HB 517 Modifies provisions relating to taxation

Current Bill Summary

- Prepared by Senate Research -


SS/SCS/HCS/HBs 517 & 754 - 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/HB 299 (2015).

TAX COLLECTION IN FORMER TOWNSHIP COUNTIES (65.620)

This act allows counties in which townships have been abolished to continue to collect a property tax on a county-wide basis for road and bridge purposes for either one year following the abolishment of the townships or until the county voters have approved a property tax for such purposes, whichever occurs first.

The property tax must be the same amount as the property tax being levied in the township with the lowest total tax rate immediately before the townships were abolished.

This act specifies that the collection of the property tax is to be considered a continuation of a tax and not a new tax.

This provision is identical to SCS/SB 245 (2015). This provision is similar to a provision contained in SCS/HCS/HB 613 (2015), HCS/SS/SCS/SB 87 (2015), and HCS/SB 405 (2015).

SPRINGFIELD PUBLIC SAFETY SALES TAX (94.579)

Currently, every five years the city of Springfield must submit to the voter the question of whether to repeal its public safety sales tax. This act modifies the ballot language so that the question will be whether to continue the tax. Failure by the voters to approve continuation will result in a repeal of the tax.

This provision is identical to SB 421 (2015) and SB 607 (2014). This provision is identical to a provision contained in HCS/SCS/SB 300 (2015), HCS/SCS/SB 315 (2015), HCS/SB 364 (2015), and CCS/SCS/HB 1553 (2014).

DEPENDENCY EXEMPTION FOR STILLBIRTHS (143.161)

This act extends the current dependency exemption of $1,200 to stillbirths. The taxpayer may only claim the exemption in the year of the stillbirth.

This provision is identical to SB 450 (2015), SB 471 (2015), and HB 649 (2015).

WITHHOLDINGS TAX ON TIPS (Section 143.191)

This act specifies that for employees that earn tips, the amount of income that the employer should withhold for tax purposes shall be based on the greater of the total tips reported to the employer on the employee's written statement or the amount of tips remitted to the employee by the employer. Shared tips will be attributed to the employee who actually receives the tips. The amount that should be withheld is limited to the amount of the employee's wages in control of the employer.

This provision is similar to SB 336 (2015).

STATUTE OF LIMITATIONS ON TAX CREDITS AND REFUNDS (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 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 change.

This provision is identical to SS/SCS/SB 115 (2015) and a provision in the perfected version of HB 811 (2015). This provision is similar HB 268 (2015), HB 1048 (2014), and a provision in HB 1174 (2014).

SALES TAX ON MANDATORY GRATUITY (144.020)

This act exempts mandatory gratuity imposed by a restaurant from sales tax.

SALES TAX EXEMPTION AIRCRAFT SOLD TO NONRESIDENTS (144.030)

This act creates a sales and use tax exemption for aircraft sold to non-Missouri residents and corporations. To be eligible for the exemption, the aircraft cannot be based in the state and must be removed from the state within 10 days of the later of transfer of title or a return to service associated with a transfer of title.

This provision is similar to SB 377 (2015), HB 1306 (2015), SB 958 (2014) and similar to a provision contained in SB 777 (2014).

SCHOOL SUPPLIES SALES TAX HOLIDAY (144.049)

This act adds graphing calculator costing no more than $150 to the types of school supplies eligible for the sales tax holiday. The act also reduces the amount that a computer can cost and still qualify for the sales tax holiday from $3,500 to $1,500.

The provision is similar to HB 410 (2015) and HB 1165 (2014). This provision is similar to a provision in HCS/SS/SCS/SB 115 (2015), SCS/HCS/HB 1296 (2014), HCS/SB 584 (2014), and CCS/HCS/SS/SB 860 (2014).

ADVERTISING ASSUMPTION OF SALES TAX (144.080)

Currently, sellers are prohibited from advertising or holding out to customers that sales tax will be assumed or absorbed by the seller. This act removes this prohibition, provided that the seller states the amount of tax assumed or absorbed on the invoice or receipt for the sale.

This provision is identical to HB 440 (2015). This provision is similar to a provision in HB 1178 (2015), HB 1296 (2014), HB 1477 (2014), CCS/HCS/SB 584 (2014), HCS/SB 607 (2014), CCS/HCS/SB 662 (2014), and CCS/HCS/SS/SB 860 (2014).

MIKE HAMMANN


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