SB 872 - This act modifies several provisions relating to use taxes.USE TAX MAPPING
Current law requires the Department of Revenue to create and maintain a mapping feature on its website that displays various sales tax information. This act requires such mapping feature to include use tax information. Political subdivisions collecting a use tax shall send such data to the Department of Revenue by January 1, 2021, and the Department shall implement the mapping feature using the use tax data by August 28, 2021. (Section 32.310)
This provision is identical to a provision contained in SCS/SB 529 (2020) and HB 2172 (2020), and is substantially similar to a provision contained in SS#2/SCS/SB 648 (2020), SB 805 (2020), SCS/HB 1700 (2020), and HB 1895 (2020).
CASH OPERATING EXPENSE FUND
This act establishes the "Cash Operating Expense Fund", which shall consist of use tax revenues collected under the provisions of this act from marketplace facilitators; any funds appropriated to the Office of the Governor for expenses incident to emergency duties performed by the National Guard, matching funds for federal grants and emergency assistance, and expenses of any state agency responding during a declared emergency, as described in the act, that are unexpended at the end of a fiscal year; and moneys appropriated by the General Assembly.
The Governor may transfer moneys from the fund into the General Revenue Fund in any fiscal year in which actual revenues are less than the revenue estimates upon which appropriations were based or in which there is a budget need due to a natural disaster, as proclaimed by the Governor to be an emergency.
If the balance in the fund at the close of any fiscal year exceeds 2.5% of net General Revenue collections for the previous year, such excess shall be divided evenly between the State Road Fund and debt retirement related to bonds issued by or on behalf of the state, as described in the act. (Section 33.575)
This provision is identical to a provision contained in HB 2172 (2020) and is substantially similar to SB 858 (2020) and to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), and SCS/HB 1700 (2020).
ECONOMIC NEXUS
Beginning January 1, 2022, this act modifies the definition of "engaging in business activities in this state" for use tax purposes to include selling tangible personal property for delivery into this state, provided such vendor had cumulative gross receipts of at least $100,000 from such sales in the previous or current calendar year. (Section 144.605)
This provision is identical to a provision contained in HB 2172 (2020) and is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 805 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), and HB 2238 (2020).
TAXING JURISDICTION DATABASE
This act requires the Director of Revenue to provide and maintain a downloadable electronic database at no cost to the user of the database for taxing jurisdiction boundary changes and tax rates. Such databases may be directly provided by the Director, or may be provided by a third party as designated by the Director.
Vendors shall not be liable for reliance upon erroneous data provided by the Director on tax rates, boundaries, or taxing jurisdiction assignments. (Section 144.637)
This provision is identical to a provision contained in SCS/SB 529 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), and HB 2172 (2020), and is substantially similar to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 805 (2020), HB 1895 (2020).
MARKETPLACE FACILITATORS
By January 1, 2022, marketplace facilitators, as defined in the act, that engage in business activities in the state shall register with the Department to collect and remit use tax on sales made into the state through the marketplace facilitator's marketplace by or on behalf of a marketplace seller, as defined in the act. Such retail sales shall include those made directly by the marketplace facilitator as well as those made by marketplace sellers through the marketplace facilitator's marketplace.
Marketplace facilitators properly collecting and remitting use tax in a timely manner shall be eligible for any discount provided for under current law.
Marketplace facilitators shall provide purchasers with a statement or invoice showing that the use tax was collected and shall be remitted on the purchaser's behalf. (Section 144.752)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 805 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
LOCAL USE TAX BALLOT LANGUAGE
This act modifies ballot language required for the submission of a local use tax to voters by including language stating that the approval of the local use tax will eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers. (Section 144.757)
This provision is identical to SB 652 (2020) and HB 1584 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), HCS/SS#2/SB 704 (2020), SCS/SB 770 (2020), SB 805 (2020), SS#2/SCS/HCS/HB 1854 (2020), HB 1895 (2020), HB 2172 (2020), HB 2238 (2020), SCS/SB 189 (2019), SS/SCS/SBs 46 & 50 (2019), SS/HCS/HB 255 (2019), SCS/HCS/HB 674 (2019), and HB 701 (2019), is substantially similar to a provision contained in SCS/SB 529 (2020) and SCS/HB 1700 (2020), and is similar to a provision contained in HCS#2/HB 1957 (2020).
EFFECTIVE DATE
The provision relating to establishing the Cash Operating Expense Fund contains an emergency clause and shall become effective upon passage and approval.
The provisions relating to economic nexus and marketplace facilitators shall become effective January 1, 2022.
All other provisions of this act shall become effective August 28, 2020.
JOSH NORBERG