SS#2/SCS/SB 648 - This act modifies several provisions relating to taxation.USE TAX MAPPING
Current law requires the Department of Revenue to create and maintain a mapping feature on its website that displays various sales tax information. This act requires such mapping feature to include use tax information. Political subdivisions collecting a use tax shall send such data to the Department of Revenue by January 1, 2021, and the Department shall implement the mapping feature using the use tax data by August 28, 2021.
If the boundaries of a political subdivision in which a sales or use tax has been imposed shall thereafter be changed or altered, the political subdivision shall forward such changes to the Department, as described in the act. (Section 32.310)
This provision is identical to a provision contained in SCS/HB 1700 (2020) and is substantially similar to a provision contained in SCS/SB 529 (2020), SB 805 (2020), SB 872 (2020), HB 1895 (2020), and HB 2172 (2020).
CASH OPERATING EXPENSE FUND
This act establishes the "Cash Operating Expense Fund", which shall consist of the state portion of use tax revenues collected under the provisions of this act; any funds appropriated to the Office of the Governor for expenses related to emergency duties performed by the National Guard, matching funds for federal grants and emergency assistance, and expenses of any state agency responding during a declared emergency, as described in the act, that are unexpended at the end of a fiscal year; and moneys appropriated by the General Assembly.
Subject to appropriation, the Governor may transfer moneys from the fund into the General Revenue Fund in any fiscal year in which actual revenues are less than the revenue estimates upon which appropriations were based or in which there is a budget need due to a natural disaster, as proclaimed by the Governor to be an emergency.
When the balance in the fund at the close of any fiscal year exceeds 2.5% of net General Revenue collections for the previous year, such excess shall be transferred to the General Revenue fund. (Section 33.575)
This provision is substantially similar to SB 858 (2020) and to a provision contained in SCS/SB 529 (2020), SB 872 (2020), SCS/HB 1700 (2020), and HB 2172 (2020).
INDIVIDUAL INCOME TAX
For all tax years beginning after the final incremental tax rate reduction in current law, this act reduces the top rate of tax by 0.11%, with an eventual top rate of tax of 4.99%. Such reduction shall only occur if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least one hundred fifty million dollars. (Section 143.011)
CORPORATE TAXATION
This act adds "qualified air freight forwarders", as defined in the act, to the definition of "corporation" as a transportation corporation for the purposes of corporate income allocation. (Section 143.441)
This provision is identical to SB 801 (2020) and HB 2213 (2020), and to a provision contained in SB 659 (2020), HCS/SB 686 (2020), HCS/SB 782 (2020), HCS/SCS/SB 867 (2020), HCS/HB 1333 (2020), SS#3/SCS/HB 1963 (2020), HB 2238 (2020), HCS/HB 2303 (2020), and SS/SCS/SBs 46 & 50 (2019).
DOMESTIC VIOLENCE SHELTER TAX CREDIT
Current law authorizes a tax credit for contributions to domestic violence shelters in an amount equal to fifty percent of the contribution, with the maximum annual amount of tax credits limited to $2 million. This act increases the tax credit from fifty percent of the amount contributed to seventy percent beginning July 1, 2021, and removes the limit on the cumulative amount of tax credits claimed by all taxpayers in a fiscal year beginning July 1, 2021.
This act also modifies the definition of "shelter for victims of domestic violence" to include nonprofit organizations established and operating exclusively for the purpose of supporting a shelter for victims of domestic violence operated by the state or one of its political subdivisions. (Section 135.550)
This provision is substantially similar to SB 958 (2020) and HCS/HB 2349 (2020), and to a provision contained in HCS/SCS/SB 616 (2020) and HCS/SS#2/SB 704 (2020).
USE TAX ECONOMIC NEXUS
This act modifies the definition of "engaging in business activities within this state" to include vendors that had cumulative gross receipts of at least $100,000 from the sale of tangible personal property for the purpose of storage, use, or consumption in this state in the previous twelve-month period, as described in the act. Vendors meeting such criteria shall be required to collect and remit the use tax as provided under current law. (Section 144.605)
This provision is identical to a provision contained in SCS/SB 529 (2020) and SCS/HB 1700 (2020), and is substantially similar to a provision contained in SB 659 (2020), SB 805 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (2020), and HB 2238 (2020).
MARKETPLACE FACILITATORS
Beginning January 1, 2022, marketplace facilitators, as defined in the act, that engage in business activities within the state shall register with the Department to collect and remit use tax on sales delivered into the state through the marketplace facilitator's marketplace by or on behalf of a marketplace seller, as defined in the act. Such retail sales shall include those made directly by the marketplace facilitator as well as those made by marketplace sellers through the marketplace facilitator's marketplace.
Marketplace facilitators shall report and remit use tax collected under this act as determined by the Department. Marketplace facilitators properly collecting and remitting use tax in a timely manner shall be eligible for any discount provided for under current law.
Marketplace facilitators shall provide purchasers with a statement or invoice showing that the use tax was collected and shall be remitted on the purchaser's behalf.
No class action shall be brought against a marketplace facilitator in any court in this state on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected on retail sales facilitated by a marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim.
Marketplace facilitators may apply to the Department for relief from liability for the failure to collect and remit the correct amount of sales or use tax on retail sales facilitated for marketplace sellers under certain circumstances, as described in the act. Relief from liability shall be a percentage of the sales and use tax collected by the marketplace facilitator, with such percentage being four percent for sales made during the 2022 calendar year, two percent for sales made during the 2023 calendar year, one percent for sales made during the 2024 calendar year, and zero percent thereafter. (Section 144.752)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
SALES TAX ADMINISTRATION
This act authorizes the Department of Revenue to consult, contract, and work jointly with the Streamlined Sales and Use Tax Agreement's Governing Board to allow sellers to use the Governing Board's certified service providers and central registration system services, or to consult, contract, and work with certified service providers independently. The Department may determine the method and amount of compensation to be provided to certified service providers. (Section 144.608)
This provision is identical to a provision contained in SCS/HB 1700 (2020).
The school and Show Me Green sales tax holidays are modified by repealing the ability for political subdivisions to opt out of the sales tax holidays, and by defining how the sales tax exemption applies to the purchase or return of certain items. (Sections 144.049 and 144.526)
These provisions are identical to provisions contained in SB 659 (2020), HB 2238 (2020), and SS/SCS/SBs 46 & 50 (2019), and are substantially similar to provisions contained in HB 1967 (2020).
This act relieves a purchaser from any penalties for failure to pay the proper amount of sales tax if the error was a result of erroneous information provided by the Director of Revenue. (Section 144.060)
This provision is identical to a provision contained in SB 659 (2020), HB 1967 (2020), HB 2238 (2020), and SS/SCS/SBs 46 & 50 (2019).
Beginning January 1, 2021, for sellers collecting at least $250 in sales tax in the first or second month of a calendar quarter, such taxes shall be remitted on or before the last day of the succeeding month rather than on the twentieth day of the succeeding month. (Section 144.080)
This provision is identical to HB 1908 (2020).
This act requires the Director of Revenue to provide and maintain a downloadable electronic database at no cost to the user of the database for taxing jurisdiction boundary changes and tax rates. Such databases may be directly provided by the Director, or may be provided by a third party as designated by the Director.
Vendors shall not be liable for reliance upon erroneous data provided by the Director on tax rates, boundaries, or taxing jurisdiction assignments. (Section 144.637)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), SCS/HB 1700 (2020), HB 1895 (2020), HCS#2/HB 1957 (2020), and HB 2172 (2020).
This act also requires the Director of Revenue to provide and maintain a taxability matrix and shall provide notice of changes in the taxability of products or services listed in the matrix.
Sellers and CSPs shall be relieved from liability for reliance upon erroneous data provided or approved by the Department, and a seller shall be relieved from liability for erroneous returns made by a CSP on behalf of the seller. (Section 144.638)
This provision is identical to a provision contained in SCS/HB 1700 (2020) and is substantially similar to a provision contained in SB 659 (2020), HB 1967 (2020), and HB 2238 (2020).
Monetary allowances from taxes collected shall be provided to certain sellers and certified service providers for collecting and remitting state and local taxes, as described in the act. (Section 144.140)
This provision is identical to a provision contained in SB 659 (2020) and HB 2238 (2020), and is substantially similar to a provision contained in SCS/HB 1700 (2020) and HB 1967 (2020).
LOCAL SALES AND USE TAXES
For all tax years beginning on or after January 1, 2022, this act places a limit on the total combined rate of local sales taxes by providing that the total combined rate of local sales taxes imposed by a taxing entity that is an incorporated city, town, or village shall not exceed 4.5%. The total combined rate of local sales taxes imposed by a county shall not exceed 3.25%. For all other taxing jurisdictions, the total combined rate of sales taxes in any given taxing jurisdiction shall not exceed 3.25%. Such limits shall not apply to transient guest taxes or convention and tourism taxes.
In any election in which more than one sales tax levy is approved by the voters, and the passage of such levies results in a combined rate of sales tax in excess of the limits provided under the act, only the sales tax levy receiving the most votes shall become effective. (Section 32.087)
This act modifies ballot language required for the submission of a local use tax to voters by including language stating that the approval of the local use tax will eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers. (Section 144.757)
This provision is identical to SB 652 (2020) and HB 1584 (2020), and to a provision contained in SB 659 (2020), HCS/SS#2/SB 704 (2020), SCS/SB 770 (2020), SB 805 (2020), SB 872 (2020), SS#2/SCS/HCS/HB 1854 (2020), HB 1895 (2020), HB 2172 (2020), HB 2238 (2020), SCS/SB 189 (2019), SS/SCS/SBs 46 & 50 (2019), SS/HCS/HB 255 (2019), SCS/HCS/HB 674 (2019), and HB 701 (2019), is substantially similar to a provision contained in SCS/SB 529 (2020) and SCS/HB 1700 (2020), and is similar to a provision contained in HCS#2/HB 1957 (2020).
EFFECTIVE DATE
The provisions of this act relating to sales tax administration, use taxes, and the income tax rate reduction shall become effective January 1, 2022.
Provisions of this act establishing the Cash Operating Expense Fund contain an emergency clause and shall become effective upon passage and approval.
The remaining provisions shall become effective August 28, 2020.
JOSH NORBERG