HCS/SS/SB 23 - This act enacts provisions relating to commerce. ASSESSMENT OF MOTOR VEHICLES (Sections 137.115 and B) Current law requires assessors to use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide to determine the true value of motor vehicles for the purposes of property tax assessments. For the 2023 tax year, this act requires the State Tax Commission to require an assessor to use such publication or the Kelley Blue Book, Edmunds, or another similar publication, and allows the assessor to use the current or any of the three immediately previous years' October issue of such publication. For all tax years beginning on or after January 1, 2024, this act requires assessors to use the manufacturer's suggested retail price as depreciated using a ten year depreciation table provided in the act. When the manufacturer's suggested retail price data is not available from an approved source or the assessor deems it not appropriate for a vehicle, the assessor may obtain a manufacturer's suggested retail price from a source that he or she deems reliable and shall apply the depreciation schedule provided by the act. These provisions contain an emergency clause. These provisions are substantially similar to SB 493 (2023) and to provisions in SS/SCS/SB 8 (2023), provisions in HCS/SS#3/SCS/SB 131 (2023), provisions in SS/SCS/SB 133 (2023), provisions in HCS/SS/SB 143 (2023), provisions in HCS/SB 247 (2023), and provisions in SCS/HCS#2/HB 713 (2023). MOTOR FUEL TAX REFUNDS (Sections 142.815, 142.822, and 142.824) Current law authorizes refunds for purchases of motor fuel used for tax-exempt purposes. Beginning October 1, 2023, this act authorizes a taxpayer to submit appropriate documentation to an entity exempt from taxation for federal purposes under Section 501(c)(3) of the federal tax code and authorizes such entity to claim the taxpayer's refund. Additionally, the taxpayer may deduct the amount of such refund from the taxpayer's Missouri adjusted gross income. Current law requires motor fuel tax refunds that are issued for motor fuel tax charged in excess of $0.17/gallon to be issued on a fiscal year basis. This act provides that, beginning with the 2024 fiscal year, such refunds shall be issued on a tax year basis. The act allows a taxpayer to claim such refund based on itemized receipts retained by the taxpayer, with the amount of such refund equal to the amount of motor fuel tax paid by the taxpayer during the tax year. Alternatively, the taxpayer may claim a standard refund in an amount equal to $30 for the 2023 tax year, and increasing to $75 for all tax years beginning on or after January 1, 2026, as described in the act. Such refund shall be submitted on a form with the taxpayer's income tax return and shall have such refund applied to the taxpayer's income tax liability. Current law provides that the exemption and refund of motor fuel tax charged in excess of $0.17/gallon shall only be available for motor vehicles with a gross weight of 26,000 pounds or less. This act authorizes such exemption and refund for motor vehicles that exceed such weight if the motor vehicle is owned by a corporation licensed in Missouri with its primary headquarters in this state, or owned by a sole proprietor whose home office is located in this state. This act requires the Department of Revenue to develop a mobile application that allows motor fuel tax refund claims to be submitted on a person's phone at the time of motor fuel purchase in lieu of the procedures authorized by the act. These provisions are similar to HB 519 (2023), HB 520 (2023), provisions in HB 778 (2023), HB 2654 (2022), HB 2758 (2022), and HB 2888 (2022). PERSONAL INCOME TAXES (Sections 143.011 and 143.125) Current law provides that the top rate of income tax is 4.95%, with additional potential reductions conditional on meeting certain revenue triggers, for an eventual top rate of 4.5%. Beginning with the 2024 calendar year, this act reduces the top rate of tax to 4.5% and maintains the additional potential reductions in current law, for an eventual top rate of 4.05%. (Section 143.011) These provisions are identical to provisions in HCS/HBs 816 & 660(2023), provisions in HCS/SS#3/SCS/SB 131 (2023), provisions in HCS/SS/SB 143 (2023), and provisions in HCS/SB 247 (2023), and substantially similar to provisions in SCS/HCS#2/HB 713 (2023). Current law allows taxpayers with certain filing status and adjusted gross income below certain thresholds to deduct 100% of Social Security retirement and disability benefits from the taxpayer's Missouri adjusted gross income, with a reduced deduction as the taxpayer's adjusted gross income increases. For all tax years beginning on or after January 1, 2024, this act allows the maximum deduction to all taxpayers regardless of filing status or adjusted gross income and allows the deduction to be taken for Social Security retirement, disability, survivors, and supplemental benefits. (Section 143.125) These provisions are identical to provisions in HCS/HBs 816 & 660 (2023), provisions in HCS/SS#3/SCS/SB 131 (2023), provisions in HCS/SS/SB 143 (2023), HB 156 (2023), HB 456 (2023), and HB 662 (2023), and substantially similar to provisions in SB 241 (2023), provisions in HCS/SB 247 (2023), SB 448 (2023), SB 585 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020). CORPORATE INCOME TAXES (Section 143.071) Current law levies a tax on the Missouri taxable income of corporations at a rate of 4.0%. For all tax years beginning on or after January 1, 2024, this act reduces such rate to 2.0%. Additionally, beginning in the 2026 calendar year, the corporate income tax rate shall be reduced to 1.0% if in any fiscal year after the 2024 fiscal year the amount of net corporate income tax revenue collected exceeds the amount collected during the 2024 fiscal year by at least $50 million. Finally, beginning in the calendar year following the calendar year in which the rate of tax is reduced to 1.0%, the corporate income tax rate may be reduced to 0% if during any fiscal year the amount of net general revenue collected during the immediately preceding fiscal year exceeds the amount of net general revenue collected during the fiscal year in which the rate of tax was reduced to 1.0% by at least $250 million. For all tax years beginning after the fiscal year in which the corporate income tax is eliminated, no corporate income tax credits shall be claimed in any tax years in which there is no tax imposed on the Missouri taxable income of corporations. (Section 143.071) These provisions are identical to provisions in HCS/HBs 816 & 660 (2023), provisions in HCS/SS#3/SCS/SB 131 (2023), provisions in HCS/SS/SCS/SB 133 (2023), provisions in HCS/SS/SB 143 (2023), substantially similar to HB 1131 (2023), and similar to SS/SCS/SBs 93 & 135 (2023) and provisions in SCS/HCS#2/HB 713 (2023). COLLECTION OF SALES TAX BY MOTOR VEHICLE DEALERS (Sections 144.020 and 144.070) This act provides that following development of the Department of Revenue's modernized system for vehicle titling and registration, driver licensing, and liens, licensed motor vehicle dealers shall collect and remit to the Department the sales tax due on all motor vehicles the dealer sells. These provisions are identical to provisions in the truly agreed to and finally passed HCS/SS/SCS/SB 398 (2023), provisions in CCS/HCS/SB 47 (2023), provisions in HCS/HB 894 (2023), provisions in HCS/SS/SCS/SBs 56 & 61 (2023), and provisions in SCS/HB 415 (2023), and similar to provisions in SB 66 (2023), HB 1733 (2022), provisions in SS/SB 762 (2022), SB 967 (2022), SB 720 (2022), HB 1873 (2022), HB 2740 (2022), SB 273 (2021), HB 235 (2021), HB 668 (2021), HB 1598 (2020), HB 2740 (2022), HB 809 (2021), HB 599 (2021), and HB 667 (2021). MOTOR VEHICLE FRANCHISE PRACTICES ACT (Sections 407.812 and 407.828) This act prohibits certain entities from engaging in the business of selling motor vehicles, except as permitted by the Motor Vehicle Franchise Practices Act ("MVFP Act"), and specifies parties that shall have standing to enforce the prohibitions. (Section 407.812). The act also modifies provisions applicable to warranty services. Under the act, compensation for the services is based on rates charged by the franchisee rather than on rates charged by comparable franchisees in the market. (Section 407.828.1-3). Claims not disapproved by the franchisor in writing within 30 days shall be considered approved and paid within 15 days, rather than within 10 days. (Section 407.828.6). The act exempts certain part assemblies from the requirement that franchisors compensate franchisees for recall work in the same manner as warranty work. (Section 407.828.8). Lastly, the act specifies procedures for franchisees to file complaints with the Administrative Hearing Commission. Franchisees may file claims within 60 days, rather than 30 days, after receiving an adverse decision on a claim under the act. Franchisors shall file an answer to the complaint within 30 days, and a hearing shall be held within 60 days of the franchisee's answer. If the Administrative Hearing Commission finds a franchisor has violated the requirements of the warranty statute, the franchisor shall compensate the franchisee as required by law. (Section 407.828.12). These provisions are identical to provisions in the truly agreed to and finally passed HCS/SS/SCS/SB 398 (2023) and provisions in HCS/SS/SCS/SBs 56 & 61 (2023), and similar to provisions in HCS/HB 894 (2023). ERIC VANDER WEERD