SB 248 - This act modifies several provisions relating to taxation.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, 2022, and the Department shall implement the mapping feature using the use tax data by August 28, 2022.
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 substantially similar to a provision contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SB 287 (2021), SCS/HB 554 (2021), HCS/HB 555 (2021), HB 593 (2021), SS#2/SCS/SB 648 (2020), SB 805 (2020), SB 872 (2020), HB 2172 (2020), SCS/HB 1700 (2020), and HB 1895 (2020).
INDIVIDUAL INCOME TAX
This act establishes the Missouri Working Family Tax Credit Act.
For all tax years beginning on or after January 1, 2023, 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 on December 31, 2029, unless reauthorized by the General Assembly.
This provision 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 CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SCS/SB 52 (2019), 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).
USE TAX 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 substantially similar to a provision contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SB 287 (2021), HB 244 (2021), SCS/HB 554 (2021), HCS/HB 555 (2021), HB 593 (2021), HCS/HB 644 (2021), SS#2/SCS/SB 648 (2020), SCS/SB 529 (2020), SCS/HB 1700 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (2020), and HB 2238 (2020).
MARKETPLACE FACILITATORS
Beginning January 1, 2023, 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.
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 2023 calendar year, two percent for sales made during the 2024 calendar year, one percent for sales made during the 2025 calendar year, and zero percent thereafter. (Section 144.752)
This provision is substantially similar to a provision contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SB 287 (2021), HB 244 (2021), SCS/HB 554 (2021), HCS/HB 555 (2021), HB 593 (2021), HCS/HB 644 (2021), SS#2/SCS/SB 648 (2020), SCS/SB 529 (2020), SCS/HB 1700 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
SALES TAX ADMINISTRATION
This act authorizes the Department of Revenue 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 Department may determine the method and amount of compensation to be provided to certified service providers. (Section 144.608)
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 substantially similar to provisions contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SB 659 (2020), HB 2238 (2020), HB 1967 (2020), and SS/SCS/SBs 46 & 50 (2019).
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)
Beginning January 1, 2022, for sellers collecting at least $250 in sales tax in the first or second month of a calendar quarter, such taxes shall be remitted on or before the last day of the succeeding month rather than on the twentieth day of the succeeding month. (Section 144.080)
The Director shall provide and maintain downloadable electronic databases at no cost to the user of the databases for taxing jurisdiction boundary changes, tax rates, and a taxability matrix detailing taxable property and services. Sellers and CSPs will be relieved from liability if they fail to properly collect tax based upon information provided by the Department. Certified service providers, sellers, and marketplace facilitators may utilize proprietary data, provided the Director certifies that such data meets the standards provided for under the act. (Sections 144.637 and 144.638)
These provisions are substantially similar to provisions contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SCS/SB 529 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), SCS/HB 1700 (2020), HB 1895 (2020), HCS#2/HB 1957 (2020), and HB 2172 (2020).
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)
LOCAL 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, and by repealing ballot language specific to St. Louis County and its municipalities. (Section 144.757)
This provision is substantially similar to HB 1584 (2020) and to a provision contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), 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), SCS/HB 1700 (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 CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SCS/HB 1700 (2020).
EFFECTIVE DATE
The provisions of this act relating to use taxes, sales tax administration, and the Missouri Working Family Tax Credit shall become effective January 1, 2023.
The remaining provisions shall become effective August 28, 2021.
This act is similar to CCS/HCS/SS/SCS/SBs 153 & 97 (2021), SS#2/SCS/SB 648 (2020), SB 529 (2020), SB 659 (2020), SB 805 (2020), and SB 872 (2020).
JOSH NORBERG