- Introduced -

SB 1248 - This act modifies various provisions of law for the purpose of funding the "Schools of the Future Fund". The act:

(1) Allows the State Treasurer to make certain money market mutual fund investments as a part of the Treasurer's investment policy;

(2) Includes in the list of securities to be approved by the Governor and State Auditor, general obligation bonds of any political subdivision in the US rated in the highest category by at least one rating agency;

(3) Revises the Treasurer's method of calculating interest, and such method is to be used by the director of revenue by January 1, 2003;

(4) Modifies the repayment of refunds or overpayments to taxpayers in that no interest shall be applied to a repayment that is made within 120 days of the date of the return or the last day for filing;

(5) Requires that amnesty shall be granted for all interest and additions to tax with respect to unpaid taxes that are paid in full between August 1, 2002, and September 30, 2002; such amnesty shall not apply to persons involved in a criminal or civil litigation related to the tax liability nor to persons involved in an appeal to the Administrative Hearing Commission or a protest with the department of revenue regarding such tax liability; certain other requirements must be met and a collection fee may be imposed;

(6) Modifies multistate allocation of corporate income for Missouri corporate income tax purposes to apply multistate apportionment principles to the same;

(7) Creates a new section with respect to affiliated groups and related entities; with respect to those parties, the act modifies the way losses and operating expenses are deducted among such parties for various types of property, including intellectual property; minimum standards are established regarding what connections among various corporate entities constitute related parties and affiliated groups for multistate corporate income purposes;

(8) Modifies the carry-back of overpayments to tax with respect to tax credits which are retroactively claimed by a taxpayer by amended return so that such taxpayer will not receive the benefit of retroactive interest for such claimed overpayment;

(9) Permits overcollected or overpaid sales taxes to be credited to a retailer only if the retailer can demonstrate to the satisfaction of the director of revenue that the amounts refunded were or will be returned to the party who originally paid the tax;

(10) Repeals the loss limit on excursion gambling boats; and

(11) Increases the admission fee for embarking on a gambling boat to five dollars from two dollars, of which one dollar will be deposited in the fund listed below.

All additional revenues accrued by any of the above listed modifications or changes to policy shall by deposited in the Schools of the Future Fund, which is created in the act. Money in the fund shall be appropriated solely for the purpose of fully funding state aid to public schools.

JEFF CRAVER