SB 0752 Numerous Changes to Tax Laws Incl. Interest, Hrngs., Refunds
LR Number:S2495.05C Fiscal Note:2495-05
Committee:Ways and Means
Last Action:05/28/96 - S Inf Calendar S Bills for Perfection
Title:SS#2/SS/SS/SCS/SBs 752, 789, 8
Effective Date:Varies
Full Bill Text | All Actions | Senate Home Page | List of 1996 Senate Bills
Current Bill Summary

SCS/SB 752, 789, 843 & 847 - This act proposes numerous changes to various tax sections including:

(1) SECTION 32.057 - Authorizes the Department of Revenue to disclose information and records pertaining to the collection of cigarette taxes to any employee of any political subdivision to ensure compliance with the cigarette tax imposed by the political subdivision. Any unauthorized disclosure is punishable as a Class D felony.

(2) SECTION 135.010 - Under current senior citizen property tax credit ("circuit breaker") law, a surviving spouse may claim the income tax credit if a spouse meeting the qualifications dies before the end of the year, but a decedent's estate is not allowed the credit on the final return. This act deems the residency requirement fulfilled for claimants who die before December 31 and who meet all of the other qualifications for the credit.

This act also clarifies that a disability need not occur after gainful employment in order to qualify for the credit. Currently, the Department of Revenue interprets the law to require a disabled person to have been gainfully employed prior to such disability in order to qualify for the credit.

(3) SECTION 136.315 - Changes the definition of "party" to include natural persons, partnerships, corporations and other organizations regardless of any income levels. Currently, an income limitation is placed on sole proprietors, corporations and partnerships. This section is also amended to allow a court or the Administrative Hearing Commission to award the Department of Revenue reasonable litigation expenses if the tribunal finds the position of the party to be patently frivolous.

(4) SECTION 143.451 - Removes a paragraph dealing with interstate transactions when the other state(s) do not have jurisdiction to impose a tax to make the computation of the taxation of this type of transaction consistent with other interstate transactions.

(5) SECTION 143.631 - Allows a taxpayer's protest to include a request for an informal hearing. Currently, an informal hearing is only allowed in some situations.

(6) SECTION 143.751 - Requires the Director of the Department of Revenue to state the reason why a taxpayer was negligent at the time an assessment of a penalty is proposed. Rules and regulations of the Department which are inconsistent with state laws, as determined by the courts or administrative hearing commission, may not be the basis for the assessment of a penalty.

(7) SECTIONS 143.781 and 143.811 - Requires interest to be paid to the taxpayer on both refunds and credits. Currently, credits taken as a result of an overpayment of tax are not paid interest, even though refunds taken as a result of an overpayment are paid interest.

(8) SECTION 144.020 - Allows rental companies which rent or lease their inventory not to have to collect sales tax on subsequent rentals or leases to customers if the rental company pays sales tax on the initial lease or rental of the inventory.

(9) SECTION 144.027 - Currently, a sales tax credit is allowed to purchasers of replacement motor vehicles, trailers, boats or outboard motors if the purchase is made within 90 days of payment by the insurance company. This act would allow this sales tax credit as long as the replacement purchase was contracted for within the 90 days.

(10) SECTION 144.030 - Clarifies three sales tax exemption subsections. Subsection 2 is amended to include gases, slagging materials and firebrick in the materials permitted to be exempt in the manufacturing process. Subsection 4 is amended to permit facilities and equipment which are used exclusively for the collection of recovered materials for delivery to a material recovery processing plant to be exempt from sales tax. Currently such facilities and equipment are not exempt if used solely for such purposes. Subsection 18 is amended to clarify that drug samples shall be exempt from sales taxes.

(11) SECTION 144.190 - Refunds of overpayments of sales/use taxes shall be paid with interest.

(12) SECTION 147.040 - No refund of overpayments of franchise tax fees shall be paid unless the amount exceeds $10 (currently $1).

(13) SECTIONS 1 & 2 - Section 1 grants taxpayers a tax credit for 50% of the amount donated to domestic violence shelters. Section 2 grants a tax credit for 50% of the amount donated to maternity homes. In order to receive either credit, at least $100 must be donated and the maximum credit is $50,000. The credit may only be used up to the amount of the taxpayer's tax liability, but may be carried forward for four years. The aggregate maximum amount of the credits allowed in a fiscal year is $4 million, $2 million under each section.

This act combines SBs 752, 789, 843 and 847.