HCS/SB 676 - This act modifies several provisions relating to taxation.PROPERTY TAX ASSESSMENTS
Current law requires the St. Louis County Assessor to conduct a physical inspection of residential real property prior to increasing the assessed valuation of a property by more than fifteen percent since the last assessment, and requires written notification of such inspection. This amendment applies such provision to all counties. (Section 137.115)
This provision is identical to a provision contained in HCS/SS#2/SB 704 (2020) and SB 579 (2020), and is substantially similar to a provision contained in HCS/SS/SCS/SB 570 (2020) and HB 1710 (2020).
For property tax assessments and appeals of such assessments, current law provides that, in first class counties, taxpayers shall appeal to the county board of equalization by the third Monday in June and the county board of equalization shall meet on the first Monday in July. This act modifies such deadlines to provided that taxpayers shall appeal to the county board of equalization by the second Monday in July, and the county board of equalization shall meet on the third Monday in July. (Sections 137.385 and 138.090)
This provision is identical to a provision contained in HCS/SS/SCS/SB 570 (2020) and HB 1710 (2020), and is similar to a provision contained in HCS/SS#2/SB 704 (2020).
For property assessment appeals to the boards of equalization in the City of St. Louis, St. Charles County, and St. Louis County, current law provides that the assessor shall have the burden to prove that the valuation does not exceed the true market value of the property. Additionally, if a physical inspection of a property is required for assessment, the assessor shall have the burden to prove that such inspection was performed. If the assessor fails to provide sufficient evidence that the inspection was performed, the property owner shall prevail on the appeal as a matter of law.
This amendment applies such provisions to appeals in all counties for which the increase in assessed valuation for the subject property exceeds fifteen percent. (Section 138.060)
This provision is identical to a provision contained in HB 1710 (2020), is substantially similar to SB 655 (2020) and HB 2047 (2020), and to a provision contained in SB 579 (2020) and HCS/SS#2/SB 704 (2020), and is similar to a provision contained in HCS/SS/SCS/SB 570 (2020) and HB 1409 (2020).
INCOME TAXES
Current law allows a taxpayer to deduct from his or her Missouri adjusted gross income a portion of his or her federal income taxes paid. This amendment provides that federal income tax credits received under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act shall not be considered when determining the amount of federal income tax liability allowable as a deduction under current law. (Section 143.171)
This provision is identical to a provision contained in HCS/SS#2/SB 704 (2020) and is substantially similar to a provision contained in HCS/SS/SCS/SB 570 (2020).
Current law also requires taxpayers who itemize deductions to include any federal income tax refund amounts in his or her Missouri adjusted gross income if such taxpayer previously claimed a deduction for federal income tax liability on his or her Missouri income tax return. This amendment provides that any amount of a federal income tax refund attributable to a tax credit received under the CARES Act shall not be included in the taxpayer's Missouri adjusted gross income. (Section 143.121)
This provision is identical to a provision contained in HCS/SS#2/SB 704 (2020) and HCS/SS/SCS/SB 570 (2020).
TAXATION OF PARTNERSHIPS
This act requires taxpayers in a partnership to report and pay any tax due as a result of federal adjustments from an audit or other action taken by the IRS or reported by the taxpayer on an amended federal income tax return. Such report shall be made to the Department of Revenue on forms prescribed by the Department, and payments of additional tax due shall be made no later than 180 days after the final determination date of the IRS action, as defined in the act.
Partners and partnerships shall also report final federal adjustments as a result of partnership level audits or administrative adjustment requests, as defined in the act. Such payments shall be calculated and made as described in the act. Partnerships shall be represented in such actions by the partnership's state partnership representative, which shall be the partnership's federal partnership representative unless otherwise designated in writing.
Partners shall be prohibited from applying any deduction or credit on any amount determined to be owed under this act.
The Department shall assess additional tax, interest, and penalties due as a result of federal adjustments under this act no later than three years after the return was filed, as provided in current law, or one year following the filing of the federal adjustments report under this act. For taxpayers who fail to timely file the federal adjustments report as provided under this act, the Department shall assess additional tax, interest, and penalties either by three years after the return was filed, one year following the filing of the federal adjustments report, or six years after the final determination date, whichever is later.
Taxpayers may make estimated payments of the tax expected to result from a pending IRS audit. Such payments shall be credited against any tax liability ultimately found to be due. If the estimated payments made exceed the final tax liability, the taxpayer shall be entitled to a refund or credit for the excess amount, as described in the act.
The provisions of this act shall apply to any adjustments to a taxpayer's federal taxable income or federal adjusted gross income with a final determination date occurring on or after January 1, 2021. (Section 143.425)
This provision is identical to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020), is substantially similar to HB 1734 (2020), SCS/SB 220 (2019), HB 477 (2019), and to a provision contained in SS#2/SB 704 (2020), and is similar to SB 897 (2018).
TERRORIST ATTACK VICTIMS TAX RELIEF
This act establishes the Christopher J. Bosche Memorial Act. The act provides an income tax exemption for victims who die as a result of wounds or injury incurred as a result of the terrorist attacks against the United States on September 11, 2001, or as a result of illness incurred as a result of an attack involving anthrax occurring on or after September 11, 2001, and before January 1, 2002. Such income tax exemption shall apply for the period beginning in the tax year such injuries occurred and ending in the tax year of such victim's death.
The tax exemption provided by this act shall not apply to the amount of any tax imposed which would be computed by only taking into account the items of income, gain, or other amounts determined to be taxable under federal law, as described in the act.
This act shall not apply to any individual as a participant or conspirator in any such attack or a representative of such an individual.
Provisions in current law requiring a claim for refund to be filed within three years from the time the return is filed shall not apply to refunds claimed pursuant to this act. (Section 143.991)
This provision is substantially similar to SB 742 (2020) and to a provision contained in HCS/SS#2/SB 704 (2020).
JOSH NORBERG