SCS/HB 1700 - This act modifies several provisions relating to taxation.TRANSIENT GUEST TAXES
This act authorizes the City of Butler to submit to the voters a transient guest tax not to exceed 6% of the charges per occupied room per night. (Section 67.1011)
This provision is identical to HB 2562 (2020) and to a provision contained in HCS/SS/SCS/SB 570 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
This act authorizes the City of Springfield to submit to the voters a transient guest tax not to exceed 7.5% of the charges per occupied room per night. Such tax shall be used solely for capital investments that can be demonstrated to increase the number of overnight visitors.
Upon approval by the voters, the city may adopt rules and regulations for the internal collection of the tax, or may enter into an agreement with the Department of Revenue for the collection of the tax. (Section 94.842)
This provision is identical to SB 387 (2019) and HB 1073 (2019), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 616 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), SS/SCS/SBs 46 & 50 (2019), SCS/HCS/HB 674 (2019), and SCS/HB 761 (2019), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
This act authorizes the City of Joplin to submit to the voters a transient guest tax not to exceed 7% of the charges per occupied room per night. Such tax shall be used solely for the construction, maintenance, and operation of convention and tourism facilities.
Upon approval by the voters, the city may adopt rules and regulations for the internal collection of the tax, or may enter into an agreement with the Department of Revenue for the collection of the tax. (Section 94.844)
This act authorizes the City of Ashland to submit to the voters a transient guest tax not to exceed 5% of the charges per occupied room per night. Such tax shall be used for the promotion of tourism, growth of the region, economic development, and public safety, as described in the act. (Section 94.1014)
This provision is identical to a provision contained in SCS/SB 770 (2020) and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
This act adds the City of Cameron to the list of cities authorized to propose a transient guest tax for the promotion of tourism. (Section 67.1360)
This provision is identical to a provision contained in SCS/SB 770 (2020) and HCS/HB 1601 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
PUBLIC SAFETY SALES TAXES
This act adds the cities of Clinton, Lincoln, Branson West, Cole Camp, Hallsville, Kearney, Smithville, and Claycomo to the list of cities and villages authorized to levy a sales tax upon voter approval for the purposes of improving public safety. The tax shall be 0.25%, 0.5%, 0.75%, or 1%. (Sections 94.900 and 94.902)
These provisions are identical to HB 1309 (2020), HB 1726 (2020), and HB 1731 (2020), and to provisions contained in HCS/SS#2/SCS/SB 523 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), HCS/SB 774 (2020), and HCS/HB 1701 (2020) and are substantially similar to SB 873 (2020) and to provisions contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
FIRE PROTECTION SALES TAXES
Current law authorizes ambulance and fire protection districts in certain counties to propose a sales tax at a rate of up to 0.5%. This act allows such districts to propose a sales tax of up to 1.0%. (Section 321.552)
This provision is identical to HB 2386 (2020) and SB 869 (2020), and to a provision contained in SCS/SB 770 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020), SS#2/SCS/HCS/HB 1854 (2020), and HCS/SS#2/SB 704 (2020).
EARLY CHILDHOOD SALES TAX
This act allows Greene County and any city within the county to impose a sales tax, upon approval of a majority of the voters, not to exceed one-fourth of one percent for the purpose of funding early childhood education in the county or city. (Section 67.1790)
This provision is identical to HB 1480 (2020) and to a provision contained in SCS/SB 770 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
CAPITAL IMPROVEMENT SALES TAX
This act makes technical corrections to provisions of law authorizing Clay and Platte counties to propose a capital improvement sales tax. (Section 67.730)
This provision is identical to HB 1746 (2020) and to a provision contained in SCS/SB 770 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
Current law authorizes the City of Lamar Heights to levy a sales tax of up to 2% on retail sales of food at cafes, cafeterias, lunchrooms, or restaurants for the purpose of funding the construction, maintenance, and operation of capital improvements. This act allows such sales tax to be levied at a rate not to exceed 6% and allows the revenues to be used for general revenue purposes. (Section 94.838)
This provision is identical to HB 2180 (2020) and to a provision contained in SCS/SB 770 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
PROPERTY TAXES
For property tax assessments, current law provides that assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15. This amendment requires such notifications in St. Louis County to include information regarding the assessment method and computation of value for such property and, for properties valued using sales of comparable properties, a list of such comparable properties and the address or location and purchase prices from sales thereof that the assessor used in determining the assessed valuation of the owner's property. (Section 137.180)
Current law allows certain counties and St. Louis City to reimburse taxpayers who successfully appeal a property tax assessment to the State Tax Commission for appraisal costs, attorney fees, and court costs, with such reimbursements limited to $1,000 for residential appeals and the lesser of $4,000 or 25% of the tax savings resulting from the appeal for other non-residential appeals. Beginning January 1, 2021, this amendment increases such limits for St. Louis County to $6,000 for residential appeals and the lesser of $10,000 or 25% of the tax savings resulting from the appeal for other non-residential appeals. (Section 138.434)
These provisions are identical to provisions contained in SB 547 (2020).
COUNTY HOSPITAL DISTRICTS
This act provides that, upon the dissolution of a county hospital district in Ripley County levying a sales tax for the purpose of funding the district, the sales tax shall be automatically repealed and twenty-five percent of the funds remaining in the special trust fund shall be distributed to the county public health center and seventy-five percent shall be distributed to a federally qualified health center located in the county. (Section 205.202)
This provision is identical to SCS/SB 616 (2020) and HB 2376 (2020).
USE TAX MAPPING
Current law requires the Department of Revenue to create and maintain a mapping feature on its website that displays various sales tax information. This act requires such mapping feature to include use tax information. Political subdivisions collecting a use tax shall send such data to the Department of Revenue by January 1, 2021, and the Department shall implement the mapping feature using the use tax data by August 28, 2021.
If the boundaries of a political subdivision in which a sales or use tax has been imposed shall thereafter be changed or altered, the political subdivision shall forward such changes to the Department, as described in the act. (Section 32.310)
This provision is identical to a provision contained in SS#2/SCS/SB 648 (2020) and is substantially similar to a provision contained in SCS/SB 529 (2020), SB 805 (2020), SB 872 (2020), HB 1895 (2020), and HB 2172 (2020).
CASH OPERATING EXPENSE FUND
This act establishes the "Cash Operating Expense Fund", which shall consist of the state portion of use tax revenues collected under the provisions of this act; any funds appropriated to the Office of the Governor for expenses related to emergency duties performed by the National Guard, matching funds for federal grants and emergency assistance, and expenses of any state agency responding during a declared emergency, as described in the act, that are unexpended at the end of a fiscal year; and moneys appropriated by the General Assembly.
Subject to appropriation, the Governor may transfer moneys from the fund into the General Revenue Fund in any fiscal year in which actual revenues are less than the revenue estimates upon which appropriations were based or in which there is a budget need due to a natural disaster, as proclaimed by the Governor to be an emergency.
When the balance in the fund at the close of any fiscal year exceeds 2.5% of net General Revenue collections for the previous year, such excess shall be divided evenly between the State Road Fund and the Debt Retirement Fund, which is created by the act for the retirement of debt related to bonds issued by or on behalf of the state, as described in the act. (Section 33.575)
This provision is substantially similar to SB 858 (2020) and to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 872 (2020), and HB 2172 (2020).
ECONOMIC NEXUS
This act modifies the definition of "engaging in business activities within this state" to include vendors that had cumulative gross receipts of at least $100,000 from the sale of tangible personal property for the purpose of storage, use, or consumption in this state in the previous twelve-month period, as described in the act. Vendors meeting such criteria shall be required to collect and remit the use tax as provided under current law. (Section 144.605)
This provision is identical to a provision contained in SCS/SB 529 (2020) and SS#2/SCS/SB 648 (2020), and is substantially similar to a provision contained in SB 659 (2020), SB 805 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (2020), and HB 2238 (2020).
For the purpose of more efficiently securing the payment of and accounting for use taxes collected under the act, the Department is authorized to consult, contract, and work jointly with the Streamlined Sales and Use Tax Agreement's governing board to allow sellers to use the governing board's certified service providers and central registration system services, or to consult, contract, and work with certified service providers independently. The act authorizes the Department to determine the method and amount of compensation to be provided to certified service providers. (Section 144.608)
This provision is identical to a provision contained in SS#2/SCS/SB 648 (2020).
TAXING JURISDICTION DATABASE
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 144.637)
This provision is identical to a provision contained in SCS/SB 529 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), and HB 2172 (2020), and is substantially similar to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 805 (2020), HB 1895 (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 144.638)
This provision is identical to a provision contained in SS#2/SCS/SB 648 (2020) and is substantially similar to a provision contained in SB 659 (2020), HB 1967 (2020), and HB 2238 (2020).
LOCAL USE TAX BALLOT LANGUAGE
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, and by repealing ballot language specific to St. Louis County and its municipalities. (Section 144.757)
This provision is identical to a provision contained in SCS/SB 529 (2020), is substantially similar to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (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), and is similar to a provision contained in HCS#2/HB 1957 (2020).
This act provides that the portion of the local use tax imposed by St. Louis County shall be distributed to the cities, towns, villages, and unincorporated areas of the county on the ratio of the population that each such city, town, village, and unincorporated area bears to the total population of the county. (Section 144.759)
This provision is identical to a provision contained in SCS/SB 529 (2020).
MARKETPLACE FACILITATORS
Beginning January 1, 2022, marketplace facilitators, as defined in the act, that engage in business activities within the state shall register with the Department to collect and remit use tax on sales delivered 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.
Marketplace facilitators shall report and remit use tax collected under this act as determined by the Department. Marketplace facilitators properly collecting and remitting 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 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. (Section 144.752)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
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. (Sections 144.140 and 144.710)
EFFECTIVE DATE
Provisions of this act relating to economic nexus, marketplace facilitators, and the distribution of local use tax revenue in St. Louis County shall become effective January 1, 2022.
Provisions of this act establishing the Cash Operating Expense Fund contain an emergency clause and shall become effective upon passage and approval.
All other provisions of this act shall become effective August 28, 2020.
JOSH NORBERG