SB 659 - This act modifies several provisions relating to taxation.INDIVIDUAL INCOME TAX
This act establishes the Missouri Working Family Tax Credit Act.
For all tax years beginning on or after January 1, 2021, this act creates a tax credit to be applied to a taxpayer's Missouri income tax liability after all reductions for other credits for which the taxpayer is eligible have been applied. The tax credit shall not exceed the amount of the taxpayer's tax liability, and shall not be refundable. The amount of such tax credit shall be twenty percent of the amount of a taxpayer's federal earned income tax credit.
The Department of Revenue shall determine whether a taxpayer who did not apply for the tax credit established by this act is eligible and shall notify such taxpayer of his or her potential eligibility.
The Department shall prepare an annual report regarding the tax credit established by this act containing certain information as described in the act. (Section 143.177)
This provision shall sunset after six years unless reauthorized by the General Assembly.
This provision is identical to a provision contained in HB 2238 (2020), is substantially similar to SB 183 (2019), HB 291 (2019), HB 1194 (2019), SB 615 (2018), SB 197 (2017), SB 342 (2017), HCS/HB 109 (2017), and to a provision contained in HB 846 (2019), SS#2/SCS/SBs 617, 611, & 667 (2018) and HCS/HB 1605 (2016), and is similar to HB 2154 (2016), SB 1018 (2016), SB 40 (2015), SB 687 (2014), HB 1120 (2014), HB 895 (2013), HB 1606 (2012), HB 581 (2011), and HB 1915 (2010).
CORPORATE TAXATION
This act adds "qualified air freight forwarders", as defined in the act, to the definition of "corporation" as a transportation corporation for the purposes of corporate income allocation. (Section 143.441)
This provision is identical to SB 801 (2020) and HB 2213 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020), HCS/SB 686 (2020), HCS/SB 782 (2020), HCS/SCS/SB 867 (2020), HCS/HB 1333 (2020), SS#3/SCS/HB 1963 (2020), HB 2238 (2020), HCS/HB 2303 (2020), and SS/SCS/SBs 46 & 50 (2019).
USE TAX ECONOMIC NEXUS
Beginning January 1, 2022, this act provides that all vendors without a physical presence in this state making sales of tangible personal property for delivery into this state shall be required to collect and remit any use tax due as if such vendor maintained a physical presence in the state. This provision shall only apply to vendors who make at least $100,000 in gross revenue from the delivery of tangible personal property into this state in the previous or current calendar year.
No obligation to collect and remit use tax under this provision shall be applied prior to January 1, 2022.
The use tax collections made under the provisions of this act shall be deposited in the General Revenue Fund as provided under current law. (Section 144.612)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 805 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (2020), and HB 2238 (2020).
MARKETPLACE FACILITATORS
By January 1, 2022, marketplace facilitators, as defined in the act, that meet the use tax economic nexus threshold established in the act shall register with the Department to collect and remit sales and use tax on sales made into the state through the marketplace facilitator's marketplace by or on behalf of a marketplace seller, as defined in the act. Such retail sales shall include those made directly by the marketplace facilitator as well as those made by marketplace sellers through the marketplace facilitator's marketplace. Sales made through a marketplace facilitator shall be deemed to be consummated at the location to which the item is shipped or delivered, or at which possession is taken by the purchaser.
Marketplace facilitators shall report and remit sales and use tax collected under this act on a separate form developed by the Department. Marketplace facilitators properly collecting and remitting sales and use tax in a timely manner shall be eligible for any discount provided for under current law.
Marketplace facilitators shall provide purchasers with a statement or invoice showing that the sales and use tax was collected and shall be remitted on the purchaser's behalf.
No class action shall be brought against a marketplace facilitator in any court in this state on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected on retail sales facilitated by a marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim.
If the Department audits a marketplace facilitator, it shall only audit such facilitator and not the marketplace sellers on behalf of whom the marketplace facilitator facilitates sales.
Marketplace facilitators may apply to the Department for relief from liability for the failure to collect and remit the correct amount of sales or use tax on retail sales facilitated for marketplace sellers under certain circumstances, as described in the act. Relief from liability shall be a percentage of the sales and use tax collected by the marketplace facilitator, with such percentage being four percent for sales made during the 2022 calendar year, two percent for sales made during the 2023 calendar year, one percent for sales made during the 2024 calendar year, and zero percent thereafter.
The Department may grant a waiver from the requirements of the act if a marketplace facilitator demonstrates to the satisfaction of the Department that all of its marketplace sellers are already registered to collect and remit sales and use tax. If such waiver is granted, the sales or use tax due shall be collected and remitted by the marketplace seller. (Section 144.752)
This provision is identical to a provision contained in SB 805 (2020) and is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
SALES TAX ADMINISTRATION
This act provides that any local sales tax changes due to a boundary change shall take effect on the first day of the calendar quarter 120 days after the sellers receive notice of the change.
The effective date for the imposition, repeal, or rate change of each local sales and use tax shall be the first day of the calendar quarter at least 120 days after the sellers receive notice of the change. (Section 32.087)
This provision is identical to a provision contained in SS/SCS/SBs 46 & 50 (2019).
This act makes changes to several sections of law relating to local sales taxes in order to make the administration of such taxes uniform. (Sections 66.601 to 94.705, 184.845, 221.407, 238.235, 238.410, 644.032)
These provisions are substantially similar to provisions contained in SS/SCS/SBs 46 & 50 (2019).
The school and Show Me Green sales tax holidays are modified by repealing the ability for political subdivisions to opt out of the sales tax holidays, and by defining how the sales tax exemption applies to the purchase or return of certain items. (Sections 144.049 and 144.526)
These provisions are identical to provisions contained in SS#2/SCS/SB 648 (2020), HB 2238 (2020), and SS/SCS/SBs 46 & 50 (2019), and are substantially similar to provisions contained in HB 1967 (2020).
This act relieves a purchaser from any penalties for failure to pay the proper amount of sales tax if the error was a result of erroneous information provided by the Director of Revenue. (Section 144.060)
This provision is identical to a provision contained in SS#2/SCS/SB 648 (2020), HB 1967 (2020).
A certified service provider (CSP), as defined in the act, shall not be certified unless it meets certain requirements relating to the security and privacy of purchasers' information, as described in the act. (Section 144.109)
This act requires the Director of Revenue to provide and maintain a downloadable electronic database at no cost to the user of the database for taxing jurisdiction boundary changes and tax rates. Such databases may be directly provided by the Director, or may be provided by a third party as designated by the Director.
Vendors shall not be liable for reliance upon erroneous data provided by the Director on tax rates, boundaries, or taxing jurisdiction assignments. (Section 144.123)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 805 (2020), SB 872 (2020), SCS/HB 1700 (2020), HB 1895 (2020), HCS#2/HB 1957 (2020), and HB 2172 (2020).
This act also requires the Director of Revenue to provide and maintain a taxability matrix and shall provide notice of changes in the taxability of products or services listed in the matrix.
Sellers and CSPs shall be relieved from liability for reliance upon erroneous data provided or approved by the Department, and a seller shall be relieved from liability for erroneous returns made by a CSP on behalf of the seller. (Section 144.124)
This provision is identical to a provision contained in HB 2238 (2020) and is substantially similar to a provision contained in SS#2/SCS/SB 648 (2020), SCS/HB 1700 (2020), and HB 1967 (2020).
This act provides that a cause of action against a seller by a purchaser for a tax erroneously or illegally collected shall not accrue until the purchaser has provided written notice to a seller and the seller has had sixty days to respond. A seller shall be presumed to have a reasonable business practice if in the collection of such tax the seller uses a provider or a system certified by the Director of Revenue and has remitted all tax collected. (Section 144.190)
Monetary allowances from taxes collected shall be provided to certain sellers and certified service providers for collecting and remitting state and local taxes, as described in the act. (Section 144.140)
This provision is identical to a provision contained in SS#2/SCS/SB 648 (2020) and HB 2238 (2020), and is substantially similar to a provision contained in SCS/HB 1700 (2020) and HB 1967 (2020).
This act repeals a provision which requires the Director to establish brackets showing the amounts of tax to be collected on sales of specified amounts. Instead, the tax computation shall be carried to the third decimal place, and the tax shall be rounded to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four. (Section 144.285).
This act provides that all provisions of law with respect to sales into the state by out-of-state sellers apply to the Compensating Use Tax Law. (Section 144.600)
These provisions are substantially similar to provisions contained in SS/SCS/SBs 46 & 50 (2019) and are similar to SS#2/SCS/SBs 617, 611, & 667 (2018), HB 1479 (2018), HB 1699 (2018), HB 1836 (2018), HB 2162 (2018), HB 2269 (2018), SCS/SB 105 (2017), SCS/SB 795 (2016), HB 726 (2015), HB 727 (2015), and HCS/HB 1356 (2013), and to provisions contained in HB 2691 (2018), HB 500 (2013), HB 422 (2013), HB 521 (2013), and HB 579 (2013).
LOCAL SALES AND USE TAXES
This act modifies ballot language required for the submission of a local use tax to voters by including language stating that the approval of the local use tax will eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers. (Section 144.757)
This provision is identical to SB 652 (2020) and HB 1584 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020), HCS/SS#2/SB 704 (2020), SCS/SB 770 (2020), SB 805 (2020), SB 872 (2020), SS#2/SCS/HCS/HB 1854 (2020), HB 1895 (2020), HB 2172 (2020), HB 2238 (2020), SCS/SB 189 (2019), SS/SCS/SBs 46 & 50 (2019), SS/HCS/HB 255 (2019), SCS/HCS/HB 674 (2019), and HB 701 (2019), is substantially similar to a provision contained in SCS/SB 529 (2020) and SCS/HB 1700 (2020), and is similar to a provision contained in HCS#2/HB 1957 (2020).
EFFECTIVE DATE
The provisions of this act relating to sales tax administration, use taxes and the Missouri Working Family Tax Credit Act shall become effective January 1, 2022. The remaining provisions shall become effective August 28, 2020.
JOSH NORBERG