SB 649
Modifies provisions relating to taxation
Sponsor:
LR Number:
4106S.09P
Committee:
Last Action:
5/11/2022 - Formal Calendar S Bills for Third Reading
Journal Page:
Title:
SS#2 SCS SB 649
Calendar Position:
1
Effective Date:
August 28, 2022

Current Bill Summary

SS/SCS/SB 649 - This act modifies several provisions relating to taxation.

LOCAL SALES TAX RATES

In addition to any local sales tax imposed or authorized to be imposed as of January 1, 2023, 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 and retained 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 and retained by a county shall not exceed 4.5%; the total combined rate of local sales taxes imposed and retained by the City of St. Louis shall not exceed 9.0%; and for all other taxing jurisdictions, the total combined rate of sales taxes in any given taxing jurisdiction shall not exceed 3.0%.

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, 2022, shall be required to reduce or repeal any such sales tax rate. (Section 32.087)

This provision is identical to SB 759 (2022) and is substantially similar to SS/SB 123 (2021).

PROPERTY TAX CREDIT FOR SENIORS

This act authorizes a taxing jurisdiction to grant a property tax credit to eligible taxpayers residing in such taxing district, provided such taxing jurisdiction has adopted an ordinance authorizing such credit, or a petition in support of such credit is submitted to and approved by the voters, as described in the act.

Eligible taxpayers are defined as residents who 1) are at least 65 years of age; 2) are the owner of record of or have a legal or equitable interest in a homestead; and 3) are liable for the payment of real property taxes on such homestead.

The amount of the property tax credit shall be equal to the difference between the real property tax liability on the homestead in a given year minus the real property tax liability on such homestead in the year in which the eligible taxpayer turned 65.

A credit granted pursuant to this act shall be applied when calculating the eligible taxpayer's property tax liability for the tax year. The amount of the credit shall be noted on the statement of tax due sent to the eligible taxpayer by the county collector. (Section 137.103)

This provision is substantially similar to SB 715 (2022).

ASSESSMENT OF PROPERTY

Current law requires that personal property be assessed at 33.3% of its true value in money. This act requires the county assessor of St. Charles, Cass, Henry, Bates, Vernon, and Barton counties to annually reduce such percentage such that the amount by which the revenue generated by taxes levied on such personal property is reduced is substantially equal to one hundred percent of the growth in revenue generated by real property assessment growth, as defined in the act. Annual reductions shall be made until December 31, 2075. Thereafter, the percentage of true value in money at which personal property is assessed shall be equal to the percentage in effect on January 1, 2075.

This provision is substantially similar to a provision contained in SS#2/SB 24 (2021) and 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 ten percent or the percent increase in inflation, whichever is greater. (Section 137.115)

This provision is substantially similar to SB 680 (2022), SB 131 (2021), and 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).

MEDICAL MARIJUANA BUSINESS INCOME TAX DEDUCTION

This act allows taxpayers authorized under the Missouri Constitution to operate a business related to medical marijuana to claim an income tax deduction in an amount equal to any expenditures otherwise allowable as a federal income tax deduction, but that are disallowed for federal purposes because cannabis is a controlled substance under federal law.

This provision is identical to SB 807 (2022) and SB 436 (2021), and is substantially similar to HB 877 (2021) and to a provision contained in CCS/HCS/SB 226 (2021) and HCS/SS/SB 283 (2021).

SALES TAX EXEMPTIONS

The act modifies a sales tax exemption for certain farm machinery and equipment by providing that the term "farm machinery and equipment" shall include utility vehicles, as defined in the act, that are used for any agricultural purposes.

This provision is identical to SB 1152 (2022).

This act authorizes a sales tax exemption for purchases of solar photovoltaic energy distributed generation systems and all purchases of supplies used directly to make improvements to such systems, provided that such systems allow for energy storage, include advanced or smart meter inverter capacity, or allow for utility scale projects greater than twenty megawatts.

This provision is substantially similar to SB 881 (2022) and HB 2658 (2020).

This act also authorizes a sales tax exemption for utilities, equipment, and materials used to generate or transmit electricity. (Section 144.030)

This provision is substantially similar to SB 246 (2021), SB 757 (2020), SB 467 (2019), HB 64 (2017), SB 784 (2016), SB 480 (2015), and HB 693 (2015), and is similar to HB 1511 (2018), HB 2255 (2014), and to a provision in CCS/HCS/SB 584 (2014).

This act also authorizes a state sales tax exemption for the purchase of diapers, as defined in the act. (Section 144.059)

This provision is substantially similar to SB 1124 (2022) and HB 2384 (2022).

This act provides a sales tax exemption for sales of class III medical devices that use electric fields for the purposes of treatment of cancer, including components and repair parts and disposable or single patient use supplies required for the use of such supplies. (Section 144.813)

This provision is identical to SB 943 (2022) and SB 483 (2021), and to a provision contained in CCS/HCS/SB 226 (2021).

SALES TAX REFUNDS

This act abrogates the Missouri Supreme Court's interpretation of the provisions of section 144.020 relating to sales taxes in Michael Jaudes Fitness Edge, Inc. v. Dir. of Revenue, 248 S.W.3d 606 (Mo. banc 2008) and Wilson's Total Fitness Center, Inc. v. Director of Revenue, 38 S.W.3d (Mo. banc 2001), and the Administrative Hearing Commission's decision in Joseph and Brenda Crews v. Dir. of Revenue, 17-0210. Any taxpayer that paid sales and use tax assessments as a result of an audit by the Department of Revenue and who failed to receive a refund of sales or use tax as a result of the abrogated decisions may apply to the Department by no later than July 1, 2026, to receive such refund. The Department shall not issue more than $100,000 in refunds without a further appropriation from the General Assembly.

Provisions of current law requiring the person legally obligated to remit the tax to file a claim for refund within ten years from date of overpayment shall not apply to refunds claimed under this act. (Section 144.190)

This provision is substantially similar to SB 700 (2022) and is similar to SB 353 (2021), HB 1806 (2020), HCS/HB 422 (2019), HCS/HB 1722 (2018), and HB 223 (2017).

GROUND AMBULANCE REIMBURSEMENT ALLOWANCE TAX

This act modifies the Ground Ambulance Reimbursement Allowance to exclude revenues received from supplemental reimbursement for ground emergency medical transportation from the definition of "gross receipts" used to determine each ambulance service's reimbursement allowance.

This provision is identical to SB 725 (2022) and to provisions of SS#2/SB 1 (2021).

JOSH NORBERG