SS#2/SB 24 - This act modifies several provisions relating to taxation.
LOCAL SALES TAXES
In addition to any local sales tax imposed or authorized to be imposed as of January 1, 2022, this act authorizes any taxing jurisdiction to impose one or more sales taxes for purposes to be designated by the taxing jurisdiction, provided that the total combined rate of local sales taxes imposed by a taxing entity that is an incorporated city, town, or village shall not exceed 4.5%; the total combined rate of local sales taxes imposed by a county shall not exceed 4.5%; the total combined rate of local sales taxes imposed by a city not within a county shall not exceed 9%; and for all other taxing jurisdictions, the total combined rate of sales taxes in any given taxing jurisdiction shall not exceed 3%. Such limits shall not apply to transient guest taxes or convention and tourism taxes.
In any election in which more than one sales tax levy is approved by the voters, and the passage of such levies results in a combined rate of sales tax in excess of the limits provided under the act, only the sales tax levy receiving the most votes shall become effective.
No taxing jurisdiction with a combined rate of sales tax in excess of the rates provided in the act as of August 28, 2021, shall be required to reduce or repeal any such sales tax rate. (Section 32.087)
This provision is substantially similar to SS/SB 123 (2021).
SENIOR CITIZENS' SERVICES FUND
Under current law, counties and the City of St. Louis may collect a tax for a Senior Citizens' Services Fund. This act provides that deposits in such a fund shall be expended only upon approval of the board of directors and, if in a county, only in accordance with the fund budget approved by the county.
Additionally, this act provides that the board of directors of the City of St. Louis may solicit, accept, and expend grants from private or public entities and enter into agreements to effectuate such grants so long as the transaction is in the best interest of the programs provided by the board and the proceeds are used exclusively to fund such programs. (Sections 67.990 and 67.993)
This provision is identical to SB 592 (2021) and HB 666 (2021), and to a provision contained in CCS/SS#2/SCS/HCS/HB 271 (2021).
PUBLIC SAFETY SALES TAX
This act adds the cities of Clinton and Lincoln to the list of cities authorized to levy a sales tax upon voter approval for the purposes of improving public safety. (Section 94.902)
This act is identical to SB 160 (2021) and SB 873 (2020), and is substantially similar to provisions contained in HCS/HB 394 (2021), HCS/SS#2/SCS/SB 523 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SS#2/SB 704 (2020), HCS/SCS/SB 725 (2020), HCS/SB 774 (2020), SCS/HB 1700 (2020), HCS/HB 1701 (2020), and SS#2/SCS/HCS/HB 1854 (2020).
TAX INCREMENT FINANCING
This act modifies the definition of "blighted area" for the purposes of tax increment financing. (Section 99.805)
For tax increment financing projects approved or amended after December 31, 2021, the City of St. Louis may provide for the deposit of up to 10% of the tax increment financing revenues generated by the project into a Strategic Infrastructure for Economic Growth Fund to be established by the city. Moneys deposited in such fund may be expended by the city for the purpose of funding capital investments in public infrastructure that is located in a census tract that is defined as a low-income community or is eligible to be designated as a Qualified Opportunity Zone under federal law. (Section 99.821)
These provisions are substantially similar to provisions contained in CCS/SS/SB 22 (2021) and CCS/HCS/SS/SCS/SBs 153 & 97 (2021).
ETHANOL FUEL TAX CREDIT
For all tax years beginning on or after January 1, 2022, this act authorizes a tax credit for retail dealers selling higher ethanol blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to five cents per gallon of higher ethanol blend sold and dispensed through metered pumps at the service station during the tax year. The tax credit shall be nontransferable and nonrefundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million.
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Section 135.755)
This provision is identical to SCS/SB 140 (2021) and to a provision contained in SS/SCS/SB 354 (2021) and SS/SCS/HB 948 (2021), and is substantially similar to a provision contained in HCS/SS/SCS/SB 4 (2021) and HCS/HB 601 (2021).
Current law requires that personal property be assessed at 33.3% of its true value in money. This act requires political subdivisions to annually reduce such percentage such that the amount by which the revenue generated by taxes levied on such personal property is substantially equal to any growth in revenue generated by real property assessment growth, as defined in the act. Annual reductions shall be made until the percentage of true value in money at which personal property is assessed is equal to one-thousandth of one percent.
This provision is substantially similar to a provision contained in CCS/SS/HCS/HB 66 (2021).
This act also provides that the assessed valuation for residential real property shall not exceed the previous assessed valuation for such property, exclusive of new construction and improvements, by more than five percent or the percent increase in inflation, whichever is greater.
This provision is identical to SB 131 (2021), is substantially similar to SCS/SBs 675 & 705 (2020), and is similar to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), and HCS/SCS/SB 725 (2020). (Section 137.115)
This act allows a county assessor, upon request of a taxpayer, to send personal property tax lists and notices in electronic form. (Section 137.280)
This provision is identical to SB 365 (2021) and to a provision contained in CCS/SS#2/SCS/HCS/HB 271 (2021).
Beginning January 1, 2021, this act allows a taxpayer that is a resident of a city or county that imposes one or more restrictive orders for a combined total in excess of fifteen days in a calendar year to receive a credit against property taxes owed on such affected property. A restrictive order shall be any city-wide or county-wide ordinance or order imposed by a city or county that prohibits or otherwise restricts the use of a taxpayer's real property, including, but not limited to, occupancy restrictions, but shall not include any ordinance or order prohibiting or restricting the use of a taxpayer's real property due to a violation of a public health or safety code.
The amount of the credit shall be a percentage of the property tax liability that is equal to the percentage of the calendar year that the restrictions on the use of the property were in place, provided that the first fifteen total combined days of all such orders shall not count toward such calculation of the credit. A taxpayer shall pay his or her property taxes in full prior to submitting a statement to the county collector requesting the credit authorized by the act. Within thirty days of the receipt of such statement, the city or county shall issue the credit to the taxpayer.
The credit authorized by this act shall only apply to real property tax liabilities owed to a city or county imposing a restrictive order, and shall not apply to property tax liabilities owed to any other taxing jurisdiction. (Section 139.305)
This provision contains an emergency clause.
This provision is identical to SCS/SB 100 (2021) and is substantially similar to HB 725 (2021) and to a provision contained in SS/SCS/SBs 12 et al. (2021) and CCS/HCS/SB 226 (2021).
For the tax year beginning on or after January 1, 2021, and ending on or before December 31, 2021, this act authorizes a tax deduction for taxpayers with a qualifying child dependent who is attending elementary or secondary school remotely due to Severe Acute Respiratory Syndrome Coronavirus 2. The tax deduction shall be equal to the lesser of $1,500 or the amount of expenses incurred during the 2020 or 2021 calendar year for personal computers and school supplies, as defined in the act, digital subscriptions required by the qualifying child's school district, tutoring services, and internet access. (Section 143.121)
This provision is identical to SB 48 (2021).
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. (Section 144.757)
This provision is identical to SB 161 (2021), SB 652 (2020), and HB 1584 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), HCS/SS#2/SB 704 (2020), SCS/SB 770 (2020), HB 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).
CAPITOL COMPLEX TAX CREDIT
This act creates the Capitol Complex Tax Credit Act.
The Capitol Complex Fund is authorized to receive any eligible monetary donation, as defined in the act, and shall be segregated into two accounts: a rehabilitation and renovation account, and a maintenance account. Ninety percent of the revenues deposited into the fund shall be placed in the rehabilitation and renovation account and seven and one-half percent of revenues deposited in the fund shall be placed in the maintenance account. The remaining two and one-half percent of the funds may be used for the purposes of fundraising, advertising, and administrative costs.
The choice of projects for which money is to be used, as well as the determination of the methods of carrying out the project and the procurement of goods and services, shall be made by the Commissioner of Administration. No moneys shall be released from the fund for any expense without the approval of the Commissioner of Administration.
For all taxable years beginning on or after January 1, 2021, any qualified donor, as defined in the act, shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to fifty percent of the monetary donation amount. Any amount of tax credit that exceeds the qualified donor's state income tax liability may be refunded or carried forward for the following four years.
For all taxable years beginning on or after January 1, 2021, a qualified donor shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to thirty percent of the value of the eligible artifact donation, as defined in the act. Any amount of tax credit that exceeds the donor's tax liability shall not be refunded for artifacts, but the credit may be carried forward for four subsequent years.
The Department of Economic Development shall not issue tax credits for donations to the Capitol Complex Fund in excess of $10 million per year in the aggregate. Donations received in excess of the cap shall be placed in line for tax credits the following year. Alternatively, a donor may donate without receiving the credit or may request that their donation is returned.
Tax credits issued for donations under this act are not subject to any fee. Tax credits issued under this act may be assigned, transferred, sold, or otherwise conveyed.
This act shall sunset August 28, 2027, unless reauthorized by the General Assembly. (Section 620.3210)
This provision is identical to SB 36 (2021), SCS/SB 586 (2020) and HCS/HB 1713 (2020), and to a provision contained in SCS/HCS/HB 849 (2021), HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), and HCS/SS#2/SB 704 (2020), and is substantially similar to SB 255 (2019) and to a provision contained in SB 545 (2018), HB 2691 (2018) and SCS/SB 6 (2017).
PUBLIC SAFETY FUNDS
This act establishes the "Economic Distress Zone Fund" which shall be a fund used solely by the Department of Public Safety to provide funding to organizations registered with the IRS as a 501(c)(3) corporation that provide services to residents of the state in areas of high incidents of crime and deteriorating infrastructure, as defined in the act, for the purpose of deterring criminal behavior in such areas. If money appropriated to the fund exceeds $3 million dollars, excluding any money made available by gift or otherwise, such money shall revert to general revenue. This provision shall sunset on August 28, 2024. (Section 650.550)
This provision is identical to a provision contained in SS/SCS/SB 57 (2021) and SCS/SB 488 (2021).
Finally, this act also establishes the "988 Public Safety Fund" which shall be a fund used solely by the Department of Public Safety to provide funding to employee assistance programs established by a law enforcement agency or emergency services provider to provide professional counseling or support services to employees. If money appropriated to the fund exceeds $1 million dollars, excluding any money made available by gift or otherwise, such money shall revert to general revenue. (Section 650.555)
This provision is identical to a provision contained in SCS/SB 488 (2021).