Missouri State Senate

Truly Agreed to and Finally Passed

CCS#2/HCS/SB 693 - This act modifies provisions relating to taxation.

RECREATION AND COMMUNITY CENTER DISTRICT (67.585)

This act authorizes the creation of a Recreation and Community Center District in an area encompassed by Liberty School District. Such district may impose a sales tax of up to one-half percent on sales in the district. The sales tax must be approved by a majority of the inhabitants of the district voting on the question. Revenues derived from the sales tax may only be used for construction and maintenance of a community center and for other recreation and wellness purposes. The sales tax may not be repealed until after any bonds secured by the tax have been retired.

This provision is similar to HB 2192 (2014). This provision is similar to a provision in HCS/SB 584 (2014), HCS/SB 631 (2014), HCS/SCS/SB 824 (2014), HCS/SCS/SB 854 (2014), and CCS/HCS/SCS/SB 896 (2014).

PERRY COUNTY TRANSIENT GUEST TAX (67.1367)

This act authorizes Perry County to impose a transient guest tax of up to 6% per room per night. The tax must be approved by the voters of the county before becoming effective. Proceeds from the tax may only be used for the promotion of tourism.

This provision is similar to SB 896 (2014), HB 1909 (2014), and a provision in HCS/HB 2112 (2014).

TAX INCREMENT FINANCING (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 act adds sales taxes imposed to pay for capital improvements as part of emergency communications systems to the list of exemptions, but only for projects adopted after August 28, 2013. This provision is similar to a provision in HCS/SCS/SB 854 (2014).

This act also exempts from deposit into the Special Allocation Fund revenues derived from any increase in a property tax levy or a sales tax rate taking effect after the adoption of the redevelopment area.

These provision are similar to SS/SCS/HB 1504 (2014), HCS/SS/SCS/SB 774 (2014).

WINE AND GRAPE PRODUCERS TAX CREDIT (135.700)

This act places a $200,000 annual cap on the wine and grape producers tax credit. The act also allows purchases of used equipment to qualify for the tax credit.

This provision is similar to HB 1499 (2014) and to a provision contained in HB 1498 (2014).

INFORMATION REQUEST BY THE ST. LOUIS COUNTY ASSESSOR (137.133)

This act requires the St. Louis County Assessor to place on correspondence with taxpayers a statement that disclosure of information is voluntary and will become public record if disclosed. This provision does not apply to request for information regarding the required listing of property or listing of lessees.

This provision is similar to a provision in CCS/SCS/HB 1553 (2014), CCS/HCS/SB 584 (2014), and CCS/HCS/SS/SB 860 (2014).

FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTERS ACT (143.041, 143.071, 143.191, 144.610, 190.270 to 190.286, and 285.230 to 285.234)

This act creates the Facilitating Business Rapid Response to State Declared Disasters Act. Starting ten days prior to a disaster declaration and lasting until sixty days after a declaration period, out-of-state businesses operating in this state to assist in rebuilding infrastructure will be exempt from state income taxes, use taxes, registration requirements, and bonding requirements. Such business must still file a notice with the Secretary of State.

This provision is similar to HB 1801 (2014) and a provision in SCS/HB 1190 (2014).

DIVISION OF CORPORATE INCOME FOR TAX PURPOSES (143.451)

Currently, in determining what portion of a corporation's income is taxable in Missouri, the business may use a method whereby the ratio of instate sales to total sales is multiplied by the net income. A method for determining whether sales of tangible property are to be considered instate is already established in current law. This act specifies a process for all other sales.

For sales of real property or rentals of tangible personal property, the portion of the property sold or rented that is located in this state will be considered an instate sale. For sales of service, the portion of the benefits delivered to purchasers in this state will be considered an instate sale.

For rentals or licenses of intangible property, the portion used in this state by the rentee or licensee will be considered an instate sale. Intangible property used for marketing will be considered used in this state if the good or service being marketed is purchased by a consumer in this state. Franchise fees or royalties for intangible property are considered used in this state if the franchise is located in this state.

For sales of intangible property, the portion of the sale used in this state will be considered an instate sale. If the sale is for the right to conduct business activity in a certain geographic area, the sale will be instate if the geographic area is in this state. If receipts for sales of intangible property are dependent on use or productivity, such sale shall be considered a lease or rental of intangible property. All sales of intangible property other than the right to conduct business in a specific area or sales with receipts contingent on productivity or use will be excluded from the sales factor when determining corporate income tax.

If it can not be determined or reasonably approximated that a sale occurs in this state, such sale shall excluded from the sales factor for corporate income taxation.

This provision is similar to HB 2215 (2014). This provision is similar to a provision in SCS/HB 1296 (2014), SS/SCS/HB 1865 (2014), CCS/HCS/SB 584 (2014), CCS/SCS/SB 612 (2014), CCS/HCS/SB 662 (2014), and HCS#2/SCS/SB 777 (2014).

SALES TAX EXEMPTION FOR USED MOTOR VEHICLES (144.030)

This act makes motor vehicles that are at least ten years old exempt from the state and local sales tax on the titling of motor vehicles. This exemption does not apply to motor vehicles with a sales price of more than $15,000.

This provision is similar to HB 1387 (2014).

USED MANUFACTURED HOME SALES TAX EXEMPTION (Section 144.044)

This act creates a state and local sales and use tax exemption for used manufactured homes.

This provision is substantially similar to SB 860 (2014) and HB 1765 (2014). This provision is similar to a provision contained in CCS/HCS/SB 584 (2014) and HCS#2/SCS/SB 777 (2014).

SALES TAX EXEMPTION ON RIGHT OF FIRST REFUSAL (144.1030)

This act creates a state and local sales tax exemption on right of first refusal for tickets at the Sprint Center in Kansas City.

This provision is similar to a provision in CCS/HCS/SB 662 (2014), HCS/SCS/SB 824 and HCS/SCS/SB 854 (2014).

MIKE HAMMANN

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