HB 299 Modifies provisions relating to taxation

Current Bill Summary

- Prepared by Senate Research -


SCS/HCS/HB 299 - This act modifies provisions relating to taxation.

TIMING OF INCOME TAX REFUNDS AND PAYMENT DEPOSITS (32.069, 136.110, & 143.811)

Currently, interest begins accruing 90 days after April 15th on personal income tax refunds that have not been remitted to taxpayers. This act requires the Department of Revenue to remit refunds within 45 days of the return being received by the Department. If the refund is remitted within that time period, no interest accrues. If the refund is not remitted within that time period, interest accrues from the date the Department received the return.

This act also require the Department of Revenue to deposit any payments received within 2 business days of receipt.

These provisions are similar to SB 350 (2015) and HB 811 (2015). These provisions are similar to provisions in SS/SCS/HCS/HBs 517 & 754 (2015).

STATUTE OF LIMITATIONS ON REFUNDS AND CREDITS (143.801)

This act allows a taxpayer to claim a credit or refund for overpayment of income taxes after the statute of limitations for making a claim has expired if the taxpayer amends or the IRS changes the taxpayer's federal income tax return after such period of time has expired. The taxpayer must make a claim for a credit or refund within one year of the amendment or changes.

This provision is similar to SB 115 (2015). This provision is similar to a provision in SCS/HCS/HB 299 (2015), SCS/HCS/HBs 517 & 754 (2015), SCS/HCS/HB 811 (2015), and the perfected version of HCS/HB 268 (2015). This provision is also similar in concept to HB 1048 (2014) and a provision in HB 1174 (2014).

NOTIFICATION OF SALES TAX CHANGES (144.021)

This act requires the Department of Revenue to notify sellers if there has been a change in the interpretation of sales or use tax laws that modifies which items of personal property or services are taxable. Notification is only required if the modification is not one that a reasonable person would have expected based on prior laws or regulations. If the Department fails to notify a seller of the change, the seller will not be liable for the additional taxes to be collected until the seller is notified. The waiver of liability shall not apply to sellers that had prior notice or who have previously remitted tax on the property or service which is the subject of the change in interpretation.

Notification may be by mail, e-mail, or secure electronic means of direct communication. The Department is also required to update its website with information regarding modifications in sales or use tax law.

This provision is similar to SB 15 (2015), SB 18 (2015), HB 695 (2015), HB 1026 (2015), SB 662 (2014), HB 2149 (2014) and to a provision in CCS/SCS/SB 612 (2014).

USED MANUFACTURE HOMES SALES TAX EXEMPTION (144.044)

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

This provision is identical to SB 32 (2015) and HB 111 (2015). This provision is substantially similar to SB 860 (2014) and HB 1765 (2014). This provision is substantially similar to a provision contained in CCS/HCS/SB 584 (2014), HCS/SCS/SB 777 (2014), and CCS#2/HCS/SB 693 (2014).

COMMERCIAL LAUNDRIES SALES TAX EXEMPTION (144.054)

This act creates a state and local sales and use tax exemption for material, machinery, and energy used by commercial laundries in treating or cleaning textiles. The facility must process at least 500 pounds per hour and 60,000 pounds per week to qualify for the exemption.

This provision is identical SB 20 (2015) and to a provision contained in CCS/SCS/SB 612 (2014).

MOTOR VEHICLE TITLING TAX EXEMPTIONS (144.450)

This act creates several exemptions to the tax on titling of motor vehicles, trailers, boats, and outboard motors. Sales to not-for-profit organizations for use in their civic or charitable functions, sales to public and not-for-profit private educational institutions, and transfers between certain business entities, shareholders, and partners are exempt from the tax.

This provision is identical to SB 378 (2015) and HB 869 (2015).

ASSESSMENT OF TELEPHONE PROPERTY (153.030)

Currently, telephone companies have their tangible personal property assessed in the same manner as railroads. Beginning January 1, 2017, this act allows telephone companies to annually elect to have their tangible personal property assessed in accordance with depreciation schedules.

This provision is similar to SB 305 (2015) and HB 857 (2015). This provision is similar to a provision in SS/SB 339 (2015).

MIKE HAMMANN


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