SB 0006 Makes various modifications to the law on taxation
LR Number:2284S.02I Fiscal Note:2284-02
Committee:Ways and Means
Last Action:06/11/03 - Hearing Conducted S Ways & Means Committee Journal page:
Effective Date:Contingent
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Current Bill Summary

SB 6 - This act makes various modifications to Missouri taxes. The act:

(1) Decouples Missouri's income tax from the federal income tax code. The act adopts the IRC as it was written January 1, 2003.

(2) Extends the sunset on the current federal accelerated depreciation decoupling to 2023.

(3) Prevents any taxpayer from double deducting any pension. Certain taxpayers are allowed a deduction for pensions on their federal return and again on their state return. The act prevents this double deduction.

(4) Allows for electronic filing of sales tax and employer withholding of employees' income tax.

(5) Eliminates the timely filing discount for employers who withhold their employees' income tax.

(6) Disallows "non-Missouri source income" on multi-state corporate income tax returns.

(7) Modifies the way losses and operating expenses are deducted among parties for various types of property, including intellectual property. Minimum standards are established regarding what connections among various corporate entities constitute related parties and affiliated groups for multi-state corporate income tax purposes (Geoffrey loophole).

(8) Restricts the current definition of "common carrier" for purposes of qualifying for a state and local sales and use tax exemption.

(9) Prohibits retailers from obtaining refunds of sales and use taxes without crediting the original purchasers. In the case of over-collections of less than $1,000, such over- collections may be refunded without the higher burden of returning the funds to the purchaser. The $1,000 threshold is an aggregate sum over a five-year period. A retailer, upon submission of an approved plan by the Director of the Department of Revenue, may offer fixed value coupons to customers to satisfy the distribution of the over-collections.

(10) Decouples the Missouri estate tax from the federal estate tax. The act adopts the federal estate tax as it was written on January 1, 2001, for the purposes of calculating Missouri estate tax liability.

(11) Eliminates the payment in-lieu of tax on certain large boats or vessels documented with the U. S. Coast Guard. The act subjects these boats and vessels to state and local sales and use taxes.

(12) Requires as a condition of employment with the state government that all state income taxes due be filed and paid by the employee; Requires all state income taxes due to be paid by members of the General Assembly, statewide elected officials, and members of the judiciary; The reporting of tax compliance concerning members of the General Assembly and the Judiciary must be a direct communication between the director of revenue and the official, prior to reporting the situation to the applicable Ethics Commission.

(13) Allows for revoking any professional license granted by the state after issuance unless tax clearance from the Department of Revenue is verified. The act also authorizes the director of revenue to inform the supreme court clerk of any attorney who is delinquent on or who has failed to file for taxes in the past three years.

(14) Allows the Secretary of State to dissolve corporations for failure to pay corporate franchise and income tax, with certain notice and other limiting provisions.

The act has a contingent enactment date.