SS/SCS/SB 905 - This act brings Missouri sales and use tax laws into compliance with the Streamlined Sales and Use Tax Agreement. The act provides that when a political subdivision changes the rate of tax such change must take effect on the first day of the second calendar quarter after the Director of Revenue receives notice of such change. When a city annexes property, the change to the tax rate will take place on the first day of the second calendar quarter after the Director of Revenue receives notice of the boundary change. If a political subdivision repeals an existing tax, such repeal will become effective on the last day of the last calendar year quarter.
The act requires the department to allow on-line registration for out-of-state sellers. The department of revenue must provide electronic databases for taxing jurisdiction boundary changes, tax rates, and a taxability matrix detailing taxable property and services. Sellers will be relieved from liability if they fail to properly collect tax based upon a certain information provided by the department.
The act provides uniform sourcing rules to determine what tax rates will apply to certain transactions. The department of revenue is authorized to require sellers to report taxes electronically on simplified returns. The act incorporates streamlined sales and use tax uniform definitions for terms such as "delivery charges", "food" "lease or rental", "purchase price", "sales price", "tangible personal property" as well as other modified definitions. The act sets out additional requirements for sellers where purchasers claim sales or use tax exemptions. The department of revenue is required to accept electronic payments. Sellers will be allowed to deduct uncollectable bad debts attributable to taxable sales from sales tax remittances. The act provides rounding rules for the determination of taxes owed. The act provides rules for determining the taxability of transactions bundled transactions involving both taxable and non-taxable items or services.
Amnesty will be available for sellers under certain circumstances following registration with the state. Monetary allowances will be provided to sellers and certified services providers for collecting and remitting state and local taxes not to two percent of the taxes collected. Sellers and certified service providers are prohibited from simultaneously receiving the monetary allowance and the two percent timely filed discount provided under current law.
The act repeals section 67.1971 which allowed a reduction of the sales tax rate for transactions with businesses which also collect a local tourism tax and would result in a tax base violation under the provisions of the Streamlined Sales and Use Tax Agreement.
The provisions of this act will become effective on January 1, 2012.
The act is similar to Senate Bill 19 (2009), Senate Bill 1020 (2008), Senate Bill 576 (2007), Senate Bill 1173 (2006), and Senate Bill 399 (2005).
JASON ZAMKUS