HCS HB 1722 Moon, Mike
HCS HB 1722 -- SALES TAX REFUNDS FOR TAX ASSESSMENTS
SPONSOR: Moon
COMMITTEE ACTION: Voted "Do Pass with HCS" by the Standing Committee on Budget by a vote of 27 to 2. Voted "Do Pass" by the Rules- Legislative Oversight Committee by a vote of 10 to 3.
This bill requires the Department of Revenue to refund the sales tax paid in a 10-year period between 2005 and 2015 as a result of an audit when the department expanded its interpretation of sales tax law and the taxpayer did not collect the tax from its customers. The total amount that can be refunded under this bill is $5 million. The department must request an appropriation for any claims that exceed this cap.
This bill has an effective date of July 1, 2019.
This bill is similar to HB 223 (2017).
PROPONENTS: Supporters say that this bill authorizes the repayment of taxes paid because of Department of Revenue (DOR) interpretations and notification by audit. In 2015, SB 18 was passed to address this concern for the future. This bill will allow amounts already paid to be refunded. Many businesses across Missouri were treated this way and had to pay taxes they had not collected. The businesses deserve restitution. One gym had to pay four years of sales tax not collected on services provided while other gyms in the city were not collecting sales tax. The gym was assessed over $200,000 in tax due and actually paid $36,000. DOR will not provide the numbers of businesses and amounts that would qualify for refunds under this bill.
Testifying for the bill was Representative Moon.
OPPONENTS: There was no opposition voiced to the committee.
OTHERS: Others testifying on the bill say DOR cannot provide information relating to the businesses affected by this bill. In 2008, the Gold's Gym Supreme Court case said a gym membership is taxable. All businesses should have started paying tax at that time. Instructional classes were later made tax exempt. This is the result of a court case and not DOR changes.
Testifying on the bill was Department of Revenue.