TICKET SALES (Sections 67.306 and 578.395)

The act repeals the crime of ticket scalping. The act states that no regulation or ordinance of any city, county, or other political subdivision can prohibit the sale or resale of an admission ticket to any legal event at any price or prohibit the charging of any fee in connection with such sale or resale. Such local governments may, however, enact regulations or ordinances with regard to ticket sales which relate to criminal activity, consumer fraud, false advertising, or other deceptive business practices.

TAX INCREMENT FINANCING (Sections 99.805 and 99.843)

The act prohibits the authorization of new tax increment finance projects in Greenfield areas located in St. Louis City, or the counties of Franklin, Jefferson, St. Charles, and St. Louis.

DISTRESSED AREAS LAND ASSEMBLAGE TAX CREDIT PROGRAM (Section 99.1205)

This act creates the distressed areas land assemblage tax credit program, administered by the department of economic development. Beginning January 1, 2008, the act authorizes tax credits equal to fifty percent of the costs of acquiring eligible parcels of land within an eligible project area and one hundred percent of the interest costs associated with holding such properties for a period of five years. Eligible parcels must be located within an eligible project area which is to be redeveloped. Tax credits issued under the distressed area land assemblage tax credit act, are non-refundable, fully transferrable income, corporate franchise, and financial institutions, tax credits. No more than ten million dollars in tax credits may be issued annually under the program, and the total amount of tax credits which may be issued over the life of the program cannot exceed ninety-five million dollars. If applications for the tax credit exceed ten million dollars in any year, the Department of Economic Development can issue the entire amount to one applicant, if there is only one eligible applicant, or on a pro rata basis to all the eligible applicants. Any eligible amount of tax credits which is not issued because of the ten million dollar annual limit will be carried forward and reserved for the applicant in future years. The authorization of land assemblage tax credits after August 28, 2013, is prohibited, but land assemblage tax credits authorized on or before August 28, 2013, but not yet issued, may be issued until all such credits have been issued.

UTILIZATION OF TAX CREDIT PROGRAMS BY CHARITABLE ORGANIZATIONS

The act modifies provisions of the Neighborhood Assistance Program (Section 32.105) by including in the definition of "business firm", charitable organizations that are exempt from federal income tax.

The definition of "taxpayer" is modified to include charitable organizations that are exempt from federal income tax as it relates to: the Missouri Development Finance Board (Section 100.286); the Neighborhood Preservation Act (Section 135.478); the Transportation Development in a Distressed Area Tax Credit (Section 135.545); the Domestic Violence Shelters Tax Credit (Section 135.550); the Maternity Home Tax Credit (Section 135.600); the Residential Treatment Agency Tax Credit (Section 135.1150); the Small Business Incubator Tax Credit (Section 620.495); and the Qualified Research Expenses Tax Credit (Section 620.1039).

The definition of "person" is modified to include charitable organizations that are exempt from federal income tax as it relates to: the Missouri Certified Capital Company Law (Section 135.500); the Seed Capital Tax Credit (Section 348.300); and the New Enterprise Creation Tax Credit (Section 620.638).

The act also modifies the definitions of "taxpayer" to include charitable organizations that are exempt from federal income tax as it relates to: the Pregnancy Resource Center Tax Credit (Section 135.630); and the Missouri Higher Education Scholarship Donation Fund (Section 173.196). The act also allows such credits to be sold or transferred or otherwise conveyed provided such transfer is made for no less than seventy-five percent of par value and in an amount not to exceed one hundred percent of annual earned credits.

QUALIFIED BEEF TAX CREDIT ACT (Section 135.679) The Qualified Beef Tax Credit Act is established which allows a tax credit for each qualifying sale of a qualifying beef animal. From January 1, 2009, to December 31, 2016, the credit will be equal to ten cents per pound for each pound above the animal's baseline weight, as long as the sale weight is at least two hundred pounds above the baseline weight. The Agricultural and Small Business Development Authority can waive a portion of the weight gain requirement, but only in circumstances where a disaster declaration is issued by the United States Department of Agriculture. A qualifying beef animal must be born in Missouri after August 28, 2008. Such animal must be raised and backgrounded or finished in Missouri by the taxpayer, be less than 30 months old, and be certified by the authority. The tax credit must be claimed in the year in which the qualifying sale occurs. Any unused portion may be carried back three years or carried forward five years. No more than three million dollars in credits can be issued in a fiscal year.

NEW MARKETS TAX CREDIT PROGRAM (Section 135.680)

This act provides an income tax credit in an amount equal to the applicable percentage of the adjusted purchase price paid to the issuer of a qualified equity investment. The amount of investments in any one qualified low-income community business which may be used for calculating the amount of tax credits is limited to ten million for such business including investments in any affiliates of such business. The applicable percentage is zero percent for each of the first two credit allowance dates and seven percent for the third credit allowance date and eight percent for the next four credit allowance dates. The tax credit is non-refundable and non-transferrable, but tax credits earned by "pass - through entities" may be allocated to the partners, members, or shareholders of the entity for their direct use. To the extent that the tax credits issued exceed a taxpayer's liability, the remaining tax credits may be carried forward to the taxpayer's five subsequent tax years. The Department of Economic Development must limit the amount of investments to a level necessary to limit tax credit utilization to no more than fifteen million dollars per fiscal year without regard to the potential for taxpayers carrying forward credits to later years. The act contains provisions allowing the Department of Economic Development to recapture tax credits issued under the act in certain situations. No qualified equity investments may be made after fiscal year 2010, unless the program is reauthorized by the general assembly. While the program is subject to a sunset, the sunset date and annual reauthorization requirement shall not preclude a taxpayer who makes a qualified equity investment prior to the such date from claiming credits issued under the act.

FILM PRODUCTION TAX CREDIT PROGRAM (Section 135.750)

The act modifies provisions of the film production tax credit program by lowering the minimum expected in-state budget expenditure, from $300,000 to $50,000 for qualified film production projects less than thirty minutes in length or to $100,000 for projects longer than thirty minutes, for tax years beginning on or after January 1, 2008. The act removes the limitation on the amount of tax credits which may be issued annually per taxpayer for all tax years beginning on or after December 31, 2007. The annual aggregate cap on all tax credits certified under the program is increased from one million five hundred thousand dollars to four million five hundred thousand dollars. The amount of the tax credit is reduced, beginning January 1, 2008, from fifty percent to thirty-five percent of the amount of qualifying expenses.

The provisions of this section will automatically sunset in six years if not re-authorized.

ENHANCED ENTERPRISE ZONE PROGRAM (Sections 135.950, 135.963 and 135.967)

The act:

(1) Increases the cap on the amount of tax credits that can be issued in a calendar year for the program from seven million dollars per year to fourteen million dollars per year;

(2) Modifies the definition of an "employee" to a person employed by the enhanced business enterprise that is scheduled to work an average of at least 1,000 hours per year. Health insurance must be offered to employees at all times and must be partially paid by the employer. Currently, the definition of an "employee" includes full-time, part-time, and seasonal employees;

(3) Adds educational services, religious organizations, and public administration to the list of entities which are prohibited from being enhanced business enterprises. However, headquarters or administrative offices which would otherwise be excluded may qualify for benefits if the offices serve a multi-state territory;

(4) Allows speculative industrial or warehouse buildings constructed by a public entity, or a private entity if the land is leased by a public entity, to be exempt from ad valorem taxes, upon the approval of the governing authority. If the speculative building is owned by a private entity, the exemption cannot exceed two years. If it is owned or leased by a public entity, the exemption cannot exceed five years. Currently, only enhanced business enterprises can be exempt from these taxes; and

(5) Requires the department to verify through the Department of Revenue that the tax credit applicant does not owe any delinquent taxes, interest, or penalties and to verify through the Department of Insurance, Financial Institutions, and Professional Registration that the applicant does not owe any delinquent insurance taxes prior to issuing any tax credits. The amount of tax credits issued will be reduced by any tax delinquency.

SALES TAX EXEMPTIONS FOR AUTOMOBILE MANUFACTURING (Section 144.030)

Under current law, in order for a manufacturer to receive an exemption from sales tax for electrical energy used in the primary manufacture of a product, the manufacturer must prove that the total cost of electricity used exceeds ten percent of the total cost of production or that the raw materials used in the primary manufacture of a product contain at least twenty-five percent recovered materials. This act creates a rebuttable presumption that the raw materials used in the primary manufacture of automobiles contain at least twenty-five percent recovered materials.

VOCATIONAL SCHOOLS (Section 178.716)

The act authorizes the residents of the counties of Bollinger, Butler, Cape Girardeau, Dunklin, Mississippi, New Madrid, Pemiscot, Ripley, Scott, Stoddard, and Wayne to organize a vocational school district. The Coordinating Board for Higher Education must establish specified standards for the district.

NEW JOBS TRAINING PROGRAM (Sections 178.895 and 178.896)

The act allows community college districts to sell training program certificates until July 1, 2018, and extends the program until July 1, 2028. Currently, it will expire on July 1, 2018, and the authorization to sell certificates expires July 1, 2008.

MISSOURI WORKFORCE INVESTMENT BOARD (Sections 620.511 - 620.513, 620.521 - 620.530, and 620.537)

The Missouri Workforce Investment Board is established to provide workforce investment activities that increase the employment, retention, and earnings of participants and improve the quality of the workforce, reduce welfare dependency, and enhance the productivity and competitiveness of Missouri. The act specifies the membership and terms of the board members and requires the board to meet the requirements of the federal Workforce Investment Act (WIA) of 1998 and assist the Governor with the functions described in Section 111(d) of the WIA 29 USC 2821d. The board must meet at least four times per year and submit an annual report of its activities to the Governor and General Assembly.

The Missouri Training and Employment Council Act is repealed and the Missouri Training and Employment Council is dissolved.

QUALITY JOBS PROGRAM (Sections 620.1878 and 620.1881)

The act:

(1) Increases the cap on the amount of tax credits that can be issued in a calendar year for the program from twelve million dollars to forty million dollars;

(2) Allows tax credits to offset taxes due from financial institutions under Chapter 148, RSMo. Currently, the credits can only be used to offset state income taxes imposed by Chapter 143;

(3) Modifies the definition of "withholding tax" to a computation using a schedule determined by the Department of Economic Development based on average wages. Currently, the definition is the state tax imposed by Sections 143.191 - 143.265;

(4) Allows the calendar year's maximum amount of quality jobs tax credits issued to a qualifying company that participates in both the Quality Jobs Program and the New Job Training Program to be increased by an amount equivalent to the withholding tax retained by that company under the New Job Training Program if the combined benefits do not exceed the projected state benefits of the project;

(5) Requires that if the calendar year's annual maximum amount of quality jobs tax credits issued to any qualified company is increased by $1 million, the number of new jobs must exceed 500. Currently, this increase in tax credits can occur by receiving the approval of the department and the Quality Jobs Advisory Task Force;

(6) Specifies the method in which the county average wage will be calculated when a qualified company relocates employees from one county to another;

(7) Revises the definition of "full-time employee" from an employee who works an average of 35 hours per week to an employee of the qualified company that is scheduled to work an average of 35 hours per week, but leaves the remaining requirements of the definition unchanged;

(8) Changes the calculation of "new direct local revenue" so that local earnings taxes are excluded;

(9) Specifies that no jobs created before the notice of intent will be considered new jobs;

(10) Specifies the method in which new payroll will be calculated;

(11) Adds educational services, religious organizations, public administration, and utilities regardless of whether or not they are regulated by the Missouri Public Service Commission to the list of entities which are prohibited from being qualified companies. However, headquarters or administrative offices which would otherwise be excluded may qualify for benefits if the offices serve a multi-state territory;

(12) Allows qualified companies to retain withholding taxes once the minimum number of new jobs has been attained and the county average wage has been exceeded. A qualified company will not receive tax credits if in its annual report, the average wage is below the county average wage, the company has not maintained the required employee insurance, or if the number of new jobs is below the minimum;

(13) Creates a new tax credit within the program for small business job retention and flood survivors relief. The amount of the tax credit will be equal to the amount of withholding tax generated by the full-time jobs retained over a period of three years. The calendar year maximum amount of tax credits which may be issued for small business retention and flood survivor relief is two hundred and fifty thousand dollars, but such amount may be increased up to five hundred thousand dollars if proposed by the department of economic development. No tax credits for small business job retention and flood survivor relief may be issued after August 30, 2010. A qualified company is prohibited from receiving benefits under the job retention and flood survivor relief provisions of the Missouri Quality Jobs Act if such company received any state or federal benefits, incentives, or tax relief or abatement in locating its facility in a flood plain;

(14) Requires the department of economic development to give preference, in providing benefits under the quality jobs act, to qualified companies and projects targeted at areas of the state which have recently been classified as disaster areas by the federal government;

(15) Requires the department to verify through the Department of Revenue that the tax credit applicant does not owe any delinquent taxes, interest, or penalties and to verify through the Department of Insurance, Financial Institutions, and Professional Registration that the applicant does not owe any delinquent insurance taxes prior to issuing any tax credits. The amount of tax credits issued will be reduced by any tax delinquency; and

(17) Requires qualified companies which receive benefits under the Missouri quality jobs act, which knowingly hire unauthorized workers to forfeit such benefits and repay the state the amount of state tax credits redeemed or withholding taxes retained.

JASON ZAMKUS