HB 1561 Modifies provisions relating to local sales taxes
Sponsor: Schatz
LR Number: 4757S.05T Fiscal Notes
Committee: Jobs, Economic Development and Local Government
Last Action: 7/1/2016 - Signed by Governor Journal Page: S3703-3704
Title: SS SCS HCS HB 1561 Calendar Position:
Effective Date: August 28, 2016
House Handler: Leara

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Current Bill Summary

SS/SCS/HCS/HB 1561 - This act modifies provisions relating to local sales taxes.


Currently, the revenues from a 1% sales tax in St. Louis County are distributed to unincorporated areas of the county as well as municipalities based on a formula. What are commonly called "Group B" entities pool their revenue from the tax. After a diversion to account for incorporation of previously unincorporated areas, revenues are generally split amongst the municipalities and unincorporated areas of the county in Group B by population, regardless of where the tax was collected.

This act requires that beginning January 1, 2017, municipalities and the unincorporated areas of the county in Group B receive at least 50% of the tax revenue generated in such municipality or unincorporated area of the county. However, such new formula shall not apply in any year where the total amount of sales taxes collected in the county is less than the amount collected in calendar year 2014 and any adjustment to provide a Group B entity with 50% of the tax revenue generated in that area shall not result in another Group B entity receiving less revenue than it received in 2014.

This provision is similar to SS/SCS/SB 788 (2016), SB 379 (2015), HCS/HB 812 (2015), HCS/HB 1067 (2015) and provisions in CCS/HCS/SB 221 (2015).

CEDAR COUNTY LIBRARY (Section 182.802)

This act authorizes Cedar County to impose a local sales tax, if approved by voters, for the purpose of funding public libraries.

This provision is identical to SB 984 (2016) and HB 2271 (2016).