CCS/HCS/SB 773 - This act modifies several provisions relating to taxation.
LOCAL SALES TAX REPEAL
This act extends the date by which a local taxing jurisdiction shall place a question on the ballot regarding the repeal of a local sales tax on certain motor vehicles purchased from out-of-state dealers from November 2018 to November 2022. (Section 32.087)
DEPARTMENT OF REVENUE REPORT
This act requires the Department of Revenue to annually issue a report containing certain information on all sales and use tax levies imposed in this state. (Section 32.315)
This provision is identical to a provision contained in SS/SCS/HB 1446 (2018).
AMATEUR SPORTING EVENT TAX CREDIT
This act modifies several provisions related to tax credits for amateur sporting events.
The definition of "eligible costs" is modified to include bid fees and financial guarantees pledged to a site selection organization. The definition of "site selection organization" is also modified to include several additional organizations, as described in the act.
Currently, an applicant is required to submit eligible costs and documentation to the Department of Economic Development no more than thirty days following the conclusion of the sporting event. This act changes such deadline to ninety days. Documented eligible costs paid may be paid either by the applicant or an entity co-hosting the event with the applicant.
This act requires, rather than allows, the Department of Economic Development to determine the total number of tickets sold to the event, or, if such event is participant-based with no admission tickets, the total number of paid participant registrations.
This act also requires, rather than allows, the Department to issue a tax credit pursuant to the provisions of the program. For the purposes of calculating the amount of the tax credit, an applicant shall be allowed $10 for every paid participant registration if the event is participant-based with no paid admission tickets.
The aggregate amount of tax credits issued under this program is limited to $3 million per fiscal year. This act implements a fiscal year cap of $2.7M for all events located in Jackson or St. Louis Counties or St. Louis City.
Collegiate football bowls and other neutral-site games with at least one out-of-state team shall be exempt from the competitive bid requirements of the program.
Currently the Department is prohibited from accepting applications for this tax credit program after August 28, 2019. This act extends the program until August 28, 2024. (Section 67.3000)
This act also extends the sunset for a tax credit for contributions to a local organizing committee or certified sponsor from August 28, 2019, to August 28, 2024. (Section 67.3005)
This provision is substantially similar to HB 1438 (2018) and to a provision contained in SS/SCS/HCS/HB 1388 (2018) and HCS/SCS/SBs 632 & 675 (2018).
ATHLETES AND ENTERTAINERS TAX
Currently, the revenue generated from an income tax on certain nonresident athletes and entertainers is distributed among several funds. Such distributions will currently end on December 31, 2020. This act extends the distributions until December 31, 2030. (Section 143.183)
This provision is identical to HB 1897 (2010), and is substantially similar to a provision contained in SS#2/SCS/SBs 617, 611, & 667 (2018).
CORPORATE INCOME APPORTIONMENT
This act provides that intercompany transactions between corporations that file a consolidated return shall not be included in the definition of sales for the purposes of income apportionment. (Section 143.451)
This provision is identical to HB 2638 (2018) and is similar to a provision contained in SS#2/SCS/SBs 617, 611, & 667 (2018).
HISTORIC PRESERVATION TAX CREDITS
This act modifies several provisions relating to historic buildings.
Currently, the Department of Economic Development (DED) shall not approve tax credits for the rehabilitation of historic structures which, in the aggregate, exceed $140 million, increased by any amount of tax credits for which approval shall be rescinded for any reason. For each fiscal year beginning on or after July 1, 2018, the act reduces the aggregate cap to $90 million. DED shall authorize up to an additional $30 million in Historic Preservation tax credits above the $90 million cap provided that any such tax credits are authorized solely for projects located in a qualified census tract, which is defined as a census tract with a 20% poverty rate or higher as determined by a map published by DED, as described in the act. If the $90M cap and the $30M supplemental cap are both authorized in a fiscal year, the $90M cap shall be adjusted by the percent increase in inflation. Only one such adjustment shall be made for each instance in which the inflation adjustment is triggered.
Current law exempts projects approved or applied for prior to January 1, 2010, from the authorization cap on the amount of tax credits that may be authorized. This act changes such date to October 1, 2018. (Section 253.550)
This act also modifies the Historic Preservation Tax Credit by requiring DED to consider additional factors prior to determining whether a credit shall be awarded, including the projected net fiscal benefit of the project, the overall size and quality of the project, the level of economic distress in the area, and input from the local elected officials in the local municipality as to the importance of the project to the municipality. Such additional factors shall not apply to projects receiving less than $250,000 in tax credits. (Section 253.559.3)
All taxpayers with applications receiving approval on or after July 1, 2019, shall submit evidence of the capacity of the applicant to finance the cost and expenses for the rehabilitation of the eligible property, as described in the act. (Section 253.559.7)
This act requires that a taxpayer receiving approval for tax credits shall commence rehabilitation within nine months, rather than two years, of the date of approval. (Section 253.559.8)
Current law allows DED to charge a fee of 2.5% on the amount of tax credits issued by the Department. This act allows the Department to charge a fee of 4% on the amount of Historic Preservation tax credits issued by the Department.
37.5% of the revenue generated by the 4% fee rate shall be appropriated from the Economic Development Advancement Fund for business recruitment and marketing. (Section 620.1900)
These provisions are identical to provisions contained in CCS/SS#2/SCS/SB 590 (2018), are substantially similar to provisions contained in HCB 18 (2018), and are similar to, HB 1239 (2018), SCS/SB 6 (2017), and SB 1112 (2016), and to a provision contained in SB 545 (2018).