Missouri Senate

Perfected

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 total tips reported to the employer on the employee's written statement. The amount that should be withheld is limited to the amount of the employee's wages in control of the employer. The act also relieves employers of liability for any amount of under-reported tips by an employee.

This provision is similar to SB 336 (2015).

MISSOURI SUPPORTING FAMILIES INCOME TAX HOLIDAY (Section 143.266)

This act requires the Department of Revenue to review the amount of withholding taxes collected for the years 2016 to 2018. The Department must submit a report to the General Assembly providing the average amount collected in each month and which month of the year had the lowest collections.

This provision is similar to HB 174 (2015).

STATUTE OF LIMITATIONS ON TAX CREDITS AND REFUNDS (Section 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 Department of Revenue examines the taxpayer's return after such period of time has expired. The Department must notify the taxpayer of the overpayment and the taxpayer must make a claim for a credit or refund within one year of notification.

This provision is similar to SB 115 (2015), HB 268 (2015), HB 1048 (2014), and a provision in HB 1174 (2014).

SALES TAX ON MANDATORY GRATUITY (Section 144.020)

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

MIKE HAMMANN