CCS/HCS/SCS/SB 823 - This act modifies provisions relating to taxation.
INTERNET SALES TAX EXEMPTION (Section 144.030)
This act creates a state and local sales tax exemption for internet access or the use of internet access regardless of whether the tax is imposed on a provider or buyer of internet access.
This provision is substantially similar to HCS/HB 1966 (2016).
BED AND BREAKFASTS (Section 137.016)
This act provides that property operated as a bed and breakfast with 6 or fewer rooms is classified as residential property for tax purposes so long as the owner also resides there.
This provision is identical to HBs 2298 & 2109 (2016) and similar to HB 1456 (2016) and HB 1314 (2015).
PRODUCTION EXEMPTIONS (Section 144.026)
This act provides that the Department of Revenue shall not notify taxpayers before August 28, 2017 regarding the recent Missouri Supreme Court decision in IBM Corporation v. Director of Revenue holding that tax exemptions for production/manufacturing do not apply to production of intangible products like computer data. Under current law, such notification is required before a modification of tax law is implemented by the Department of Revenue.
BONDING REQUIREMENTS FOR SALES LICENSES (Section 144.087)
Currently, applicants for retail sales licenses and certain licensees are required to file bonds in an amount up to 3 times the average monthly tax liability of the taxpayer as determined by the Director of Revenue. After 2 years of satisfactory tax compliance, the taxpayer is released from this bonding requirement. This act lowers the cap to 2 times the average monthly tax liability of the taxpayer and releases taxpayers after 1 year of satisfactory tax compliance.
This provision is identical to HB 2631 (2016) and a provision in HCS/SS/SB 799 (2016).