SB 83 Modifies provisions of law relating to political subdivisions, traffic offenses and taxation
Sponsor: Parson
LR Number: 0491H.11C Fiscal Note available
Committee: Jobs, Economic Development and Local Government
Last Action: 5/15/2013 - Defeated on H Third Reading Journal Page: H2791-2792
Title: HCS SS SCS SB 83 Calendar Position:
Effective Date: August 28, 2013
House Handler: Crawford

Full Bill Text | All Actions | Amendments/CCRs/CCSs | Available Summaries | Senate Home Page | List of 2013 Senate Bills

Current Bill Summary


HCS/SS/SCS/SB 83 - This act modifies provisions relating to political subdivisions and taxation.

PAPERLESS DOCUMENTS AND FORMS ACT

Sections 32.029 and 32.400

This act requires the Department of Revenue to develop and provide electronic forms so that documents required by the Department for certain taxes and fees may be submitted to the Department electronically. The Department may still require paper submission of form requiring notarization. The act does not authorize the creation of a state-run electronic filing of individual tax returns. The Department is authorized to notify by electronic means persons of any taxes due to the Department if that person has consented to electronic notification. These provisions are similar to HB 503 (2013).

This provision is similar to HB 503 (2013).

SALES TAX ON MOTOR VEHICLE SALES

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.

These provision contain a nonseverability clause anf an emergency clause.

These provisions are similar to HCS/SCS/SB 182 (2013), SS/HCS/HB 1329 (2012), HCS/HB 2100 (2012), and HCS/SCS/SB 591 (2012). These provisions are similar to provisions contained in SS/HB 184 (2013), SS/HCS/HB 199 (2013), HCS/SB 23 (2013), SS#2/SCS/SB 26 (2013), and HCS/SB 99 (2013).

LICENSE OFFICE BIDDING PROCEDURE

Section 34.040

The act requires the Department of Revenue to comply with state purchasing requirements for bidding when awarding license office contracts. No point are to be awarded on a request for proposal that has a return-to-the-state provision offer.

This provision is similar to a provision contained in CCS/HCS/SB 51 (2013).

DECREASING COUNTY BUDGETS

Section 50.622

This act establishes a procedure for counties to decrease their budgets up to two times in a year when faced with an unanticipated decrease of 2% or more in funding. The decrease cannot unduly affect any one officeholder. The reduction will have no impact on funds dedicated by law. This provision will have no affect on charter counties.

This provision is similar to HB 138 (2013), HB 451 (2013), and SB 137 (2013). This provision is similar to a provision contained in SS/SCS/HB 116 (2013) and HCS/HB 161 (2013).

ELECTRONIC DOCUMENTS SENT BY COUNTY COLLECTORS

Sections 52.230 and 52.240

This act authorizes all counties other than charter counties or counties under township organization to send the property tax statements electronically, if authorized by the taxpayer. The electronic address provided by the taxpayer will be considered a closed record. The act specifies that no penalty or interest will be imposed on delinquent property taxes if the statement was mailed less than thirty days before the delinquent date and the taxpayer paid the taxes within fifteen days of the delinquent date or fifteen days of receiving the mailed statement, whichever occurs later. These provisions expire July 1, 2016.

These provision are similar to HB 63 (2013) and HB 128 (2013).

DEDUCTION OF PROPERTY TAX COLLECTION FOR MAILING COSTS

Section 52.250

Currently, third class counties may deduct 1.5% of property taxes collected to pay for the mailing of statements and receipts. Counties making such a deduction and subsequently becoming second or fourth class counties after December 31, 2000, are authorized to continue making such a deduction. This act gives all counties the authority to make such a deduction.

NOTICE OF NEIGHBORHOOD IMPROVEMENT DISTRICTS

Section 67.457

This act requires the county or city clerk of the governing body creating a NID to file a notice with the recorder of deeds in the county where the land is located. Such notice shall contain the following information: each owner of property in the NID listed as a grantor, the governing body establishing the NID listed as a grantee, a legal description of the NID, and the identifying number or a copy of the ordinance creating the NID. This provision is similar to SB 248 (2013), and HB 980 (2013). This provision is similar to a provision contained in SCS/HCS/HB 161 (2013), HCS/HB 175 (2013), SCS/HB 568 (2013), and CCS#2/SCS/HCS/HB 1035 (2013).

NEIGHBORHOOD IMPROVEMENT DISTRICTS SPECIAL ASSESSMENTS

Sections 67.463 and 67.469

Currently, the Boone County collector is authorized to collect a fee when collecting special assessments for Neighborhood Improvement Districts (NID). This act allows the Jackson County collector to also collect this fee.

This act also expands the existing law that allows liens against property to be foreclosed for failure to pay NID special assessments, so that certain first class counties, charter counties, and the city of St. Louis may also foreclose on these liens by a land tax sale under the provisions of law that govern land tax sales in those counties.

These provisions are similar to HB 104 (2013), HB 568 (2013), and SB 138 (2013). These provisions are similar to a provision contained in HCS/HB 74 (2013), HCS/HB 161 (2013), HCS/HB 175 (2013), HB 197 (2013), SCS/HCS/HB 1035 (2013), and CCS/SCS/SB 248 (2013).

DELINQUENT PROPERTY TAXES

Despite contrary provisions of law, currently the county collector in Boone County is authorized to add special assessments levied for community improvement districts to the annual real estate tax bills for the properties being benefitted by the district. Unpaid special assessments on the first day of January are considered delinquent and enforcement of the delinquent bills is governed by the laws concerning delinquent and back taxes. A lien may be foreclosed in the same manner as a tax upon real property by land tax sales. This act allows these provisions to apply to any county. (Section 67.1521)

This act also changes the date that the county collector is required to return the delinquent tax lists and back tax books to the county commission from the first Monday in March to the second Monday in March and allows the collector to deliver an electronic copy of the back tax book. (Sections 139.160, 139.170 & 140.050)

This act specifies that when property taxes are delinquent, if a person other than the owner or a lienholder pays the original property taxes plus interest without the knowledge and consent of the owner, that payment will not invoke a lien on the property or person. (Section 140.115)

Currently, county collectors are authorized to use procedures for selling property when the property taxes are delinquent and when special assessments for Neighborhood Improvement Districts are delinquent. This act gives collectors the option to use these procedures when other types of special assessments are delinquent. (Section 140.150 & 140.160)

When real estate is sold for delinquent taxes or other debt, if the property sells for a greater amount than the debt, the additional money is placed in a trust fund for the owners of the property for three years. This act specifies that if the funds are not called for as part of a redemption or collector's deed issuance, then they become part of the permanent school fund of the county. (Section 140.230)

The act eliminates specific language authorizing fees of twenty-five and fifty cents that the county collector is authorized to collect when recording a certificate of purchase of land sold at a tax sale. The collector will continue to be authorized to receive the fee necessary to record the certificate of purchase. The act also eliminates language authorizing a one dollar and fifty cent fee for certain tax deeds. (Sections 140.290 & 140.470)

The act also removes a requirement that the county clerk witness the county collector sign the deed given to someone who purchases property at a tax sale. (Section 140.460)

These provisions are similar to HCS/HB 74 (2013), CCS/SCS/SB 248 (2013), and HB 175 (2013).

DATA STORAGE CENTERS TAX INCENTIVES

Sections 67.2050 and 144.810

This act allows the governing body of any municipality to enter into loan agreements, or sell, lease, or mortgage municipal property to private entities for the development of a technology business facility project. Municipalities include utility boards of counties, cities, towns or villages. Transactions involving the lease or rental of such properties will be exempt from state and local sales taxes and any leasehold interests on such properties will not be subject to property taxes. The act allows municipalities to sell or otherwise dispose of municipal property to private entities for technology business facility projects provided that the terms and methods utilized reasonably protect the economic well being of the municipality. Any private entity which transfers property to the municipality for purposes of a technology business facility project will reserve the right to request that the municipality transfer such property back to the entity at no cost.

This act provides state and local sales and use tax exemptions for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services, used in new data storage center facilities. The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. In order to receive the sales tax exemption provided for new data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least thirty-seven million dollars of new facility investment and create at least thirty new jobs with wages of at least 150 percent of the county average wage over a three year period. Projects not meeting the new job and investment requirements may still be eligible for incentives if the incentives to not exceed the net benefit to the state over a period of ten years.

The act also creates a state and local sales and use tax exemption for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services. The exemption will only apply to the increase in expenditures for utilities over the previous year's expenditures. The exemptions for tangible property will be available only on the increase in expenditures over the average of the previous three years expenditures. In order to receive the sales tax exemption provided for existing data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least five million dollars of new facility investment over a one year period and create at least five new jobs with wages of at least 150 percent of the county average wage over a two year period. Projects not meeting the new job and investment requirements may still be eligible for incentives if the incentives to not exceed the net benefit to the state over a period of ten years.

The Department of Economic Development and the Department of Revenue are authorized to conduct random audits to ensure compliance with the requirements for state and local sales and use tax exemptions authorized under the act.

These provisions are similar to SB 46 (2013), HB 222 (2013), SB 394 (2013), SCS/SB 584 (2012), SB 217 (2011), and SB 868 (2010). These provisions are similar to provisions contained in HCS#2/HB 698 (2013), HSC/SB 23 (2013), HCS/SB 112 (2013), SCS/SB 120 (2013), and SB 8 (1st Ex. Session).

SALE OF LAND BY CERTAIN CITIES

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). This provision is similar to a provision contained in HCS/SB 23 (2013), HCS/SB 24 (2013), SCS/HCS/HB 161 (2013). (Section 92. 387)

GOLF COURSE PROPERTY ASSESSMENT

This act specifies that facilities and buildings used by a golf course will be considered residential property for tax purposes. (Section 137.016)

INCOME TAX DEDUCTION FOR NEW HOME PURCHASES

Section 143.145

This act creates an income tax deduction for the purchase of a new home for the years 2013 to 2015. The new home must be constructed between August 28, 2013, and December 31, 2015. Manufactured homes, modular units, recreational park trailers, and recreational vehicles will not qualify for the deduction. The value of the land and any preexisting structures will not be included in determining the value of the deduction. Self constructing taxpayers may be eligible for the deduction.

The deduction amount is limited to the lesser of one-third of the contract sales price or $166,667. A taxpayer can claim this deduction only once. Any amount of the deduction in excess of the taxpayer's liability may be carried forward until the deduction amount is used in its entirety. If a taxpayer that takes the deduction ceases to use the home as a principal residence before two years have passed, the taxpayer must include in their adjusted gross income the deduction amount taken previously.

These provisions are similar to HB 194 (2013), HCS/HBs 521 & 579 (2013), SB 179 (2013) HCS/SB 24 (2013).

TAX REFUND SETOFFS FOR EMERGENCY SERVICE PROVIDERS

Sections 143.789 & 143.790

Under current law, the department of health and senior services processes claims submitted by health care providers requesting setoffs of income tax refunds to satisfy outstanding debts owed by taxpayers. This act repeals the authority of the department of health and senior services to administer such a program. A system for ambulance service providers to utilize a private claim clearinghouse is created. The clearinghouses will process and verify requests for setoffs of taxpayer income tax refunds and lottery winnings. The setoffs will be used to satisfy outstanding debts for ambulance services received.

Prior to utilizing the clearinghouse, an ambulance service provider must provide certain notices to patients and allow for various levels of review and appeals of such claims. To offset expenses incurred in collecting debts owed to ambulance service providers, a collection fee is assessed to each offset which is allocated among the clearinghouse and the Department of Revenue.

The act establishes a priority for setoffs. Delinquent state taxes have top priority, followed by delinquent federal taxes, support obligations, collection fees under this act, and claims under this act.

This act is similar to SB 231 (2013), HB 234 (2013), HCS/SB 24 (2013), HCS/HB 1210 (2012), HB 312 (2011) and SCS/SB 878 (2010).

SALES TAX EXEMPTIONS

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 amendment 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. This provision is similar to a provision in (Section 144.030)

REFUNDING OVERPAYMENT OF SALES TAXES

Currently, when a person overpays sales tax due to the Department of Revenue, the Department makes such amount a credit against sales taxes due by the person and then refunds the balance. This act gives the Department of option of immediately refunding the balance. The act also specifies that interest will begin accruing when the person first files a refund claim. (Section 144.190)

SALES TAX FOR SCHOOLS

This act authorizes school boards to impose a county wide sales tax if approved by the voters. To place the question on the ballot either a majority of the school boards or the school boards with a majority of the student population in the county must approve the tax. Use of funds from the sales tax are limited to the purpose stated on the ballot question. Funds collected under the sales tax will not be considered in determining state aid. (Sections 162.1174, 162.1176, 162.1178)

SCHOOL BOARDS LEASING BUILDINGS

Sections 177.011 and 177.088

This act modifies a prohibition on school boards leasing or renting buildings while a school building is unoccupied so that a school board may lease a building as provided in Section 177.088 when a school building is unoccupied. Currently, the board of any educational institution may only enter into an agreement with a not-for-profit corporation when making certain transaction or modifications involving sites, buildings, furnishings, and equipment. This act allows the board of any educational institution to enter into agreements with any organization. The act also repeals provisions allowing the educational institutions to refinance any lease purchase agreement for the purposes of payment on any lease. These provisions are similar to HB 783 (2013) HCS/SB 24 (2013), and SB 474 (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 HCS/SB 23 (2013), SB 74 (2013), HCS/HB 161 (2013), HCS/SB 24 (2013), and HB 158 (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)

These provisions are similar to HB 931 (2013). These provisions are similar to provisions contained in HCS/SB 23 (2013), HCS/SB 24 (2013), and CCS/HCS/SB 43 (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. This provision is similar to a provision contained in HCS/SB 23 (2013) and HCS/SB 24 (2013). (Section 302.341)

FIRE PROTECTION DISTRICTS

Section 321.015

Under current law, many officers and employees of the state or a political subdivision may not also hold office as the director of a fire protection district in certain counties. This act exempts fire protection districts in the counties of Boone, Callaway, and Cole from this prohibition on district directors. (Section 321.015)

The act prohibits employees of fire protection districts or ambulance districts to serve as a member of the board for the district they are employed by. (Section 321.017)

Under current law, candidates for a fire protection district board of directors must pay a $10 filing fee. This act provides that the filing fee shall be up to $50, which is the amount provided under statute for a candidate for state representative.

Currently, fire protection districts in Greene County must be audited every two years. This act removes that provision. (Section 321.690)

Sections 321.015-321.210 are similar to HB 307 (2013), SS/HB 336 (2013), and HCS/HB 335 (2013). Section 321.690 is similar to HB 66 (2013), HCS/HB 161 (2013), and HCS/SB 24 (2013).

MISSOURI ANGEL INVESTMENT INCENTIVE ACT

Sections 348.273 and 348.274

The Missouri Angel Investment Incentive Act provides tax credits to investors in certain companies. Under this program businesses may apply to regional Small Business and Technology Development centers to be designated a qualified business. Each quarter, the regional Small Business and Technology Development centers allocate tax credits to these qualified businesses. The tax credit will then be issued to investors and equal to fifty percent of their investment in the business. The tax credits may be transferred once to an individual or carried forward up to five years. No more than six million dollars in tax credits may be allocated each tax year. No tax credits shall be allocated or issued after December 31, 2023. The Department of Revenue is prohibited from allowing tax credits of more than fifty thousand dollars per qualified business or more than two hundred fifty thousand dollars per investor or owner of an entity investor.

Qualified businesses allocated tax credits are required to report to the regional Small Business and Technology Development centers annually. Regional Small Business and Technology Development centers are required to report to the Department of Economic Development quarterly. The Department of Economic Development is required to report annually to the Department of Revenue, the Governor, the President pro tempore of the Senate, and the Speaker of the House of Representatives.

The provisions of law creating the Missouri Angel Investment Incentive Act expire on December 31, 2023.

This provision is similar to SB 91 (2013), HB 182 (2013), HB 191 (2013), and HB 1593 (2012). This provision is similar to a provision contained in SCS/HCS/HB 222 (2013), HCS#2/HB 698 (2013), SS/SCS/SB 120 (2013), HCS/SB 23 (2013), and HCS/SB 112 (20130.

DONATION RECEPTACLES

This act requires that all donation receptacles have the name and contact information of the owner and operator of the receptacle. Additionally, this act requires that the owner or operator of the receptacle obtain permission from the property owner where the receptacle is located. If the owner or operator of the receptacle does not obtain permission from the property owner, they may face forfeiture of the receptacle and charges relating to unfair business practices. These provisions are similar to SB 466 (2013) and HCS/SCS/SBs 157 & 102. (Section 407.485).

MIKE HAMMANN