Missouri State Senate

House Committee Substitute

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.

INTEREST RATES

(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

(Section 137.016)

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

(Section 137.115)

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

(Section 321.228)

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).

EMILY KALMER

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