SB 23 Modifies provisions relating to taxation, economic development, political subdivisions, Kansas City public school teacher retirement, criminal law, and motor vehicles
Sponsor: Parson
LR Number: 0336S.06T Fiscal Note available
Committee: Jobs, Economic Development and Local Government
Last Action: 7/5/2013 - Signed by Governor Journal Page: S2444-2445
Title: CCS HCS SB 23 Calendar Position:
Effective Date: August 28, 2013
House Handler: Jones

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Current Bill Summary


CCS/HCS/SB 23 - This act modifies provisions relating to taxation.

SALES TAX ON MOTOR VEHICLES

Sections 32.087, 144.020, 144.021, 144.069, 144.071, 144.440, 144.450, 144.455, 144.525, 144.610, 144.613, and 144.615

This act eliminates both state and local use taxes on the storage, use or consumption of motor vehicles, trailers, boats, or outboard motors. This act specifies that a sales tax is to be collected for the titling of such property. The rate of tax associated with titling will be the sum of state sales tax and the local sales tax rate in effect at the address of the owner of the property.

All local taxing jurisdictions that have not previously approved a local use tax must put to a vote of the people whether to discontinue collecting sales tax on the titling of motor vehicles purchased from a source other than a licensed Missouri dealer. If a taxing jurisdiction does not hold such a vote before November 2016, the taxing jurisdiction must cease collecting the sales tax. Taxing jurisdictions may at any time hold a vote to repeal the tax. Language repealing the tax must also be put to a vote of the people any time 15% of the registered voters in a taxing jurisdiction sign a petition requesting such.

The act contains a nonseverability clause for these provisions.

This act has an emergency clause for these provisions.

These provisions are similar to HCS/SCS/SB 182 (2013), SS/HB 184 (2013), SS/HCS/HB 199 (2013), HCS/SB 23 (2013), HCS/SS/SCS/SB 83 (2013), HCS/SB 99 (2013), SS/HCS/HB 1329 (2012), HCS/HB 2100 (2012), and HCS/SCS/SB 591 (2012).

REBUILD DAMAGED INFRASTRUCTURE PROGRAM

Sections 33.080, 33.295, 360.045, and 374.150

This act creates the "Rebuild Damaged Infrastructure Program" to provide funding for the reconstruction, replacement, or renovation of, or repair to, any infrastructure damaged by a presidentially declared natural disaster. Moneys from the program cannot be expended on projects eligible to receive funds from the US Housing and Urban Development.

This act also provides that on July 1, 2013, certain funds from the Insurance Dedicated Fund and the Missouri Health and Educational Facilities Authority Act shall be transferred to the Rebuild Damaged Infrastructure Fund created under this act. Moneys from the Insurance Dedicated Fund shall also be transferred to the state General Revenue Fund. The program and fund shall expire on June 30, 2014. These provisions have an emergency clause.

These provisions are similar to provisions contained in HB 930 (2013), CCS#2/SCS/HCS/HB 1035 (2013), HCS/SB 23 (2013), and SB 366 (2013).

COUNTY BUILDING ORDINANCES AND LIQUEFIED PETROLEUM GAS

Section 64.196

This act prohibits counties from adopting a building code ordinance that conflicts rules promulgated by the Missouri Propane Gas Commission. This provision is similar to HB 795 (2013), SCS/HB 542 (2013), HCS#2/HB 927 (2013), CCS/HCS/SB 51 (2013), HCS/SB 24 (2013), and HB 891 (2013).

TRANSIENT GUEST TAXES

Currently, Pettis County is prohibited from spending revenue from the county transient guest tax on salaries. This act removes this prohibition from the law. (Section 67. 1010)

This act exempts nongovernmental agencies congressionally mandated to provide disaster relief services from transient guest taxes. This provision is similar SB 441 (2013) and to a provision contained in SS/SB 366 (2013), HCS/HB 930 (2013), and HCS/SB 24 (2013). (Section 67.1020)

This act authorized Montgomery County, Douglas County, the City of Jonesburg, and the City of New Florence to impose a transient guest tax. The tax must be submitted to a public vote and cannot exceed more than 5% per room per night. This provisions is similar to HB 416 (2013) and a provision contained in HCS/HB 74 (2013) and HCS/HB 161 (2013). (Sections 67.1368 and 94.1060)

FARMINGTON AND PERRYVILLE WEED AND TRASH REMOVAL

Sections 71.285

This act allows the cities of Farmington and Perryville to remove weeds or trash without a hearing or notice from a property that has more than one ordinance violation within a growing season for overgrown weeds or within a calendar year for trash.

Such cities may recoup the costs of the removal from the property owner by issuing a special tax bill to be collected with other taxes assessed against the property. If the bill is not paid when due, the cities may charge eight percent interest on the amount owed.

The provisions of this act do not apply to lands owned by a public utility or any rights-of-way, easements or lands controlled by a railroad.

These provisions are similar to HB 60 (2013), SB 57 (2013), SB 58 (2013), and SCS/HCS/HB 161 (2013)

FARMINGTON ORDINANCES

Section 77.675

This act provides an alternate method of adopting or repealing ordinances for the City of Farmington that allows such ordinances to be put to a vote of the people prior to being finally passed. In order to bring the ordinance to a vote, a majority of the city council must pass a bill that sets forth the ordinance and includes a provision requiring that the ordinance be passed by the voters. Upon the mayor's signature and approval, the question of whether to adopt or repeal the ordinance is placed on the ballot at the next municipal election. If a majority of the registered voters of the city approve the ordinance, then it becomes law. This provision is identical to SB 58 (2013) and similar to a provision contained in SCS/HB 60 (2013), HB 61 (2013), HCS/HB 161 (2013), and HCS/SB 57 (2013).

SALE OF LAND BY CERTAIN CITIES

Section 92.387

This act requires any lands sold by certain cities to be subject to valid covenants and easements. This provision is identical to HB 892 (2013) and similar to a provision contained in SCS/HCS/HB 161 (2013), HCS/SB 24 (2013), and HCS/SS/SCS/SB 83 (2013).

TAX INCREMENT FINANCING

Section 99.845

Currently, fifty percent of additional revenue generated by taxes and attributable to economic activities in a redevelopment area utilizing tax increment financing are to be deposited into the special allocation fund for the TIF project. Certain taxes are exempt from this deposit requirement. This amendment adds taxes imposed to pay for emergency communications systems in St. Louis County to the list of exemptions, but only for projects adopted after August 28, 2013. This provisions is similar to a provision contained in HCS/HB 128 (2013), SCS/HCS/HB 161 (2013), SS/HCS/HB 307 (2013), SS/HB 336 (2013), HCS/HB 653 (2013), and CCS#2/SCS/HCS/HB 1035 (2013).

PROPERTY TAXES ON TRACTORS AND TRAILERS

Sections 137.090 and 137.095

This act specifies that tractors or trailers used in interstate commerce will have their Missouri assessed value based on the ratio of the number of miles traveled in Missouri and the number of total miles traveled. These provisions are similar to provisions contained in CCS#2/SCS/HCS/HB 1035 (2013), HCS/SB 24 (2013), and HCS/SB 148 (2013).

ASSESSOR'S TECHNOLOGY FUND

Section 137.720

This act removes the sunset provision for deposits into the assessment fund. This provision is similar to HB 602 (2013) and SB 315 (2013). This provision is similar to a provision contained in HCS/HB 1035 (2013).

FREIGHT LINE COMPANIES TAX CREDIT

Currently, freight line companies may qualify for a credit against property taxes for certain expenses. This act extends the sunset from August 28, 2014 to August 28, 2020. This provision is identical to HB 201 (2013). (Section 137.1018)

USE TAX NEXUS

Sections 144.010, 144.030, and 144.605

This act modifies provisions relating to the Sales Tax Law and the Compensating Use Tax Law. The term "engaging in business" in the Sales Tax Law is expanded to include the meanings given to "engages in business in this state" and "maintains a business in this state" as they are defined in the Compensating Use Tax Law.

This act makes agreements between the executive branch and any person that exempts them from collection of sales and use tax void unless approved by both chambers of the General Assembly.

The definition of "engages in business activities within this state" in the Compensating Use Tax Law is modified. The use of media to exploit Missouri's market will no longer make a vendor meet the definition. Being controlled by the same interests which control a seller engaged in a similar line of business in this state will also no longer meet the definition.

Under the Compensating Use Tax Law, a presumption is created that a vendor engages in business activities within this state if any person with a substantial nexus to Missouri performs certain activities in relation to the vendor within this state. The presumption may be rebutted by showing that the person's activities are not significantly associated with the vendor's ability to maintain a market in Missouri.

A second presumption is created that a vendor engages in business activities within this state if the vendor enters into an agreement with a resident of Missouri to refer customers to the vendor and the sales generated by the agreement exceeds $10,000 in the preceding twelve months. This presumption may be rebutted by showing that the Missouri resident did not engage in activity within Missouri that was significantly associated with the vendor's market in Missouri in the preceding twelve months.

The definition of "maintains a place of business in this state" in the Compensating Use Tax Law is modified to remove common carriers from its provisions.

Currently, there is an exemption from the definition of vendor under the Compensating Use Tax Law for vendors whose gross receipts are less than certain amounts, do not maintain a place of business in Missouri, and have no selling agents in Missouri. This act removes the exception.

These provisions are similar to SB 174 (2013), HB 578 (2013), and HB 1042 (2013). These provisions are similar to provisions in SS#2/SCS/SB 26 (2013), HB 521 (2013), and SS/HB 253 (2013).

SALES TAX EXEMPTIONS AND REVENUE SHARING AGREEMENTS

Currently, amounts paid for admission and fees paid to places of amusement, entertainment, recreation, games, or athletic events that are owned or operated by a political subdivision are exempt from sales tax. This act specifies that a political subdivision may enter into a revenue-sharing agreement with private entities providing goods or services for such places. Revenues retained by such private entities will not be exempt from taxes. (Section 144.030)

PUBLIC SCHOOL RETIREMENT SYSTEM OF KANSAS CITY

This act modifies the qualifications for system membership. A person will cease to be a member of the retirement system if he or she has a break in service before he or she has earned vested retirement benefits or if the person withdraws his or her accumulated contributions from the system. (Section 169.270)

Currently, the minimum normal retirement age is the age of sixty or the date when a member has at least seventy-five credits. This act limits this minimum normal retirement age to members who retire before January 1, 2014, or individuals who were members of the system on December 31, 2013 ,and remain members continuously to retirement. For any person who becomes a member on or after January 1, 2014, minimum normal retirement age will be age sixty-two or the date when the member has at least eighty credits, whichever is earlier. (Section 169.270)

Currently, statute sets the employer contribution rate at 7.5% and the member contribution rate at 7.5%. Beginning in calendar year 2014 and for each subsequent year, the employer contribution rate will be determined by the system's actuary and certified by the board of trustees at least six months prior to the contribution rate's effective date. In addition, the member contribution rate will be determined by the system's actuary.

Beginning in 2013, and annually thereafter, the system's actuary must calculate the contribution rates for 2014 and each subsequent calendar year based on an actuarial valuation of the retirement system as of the first day of the prior calendar year. The actuary must use the actuarial cost method and actuarial assumptions adopted by the board of trustees, as described in the act. The target employer and member contribution rates will be the amount actuarially required to cover the normal cost and amortize any unfunded actuarial accrued liability over a period not to exceed thirty years.

The target combined contribution rate will be allocated equally between the employer and member contribution rate except that the contribution rate must not be less than 7.5% and not exceed 9%. The contribution rate cannot increase more than one-half percent from one year to the next. (Sections 169.291 & 169.350)

The current benefit formula uses a multiplier of two when calculating the annual service retirement allowance. This act limits the use of this multiplier of two to individuals who retire before January 1, 2014, or who were members of the system on December 31, 2013. For individuals who become members on or after January 1, 2014, the annual service retirement allowance will be calculated using a multiplier of one and three-fourths.

The board of trustees may only award a cost-of-living-adjustment if it does not require an adjustment of the then applicable employer and member contribution rates. (Section 169.324)

These provisions are identical to SB 223 (2013) and similar to HB 861 (2013). These provisions are similar to provisions contained in CCS/HCS/SCS/SB 17 (2013).

MISSOURI MUSEUM AND CULTURAL DISTRICT ACT

Sections 184.800 - 184.865

This act modifies the Missouri Museum District Act. The act expands the scope of museum districts to include buildings or areas used for promoting culture and the arts, including theater, music, entertainment, public places, libraries, and other public assets. The act restricts the creation of museum and cultural districts under these provisions to situations where the majority of the property is located within a disaster area. The act requires that petitions to create museum and cultural districts be filed within five years of the Presidential declaration establishing the disaster area. The museum and cultural district can include property parcels that are not connected to each other. Legal voters who live in the proposed district will not be required to be listed on the petition to create the district, will not be required to be served a copy of the petition creating the district, and will not have statutory authority to sue to support or oppose the creation of the district. The board of directors of the district will be made of five members who are all elected at a public meeting. The General Assembly is authorized to make appropriations from general revenue to a district created under this act for a period of twenty years after January 1, 2013. In addition to a sales tax, the board is authorized to impose, with the approval of qualified voters, a fee of up to one dollar on any person or entity that offers or manages an event in the district and charges admission for the event. The district will not be required to contract only with a not-for-profit or governmental entity to operate and manage any museum or cultural asset in the district.

These provisions are similar to SB 74 (2013) and HB 158 (2013). These provisions are similar to provisions contained in HCS/HB 161 (2013), HCS/SB 24 (2013), and HCS/SS/SCS/SB 83 (2013).

NURSING HOME DISTRICTS

Section 198.345

Currently, Marion County and Ralls County may maintain senior apartments. This act expands that authority to all third and fourth class counties. The act also removes the requirement that the apartments have emergency call buttons. This provision is similar to HB 506 (2013) and SB 89 (2013).

ALCOHOL RELATED TRAFFIC OFFENSES

This act requires the court to order the Department of Revenue to issue a license to persons convicted of certain intoxication-related traffic offenses if the person (1) petitions the court, (2) has no pending charges or convictions relating to alcohol or drugs over a certain period, and (3) the court finds that the person does not pose a threat to the public. (Section 302.060)

For persons seeking a stay of assessment of points, the act gives them the option of completing the driver-improvement program through an online course. (Section 302.302 and 476.385)

A person whose license is to be suspended for a first offense of driving while intoxicated or driving with excessive blood alcohol content may complete a 90-day period of restricted driving privilege in lieu of the suspension if he or she provides proof to the department that all vehicles operated by the person have a functioning, certified ignition interlock device. If the person fails to maintain proof of the device, the restricted driving privilege will be terminated. Upon completion of the 90-day period of restricted driving privilege, compliance with other requirements of law, and filing proof of financial responsibility with the department, the license must be reinstated. However, if the monthly monitoring reports during the 90-day period indicate that the ignition interlock device has registered a confirmed BAC level above the alcohol setpoint or the reports indicate the device has been tampered with or circumvented, then the license will not be reinstated until the person completes an additional 30-day period of restricted driving privilege. (Section 302.304)

The act specifies that any person who has had a license to operate a motor vehicle suspended or revoked as a result of an assessment of points for a conviction for an intoxication-related traffic offense and has a prior alcohol-related enforcement contact will be required to file proof with the department that any motor vehicle operated by the person is equipped with a functioning, certified ignition interlock device as a required condition of reinstatement of the license. (Section 302.304)

Persons may receive a limited driving privilege if his or her license at the time of application has been suspended or revoked due to a failure to submit to a chemical test and the person has completed the first 90 days of revocation and files proof of installation with the department that any vehicle operated by him or her is equipped with a functioning, certified ignition interlock device, provided he or she is not otherwise ineligible for a limited driving privilege. (Section 302.309)

The act specifies that a circuit court or the department may allow a person who has been convicted more than twice for driving while intoxicated and has had his or her license revoked for a period of 10 years without the ability to obtain a new license or for a person who has been convicted twice for driving while intoxicated and has had his or her license revoked for a period of five years to apply for a limited driving privilege and repeals the requirement that he or she must serve at least 45 days of the disqualification or revocation. A circuit court must grant a limited driving privilege to any person who otherwise is eligible, has filed proof of installation of a certified ignition interlock device, and has had no alcohol-related enforcement contacts since the contact that resulted in his or her license denial. (Section 302.309)

A person whose driving record shows no prior alcohol related enforcement contacts in the immediately preceding five years may complete a 90-day period of restricted driving privilege in lieu of the suspension if he or she provides proof to the department that all vehicles operated by the person have a functioning, certified ignition interlock device. Upon completion of the restricted driving period, compliance with other requirements of law, and filing proof of financial responsibility with the department, the license must be reinstated. However, if the monthly monitoring reports during such 90-day period indicate that the ignition interlock device has registered a confirmed BAC level above the alcohol setpoint or has been tampered with or circumvented, then the license cannot be reinstated until he or she completes an additional 30-day period of restricted driving

privilege. (Section 302.525)

The act specifies that any person who has a license to operate a motor vehicle revoked under these provisions and has a prior alcohol-related enforcement contact will be required to file proof with the department that any motor vehicle operated by him or her is equipped with a functioning, certified ignition interlock device as a required condition of reinstatement. The ignition interlock device must be required on all motor vehicles operated by the person for a period of at least six months immediately following reinstatement. If the monthly monitoring reports show that the device has registered a confirmed blood alcohol concentration reading above the alcohol setpoint or has been tampered with or circumvented, then the period will be extended for an additional six months. (Section 577.041)

Provisions relating to alcohol related traffic offenses, except section 302.309, have an effective date of March 3, 2014. Section 302.309 has an emergency clause. These provision are similar to HB 931 (2013), HCS/SB 24 (2013), CCS/HCS/SB 43 (2013), and HCS/SS/SCS/SB 83 (2013).

MOVING TRAFFIC VIOLATIONS

Currently, if a Missouri resident fails to dispose of a moving traffic violation charge, the court must order the Director of the Department of Revenue to suspend his or her driving privileges if the charges are not disposed of and fully paid within 30 days. Upon proof of disposition of charges and payment of fine, court costs, and reinstatement fee, the director must return the license and remove the suspension from the driving record if he or she was not operating a commercial motor vehicle or a commercial driver's license holder at the time of the offense. The act removes the requirement that the director return the license upon proof of the disposition of charges. (Section 302.341)

MIKE HAMMANN