HCS/SCS/SB 591 - This act modifies several provisions of law relating to state and local revenues, provisions of law that specify the application of a particular interest rate, and the authority of fire protection districts.
(Sections 32.069, 34.055, 34.057, 160.281, 160.283, 161.421, 161.424, 287.160, 287.745, 335.233, 408.020,408.040, 409.5-509, 409.6-604, 414.356, 414.570, 444.870, 447.539, 630.460, and 643.079)
This act modifies numerous provisions of law that specify the application of a particular interest rate. The act requires that the interest rate used by these statutes be either the adjusted prime rate charged by banks as determined by the Department of Revenue, or in some situations this adjusted prime rate plus one percent.
The provisions where interest rates are modified include: certain interest rates used by the director of revenue, late payments by the state for supplies and services, late payments by public entities to contractors, repayment of teaching degree scholarships, worker's compensation benefit payments, delinquent worker's compensation taxes, nursing student loans, creditors claims on written contracts that did not specify the rate of interest, judgments in tort cases, securities litigation, loans to political subdivisions for alternative fuel vehicles, failure to pay the odorized propane assessment, certain payments by and to the Land Reclamation Commission, unclaimed property that the holder fails to pay the state treasurer, overpayments by the Department of Mental Health to vendors, and judgments against air contaminant sources that have not paid fees.
These provisions are similar to SB 848 (2012).
LOCAL SALES TAX ON OUT-OF-STATE MOTOR VEHICLE PURCHASES
(Sections 32.087 and 144.757)
This act provides that local sales tax shall be imposed on the sale of all motor vehicles, trailers, boats and outboard motors, within the boundaries of the state or outside the boundaries of the state, if they are required to be registered with the Director of Revenue. The act provides that all sales within and outside the state of motor vehicles, trailers, boats, and outboard motors shall be deemed to be consummated at purchaser's residence. The act further provides that the option to impose a local use tax shall not be effective on sales of any motor vehicle, trailer, boat, or outboard motor purchased outside the state as such purchases are deemed to be consummated at the residence of the purchaser pursuant to Section 32.087.12(2) and are therefore subject to local sales taxes.
These provisions are similar to HCS/HB 2100 (2012).
CLASSIFICATION OF TIME-SHARE UNITS FOR PROPERTY TAX PURPOSES
This act modifies the definition of residential property for property tax purposes to include time-share units unless they are rented. Where time-share units are rented, the county assessor is required to consider only the percentage of use subject to sales tax as commercial property. The county assessor is required to classify the percentage of commercial property based on information provided by the developer or association each January 31st.
This provision is identical to HCS/HB 1818 (2012) and similar to a provision of SCS/HCS/HB 1623 (2012).
MOTOR VEHICLE VALUATION
Currently, county assessors are required to use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide as the recommended guide for information for determining the value of motor vehicles for personal property tax purposes. This act requires a county assessor to use the trade-in value published in the October issue of one nationally-recognized guide for establishing the value of motor vehicles. This guide will be approved by the State Tax Commission in conjunction with the association representing the majority of assessors in Missouri.
This provision is similar to HB 1300(2012) and HB 955 (2011).
FIRE PROTECTION DISTRICT REGULATION OF NEW CONSTRUCTION
This act prohibits a fire protection district from enforcing any regulations dealing with new residential construction if the city, town, village, or county in which the construction is located has already adopted regulations for such construction.
Fire protection districts, do, however, have final regulatory authority over the location and specifications of fire hydrants and fire lanes and may inspect of certain dwellings. They may not collect a fee for such services.
This provision is identical to HCS/HB 1458 (2012) and a provision of SCS/HCS/HB 1623 (2012).
HA 1 - THIS AMENDMENT ADDS THE CONSTRUCTION, RECONSTRUCTION, REPAIR, AND MAINTENANCE OF SIDEWALKS, TRAILS, AND COMMUNITY OWNED PARKING LOTS TO THE DEFINITION OF "TRANSPORTATION PURPOSES" AS IT APPLIES TO EXPENDITURES OF THE TRANSPORTATION SALES TAX IN CERTAIN CITIES (SECTION 94.700).
THIS AMENDMENT IS IDENTICAL TO A PROVISION OF CCS/HCS/SB 568 (2012) AND IS SIMILAR TO HB 1299 (2012).
HA 2 - THIS AMENDMENT MODIFIES THE PROCESS FOR ISSUING TEMPORARY PERMITS TO MOTOR VEHICLE OWNERS. UNDER THE TERMS OF THE ACT, THE DIRECTOR OF REVENUE IS AUTHORIZED TO ALLOW OTHERS TO PRODUCE WEATHER RESISTANT, NONTEARING TEMPORARY PERMITS THAT ALLOW BUYERS OF MOTOR VEHICLE OR TRAILERS TO OPERATE SUCH VEHICLES FOR A 30 DAY PERIOD. THE TEMPORARY PERMIT MAY BE PURCHASED BY THE MOTOR VEHICLE BUYER FROM THE CENTRAL OFFICE OR FROM AN AUTHORIZED AGENT OF THE DEPARTMENT. A MOTOR VEHICLE BUYER MAY ALSO PURCHASE A TEMPORARY PERMIT FROM A MOTOR VEHICLE DEALER. THE PRICE PAID BY A REGISTERED DEALER FOR A TEMPORARY PERMIT SHALL NOT EXCEED $5.00 PER PERMIT (CURRENT LAW SETS THE AMOUNT AT $7.50). THE DIRECTOR SHALL DIRECT MOTOR VEHICLE DEALERS AND AUTHORIZED AGENTS TO OBTAIN TEMPORARY PERMITS FROM AN AUTHORIZED PRODUCER. UNDER THE AMENDMENT, AMOUNTS RECEIVED BY THE DIRECTOR FOR TEMPORARY PERMITS SHALL CONSTITUTE STATE REVENUE WHILE AMOUNTS RECEIVED BY AN AUTHORIZED PRODUCER SHALL NOT CONSTITUTE STATE REVENUE. AMOUNTS RECEIVED BY MOTOR VEHICLE DEALERS OR AUTHORIZED AGENTS FOR TEMPORARY PERMITS PURCHASED FROM AN AUTHORIZED PRODUCER SHALL NOT CONSTITUTE STATE REVENUE. THE AMENDMENT SPECIFICALLY PROVIDES THAT GENERAL REVENUE FUNDS OR OTHER STATE FUNDS SHALL NOT BE USED TO COMPENSATE MOTOR VEHICLE DEALERS AND OTHER PRODUCERS FOR THEIR ROLE IN PRODUCING TEMPORARY PERMITS. DEALERS MAY NOT CHARGE MORE THAN $5.00 FOR EACH PERMIT IT ISSUES (DOWN FROM $7.50). UNDER THE AMENDMENT, EACH TEMPORARY PERMIT ISSUED SHALL BE FASTENED TO THE REAR OF THE MOTOR VEHICLE IN A MANNER AND PLACE ON THE MOTOR VEHICLE CONSISTENT WITH PLACEMENT OF REGULAR REGISTRATION PLATES. THE AMENDMENT ALLOWS THE DIRECTOR TO REISSUE AND EXTEND THE USE OF A TEMPORARY PERMIT DURING THE TIME PERIOD A TITLE AND REGISTRATION ARE BEING OBTAINED. UNDER THE TERMS OF THE AMENDMENT, UPON THE ISSUANCE OF A TEMPORARY PERMIT, THE DIRECTOR SHALL MAKE THE TEMPORARY PERMIT INFORMATION IMMEDIATELY AVAILABLE TO THE LAW ENFORCEMENT COMMUNITY OF THE STATE OF MISSOURI (SECTION 301.140). THE TEMPORARY PERMIT PROVISIONS (SUBSECTIONS 4, 5, AND 6 OF SECTION 301.140) SHALL EXPIRE ON JULY 1, 2019.
THIS AMENDMENT IS SIMILAR TO A PROVISION OF CCS/HCS/SB 568 (2012) AND ONE CONTAINED IN SB 818 AND HB 1329 (2012).
HA 3 - THIS AMENDMENT MODIFIES LAWS REGARDING THE COLLECTION OF MONEYS OWED TO THE STATE.
THE AMENDMENT AUTHORIZES THE DIRECTOR OF REVENUE TO CHOOSE TO SEND CERTAIN DOCUMENTS BY FIRST CLASS MAIL, IF THE DIRECTOR SENT AT LEAST ONE NOTICE OF DEFICIENCY OR ASSESSMENT BY CERTIFIED MAIL TO THE LAST KNOWN ADDRESS.
THE DIRECTOR OF THE DEPARTMENT OF REVENUE IS AUTHORIZED TO RETAIN ONE PERCENT OF THE AMOUNT OF ANY LOCAL SALES OR USE TAXES COLLECTED BY THE DEPARTMENT FOR THE COST OF COLLECTION.
BEGINNING JANUARY 1, 2013, A STATEMENT OF NO TAX DUE WILL BE REQUIRED FOR THE ISSUANCE OR RENEWAL OF ALL CITY AND COUNTY OCCUPATION LICENSES AS WELL AS ALL STATE LICENSES REQUIRED TO CONDUCT BUSINESS. SUCH STATEMENT MUST BE DATED NOT MORE THAN NINETY DAYS FROM THE DATE OF APPLICATION FOR LICENSE TO BE VALID. INSTEAD OF REQUIRING THE STATEMENT OF NO TAX DUE, THE DIRECTOR OF REVENUE IS REQUIRED TO ENTER INTO AN AGREEMENT WITH ANY STATE AGENCY RESPONSIBLE FOR ISSUING ANY STATE LICENSE REQUIRING THE AGENCY TO PROVIDE THE DEPARTMENT WITH THE NAME AND TAX IDENTIFICATION NUMBER OF EACH APPLICANT FOR LICENSURE WITHIN ONE MONTH OF THE DATE THE APPLICATION IS FILED OR AT LEAST ONE MONTH PRIOR TO THE ANTICIPATED LICENSE RENEWAL. IF AN APPLICANT IS DELINQUENT ON ANY TAXES, THE DEPARTMENT DIRECTOR MUST SEND A NOTICE TO THE LICENSING AGENCY AND THE APPLICANT. AN APPLICANT'S LICENSE MUST BE SUSPENDED WITHIN 90 DAYS AFTER THE NOTICE UNLESS: THE TAXES ARE PAID; AN ARRANGEMENT HAS BEEN MADE WITH THE DEPARTMENT TO PAY THE TAXES; THE TAXES WERE PAID UNDER PROTEST; OR THE TAX LIABILITY IS FOUND TO BE REASONABLY DISPUTED.
THE AMENDMENT PROVIDES TAXPAYERS WITH AMNESTY FROM THE ASSESSMENT OR PAYMENT OF ALL PENALTIES, ADDITIONS TO TAX, AND INTEREST ON DELINQUENCIES OF UNPAID TAXES ADMINISTERED BY THE DEPARTMENT WHICH OCCURRED ON OR PRIOR TO DECEMBER 31, 2011. TO RECEIVE AMNESTY UNDER THE AMENDMENT, A TAXPAYER MUST: APPLY FOR AMNESTY; FILE A TAX RETURN FOR EACH TAX PERIOD FOR WHICH AMNESTY IS REQUESTED; PAY THE UNPAID TAXES IN FULL FROM AUGUST 1, 2012, TO OCTOBER 31, 2012; AND AGREE TO COMPLY WITH STATE TAX LAWS FOR THE NEXT EIGHT YEARS FROM THE DATE OF THE AGREEMENT. ALL NEW REVENUES RESULTING FROM THE TAX AMNESTY PROGRAM WILL BE DEPOSITED INTO THE GENERAL REVENUE FUND UNLESS OTHERWISE EARMARKED BY THE MISSOURI CONSTITUTION OR BY STATE STATUTE.
THE DIRECTOR OF THE DEPARTMENT OF REVENUE AND THE COMMISSIONER OF THE OFFICE OF ADMINISTRATION MAY ENTER INTO A RECIPROCAL AGREEMENT WITH THE FEDERAL GOVERNMENT OR ANY OTHER STATE TO OFFSET VENDOR AND CONTRACTOR PAYMENTS FOR ANY TYPE OF DEBT OWED TO THE STATE. CURRENTLY, THE DEPARTMENT HAS A RECIPROCAL AGREEMENT WITH THE UNITED STATES TREASURY TO OFFSET INCOME TAX OVERPAYMENTS.
STATE AGENCIES, COMMUNITY COLLEGE DISTRICTS, AND STATE AND MUNICIPAL COURTS MAY REFER ANY DEBT OWED TO THEM TO THE DEPARTMENT OF REVENUE FOR COLLECTION. THE DEPARTMENT AND THE REFERRING STATE AGENCY MAY EXCHANGE NECESSARY INFORMATION BUT MUST COMPLY WITH FEDERAL AND STATE LAWS REGARDING THE CONFIDENTIALITY OF INFORMATION AND RECORDS. THE DEPARTMENT MAY COMPROMISE ANY REFERRED STATE DEBT AND USE ALL GENERAL REMEDIES AFFORDED CREDITORS OF MISSOURI, REMEDIES SPECIFIC TO THE REFERRING STATE AGENCY, AND REMEDIES AFFORDED THE STATE IN GENERAL.
THE DEPARTMENT CAN EMPLOY STAFF, ATTORNEYS,, PROSECUTING ATTORNEYS, AND PRIVATE COLLECTION AGENCIES TO AID IN THE COLLECTION OF DEBT. THE DEPARTMENT MUST ADD 10% TO THE AMOUNT OF DEBT TO BE COLLECTED FOR THE COST OF COLLECTION WHICH MAY BE WAIVED UNDER CERTAIN CONDITIONS. COLLECTIONS COSTS SHALL BE DEPOSITED IN STATE GENERAL REVENUE.
ANYONE MAKING A CLAIM OR HAVING A JUDGMENT UNDER THE PROVISIONS OF THE STATE LEGAL EXPENSE FUND MUST HAVE A NO-TAX DUE STATEMENT FROM THE DEPARTMENT BEFORE ANY MONEYS CAN BE EXPENDED FROM THE FUND FOR THE SETTLEMENT OF ANY LIABILITY CLAIM. THE AMENDMENT ALLOWS AN OFFSET FROM THE STATE LEGAL EXPENSE FUND TO SATISFY ANY DELINQUENT TAX DEBT OWED BEFORE PAYMENT IS MADE TO THE PERSON. PAYMENTS OF $10,000 OR LESS FROM THE FUND FOR PROPERTY DAMAGE CLAIMS ARE NOT REQUIRED TO HAVE A NO-TAX DUE STATEMENT.
THIS AMENDMENT ALSO MODIFIES THE PROCEDURES FOR SEEKING A REFUND OF SALES TAXES, PENALTIES , OR INTEREST COLLECTED OR COMPUTED IN ERROR OR ILLEGALLY. THE DIRECTOR OF REVENUE IS REQUIRED TO HOLD A REFUND CLAIM UNPROCESSED AT A TAXPAYER'S REQUEST PENDING THE OUTCOME OF LEGAL PROCEEDINGS ON THE SAME OR SIMILAR GROUNDS OR TRANSACTIONS. A PURCHASER IS ALLOWED TO SUBMIT A CLAIM FOR A REFUND OF THE SALES TAX DIRECTLY TO THE DIRECTOR OF REVENUE. THE PURCHASER IS ALLOWED TO APPEAL THE DECISION TO DENY A REFUND WITHIN SIXTY DAYS OF THE DATE THE NOTICE OF DENIAL IS MAILED. A DECISION OF THE DIRECTOR TO DENY A REFUND CLAIM BASED SOLELY ON THE ISSUE OF THE EXEMPTION OF THE ELECTRONIC TRANSMISSION OR DELIVERY OF COMPUTER SOFTWARE THAT OCCURRED ON OR AFTER JANUARY 1, 2007 WILL BE APPEALABLE BY THE PURCHASER, IF THE PURCHASER APPEALED BY SEPTEMBER 28, 2012.
THE PROVISION REGARDING TAX AMNESTY HAS AN EMERGENCY CLAUSE.
PROVISIONS OF THIS AMENDMENT ARE IDENTICAL TO PROVISIONS OF HCS/HB 1030 (2012) AND SIMILAR TO PROVISIONS OF HB 116 (2011) AND HCS/SB 117 (2011).
HA 4 - THIS AMENDMENT SPECIFIES THAT A FIRE PROTECTION DISTRICT'S REGULATORY AUTHORITY OVER THE LOCATION AND SPECIFICATIONS OF FIRE HYDRANTS AND FIRE LANES SHALL NOT BE CONSTRUED TO REQUIRE POLITICAL SUBDIVISIONS SUPPLYING WATER TO INCUR ANY COSTS TO MODIFY ITS WATER SUPPLY INFRASTRUCTURE.
HA 5, AS AMENDED-
THIS AMENDMENT MODIFIES THE LANGUAGE IMPOSING THE LOCAL SALES TAX ON THE SALE OF ALL MOTOR VEHICLES, TRAILERS, BOATS AND OUTBOARD MOTORS. THE AMENDMENT SPECIFICALLY ABROGATES THE MISSOURI SUPREME COURT'S HOLDING IN CRAIG A. STREET V. DIRECTOR OF REVENUE TO THE EXTENT THAT LOCAL SALES TAXES ARE INAPPLICABLE TO OUT-OF-STATE PURCHASES OF MOTOR VEHICLES, TRAILERS, ETC. THE AMENDMENT ALSO ADDS A NONSEVERABILITY CLAUSE FOR THESE SECTIONS OF LAW.
THIS AMENDMENT ALSO REMOVES LANGUAGE MODIFYING THE INTEREST RATE FOR WORKER'S COMPENSATION BENEFIT PAYMENTS (SECTION 287.160), JUDGMENTS IN TORT CASES (SECTION 408.040), AND SECURITIES LITIGATION (SECTIONS 409.5-509 AND 409.6-604).