SB 0001 Makes various modifications to the law on taxation
Sponsor:Goode Co-Sponsor(s)
LR Number:2332S.02I Fiscal Note:2332-02
Committee:Ways and Means
Last Action:09/11/03 - Motion to report bill Do Pass Failed S Ways & Means Journal page:
Effective Date:Emergency Clause
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Current Bill Summary

SB 1 - This act makes various modifications to Missouri taxes. The act:

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

(2) 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. Under this provision, the entire profit of a unitary group will be aggregated and then divided among the members of the group. This allocation will be based upon the relative incomes of the members, without regard to intra-group transfers of these certain targeted operating expenses ("Geoffrey" scenario);

(3) 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. In the alternative, 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;

(4) 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.