SCS/HS/HB 513 - This act allows the date shown by a U.S. Postal Service postmark to constitute proof of timely mailing of license taxes to any city or county in Missouri. The act also requires the Director of Revenue to state the reason for a finding of taxpayer negligence at the time an income tax assessment is proposed. Rules and regulations of the Department of Revenue which are inconsistent with the laws of the state may not be cited as the basis for the penalty assessment.

The act also provides that, if a tax-exempt entity issues project exemption certificates for the purchase of tangible personal property and materials which are incorporated into or subsequently found not have authority to issue such certificates, or if the property and materials purchased are not related to the entity's exempt functions and activities, the issuing entity shall be liable for the tax owed on such personal property and materials.

An income tax credit is allowed for costs incurred in the rehabilitation of a historic building in a historic district. The credit is allowed in an amount equal to twenty-five percent of the total basis in the property and the rehabilitation meets the standards of the state historic preservation officer. The credit may be carried back to 1996 or for three years back, whichever is less, or carried forward for ten years.

The act exempts from sales and use tax the following items: replacement machinery, equipment and parts; electrical energy used in material recovery processing plants; medical oxygen; post hole diggers and lubricants used exclusively for farm machinery and equipment; electrical energy or gas consumed in manufacturing cellular glass or cellular glass products; and retreaded tires and retreading equipment, supplies or materials.
RUSS HEMBREE