CCS/HCS/SB 584 - This act modifies provisions relating to taxation. BURDEN OF PROOF IN TAX LIABILITY DISPUTES (136.300) Currently, the Director of Revenue has the burden of proof in tax liability disputes if the taxpayer meets certain requirements. One such requirement is that if the taxpayer is a partnership, corporation, or trust, the taxpayer's net worth doesn't exceed $7 million and the taxpayer has no more than 500 employees. This act removes this requirement to put the burden of proof on the Director of Revenue. The act also allows the burden of proof to be placed on the Director of Revenue in tax exemption cases. This provision is similar to SB 829 (2014) and HB 1455 (2014). This provision is similar to a provision in HCS/HBs 1179 & 1765 (2014). INFORMATION REQUEST BY THE ST. LOUIS COUNTY ASSESSOR (137.133) This act requires the St. Louis County Assessor to place on correspondence with taxpayers a statement that disclosure of information is voluntary and will become public record if disclosed. This provision does not apply to request for information regarding the required listing of property or listing of lessees. This provision is similar to a provision in CCS/SCS/HB 1553 (2014), CCS#2/HCS/SB 693 (2014), and CCS/HCS/SS/SB 860 (2014). MOTOR FUEL TAXES (142.815 and 144.030) This act creates a motor fuel tax exemption for fuel delivered to a marina for use solely in watercraft. Persons buying motor fuel for use solely in watercraft from a place other than a marina may apply for a refund of fuel taxes paid. Motor fuel exempt from fuel taxes under this act shall also be exempt from sales tax. This provision is similar to HB 1475 (2014) and a provision in HCS/HBs 1179 & 1765 (2014). EMPLOYER INCOME TAX WITHHOLDING (143.221) Currently, an employer is allowed to file an annual withholding tax return instead of four quarterly returns when the aggregate amount withheld is less than $20 in each of the four preceding quarters. The act changes the amount to less than $100 in each of the four preceding quarters if the employer is not otherwise required to file a withholding return on a quarterly or monthly basis. This provision is identical to HB 1224 (2014) and HB 105 (2013). This provision is similar to a provision in the perfected version of HB 1174 (2014), the perfected version of HCS/HBs 1253 & 1297 (2014), the perfected version of HCS/HB 1295 (2014), HB 2073 (2014), CCS/HCS/SS/SB 860 (2014), and the perfected version of HB 253 (2013). DIVISION OF CORPORATE INCOME FOR TAX PURPOSES (143.451) Currently, in determining what portion of a corporation's income is taxable in Missouri, the business may use a method whereby the ratio of instate sales to total sales is multiplied by the net income. A method for determining whether sales of tangible property are to be considered instate is already established in current law. This act specifies a process for all other sales. For sales of real property or rentals of tangible personal property, the portion of the property sold or rented that is located in this state will be considered an instate sale. For sales of service, the portion of the benefits delivered to purchasers in this state will be considered an instate sale. For rentals or licenses of intangible property, the portion used in this state by the rentee or licensee will be considered an instate sale. Intangible property used for marketing will be considered used in this state if the good or service being marketed is purchased by a consumer in this state. Franchise fees or royalties for intangible property are considered used in this state if the franchise is located in this state. For sales of intangible property, the portion of the sale used in this state will be considered an instate sale. If the sale is for the right to conduct business activity in a certain geographic area, the sale will be instate if the geographic area is in this state. If receipts for sales of intangible property are dependent on use or productivity, such sale shall be considered a lease or rental of intangible property. All sales of intangible property other than the right to conduct business in a specific area or sales with receipts contingent on productivity or use will be excluded from the sales factor when determining corporate income tax. If it can not be determined or reasonably approximated that a sale occurs in this state, such sale shall excluded from the sales factor for corporate income taxation. This provision is similar to HB 2215 (2014). This provision is similar to a provision in SCS/HB 1296 (2014), SS/SCS/HB 1865 (2014), CCS/SCS/SB 612 (2014), CCS/HCS/SB 662 (2014), CCS#2/HCS/SB 693 (2014), and HCS#2/SCS/SB 777 (2014). SALES TAX ON ADMISSION OR FEES TO CERTAIN PLACES (144.010, 144.018, 144.020) Currently, there is a sales tax on places of amusement, entertainment and recreation, and games and athletic events. This modifies the tax so that it is on charges to view certain commercial attractions. This sales tax shall not apply to amounts paid for the first opportunity to purchase or decline tickets. This sales tax shall also not apply to certain purchases or rights to purchase tickets from a place have a charitable to civic sales tax exemption. This provision is similar in concept to HB 1179 (2014) and a provision contained in SCS/SB 881 (2014). USED MANUFACTURED HOME SALES TAX EXEMPTION (144.044) This act creates a state and local sales and use tax exemption for used manufactured homes. This provision is substantially similar to SB 860 (2014) and HB 1765 (2014). This provision is similar to a provision in CCS#2/HCS/SB 693 (2014) and HCS/SB 777 (2014). SALES TAX EXEMPTION FOR EXPERIMENTAL DRUGS (144.052) This act creates a state and local sales and use tax exemption for prescription drugs, biological products, and devices used to treat terminal illnesses that have not received final approval by the Food and Drug Administration. This provision is similar to HB 2273 (2014). SALES TAX EXEMPTION FOR CERTAIN INDUSTRIES (144.058) This act creates a state sales and use tax exemption for utilities, materials, and machinery used to generate or transmit electricity. This provision is similar to HB 2255 (2014). This act also create a state and local sales and use tax exemption for utilities, materials, and machinery used in connection with a data processing or storage center. ADVERTISING ASSUMPTION OF SALES TAX (144.080) Currently, sellers are prohibited from advertising or holding out to customers that sales tax will be assumed or absorbed by the seller. This act removes this prohibition, provided that the seller states the amount of tax assumed or absorbed on the invoice or receipt for the sale. This provision is similar to HB 1296 (2014). This provision is similar to a provision in HB 1477 (2014), HCS/SB 607 (2014), CCS/HCS/SB 662 (2014), and CCS/HCS/SS/SB 860 (2014). SALES AND USE TAX REFUND (144.190) This act provides that for a sales tax refund to be offset by the Department of Revenue, the assessment of an offset must no longer be subject to an appeal. This provision is similar to HB 2218 (2014) and to a provision contained in CCS/HCS/SS/SB 860 (2014). REGIONAL JAIL DISTRICT SALES TAX (221.407) Currently, regional jail districts are authorized to impose a sales tax of up to 1/2% on sales in the district. The authority to impose this tax expires on September 30, 2015. This act extends the authority of the districts to collect the tax until September 30, 2027. This provision is identical to SB 897 (2014). This provision is identical to a provision in HCS/HB 2112 (2014) and HCS/SCS/SB 824 (2014). MIKE HAMMANN