Missouri Senate

Senate Substitute

Under current law the general city sales tax law allows cities to impose a sales tax, upon voter approval, at a rate of one-half of 1%, seven-eighths of 1%, or 1%; and the City of St. Louis may impose the tax at a rate not to exceed one and three-eighths percent, for the benefit of the city. This act specifies that the combined rate of sales taxes adopted under the city sales tax law cannot exceed 2%.

Currently, under the capital improvements city sales tax law, cities not in St. Louis County may impose a sales tax, upon voter approval, at a rate of one-eighth, one-fourth, three-eighths, or one-half of 1% for the purpose of funding, operating, and maintaining capital improvements. Municipalities in charter counties are authorized to impose a capital improvements tax under Section 94.890, RSMo. This act provides that the combined rate of sales taxes adopted under the capital improvement city sales tax law cannot exceed 1%.

The changes to the general city sales tax and capital improvements city sales tax law are not to be construed as a new tax or an increase in the current levy of an existing tax for the purpose of the Hancock Amendment which requires voter approval. Cities that have already imposed and collected taxes under the city sales tax law can continue to do so without voter approval as a continuation of a tax previously approved by the voters of the city.

The act allows City of North Kansas City to seek voter approval to impose a transient guest tax of one-half of 1% per room, per night for the promotion of tourism and infrastructure improvements. The City of Grandview is authorized to impose, upon voter approval, a transient guest tax not to exceed 5% per room, per night for the promotion of tourism. The act also allows Montgomery County and the cities of Ashland and Sugar Creek to seek voter approval to impose a transient guest tax of between 2% and 5% per room, per night for the promotion of tourism.

Under current law, the City of St. Joseph and Buchanan County are authorized to seek voter approval to impose a tax of no less than two nor more than eight percent per room per night, on charges for sleeping rooms paid by guests of hotels and motels. The proceeds from the tax must be used for funding the promotion of tourism and convention facilities. This act would permit the city and county to use the proceeds from the tax for capital expenditures incurred in funding the promotion of tourism and convention facilities.

The act also allows the City of St. Joseph and Buchanan County to contract with one another to share transient guest tax revenues for the purpose of promoting tourism and the construction, maintenance, and improvement of convention center and recreational facilities.

Real property owners in Caldwell, Clinton, Daviess, and DeKalb counties are allowed to seek voter approval for the creation of exhibition center and recreational facility districts. If such a district is created, it may seek voter approval for the imposition of a one-quarter of one percent sales tax, for a period not to exceed twenty-five years, to fund the district. This provision is identical to the introduced version of Senate Bill 700 (2010).

Sales for resale will not be subject to sales tax provided such subsequent sale is taxed in this or another state, for resale, or exempt from tax. Two exceptions to the general rule are created for charges for admission or seating accommodations at places of amusement, entertainment, or recreation, and for charges for rooms, meals, and drinks at places such as hotels, motels, taverns, inns, restaurants etc. In the case of the two exceptions, such places must remit tax on the gross receipts received and subsequent sales will not be subject to tax if they are an arms length transaction for fair market value with an unaffiliated entity.

The act creates a state and local sales and use tax exemption for sales of utilities by sports complex authorities at such authority's cost that are consumed in connection with the operation of a sports complex leased to a professional sports team.

Any state or local tax imposed upon transient accommodations will only apply to amounts actually received by operators of places in which rooms are furnished to the public (such as hotels, motels and inns etc.) This provision will not apply if the purchaser is an entity which is exempt from tax.

The act contains an emergency clause for the provision regarding the sales tax treatment of sales for resale.

The act contains provisions which are identical to the perfected version of SCS/SB 644.

JASON ZAMKUS

SA #1 - THIS AMENDMENT:

1) ADDS SECTION 94.900, WHICH AUTHORIZES THE GOVERNING BODY OF THE CITY OF PECULIAR AND BLUE SPRINGS TO SEEK VOTER APPROVAL FOR THE IMPOSITION OF A SALES TAX TO FUND PUBLIC SAFETY IMPROVEMENTS. THE AMOUNT OF THE TAX CANNOT EXCEED ONE-HALF OF ONE PERCENT AND WILL BE IN ADDITION TO ALL OTHER SALES TAXES AUTHORIZED BY LAW. THIS SECTION IS SIMILAR TO SB 447 (2009);

2) ADDS SECTION 94.902, WHICH AUTHORIZES THE CITY OF GRANDVIEW TO SEEK VOTER APPROVAL TO LEVY A SALES TAX OF UP TO ONE-HALF PERCENT TO FUND PUBLIC SAFETY IMPROVEMENTS FOR THE CITY. SUCH IMPROVEMENTS MAY INCLUDE EXPENDITURES ON EQUIPMENT, CITY EMPLOYEE SALARIES AND BENEFITS, AND FACILITIES FOR POLICE, FIRE, AND EMERGENCY MEDICAL PROVIDERS. THIS SECTION IS IDENTICAL TO SB 164 (2009) AND SB 668 (2010);

3) ADDS SECTION 94.1011, WHICH THIS SECTION ALLOWS WAYNESVILLE, UPON VOTER APPROVAL, IMPOSE A TRANSIENT GUEST TAX OF NOT MORE THAN 3% PER ROOM PER NIGHT FOR FUNDING A MULTIPURPOSE CONFERENCE AND CONVENTION CENTER. THIS SECTION IS IDENTICAL TO HB 1388 (2010);

4) ADDS SECTION 137.1040, WHICH ALLOWS THE GOVERNING BODY OF A CITY, TOWN, VILLAGE OR COUNTY TO SUBMIT A PROPOSAL TO THE VOTERS OF SUCH CITY, TOWN VILLAGE OR COUNTY ALLOWING THE MUNICIPALITY TO IMPOSE A PROPERTY TAX TO FUND CEMETERY MAINTENANCE. THE TAX AUTHORIZED UNDER THIS SECTION SHALL NOT EXCEED ONE FOURTH OF ONE CENT PER ONE HUNDRED DOLLARS ASSESSED VALUATION AND SHALL NOT BECOME EFFECTIVE UNTIL APPROVED BY THE VOTERS OF THE CITY, TOWN VILLAGE OR COUNTY. THIS SECTION IS SIMILAR TO SB 168 (2009) AND THE PERFECTED VERSION OF SB 822 (2008). IT IS IDENTICAL TO SB 743 (2010);

5) INCREASES THE AMOUNT OF THE TRANSIENT GUEST TAX FOR NORTH KANSAS CITY FROM ONE AND ONE-HALF PERCENT TO FIVE PERCENT. SECTION 94.832;

6) ADDS SECTION 67.1018, WHICH AUTHORIZES CARTER COUNTY TO SEEK VOTER APPROVAL FOR A TRANSIENT GUEST TAX OF NOT MORE THAN FIVE PERCENT PER OCCUPIED ROOM PER NIGHT. FIFTY PERCENT OF THE TAX REVENUES MUST BE USED FOR LAW ENFORCEMENT WITH THE REMAINING FIFTY PERCENT TO BE USED TO FUND TOURISM; AND

7) ADDS SECTION 94.840, WHICH AUTHORIZES THE CITY OF RAYTOWN TO LEVY A TRANSIENT GUEST TAX ON CHARGES FOR SLEEPING ROOMS PAID BY GUESTS OF HOTELS AND MOTELS FOR THE PURPOSE OF PROMOTION, OPERATION, AND DEVELOPMENT OF TOURISM AND CONVENTION FACILITIES. THE PROPOSED TAX MUST BE SUBMITTED TO THE VOTERS AND SHALL NOT BE GREATER THAN FIVE PERCENT PER OCCUPIED ROOM PER NIGHT.

SA #2 - ALLOWS ONE CHANGE OF HEARING OFFICER FOR EACH PARTY TO AN APPEAL HEARD BY THE STATE TAX COMMISSION. A PARTY TO AN APPEAL NEED NOT SHOW CAUSE TO RECEIVE A CHANGE OF HEARING OFFICER, BUT MUST FILE A WRITTEN APPLICATION TO DISQUALIFY THE ASSIGNED HEARING OFFICER WITHIN THIRTY DAYS OF SUCH ASSIGNMENT. ASSIGNMENT OF A HEARING OFFICER WILL BE DEEMED TO HAVE OCCURRED WHEN THE FIRST SCHEDULING ORDER IS ISSUED BY THE COMMISSION AND SIGNED BY THE HEARING OFFICER ASSIGNED, UNLESS OTHERWISE STATED IN THE ORDER.