 643 (2007).

SECTION 135.710 - Tax Credit for Alternative Fuel Stations

This act creates an income tax credit for the costs of constructing a qualified alternative fuel vehicle refueling property. The tax credit shall not exceed the lesser of $20,000 or 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The cumulative amount of credits which may be claimed shall not exceed $3,000,000 for taxable year 2009. For taxable year 2010, the cumulative amount of tax credits which may be claimed is reduced to $2,000,000, and for taxable year 2011, the amount is further reduced to $1,000,000.

SECTIONS 135.800-135.805 - Tax Reporting Requirements

This act makes the Family Farm Breeding Livestock Loan tax credit and the Qualified Beef tax credit subject to the same reporting requirements as what is required for agricultural tax credits under the Tax Credit Accountability Act. The act also requires new generation cooperatives to report under the Tax Credit Accountability Act, when an agricultural tax credit is issued as a result of a producer member investing in the cooperative.

Any state agency that administers a tax credit program shall make available to any member of the public the names of all recipients of the tax credit and the corresponding amounts issued to each recipient.

These sections are similar to SB 503 (2007) and HB 840 (2007).

SECTION 142.028 - Qualified Biomass for Fuel Ethanol

Under current law, a qualified fuel ethanol producer is eligible for a monthly grant for fuel ethanol produced from Missouri agricultural products. This act allows such fuel ethanol to also be produced from biomass that is qualified by MASBDA in consultation with the Conservation Commission. Fuel ethanol grant incentives paid for fuel ethanol produced from biomass are authorized between January 1, 2009 and December 31, 2019 and shall only be available to two producers, with each producer limited to total payments of $7.5 million.

This section is similar to HCS/HB 709 (2007) and SCS/SB 499 (2007).

SECTION 142.815 - Motor Fuel Tax Exemption

This act exempts from motor fuel tax any motor fuel used for school buses, by school districts, or by persons contracted with school districts to provide school bus services. The exemption will be granted to the school district in the form of a refund, regardless of whether the school district paid the tax or the tax was paid by persons contracted with the district to provide school bus services.

This section is identical to SB 421 (2007).

SECTION 143.114 - Income Tax Deduction for Hybrid Vehicles

The act creates an income tax deduction for tax year 2009, for a taxpayer's purchase of qualified hybrid vehicles. The deduction will equal the lesser of $1,500 or 10% of the purchase price of the vehicle. The tax deduction must be taken in the year in which the purchase is made.

SECTION 143.128 - Tax Credit for Alternative Fuel Purchase

The act creates a tax credit for the purchase of E-85 gasoline and biodiesel. The tax credit will be equal to: $.25/gallon of ethanol or $.05/gallon of biodiesel for 2009; $.20/gallon of ethanol or $.03/gallon of biodiesel for 2010 and 2011; and $.15/gallon of ethanol or $.05/gallon of biodiesel for 2012 and each subsequent year. The tax credit must be for at least $50, but may not exceed $500 per taxpayer per year. The aggregate amount of tax credits which may be redeemed by all taxpayers in any given year shall not exceed $500,000.

This act is similar to SS/SCS/HCS/HB 1092 (2006), SB 842 (2006), and SB 40 (2007).

SECTION 144.053 - Sales Tax Exemption for Forestry Equipment

Any new or used farm tractors, machinery, or equipment, including parts, supplies, and fuel, used to plant, harvest, process, or transport forestry products shall be exempt from state and local sales tax, similar to other farm machinery in section 144.030.

This section is similar to HCS/SCS/SB 156 (2007).

SECTION 144.063 - Sales Tax Exemption for Fencing

This act creates a sales tax exemption for the purchase of fencing materials for agricultural purposes, which shall sunset after 6 years.

This section is similar to HB 711 (2007) and HB 477 (2007).

SECTION 144.065 - Sales Tax Exemption for Agricultural Motor Fuel

This section creates a sales tax exemption for the purchase of motor fuel for agricultural purposes, which shall sunset after 6 years.

This section is similar to HB 323 (2007).

SECTION 231.444 - Gravel Road Rock Tax

The act increases the road rock tax, from $.25/acre to $1/acre,

that may be levied by Putnam, Carter, Holt, Knox, Mercer, Schuyler, Scotland, and Worth counties on agricultural or horticultural property.

This section is similar to HB 2396 (2008).

SECTION 260.546 - Hazardous Substance Spill Cleanup

Current law makes an owner of a released hazardous substance liable for reasonable cleanup costs. This act adds the requirement that the costs for which the owner is liable also be "necessary." The act adds costs incurred for cleaning up any hazardous substances to the costs for which an owner is liable.

The act specifies a 60-day timeframe in which the political subdivision or volunteer fire protection association involved in the cleanup must submit the itemized statement of costs to the owner of the released substance. The statement of costs must include certain explanations for why the costs were incurred.

In the event of an appeal by the owner of the released hazardous substance, the burden of proof is on the political subdivision or volunteer fire protection association to justify the cleanup costs.

The act increases the timeframe from 30 days to 60 days in which the Director of the Department of Natural Resources must notify the involved parties of his or her decision regarding an appeal.

This section is similar to SB 316 (2007), HB 343 (2007) and SB 1158 (2006).

SECTIONS 261.035-261.239 and 265.200 - Dept. of Ag. Name Changes

The act makes the following name changes in the Department of Agriculture: the Marketing Division to the "Agriculture Business Development Division;" the Marketing Development Fund to the "Agriculture Business Development Fund;" the Missouri Agricultural Products Marketing Development Fund to the "AgriMissouri Fund;" and the Citizen's Advisory Commission for Marketing Missouri Agricultural Products to the "AgriMissouri Advisory Commission."

These sections are similar to HB 841 (2007) and SB 488 (2007).

SECTION 261.112 - Farm Mentoring and Education

The act creates the Farm Mentoring and Education Authority, which shall be housed within the University of Missouri Extension Service. The Authority shall administer the Farm Mentoring and Education program, which consists of educational programming aimed at helping individuals plan and begin sustainable farm enterprises. The act provides guiding principles for the provision of the educational programming. Up to $99,000 per fiscal year may be appropriated for this program.

This act is similar to SS/SB 417 (2007) and SB 1222 (2006).

SECTION 263.232 - Noxious Weed Control

This act makes the plant spotted knapweed subject to existing noxious weed control laws.

This section is similar to HCS/HB 244 (2007).

SECTION 267.168 - National Animal Identification System

The State of Missouri may support a voluntary animal identification program. The act prohibits the Missouri Department of Agriculture from mandating premises registration under the U.S. Department of Agriculture's National Animal Identification System (NAIS) program unless the Department is specifically statutorily authorized to do so.

Participants in the NAIS may withdraw from the program at any time and all of their personal information shall be deleted at the time of withdrawal unless a participant is part of an ongoing disease investigation.

This act is similar to SB 428 (2007) and HB 478 (2007).

SECTIONS 348.230-348.235 - Dairies

Subject to appropriation not to exceed $250,000, MASBDA shall pay for the first full year of interest on any applicable Missouri linked deposit program loan, provided the loan pertains to the acquisition of dairy cows. MASBDA may charge a fee up to $50 for this service.

Subject to appropriation not to exceed $50,000, MASBDA shall award dairy business planning grants for up to $5,000 per grant or no greater than 90% of the cost of the plan, whichever is less. MASBDA may charge a fee up to $50 to apply for a grant. Eligible applicants for the grants shall be existing or start-up dairy operations in Missouri that are at least 51% owned by Missouri residents. MASBDA may promulgate rules for the grant program to establish eligibility and award criteria.

These sections are similar to SB 444 (2007), SB 471 (2007), and HCS/HB 346 (2007).

SECTIONS 348.430-348.432 - "In State" Requirement

A new generation cooperative must operate within the state in order to be eligible for either the Agricultural Product Utilization Contributor tax credit or the New Generation Cooperative Incentive tax credit.

These sections are similar to SB 503 (2007) and HB 840 (2007).

SECTION 348.505 - Tax Credit Maximum Increase

The total cumulative amount of tax credits issued by MASBDA per fiscal year for interest waived for family farm livestock loans is increased from $150,000 to $300,000.

This section is similar to HB 748 (2007).

SECTIONS 348.515-348.530 - Loan Guarantee Program

MASBDA shall develop and implement a Livestock Feed and Crop Input Loan Guarantee Program, which shall provide loan guarantees for up to 50% of the amount of a loan on a declining principal basis, not to exceed $40,000 per individual loan. The loan guarantee program shall make such payment to eligible lenders in the event of loan default by recipients of loans given for the purpose of purchasing or growing feed for livestock production.

Beginning in fiscal year 2009, up to $4 million may be appropriated to administer the program. The act describes eligibility and other administrative requirements.

SECTIONS 640.710, 643.151, 644.076 - Concentrated Animal Feeding Operations (CAFOs)

The act directs the Department of Natural Resources to establish and publish a time line for the complete processing of any permit application for a CAFO, if the processing cannot be completed within ninety days of the Department's receipt of the completed application. Publication requirements are described.

Any CAFO, or recycling company that converts animal parts into petroleum, who violates any state air, water, or odor pollution standard at least 6 times in a 12-month period or 12 times in a 36-month period shall forfeit any CAFO-related permits issued by the Department. If the Department's air, water, or odor pollution standards change, the director of the Department may correspondingly adjust the minimum number of violations in these time periods that trigger permit forfeiture.

CAFOs or recycling companies that violate any air, water, or odor pollution standard more than one time in a 36-month period shall be subject to a surcharge in addition to a civil penalty. The surcharge will be the sum of the civil penalty assessed for the violation plus the sum of any fines assessed during the 36-month period. The funds from the surcharge shall be deposited into funds created and utilized for public education and the enforcement of air and water pollution laws of the state.

The act is similar to SB 534 (2007) and SB 591 (2006).

SECTION 1 - Tax Credit Sunset

All state tax credits shall sunset on August 28, 2011.

SECTION 2 - Motor Vehicle Tax Credit

Beginning in tax year 2008, a Missouri taxpayer may receive a tax credit equal to 100% of the amount of state and local sales tax paid by such taxpayer on the purchase of a new vehicle that was assembled and sold in Missouri. The total amount of such tax credits that may be issued per fiscal year is limited to $8,500,000.

ERIKA JAQUES