SB 0936 Significant changes to tax, economic development and community development law
LR Number:4286L.04C Fiscal Note:4286-04
Committee:Ways and Means
Last Action:05/12/00 - H Inf Calendar S Bills for Third Reading Journal page:
Title:HCS SB 936
Effective Date:August 28, 2000
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Current Bill Summary

HCS/SB 936 - This act revises existing tax credits and creates additional tax credits.

PHARMACEUTICAL TAX CREDIT - The act expands eligibility for the pharmaceutical tax credit to anyone eligible for the senior citizens tax relief program known as the "circuit-breaker". It also requires the Department of Revenue to notify persons who are eligible for the credit. This provision incorporates HB 2006, SB 743 and SB 884.

SEXUAL VIOLENCE CRISIS TAX CENTER CREDIT - The act creates a new tax credit of 50% of any contribution to a qualified sexual violence crisis service center. The maximum credit is $50,000 per year. The credit may be carried over for up to 4 years, is non-refundable, and the total credits granted per year may not exceed $2 million. This provision is similar to HB 2142.

HOME DISABILITY TAX CREDIT - The act creates a tax credit for the purchase of certain assistive technology equipment and for custodial care of qualifying disabled individual. The credit is for 50% of the cost of the equipment and is available to qualifying persons with federal adjusted gross incomes of up to $30,000, and 25% for those with federal adjusted incomes of more than $30,000. No taxpayer may receive a credit of more than $3,000 under this program in any tax year. For those with federal adjusted gross income of less than $30,000, up to $300 of the credit is refundable. This provision is similar to HB 1371.

EXAMINATION OF TAXPAYER RECORDS - This act prohibits the state or county from entering into a contract or arrangement for the examination of a taxpayer's books and records if the compensation for the service is contingent upon or otherwise related to the amount of tax, costs, or penalty assessed against or collected from the taxpayer. This provision is identical to HB 1726.

TAXPAYER'S OATH - This provision removes the oath required to be signed by a personal property taxpayer and replaces it with the oath presently used in first class counties. This provision is identical to HB 1666.

BURDEN OF PROOF - The act enacts two substantially identical provisions concerning the burden of proof in disputes over tax liability, one in the tax statutes and the other in those governing the administrative hearing commission. The burden in both cases is shifted to the taxing authority. These provisions are substantially similar to SB 550.

GRATUITIES EXCLUDED FROM GROSS RECEIPTS - This provision excludes gratuities paid to wait staff from the calculation of sales tax. This provision is identical to HB 1437.

BRANSON TOURISM TAX - This provision makes a technical correction to the liability for collecting the Branson tourism tax. This provision is identical to SCS/SB 936.

JET FUEL EXEMPTION - This provision modifies the exemption from sales tax of jet fuel. This provision is similar to SB 1061 and HB 2064.

PRECIOUS METAL EXEMPTION - This provision exempts from the sales tax certain precious metals. This provision is identical to SB 1042.

DONATIONS TO STATE - This provision exempts from the sales tax personal property which is donated to the state. This section is identical to HB 1491.

RENEWABLE ENERGY/ENERGY CONSERVATION - This section creates several income tax credits for use of renewable energy sources and technology. The credit, available to homeowners, is up to $3,750 or 25% of the cost of the qualifying equipment The credits are non-refundable and may be carried forward for five years. The credit is also available to businesses, in the amount of $50,000 or 35% of cost. Additional credits of up to $2,000 or 25% of cost are available to homeowners for qualifying insulation of or improving the efficiency of home energy use. A one-time credit of up to $250 is also created to offset the cost of a certified home energy rating technician, necessary to qualify for the other credits.

The act also creates similar credits for operators of commercial and residential rentals. With qualifying structures, a credit of the lesser of 25% of cost or $2,000 is available for insulation of or improved efficiency of energy use in such buildings. The one-time credit for costs of the required energy efficiency study is the less of $50,000 of 10% of actual cost.

The act also requires electric companies to use two-directional net energy metering to customers with electric generating systems that are powered by renewable energy sources and generating less than 100 kilowatts. Such a system would allow customers to direct excess energy into the power grid and thus offset use and cost. Target dates are set for expansion of net energy metering, and a report to the General Assembly and the Governor is required by January 1, 2006. This section is identical to HB 2129.

ST. LOUIS COMMUNITY COMEBACK ACT - The act authorizes a "Community Comeback Trust" in St Louis County to coordinate clean up and redevelopment. The County is authorized to impose taxes to support the trust, with voter approval, and the trust itself could issue tax-exempt bonds, notes, and other obligations. This provision is similar to SB 865 and is also found in HS/HCS/HB 1305.

HOUSING ASSISTANCE - This section expands the definition of "agency" for purposes of the housing assistance program to allow more entities to qualify. It clarifies the definition of "homeless" and authorizes St. Louis County to impose a $3 fee on instruments recorded with the Recorder of Deeds, subject to voter approval, to finance the program. This section is identical to HB 1869.

LOCAL TOURISM TAX - This act expands the local tourism tax to allow New Madrid, New Madrid County, Stoddard County, Bloomfield, Caruthersville and St. James to impose such taxes, at a rate of between 2% and 5%, on hotels and motels. The proceeds of the tax would be used to finance campgrounds and docking facilities. This section is identical to SCS/SB 596.

COMMUNITY IMPROVEMENT DISTRICTS - This program is substantially revised, allowing a special sales tax of up to 1% in addition to existing sales taxes in such a district. The act limits the recapture of state housing tax credits for projects which also receive federal housing tax credits to a ten-year period. It also changes the current definition of community development corporations. The act also makes certain new construction eligible under the neighborhood preservation and rebuilding communities program. These provisions are substantially identical to sections found in SCS/SB 1048.

KIRKSVILLE ECONOMIC DEVELOPMENT SALES TAX - The act allows Kirksville to impose a retail sales tax to fund economic development programs, subject to voter approval. This provision is identical to HB 1659 and similar to SB924.

ALTERNATIVE FUEL VEHICLES - The act creates an income tax for the purchase of certain alternative fuel vehicles. The credit would equal the less of $9,000 or 30% of cost and may be carried forward up to five years. The provisions sunset in 2005. The act also creates a tax credit of the lesser of $20,000 or 25% of cost for the establishment of recharging facilities for such vehicles. Such a credit could be carried forward up to seven years. This section is identical to one found in HB 2088.

OVERPAYMENTS OF PROPERTY TAXES - The act also changes the procedure for refunding overpaid personal property taxes. Under current law, such overpayments are refunded. This act would instead apply such overpayments as a credit against future years' taxes. Refunds would be issued only when a taxpayer has no tax liability in subsequent years. This provision is identical to one found in HB 2088.