SB 1374 - This act makes various changes to taxation: 1. CORPORATE TAX (modifies three factor to weighted sales): The act modifies three factor apportionment to be 40% sales, 30% property, and 30% payroll. Current law sets these factors at one-third each. 2. CAR TAX (property): The act phases down the assessment level for car taxes over five years. It reduces the current 33 and 1/3% rate by 20% (6 and 2/3%) per year. The act allows the cost of reducing the assessment level to be proportionally shifted to the three classes of real property. 3. BUSINESS PERSONAL PROPERTY TAX: The act specifies that, for business tangible personal property, the true value in money of the property shall be the installed fair market value of the property. The act defines the exact type of property and defines installed fair market value. The act requires the state tax commission to establish tables to provide assessors with guidance as to the proper valuation of various types of property and the depreciation of such property. Such tables must be reviewed at least every two years. The act enables assessors to adjust an assessment based on various concepts of obsolescence. The act provides that the tables and the assessors adjustments shall be presumed to be valid. 4. DECOUPLE FROM FEDERAL IRC (all income tax): The act decouples from the federal IRC by setting the reference to the IRC in current law as being the IRC as it stood on January 1, 2004. 5. NONRESIDENT PROPERTY TAX DEDUCTIONS: Currently, in certain cases, a nonresident may receive an itemized deduction on their federal return for property taxes paid to another state. Current Missouri law does not require that this amount be "added-back" on the Missouri return. Therefore, the deduction for property taxes paid to another state carries through to apply against the Missouri income tax of a nonresident. The act eliminates this deduction by requiring nonresidents to add-back the amount of the federal deduction on their Missouri tax return. 6. SINGLE RATE TAX (Individual): The act creates a single rate tax on individual income of individuals at a rate of four and one-half percent. The act also replaces most additions, subtractions, and deductions from Missouri adjusted gross income with a larger personal deduction of $10,000 per taxpayer ($20,000 for a combined return, $15,000 for a head of household return, $20,000 for a surviving spouse return, and $1500 for a dependent filer). The act provides both non-resident and partnership allocation and computation of Missouri individual income tax liability. The act has an effective date of January 1, 2005. JEFF CRAVER