HCS/SS#2/SB 704 - This act modifies several provisions relating to taxation.TRANSIENT GUEST TAXES
This act authorizes the City of Butler to submit to the voters a transient guest tax not to exceed 6% of the charges per occupied room per night. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.1011)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2562 (2020) and to a provision contained in HCS/SS/SCS/SB 570 (2020) and SCS/HB 1700 (2020).
This act authorizes the City of Springfield to submit to the voters a transient guest tax not to exceed 7.5% of the charges per occupied room per night. Such tax shall be used solely for capital investments that can be demonstrated to increase the number of overnight visitors.
Upon approval by the voters, the city may adopt rules and regulations for the internal collection of the tax, or may enter into an agreement with the Department of Revenue for the collection of the tax. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 94.842)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to SB 387 (2019) and HB 1073 (2019), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 616 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), SS/SCS/SBs 46 & 50 (2019), SCS/HCS/HB 674 (2019), SCS/HB 761 (2019), and SCS/HB 1700 (2020).
This act authorizes the City of Ashland to submit to the voters a transient guest tax not to exceed 5% of the charges per occupied room per night. Such tax shall be used for the promotion of tourism, growth of the region, economic development, and public safety, as described in the act. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 94.1014)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to a provision contained in SCS/SB 770 (2020), HCS/HB 1601 (2020), and SCS/HB 1700 (2020).
This act adds the City of Cameron to the list of cities authorized to propose a transient guest tax for the promotion of tourism. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.1360)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2418 (2020) and to a provision contained in SCS/SB 770 (2020), HCS/HB 1601 (2020), and SCS/HB 1700 (2020).
PUBLIC SAFETY SALES TAXES
This act adds the cities of Clinton, Lincoln, Branson West, Cole Camp, Hallsville, Kearney, Smithville, and Claycomo to the list of cities and villages authorized to levy a sales tax upon voter approval for the purposes of improving public safety. The tax shall be 0.25%, 0.5%, 0.75%, or 1%. The vote for such cities shall occur on a general election day not earlier than the 2022 general election. (Sections 94.900 and 94.902)
These provisions are identical to provisions contained in SS#2/SCS/HCS/HB 1854 (2020), and are substantially similar to SB 873 (2020), HB 1309 (2020), HB 1726 (2020), and HB 1731 (2020), and to provisions contained in HCS/SS#2/SCS/SB 523 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), HCS/SB 774 (2020), SCS/HB 1700 (2020), and HCS/HB 1701 (2020).
FIRE PROTECTION SALES TAXES
Current law authorizes ambulance and fire protection districts in certain counties to propose a sales tax at a rate of up to 0.5%. This act allows such districts to propose a sales tax of up to 1.0%. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 321.552)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2386 (2020) and SB 869 (2020), and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).
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), SCS/SB 770 (2020), HB 805 (2020), SB 872 (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), and is substantially similar to a provision contained in SCS/SB 529 (2020), SCS/HB 1700 (2020), and HCS#2/HB 1957 (2020).
EARLY CHILDHOOD SALES TAX
This act allows Greene County and any city within the county to impose a sales tax, upon approval of a majority of the voters, not to exceed one-fourth of one percent for the purpose of funding early childhood education in the county or city. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.1790)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 1480 (2020) and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).
CAPITAL IMPROVEMENT SALES TAX
This act makes technical corrections to provisions of law authorizing Clay and Platte counties to propose a capital improvement sales tax. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.730)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 1746 (2020) and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).
Current law authorizes the City of Lamar Heights to levy a sales tax of up to 2% on retail sales of food at cafes, cafeterias, lunchrooms, or restaurants for the purpose of funding the construction, maintenance, and operation of capital improvements. This act allows such sales tax to be levied at a rate not to exceed 6% and allows the revenues to be used for general revenue purposes. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 94.838)
This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2180 (2020) and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).
TAX INCREMENT FINANCING
This act modifies local tax increment financing projects by limiting such projects to redevelopment areas that are found to be blighted. This act also provides that a redevelopment area shall not be found to be blighted without a study conducted by a party other than the municipality and developer which details how the redevelopment area meets the definition of "blighted area".
This act modifies the definition of "blighted area".
This act also modifies the definition of "redevelopment plan" and "redevelopment area" to provide that such definitions shall not include "conservation areas" or "economic development areas".
This act modifies local tax increment financing projects by providing that a study shall be conducted by a party other than the proponent of the redevelopment plan, which details how the area meets the definition of an area eligible to receive tax increment financing.
This act prohibits new projects from being authorized in any greenfield area. (Sections 99.805 to 99.843)
These provisions are identical to SB 871 (2020) and SB 311 (2019), are substantially similar to a provision contained in SS/SCS/SB 859 (2018) and HCS/HB 1236 (2018), and are similar to HB 1612 (2020), HCS/SS/SCS/SB 108 (2019), SB 311 (2019), HB 32 (2019), and HB 698 (2019), and to provisions contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020) and HCS/SS#2/SB 704 (2020).
FINANCIAL REPORTS OF POLITICAL SUBDIVISIONS
Current law requires political subdivisions to submit an annual report of the financial transactions of the political subdivision to the State Auditor, with any political subdivision failing to do so subject to a fine of $500 per day. This act provides that any political subdivision that has gross revenues of less than $5,000 or that has not levied or collected sales or use taxes in the fiscal year for which the annual report was not timely filed shall not be subject to the fine. This act also provides that if the annual report was not filed as a result of fraud or other illegal conduct by an employee or officer, such political subdivision shall not be subject to a fine if the annual report is filed within thirty days of the discovery of the fraud or illegal conduct.
The act authorizes the Director of Revenue to make a one-time reduction in the amount of outstanding fines for political subdivisions filing its first annual report after January 1, 2021, or if the Director determines the fine to be uncollectible, as described in the act.
For any political subdivision with outstanding fines or penalties that does not file an annual report by January 1, 2021, or that files such report but fails to file any subsequent report, the Director of Revenue shall initiate the process to disincorporate the political subdivision. If a resident of the political subdivision believes the annual report has not been filed, he or she may file an affidavit with the Department of Revenue, which shall investigate. If the report has not been filed, the political subdivision shall file it within ninety days. If the political subdivision fails after ninety days to file the annual report, the Director of Revenue shall initiate the process to disincorporate the political subdivision.
The question of whether a political subdivision shall be disincorporated shall be submitted to the voters, as described in the act. If a majority of voters vote for disincorporation, the circuit court shall appoint an administrative authority for the political subdivision, as described in the act. (Section 105.145)
This provision is identical to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and SS#2/SCS/HCS/HB 1854 (2020).
WOOD ENERGY TAX CREDIT
Current law provides for a tax credit for the production of certain wood-energy processed wood products, with such tax credit to expire on June 30, 2020. This act extends the tax credit until June 30, 2026. (Section 135.305)
This provision is identical to SB 674 (2020) and HB 2274 (2020), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), HCS/SS#2/SB 704 (2020), and SB 454 (2019).
DOMESTIC VIOLENCE SHELTER TAX CREDIT
Current law authorizes a tax credit for contributions to domestic violence shelters in an amount equal to fifty percent of the contribution, with the maximum annual amount of tax credits limited to $2 million. This act increases the tax credit from fifty percent of the amount contributed to seventy percent beginning July 1, 2021, and increases the limit on the cumulative amount of tax credits claimed by all taxpayers in a fiscal year to $4 million beginning July 1, 2021.
This act also adds a definition of "rape crisis center" to allow taxpayers to receive tax credits for contributions to such facilities. (Section 135.550)
This provision is identical to a provision contained in HCS/SCS/SB 616 (2020), and is substantially similar to SB 958 (2020) and HCS/SB 2349 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020).
PROPERTY TAXES
This act modifies several provisions relating to property taxes.
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 act applies such provision to all counties. (Section 137.115)
This provision is identical to a provision contained in HCS/SB 676 (2020) and SB 579 (2020), and is substantially similar to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and HB 1710 (2020).
For property tax assessments and appeals of such assessments, current law provides that, in first class counties, assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15, 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. For all other counties, assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15, 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.
This act modifies such deadlines to provided that, for all counties, assessors shall notify property owners of an increase in the property owner's assessed valuation by June 1, taxpayers shall appeal to the county board of equalization by the first Monday in July, and the county board of equalization shall meet on the third Monday in July. (Sections 137.180 to 137.385, 138.090)
These provisions are similar to a provision contained in HCS/SB 676 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and HB 1710 (2020).
For property tax assessments, current law provides that assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15. This act requires such notifications in St. Louis County to include information regarding the assessment method and computation of value for such property and, for properties valued using sales of comparable properties, a list of such comparable properties and the address or location and purchase prices from sales thereof that the assessor used in determining the assessed valuation of the owner's property. (Section 137.180)
This provision is identical to a provision contained in SB 547 (2020) and SS#2/SCS/HCS/HB 1854 (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 act 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 substantially similar to SB 655 (2020) and HB 2047 (2020), and to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SB 676 (2020), SB 579 (2020), and HB 1710 (2020), and is similar to a provision contained in HCS/SS/SCS/SB 570 (2020) and HB 1409 (2020).
Current law allows certain counties and St. Louis City to reimburse taxpayers who successfully appeal a property tax assessment to the State Tax Commission for appraisal costs, attorney fees, and court costs, with such reimbursements limited to $1,000 for residential appeals and the lesser of $4,000 or 25% of the tax savings resulting from the appeal for other non-residential appeals. Beginning January 1, 2021, this act increases such limits for St. Louis County to $6,000 for residential appeals and the lesser of $10,000 or 25% of the tax savings resulting from the appeal for other non-residential appeals. (Section 138.434)
This provision is identical to a provision contained in SB 547 (2020) and SS#2/SCS/HCS/HB 1854 (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 act 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/SB 676 (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 act 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/SB 676 (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/SB 676 (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 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/SB 676 (2020).
CLOSURE OF COUNTY HOSPITAL DISTRICTS
This act provides that, upon the dissolution of a county hospital district in Ripley County levying a sales tax for the purpose of funding the district, the sales tax shall be automatically repealed and twenty-five percent of the funds remaining in the special trust fund shall be distributed to the county public health center and seventy-five percent shall be distributed to a federally qualified health center located in the county. (Section 205.202)
This provision is identical to HB 2376 (2020) and to a provision contained in HCS/SCS/SB 616 (2020), SS/SCS/HCS/HB 1682 (2020), SCS/HB 1700 (2020), and SS#2/SCS/HCS/HB 1854 (2020).
CERTIFIED PUBLIC ACCOUNTANTS
Under this act, the Missouri State Board of Accountancy may obtain information regarding peer review from any approved American Institute for Certified Public Accountants peer review program.
The Board may obtain the name and address of the public accounting firm, the firm's dates of enrollment in the program, the date of acceptance and the period covered by the firm's most recently accepted peer review, and if applicable, whether the firm's enrollment in the program has been dropped or terminated. (Section 326.289)
This provision is identical to HB 1417 (2020) and SCS/SB 219 (2019), and to a provision contained in SCS/SB 703 (2020) and CCS/SS/HCS/HB 2046 (2020), and is substantially similar to provisions contained in HB 585 (2019), HB 943 (2019), and SCS/HB 705 (2019).
LIMITED LIABILITY COMPANIES
Every limited liability company (LLC) and foreign limited liability company (foreign LLC) is required to file an information statement with the Secretary of State (SOS) once every 5 years, accompanied by a fee of $15, or $5 if filed electronically. The SOS is permitted to administratively cancel the articles of incorporation of an LLC or the registration of a foreign LLC for failure to timely file an information statement. The act provides procedures for allowing a foreign LLC to apply to the SOS to have its registration reinstated following such a cancellation. Procedures are also created allowing an LLC to apply for reinstatement following the erroneous or accidental filing of a notice of winding up or notice of termination. (Sections 347.044, 347.179, and 347.183)
The act reduces various filing fees imposed on LLC's and partnerships for filing certain documents with the SOS and provides for reduced fees for filing certain documents in an electronic format. Additionally, the act requires a fee of $95 for filing a withdrawal of an erroneously or accidentally filed notice of winding up or articles of termination. (Sections 347.179, 347.183, 358.460, and 358.470)
These provisions are identical to SB 720 (2020), are substantially similar to HCS/HB 1590 (2020), and are similar to SCS/SB 285 (2019) and HB 555 (2019).
MISSOURI WORKS PROGRAM
This act modifies the Missouri Works program to provided that, for qualified military projects, the benefit shall be based on part-time and full-time jobs created by the project. (Sections 620.2005 and 620.2010)
This provision is identical to SB 1057 (2020) and to provisions contained in SS/SCS/SB 718 (2020), and SS#2/SCS/HCS/HB 1854 (2020).
CAPITOL COMPLEX TAX CREDIT ACT
This act creates the Capitol Complex Tax Credit Act.
The Capitol Complex Fund is authorized to receive any eligible monetary donation, as defined in the act, and shall be segregated into two accounts: a rehabilitation and renovation account, and a maintenance account. Ninety percent of the revenues deposited into the fund shall be placed in the rehabilitation and renovation account and seven and one-half percent of revenues deposited in the fund shall be placed in the maintenance account. The remaining two and one-half percent of the funds may be used for the purposes of fundraising, advertising, and administrative costs.
The choice of projects for which money is to be used, as well as the determination of the methods of carrying out the project and the procurement of goods and services, shall be made by the Commissioner of Administration. No moneys shall be released from the fund for any expense without the approval of the Commissioner of Administration.
For all taxable years beginning on or after January 1, 2020, any qualified donor, as defined in the act, shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to fifty percent of the monetary donation amount. Any amount of tax credit that exceeds the qualified donor's state income tax liability may be refunded or carried forward for the following four years.
For all taxable years beginning on or after January 1, 2020, a qualified donor shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to thirty percent of the value of the eligible artifact donation, as defined in the act. Any amount of tax credit that exceeds the donor's tax liability shall not be refunded for artifacts, but the credit may be carried forward for four subsequent years.
The Department of Economic Development shall not issue tax credits for donations to the Capitol Complex Fund in excess of $10 million per year in the aggregate. Donations received in excess of the cap shall be placed in line for tax credits the following year. Alternatively, a donor may donate without receiving the credit or may request that their donation is returned.
Tax credits issued for donations under this act are not subject to any fee. Tax credits issued under this act may be assigned, transferred, sold, or otherwise conveyed.
These provisions shall sunset six years after August 28, 2020, unless reauthorized by the General Assembly. (Section 620.3210)
These provisions are identical to SCS/SB 586 (2020) and HCS/HB 1713 (2020) and to provisions contained in HCS/SS/SCS/SB 570 (2020) and HCS/SCS/SB 616 (2020), and are substantially similar to SB 255 (2019) and to a provision contained in SB 545 (2018), HB 2691 (2018) and SCS/SB 6 (2017).
JOSHUA NORBERG