SS/SCS/HCS/HBs 1150, 1237 & 1327 - This act authorizes the Department of Revenue (DOR) and the Administrative Hearing Commission (AHC) to abate all or part of the tax liability of a taxpayer in certain situations, including those situations in which:

(1) The taxpayer fails to collect, account for or pay a tax which others in the same industry or occupation also failed to pay, perhaps due to miscommunication between DOR and a specific industry or profession about the taxability of a certain event or transaction; (2) The taxpayer does not have sufficient ability to pay the entire amount of the tax due; or (3) Collection of the tax would undermine compliance with the tax laws.

Before the Department of Revenue can abate any part of a taxpayer's liability, the Director must forward a copy of the abatement agreement to the Attorney General. The Attorney General has up to 30 days to review the agreement for legal form and content and may offer proposed revisions to protect the interests of the state. This provision will expire on January 1, 2005.

The act directs that in situations where DOR or the AHC grant this type of relief to a taxpayer, the application of the tax at issue shall be prospective for that taxpayer, such that the taxability of the event or transaction begins after the DOR or AHC decision on the issue. In order to qualify for whole or partial abatement, a taxpayer must agree to several conditions set forth in the act, such as paying his or her own attorney fees and expenses. The taxpayer has a right to rely upon agreements made by the Department of Revenue pursuant to the act.

A tax amnesty program is authorized by the act for penalties, additions to tax, and interest on delinquencies which occurred prior to December 31, 2001. To be eligible for the program, a taxpayer must submit and pay all unpaid taxes due between August 1, 2002, and October 31, 2002. All new revenues resulting from the tax amnesty program will be deposited in the State School Moneys Fund, unless otherwise earmarked by the Missouri Constitution, or unless they are revenues not belonging to the state.

The act creates the "Simplified Sales Tax Administration" in Missouri, as found in SB 1154. The administration shall consist of seven members, one of which will be selected by the Governor, two selected from each of the majority leaders of the House and Senate, and one from each of the minority leaders of the House and Senate.

The administration will have the duty of entering into multistate discussions for the purposes of reviewing and amending a multistate agreement concerning simplified sales and use tax processes. The administration shall report to the committee charged with reviewing tax issues annually.

The authority of the delegates to review and amend or accept multistate agreements will have no effect on the laws or obligations of this state. The approval of the General Assembly and the Governor will be required before any law of this state shall be effected by a multistate agreement.

The act also makes various changes related to the assessment and levy of property taxes. The act:

(1) Requires separate levies to be calculated and rolled- back within each subclass of real property and for personal property using the assessed valuation of each subclass of real property and of personal property. If the separate levy process reduces revenues to a political subdivision, it may adjust the levy to produce the same amount of revenue as would have been produced under a single levy process. Under current law, the assessed valuation of all subclasses of real property and personal property are combined to calculate one levy to be applied to all classes of property equally; (2) Where the taxing authority is a school district, the act apportions state-assessed railroad and utility property equally among the three classes of property for the purpose of calculating the levy for the particular subclasses; this apportionment does not affect the levy applied to state-assessed railroad and utility property; (3) Requires the governing body of any political subdivision that levies a tax rate lower than its tax rate ceiling to approve by a majority vote of the governing body at a public meeting any increase of that lowered rate up to the tax ceiling. This portion does not apply to school districts; (4) Sets a formula for determining a blended property tax rate by school districts for purposes of receiving state aid for public schools through the state foundation formula; (5) Requires each taxing jurisdiction to calculate its tax rate out to four decimal points, except for those with a tax rate under a dollar. Current law requires the rate to be calculated out to three decimal points; (6) Requires a physical inspection of property during reassessment when the assessed value increases 15% or more. Current law requires a physical inspection when property increases 17% or more; (7) Defines physical inspection of property during reassessment as an on-site personal observation of the land and the exterior portions of the buildings available to the inspector. "Drive-by" inspections will not qualify. The assessor's staff must notify the owner or occupant that a physical inspection was performed. This provision will only apply to St. Louis County; (8) Allows credit cards to be used as a method of payment for property taxes by the county collectors; and (9) Requires the board of equalization in St. Louis County to provide written findings of fact and conclusions of law to any taxpayer subject to hearing before the board.

All of the above provisions related to property taxation will become effective January 1, 2003, for St. Louis County and will become effective for all other taxing jurisdictions on January 1, 2005.

The act contains an emergency clause.

The act is similar to SB 688, SB 894, & SB 910 (2002).
JEFF CRAVER