Missouri Senate

House Amendment

SALES TAX ON MOTOR VEHICLES

Sections 32.087, 144.020, 144.021, 144.069, 144.071, 144.440, 144.450, 144.455, 144.525, 144.610, 144.613, and 144.615

This act eliminates both state and local use taxes on the storage, use or consumption of motor vehicles, trailers, boats, or outboard motors. This act specifies that a sales tax is to be collected for the titling of such property. The rate of tax associated with titling will be the sum of state sales tax and the local sales tax rate in effect at the address of the owner of the property.

All local taxing jurisdictions that have not previously approved a local use tax must put to a vote of the people whether to discontinue collecting sales tax on the titling of motor vehicles purchased from a source other than a licensed Missouri dealer. If a taxing jurisdiction does not hold such a vote before November 2016, the taxing jurisdiction must cease collecting the sales tax. Taxing jurisdictions may at any time hold a vote to repeal the tax. Language repealing the tax must also be put to a vote of the people any time 15% of the registered voters in a taxing jurisdiction sign a petition requesting such.

The act contains a nonseverability clause for these provisions.

This act has an emergency clause for these provisions.

These provisions are similar to HCS/SCS/SB 182 (2013), SS/HCS/HB 1329 (2012), HCS/HB 2100 (2012), and HCS/SCS/SB 591 (2012).

PETTIS COUNTY TRANSIENT GUEST TAX

Currently, Pettis County is prohibited from spending revenue from the county transient guest tax on salaries. This act removes this prohibition from the law. (Section 67. 1010)

TAX EXEMPTIONS FOR DISASTER RELIEF AGENCIES

Sections 67.1020 and 144.030

This act exempts nongovernmental agencies congressionally mandated to provide disaster relief services from transient guest taxes. The act also exempts from state sales tax, local sales tax, and transient guest tax sales to any person when payment is made by these nongovernmental agencies as part of a disaster relief service.

These provisions are identical SB 441 (2013) and to provisions in SS/SB 366 (2013).

DATA STORAGE CENTERS TAX INCENTIVES

Sections 67.2050 & 144.810

This act allows the governing body of any municipality to enter into loan agreements, or sell, lease, or mortgage municipal property to private entities for the development of a technology business facility project. Municipalities include utility boards of counties, cities, towns or villages. Transactions involving the lease or rental of such properties will be exempt from state and local sales taxes and any leasehold interests on such properties will not be subject to property taxes. The act allows municipalities to sell or otherwise dispose of municipal property to private entities for technology business facility projects provided that the terms and methods utilized reasonably protect the economic well being of the municipality. Any private entity which transfers property to the municipality for purposes of a technology business facility project will reserve the right to request that the municipality transfer such property back to the entity at no cost.

This act provides state and local sales and use tax exemptions for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services, used in new data storage center facilities. The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. In order to receive the sales tax exemption provided for new data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least thirty-seven million dollars of new facility investment and create at least thirty new jobs with wages of at least 150 percent of the county average wage over a three year period. A project may be approved even though the investment and job creation requirements are not met if exemptions do not exceed the project fiscal benefit to the state over ten years.

The act also creates a state and local sales and use tax exemption for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services. The exemption will only apply to the increase in expenditures for utilities over the previous year's expenditures.

The exemptions for tangible property will be available only on the increase in expenditures over the average of the previous three years expenditures. In order to receive the sales tax exemption provided for existing data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least five million dollars of new facility investment over a one year period and create at least five new jobs with wages of at least 150 percent of the county average wage over a two year period. A project may be approved even though the investment and job creation requirements are not met if exemptions do not exceed the project fiscal benefit to the state over ten years.

The Department of Economic Development and the Department of Revenue are authorized to conduct random audits to ensure compliance with the requirements for state and local sales and use tax exemptions authorized under the act.

The data storage centers tax incentive will expire on September 1, 2019. The expiration will not impair any agreements or exemptions granted before the expiration.

These provisions are similar to a provision of SS/SCS/SB 120 (2013), SCS/HCS#2/HB 698 (2013), SB SB 46 (2013), HB 222 (2013), SB 394 (2013), SCS/SB 584 (2012), SB 8 (1st Ex. Session 2011), SB 217 (2011), and SB 868 (2010).

SALE OF LAND BY CERTAIN CITIES

This act requires any lands sold by certain cities to be subject to valid covenants and easements. This provision is identical to HB 892 (2013) and provisions in HCS/SB 24 (2013). (Section 92. 387)

FREIGHT LINE COMPANIES TAX CREDIT

Currently, freight line companies may qualify for a credit against property taxes for certain expenses. This act extends the sunset from August 28, 2014 to August 28, 2020. This provision is identical to HB 201 (2013). (Section 137.1018)

USE TAX NEXUS

Sections 144.010, 144.030, and 144.605

This act modifies provisions relating to the Sales Tax Law and the Compensating Use Tax Law. The term "engaging in business" in the Sales Tax Law is expanded to include the meanings given to "engages in business in this state" and "maintains a business in this state" as they are defined in the Compensating Use Tax Law.

This act makes agreements between the executive branch and any person that exempts them from collection of sales and use tax void unless approved by both chambers of the General Assembly.

The definition of "engages in business activities within this state" in the Compensating Use Tax Law is modified. The use of media to exploit Missouri's market will no longer make a vendor meet the definition. Being controlled by the same interests which control a seller engaged in a similar line of business in this state will also no longer meet the definition.

Under the Compensating Use Tax Law, a presumption is created that a vendor engages in business activities within this state if any person with a substantial nexus to Missouri performs certain activities in relation to the vendor within this state. The presumption may be rebutted by showing that the person's activities are not significantly associated with the vendor's ability to maintain a market in Missouri.

A second presumption is created that a vendor engages in business activities within this state if the vendor enters into an agreement with a resident of Missouri to refer customers to the vendor and the sales generated by the agreement exceeds $10,000 in the preceding twelve months. This presumption may be rebutted by showing that the Missouri resident did not engage in activity within Missouri that was significantly associated with the vendor's market in Missouri in the preceding twelve months.

The definition of "maintains a place of business in this state" in the Compensating Use Tax Law is modified to remove common carriers from its provisions.

Currently, there is an exemption from the definition of vendor under the Compensating Use Tax Law for vendors whose gross receipts are less than certain amounts, do not maintain a place of business in Missouri, and have no selling agents in Missouri. This act removes the exception.

These provisions are similar to SB 174 (2013), SS#2/SCS/SB 26 (2013), HB 1042 (2013), and a provision in HB 521 (2013).

MISSOURI MUSEUM AND CULTURAL DISTRICT ACT

Sections 184.800 - 184.865

This act modifies the Missouri Museum District Act. The act expands the scope of museum districts to include buildings or areas used for promoting culture and the arts, including theater, music, entertainment, public places, libraries, and other public assets. The act restricts the creation of museum and cultural districts under these provisions to situations where the majority of the property is located within a disaster area. The act requires that petitions to create museum and cultural districts be filed within five years of the Presidential declaration establishing the disaster area. The museum and cultural district can include property parcels that are not connected to each other. Legal voters who live in the proposed district will not be required to be listed on the petition to create the district, will not be required to be served a copy of the petition creating the district, and will not have statutory authority to sue to support or oppose the creation of the district. The board of directors of the district will be made of five members who are all elected at a public meeting. The General Assembly is authorized to make appropriations from general revenue to a district created under this act for a period of twenty years after January 1, 2013. In addition to a sales tax, the board is authorized to impose, with the approval of qualified voters, a fee of up to one dollar on any person or entity that offers or manages an event in the district and charges admission for the event. The district will not be required to contract only with a not-for-profit or governmental entity to operate and manage any museum or cultural asset in the district.

These provisions are similar to SB 74 (2013) and HB 158 (2013).

ALCOHOL RELATED TRAFFIC OFFENSES

This act requires the court to order the Department of Revenue to issue a license to persons convicted of certain intoxication-related traffic offenses if the person (1) petitions the court, (2) has no pending charges or convictions relating to alcohol or drugs over a certain period, and (3) the court finds that the person does not pose a threat to the public. (Section 302.060)

For persons seeking a stay of assessment of points, the act gives them the option of completing the driver-improvement program through an online course. (Section 302.302 and 476.385)

A person whose license is to be suspended for a first offense of driving while intoxicated or driving with excessive blood alcohol content may complete a 90-day period of restricted driving privilege in lieu of the suspension if he or she provides proof to the department that all vehicles operated by the person have a functioning, certified ignition interlock device. If the person fails to maintain proof of the device, the restricted driving privilege will be terminated. Upon completion of the 90-day period of restricted driving privilege, compliance with other requirements of law, and filing proof of financial responsibility with the department, the license must be reinstated. However, if the monthly monitoring reports during the 90-day period indicate that the ignition interlock device has registered a confirmed BAC level above the alcohol setpoint or the reports indicate the device has been tampered with or circumvented, then the license will not be reinstated until the person completes an additional 30-day period of restricted driving privilege. (Section 302.304)

The act specifies that any person who has had a license to operate a motor vehicle suspended or revoked as a result of an assessment of points for a conviction for an intoxication-related traffic offense and has a prior alcohol-related enforcement contact will be required to file proof with the department that any motor vehicle operated by the person is equipped with a functioning, certified ignition interlock device as a required condition of reinstatement of the license. (Section 302.304)

Persons may receive a limited driving privilege if his or her license at the time of application has been suspended or revoked due to a failure to submit to a chemical test and the person has completed the first 90 days of revocation and files proof of installation with the department that any vehicle operated by him or her is equipped with a functioning, certified ignition interlock device immediately upon the person's license revocation, provided he or she is not otherwise ineligible for a limited driving privilege. (Section 302.309)

The act specifies that a circuit court or the department may allow a person who has been convicted more than twice for driving while intoxicated and has had his or her license revoked for a period of 10 years without the ability to obtain a new license or for a person who has been convicted twice for driving while intoxicated and has had his or her license revoked for a period of five years to apply for a limited driving privilege and repeals the requirement that he or she must serve at least 45 days of the disqualification or revocation. A circuit court must grant a limited driving privilege to any person who otherwise is eligible, has filed proof of installation of a certified ignition interlock device, and has had no alcohol-related enforcement contacts since the contact that resulted in his or her license denial. (Section 302.309)

A person whose driving record shows no prior alcohol related enforcement contacts in the immediately preceding five years may complete a 90-day period of restricted driving privilege in lieu of the suspension if he or she provides proof to the department that all vehicles operated by the person have a functioning, certified ignition interlock device. Upon completion of the restricted driving period, compliance with other requirements of law, and filing proof of financial responsibility with the department, the license must be reinstated. However, if the monthly monitoring reports during such 90-day period indicate that the ignition interlock device has registered a confirmed BAC level above the alcohol setpoint or has been tampered with or circumvented, then the license cannot be reinstated until he or she completes an additional 30-day period of restricted driving

privilege. (Section 302.525)

The act specifies that any person who has a license to operate a motor vehicle revoked under these provisions and has a prior alcohol-related enforcement contact will be required to file proof with the department that any motor vehicle operated by him or her is equipped with a functioning, certified ignition interlock device as a required condition of reinstatement. The ignition interlock device must be required on all motor vehicles operated by the person for a period of at least six months immediately following reinstatement. If the monthly monitoring reports show that the device has registered a confirmed blood alcohol concentration reading above the alcohol setpoint or has been tampered with or circumvented, then the period will be extended for an additional six months. (Section 577.041)

These provisions are similar to HB 931 (2013).

MOVING TRAFFIC VIOLATIONS

Currently, if a Missouri resident fails to dispose of a moving traffic violation charge, the court must order the Director of the Department of Revenue to suspend his or her driving privileges if the charges are not disposed of and fully paid within 30 days. Upon proof of disposition of charges and payment of fine, court costs, and reinstatement fee, the director must return the license and remove the suspension from the driving record if he or she was not operating a commercial motor vehicle or a commercial driver's license holder at the time of the offense. The act removes the requirement that the director return the license upon proof of the disposition of charges. (Section 302.341)

MISSOURI ANGEL INVESTMENT INCENTIVE ACT

Sections 348.273 and 348.274

The Missouri Angel Investment Incentive Act provides tax credits to investors in certain companies. Under this program businesses may apply to regional Small Business and Technology Development centers to be designated a qualified business. Each quarter, the regional Small Business and Technology Development centers allocate tax credits to these qualified businesses. The tax credit will then be issued to investors and equal to fifty percent of their investment in the business. The tax credits may be transferred once to an individual or carried forward up to five years. No more than six million dollars in tax credits may be allocated each tax year. No tax credits shall be allocated or issued after December 31, 2023. The Department of Revenue is prohibited from allowing tax credits of more than fifty thousand dollars per qualified business or more than two hundred fifty thousand dollars per investor or owner of an entity investor.

Qualified businesses allocated tax credits are required to report to the regional Small Business and Technology Development centers annually. Regional Small Business and Technology Development centers are required to report to the Department of Economic Development quarterly. The Department of Economic Development is required to report annually to the Department of Revenue, the Governor, the President pro tempore of the Senate, and the Speaker of the House of Representatives.

The provisions of law creating the Missouri Angel Investment Incentive Act expire on December 31, 2023.

This act is similar to SB 91 (2013), HB 182 (2013), HB 191 (2013), HCS#2/HB 398 (2013), a provision of SS/SCS/SB 120 (2013), and HB 1593 (2012).

MIKE HAMMANN

HA #1 - REMOVES A PROVISION REQUIRING CERTIFIED IGNITION INTERLOCK DEVICES BE INSTALLED IMMEDIATELY UPON LICENSE REVOCATION FOR PERSONS SEEKING LIMITED DRIVING PRIVILEGES AFTER REVOCATION FOR FAILURE OF A CHEMICAL TEST.

HA #2 - REPLACES SMALL BUSINESS TECHNOLOGY DEVELOPMENT CENTER'S ROLE IN THE MISSOURI ANGLE INVESTMENT INCENTIVE ACT WITH THE MISSOURI TECHNOLOGY CORPORATION AND REQUIRES THE GRANTS BE SPLIT EVENLY BETWEEN CONGRESSIONAL DISTRICTS. THE AMENDMENT ALSO REDUCES THE INVESTMENT REQUIREMENT FOR EXPANDING DATA STORAGE CENTERS TO BE ELIGIBLE FOR TAX INCENTIVES FROM $5 MILLION TO $2 MILLION AND REDUCES THE NEW JOB REQUIREMENT FROM 5 JOBS TO 2. THE INVESTMENT REQUIREMENT FOR NEW DATA STORAGE FACILITIES IS REDUCED FROM $37 MILLION TO $5 MILLION AND THE NEW JOB REQUIREMENT IS REDUCED FROM 30 TO 5 JOBS.

HA #3 - CREATES THE MISSOURI WORKS PROGRAM

HA #4 - CREATES THE MISSOURI EXPORT INCENTIVE ACT

HA #5 - EXPANDS PROVISIONS THAT PREVIOUSLY ONLY ALLOWED MARION COUNTY AND RALLS COUNTY TO MAINTAIN SENIOR APARTMENTS TO ALL THIRD AND FOURTH CLASS COUNTIES. THE AMENDMENT ALSO REMOVES THE REQUIREMENT THAT THE APARTMENTS HAVE EMERGENCY CALL BUTTONS.

HA #6 - CREATES AN INDIVIDUAL INCOME TAX DEDUCTION FOR PURCHASES OF NEW HOMES COMPLETED BETWEEN AUGUST 28, 2013 AND DECEMBER 31, 2015.

HA #7 - AUTHORIZES THE MUNICIPALITIES TO ENTER INTO REVENUE-SHARING AGREEMENTS WITH PRIVATE PERSONS FOR OPERATION OF CERTAIN RECREATION PLACES AND MAINTAIN TAX EXEMPT STATUS ON PORTIONS OF REVENUE RETAINED BY THE MUNICIPALITY.

HA #8 - EXEMPTS TAXES IMPOSED TO PAY FOR EMERGENCY COMMUNICATIONS SYSTEMS IN ST. LOUIS COUNTY FROM THE REQUIREMENT THAT 50% OF REVENUE FROM ECONOMIC ACTIVITIES BE DEPOSITED INTO THE SPECIAL ALLOCATION FUND FOR TIF DISTRICTS.

HA #9 - REQUIRES JOINT MUNICIPAL UTILITY COMMISSIONS GET APPROVAL OF 3/4 OF THE GOVERNING BODIES OF THE CONTRACTING MUNICIPALITIES BEFORE ISSUING BONDS FOR CERTAIN PROJECTS. CURRENT LAW AUTHORIZED SUCH A QUESTION TO BE PUT TO A PUBLIC VOTE IN THE AREAS SERVED.

HA #11 - REAUTHORIZES THE DISTRESSED AREAS LAND ASSEMBLAGE TAX CREDIT AND MODIFIES PROVISIONS RELATING TO IT.

HA #12 - CREATES THE REBUILD DAMAGED INFRASTRUCTURE PROGRAM AND TRANSFERS MONEYS FROM CERTAIN FUNDS.

HA #13 - EXEMPTS FROM SALES AND USE TAXES CHARGES AND FEES PAID TO PLACES OF AMUSEMENT, ENTERTAINMENT OR RECREATION, GAMES AND ATHLETIC EVENTS.

HA #14 - MODIFIES PROVISIONS OF THE PUBLIC SCHOOL RETIREMENT SYSTEM OF KANSAS CITY.

HA #15 - CREATES AN ADDITIONAL SALES TAX RATE FOR ADMISSION TO PROFESSIONAL AND AMATEUR SPORTING EVENTS OF ONE-HALF OF A PERCENT. MONEYS COLLECTED UNDER THIS ADDITIONAL SALES TAX WILL BE DEPOSITED INTO THE YOUTH SPORTS PROGRAM FUND FOR DISBURSEMENTS TO POLITICAL SUBDIVISION.

HA #16 - AUTHORIZES MONTGOMERY COUNTY, DOUGLAS COUNTY, THE CITY OF JONESBURG, AND THE CITY OF NEW FLORENCE TO IMPOSE TRANSIENT GUEST TAXES.

HA #17 - MODIFIES THE DEFINITION OF TELECOMMUNICATIONS SERVICES IN THE SALES TAX LAW.

HA #18 - THIS AMENDMENT AUTHORIZES FARMINGTON AND PERRYVILLE TO REMOVE WEEDS AND TRASH WITHOUT A HEARING OR NOTICE TO THE PROPERTY OWNER. THE AMENDMENT ALSO CREATES AN ALTERATIVE METHOD FOR FARMINGTON TO ADOPT OR REPEAL ORDINANCES.

HA #19 - AUTHORIZES MISSOURI TO ENTER THE STREAMLINED SALES AND USE TAX AGREEMENT.

HA #20 - SETS A TESTING FEE FOR LIQUIFIED PETROLEUM GAS METERS. ALSO SETS A FEE SCHEDULE FOR REGISTRATION, INSPECTION, AND CALIBRATION SERVICES.

HA #21 - SPECIFIES THAT TRACTORS OR TRAILERS USED IN INTERSTATE COMMERCE WILL HAVE THEIR MISSOURI ASSESSED VALUE BASED ON THE RATIO OF THE NUMBER OF MILES TRAVELED IN MISSOURI AND THE NUMBER OF TOTAL MILES TRAVELED.

HA #22 - REMOVES THE SUNSET ON THE ASSESSOR'S TECHNOLOGY FUND

HA #23 - REQUIRES SCHOOL ADMINISTRATORS TO REPORT TO LAW ENFORCEMENT IF THEY WITNESS SOMEONE MAKING A TERRORIST THREAT ON SCHOOL PROPERTY.

HA #24 - REQUIRES DEANNEXATION ACTIONS TO BE BROUGHT WITHIN THREE YEARS OF ADOPTION OF AN ANNEXATION ORDINANCE. IF THE MUNICIPALITY FAILS TO PROVIDE SERVICES TO THE ANNEXED AREAS WITHIN 3 YEARS, THE DEANNEXATION ACTION MAY BE BROUGHT UP TO FOUR YEARS AFTER THE ANNEXATION BECAME EFFECTIVE.