HCS/SS/SCS/SB 570 - This act modifies several provisions relating to taxation.ST. LOUIS CITY ASSESSOR
Current law requires assessors in each county to be elected every four years, but exempts St. Louis City from such requirement. This act removes such exemption and requires the St. Louis City assessor to be elected every four years. (Section 53.010)
This provision is identical to a provision contained in HCS/SS#2/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and HB 1710 (2020).
This section shall not become effective until the passage and approval of a constitutional amendment allowing all county assessors to be elected.
SENIOR CITIZENS' SERVICES FUND
This act authorizes the board of directors managing the Senior Citizens' Services Fund in the City of St. Louis to solicit, accept, and expend grants from private or public entities and enter into agreements so long as the transaction is in the best interest of the programs provided by the board and proceeds are used exclusively to fund such programs. (Sections 67.990 and 67.993)
This provision is identical to HB 1560 (2020) and to a provision contained in HCS/SS/SCS/SB 594 (2020).
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. (Section 67.1011)
This provision is identical to HB 2562 (2020) and to a provision contained in SCS/HB 1700 (2020), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (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. (Section 94.842)
This provision is identical to SB 387 (2019) and HB 1073 (2019), and to a provision contained in 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), and is substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and SS#2/SCS/HCS/HB 1854 (2020).
AIM ZONES
Under current law, no advanced industrial manufacturing (AIM) zone may be established after August 28, 2023. This act extends such date to August 28, 2030. (Section 68.075)
This provision is identical to SB 636 (2020) and HB 2334 (2020), and to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SB 686 (2020), HCS/SCS/SB 725 (2020), HCS/SB 782 (2020), and HCS/SCS/SB 867 (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%. (Sections 94.900 and 94.902)
These provisions are identical to 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 594 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), HCS/SB 774 (2020), and HCS/HB 1701 (2020) and are substantially similar to SB 873 (2020) and to provisions contained in HCS/SS#2/SB 704 (2020), SCS/HB 1700 (2020), and SS#2/SCS/HCS/HB 1854 (2020).
BLIGHTED HOME TAX CREDIT
This act authorizes a tax credit in the amount of $5,000 for any taxpayer that is a first time home buyer that purchases certain blighted property, as described in the act, for use as a single-family, principal resident for at least two years following the rehabilitation of the property.
The tax credit issued under this act shall not be refundable or transferrable, but may be carried back three years or carried forward to any subsequent five years. (Section 99.720)
This provision shall sunset on December 31, 2026, unless reauthorized by the General Assembly.
This provision is identical to HB 1588 (2020).
TAX INCREMENT FINANCING
This act modifies the definitions of "blighted area" and "conservation area", and creates new definitions for "port infrastructure projects", "retail area", and "retail infrastructure projects". (Section 99.805)
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 also provides that retail areas, as defined in the act, shall not receive tax increment financing unless such financing is exclusively utilized to fund retail infrastructure projects, as defined in the act, or unless such area is a blighted or conservation area. (Section 99.810)
For tax increment financing projects approved or amended after December 31, 2020, the City of St. Louis may provide for the deposit of up to 10% of the tax increment financing revenues generated by the project into a Strategic Infrastructure for Economic Growth Fund to be established by the city. Moneys deposited in such fund may be expended by the city for the purpose of funding capital investments in public infrastructure that is located in a census tract that is defined as a low-income community or is eligible to be designated as a Qualified Opportunity Zone under federal law. (Section 99.821)
This act prohibits new projects from being authorized in any Greenfield area. (Section 99.843)
This act allows a school district to vote to exclude the school district's operating levy for school purposes from the definition of "levies upon taxable real property in such redevelopment project by taxing districts" for the purpose of funding tax increment financing districts. Before the school board may vote on such exclusion, the question shall be placed on the agenda at two consecutive meetings of the school board, and public comments on the matter shall be allowed at both meetings. The school board may then vote upon the matter. If at least a two-thirds majority of the school board votes in favor of removing the operating levy from the definition, the definition shall not include the district's operating levy for school purposes. (Section 99.846)
This act also prohibits new projects from being authorized in an area designated as a flood plain by the Federal Emergency Management Agency unless such projects are located in 1) Jackson, Platte, or Clay counties; 2) the cities of Springfield or St. Joseph, 3) in a port district, provided such financing is utilized for port infrastructure projects; or 4) in a levee or drainage district created prior to August 28, 2020. This provision shall not apply to tax increment financing projects or districts approved prior to June 30, 2021, and such projects may be modified, amended, or expanded by not more than forty percent of such projects' original projected cost. Projects in flood plains shall not be authorized in St. Charles County unless the redevelopment area actually abuts a river or major waterway, as described in the act. (Section 99.847)
Current law allows districts and counties imposing a property tax for the purposes of providing emergency services to be entitled to reimbursement from the special allocation fund of a portion of the district's or county's tax increment. For projects approved after August 28, 2020, this act modifies such provision to allow reimbursement to ambulance districts, fire protection districts, and governing bodies operating a 911 center providing dispatch services and which impose economic activity taxes for such purposes. (Section 99.848)
These provisions are substantially similar to HB 1612 (2020), HCS/SS/SCS/SB 108 (2019), and HB 698 (2019), and to provisions contained in HCS/SCS/SB 616 (2020) and HCS/SS#2/SB 704 (2020), and are similar to SB 871 (2020), SB 311 (2019), HB 32 (2019), and SS/SCS/SB 859 (2018).
COMMUNITY LAND TRUST TAX CREDIT
For all tax years beginning on or after January 1, 2021, this act allows a taxpayer to claim a tax credit in an amount equal to the difference between the actual property tax liability on the property for a tax year and the property tax liability that would have been levied on the property if the assessed valuation of the property were equal to the price paid for the property by the taxpayer.
Tax credits issued under the act shall not be refundable or transferrable, and shall not be carried forward or backward.
This provision shall expire on August 28, 2026, unless reauthorized by the general assembly. (Section 135.180)
This provision is identical to HB 2716 (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/SCS/SB 616 (2020), HCS/SS#2/SB 704 (2020), and SB 454 (2019).
SPECIAL NEEDS ADOPTION TAX CREDIT
Current law authorizes a tax credit for nonrecurring adoption expenses incurred for the adoption of a special needs child. This act modifies such tax credit by changing the name to the Adoption Tax Credit, and by allowing taxpayers to claim such tax credit for the adoption of any child on or after January 1, 2021. (Sections 135.325 to 135.335)
These provisions are identical to HCS/HB 2171 (2020) and to provisions contained in HCS/HB 2216 (2020).
HOMELESS SERVICES TAX CREDIT
This act authorizes a tax credit in the amount of an eligible taxpayer's income tax liability, not to exceed $10,000. The act defines an eligible taxpayer as a taxpayer who is a qualified provider of employment services, employment, or housing to homeless persons. The Department of Higher Education and Workforce Development, Department of Labor, and the Missouri Housing Development Commission shall determine who qualifies as a qualified provider of services under this act. (Section 135.390)
This provision shall sunset on August 28, 2026, unless reauthorized by the General Assembly.
This provision is identical to HB 1587 (2020).
DOMESTIC VIOLENCE SHELTER TAX CREDIT
Current law authorizes a tax credit for contributions made to shelters for victims of domestic violence. For all tax years beginning on or after January 1, 2021, this act modifies such tax credit by allowing taxpayers to claim a tax credit in the amount of $1,000 if such taxpayer has converted abandoned property into an operational shelter for victims of domestic violence. For all tax years beginning on or after January 1, 2021, the act also authorizes a tax credit in the amount of $500 for taxpayers that rent residential real estate to a victim of domestic violence. (Section 135.550)
This provision is identical to HB 2523 (2020).
SCHOOL TEACHER TAX CREDIT
For all tax years beginning on or after January 1, 2021, this act authorizes a tax credit in the amount of $500 for any taxpayer that is a school teacher that both lives and teaches within a school district located in Kansas City, Jackson County, the City of St. Louis, or St. Louis County. (Section 135.1300)
This provision shall sunset on December 31, 2026, unless reauthorized by the General Assembly.
This provision is identical to HB 2109 (2020).
FOOD DESERT TAX CREDIT
This act authorizes a tax credit to a taxpayer incurring eligible expenses for reestablishing a full-service grocery store in the same location within a food desert, as defined in the act, where a formerly operational grocery store has been permanently closed. The tax credit shall be equal to fifty percent of such eligible expenses after initial expenses as described in the act.
The tax credit authorized by this act shall not be refundable, and no taxpayer shall receive a tax credit in excess of $2.5 million per tax year. The cumulative amount of tax credits authorized under this act shall not exceed $25 million. (Section 135.1620)
This provision shall sunset on December 31, 2026, unless reauthorized by the General Assembly.
This provision is identical to HB 1495 (2020) and HB 2110 (2020).
AGRICULTURAL LAND VALUES
This act prohibits the State Tax Commission from promulgating a rule increasing agricultural land productive values by more than two percent over the value in effect prior to the rule change or by more than eight percent over the lowest value in effect in any of the ten years prior to the rule change. (Section 137.021)
This provision is identical to SB 983 (2020) and HB 2321 (2020), and is substantially similar to SB 548 (2018), HB 1721 (2018), SB 364 (2017), HCS/HB 1036 (2017), SS/SB 543 (2014), and HB 2178 (2014), and to a provision contained in HCB 16 (2018) and HCS/HB 1640 (2014).
PROPERTY TAX ASSESSMENTS
Current law provides that, in any charter county or in St. Louis City, if a valuation of residential real property is made by computer, computer-assisted method, or a computer program, the burden of proof shall be on the assessor at any hearing or appeal. This act modifies such provision to require the burden of proof to be on the assessor at any hearing or appeal in any county in the state and St. Louis City, regardless of whether a computer, computer-assisted method, or a computer program was used.
Current law requires assessors to conduct a physical inspection of a property prior to increasing the assessment of such property by more than 15%. This act requires such inspection prior to increasing an assessment by more than 10%. This act also modifies additional physical inspection requirements applicable only to St. Louis County by making such requirements applicable to the whole state.
These provisions are identical to provisions contained in HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and HB 1710 (2020), and are similar to a provision contained in SCS/SBs 675 & 705 (2020), HCS/SS#2/SB 704 (2020), and SB 579 (2020).
This act also prohibits an increase in the valuation of any real property by more than ten percent from the previous assessed valuation, unless the increase is due to new construction and improvements.
This provision is identical to a provision contained in HCS/SS/SCS/SB 594 (2020) and HCS/SCS/SB 725 (2020), and is similar to a provision contained in SCS/SBs 675 & 705 (2020).
Additionally, this act prohibits an increase in the valuation of any residential real property for the duration of time that such property is located in a legally defined subdivision immediately adjacent to any subdivision that receives a tax abatement. (Section 137.115)
This provision is identical to HB 2701 (2020).
This section shall not become effective until the passage and approval of a constitutional amendment authorizing a statutory limitation on increases in assessed valuations.
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. This act modifies such deadline to provided that taxpayers shall appeal to the county board of equalization by the second Monday in July. (Section 137.385)
This provision is identical to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SB 676 (2020), HCS/SCS/SB 725 (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 act applies such provisions to appeals in all charter counties, first class counties, and the City of St. Louis. (Section 138.060)
This provision is similar to SB 655 (2020) and to a provision contained in SB 579 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SB 676 (2020), HCS/SS#2/SB 704 (2020), HCS/SCS/SB 725 (2020), HB 1710 (2020), HB 2047 (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 substantially similar to a provision contained in HCS/SS#2/SB 704 (2020) and HCS/SB 676 (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/SB 676 (2020) and HCS/SS#2/SB 704 (2020).
For all tax years beginning on or after January 2, 2021, this act authorizes an income tax deduction for charitable contributions made by a taxpayer. The deduction shall be equal to the total amount of contributions made, less five hundred dollars, provided that the deduction does not exceed fifty percent of the taxpayer's federal adjusted gross income. (Section 143.1300)
This provision shall sunset on August 28, 2026, unless reauthorized by the General Assembly.
FEMININE HYGIENE PRODUCTS SALES TAX
Beginning October 1, 2020, this act provides that the rate of sales tax imposed on the retail sale of feminine hygiene products, as defined in the act, shall not exceed the rate of sales tax imposed on the retail sale of food. (Section 144.016)
This provision is identical to HCS/HBs 1306 & 2065 (2020) and is substantially similar to SB 800 (2020), SB 443 (2019), and HB 747 (2019).
CHARTER SCHOOLS
This act modifies the calculation of the amount a school district with one or more pupils attending a charter school shall pay to the charter school.
Under this act, provisions of current law setting forth aid payments for charter schools shall only apply to school years ending on or before June 30, 2021. For school years beginning on or after July 1, 2021, each charter school and each school district responsible for distributing local aid to charter schools shall include as part of their annual independent audit, an audit of pupil residency, enrollment, and attendance in order to verify pupil residency in the school district or local education agency.
A school district having one or more resident pupils attending a charter school shall pay to the charter school an annual amount equal to the product of the charter school's weighted average daily attendance and the state adequacy target, multiplied by the dollar value modifier for the district, less the charter school's share of local effort, plus all other state aid attributable to such pupils, plus local aid received by the school district, divided by the total weighted average daily attendance of the school district and all charter schools within the school district. Local aid is defined as all local and county revenue received by the school district and charter schools within the school district.
A charter school that has declared itself a local educational agency shall receive all state aid calculated under this act from the Department, and all local aid calculated under the act from the school district. A charter school shall receive an annual amount as set forth in the act.
Each month the school district shall calculate the amount of local aid owed to the charter school by the school district, and the school district shall pay such amount to the charter school. If any payment of local aid is due, the school district shall make monthly payments on the twenty-first day of each month, beginning in July of each year. If the school district fails to make timely payments to the charter schools, the Department shall impose any penalty deemed appropriate.
Each school district shall, as part of an annual audit, include a report converting the local aid received from an accrual basis to a cash basis. Such report shall be made publicly available on its district website.
The Department shall be required, under this act, to conduct an annual review of any payments made in the previous fiscal year to determine whether there has been any underpayment or overpayment. Such review shall include a calculation of the amount of local aid owed to charter schools using the first preceding year's annual audit. The school district shall pay to the charter school the amount calculated by such review. In the event of an underpayment, the school district shall remit the underpayment amount to the charter school. In the event of an overpayment, the charter school shall remit the overpayment amount to the school district. If the school district or charter school fails to remit any required payment, the Department shall impose any penalty deemed necessary.
If a prior year correction of the amount of local aid is necessary, the school district shall recalculate the amount owed to the charter school or provide a bill to the charter school for any overpayment amount. (Section 160.415)
These provisions are identical to SCS/SB 734 (2020) and HCS/HB 1664 (2020), and to provisions contained in HCS/SS/SCS/SB 528 (2020), and are substantially similar to provisions contained in SB 527 (2020).
CALCULATION OF SCHOOL AID
This act provides that, for all fiscal years beginning on or after July 1, 2021, any increase in the amount of fines received shall not be included in the calculation of a school district's local effort. (Section 163.011)
This provision is identical to HB 1818 (2020) and to a provision contained in HCS/SS/SCS/SB 528 (2020) and HCS/SCS/SB 617 (2020).
IRON COUNTY SCHOOL FUND
This act prohibits money received into the Iron County School Fund from the payment of penalties under the administrative order issued by the Department of Natural Resources on August 30, 2019, from being included in the calculation of local effort for the Iron County School District. (Section 163.024)
This provision is identical to HCS/HB 1817 (2020) and to a provision contained in HCS/SS/SCS/SB 528 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 617 (2020), HCS/SCS/SB 725 (2020), and SCS/HCS/HB 1540 (2020).
TIME ZONES
This act establishes the "Targeted Industrial Manufacturing Enhancement Zones Act".
This act allows any two or more contiguous or overlapping political subdivisions, as defined in the act, to create targeted industrial manufacturing enhancement (TIME) zones for the purpose of completing infrastructure projects to promote economic development. Prior to the creation of a TIME zone, each political subdivision shall propose an ordinance or resolution that sets forth the names of the political subdivisions which will form the zone, the general nature of the proposed improvements, the estimated cost of such improvements, the boundaries of the proposed TIME zone, and the estimated number of new jobs to be created in the TIME zone. The political subdivisions shall hold a public hearing prior to approving the ordinance or resolution creating the TIME zone.
This act allows the zone board governing the TIME zone to retain twenty-five percent of withholding taxes on new jobs created within the TIME zone to fund improvements made in the TIME zone. Prior to retaining such withholding taxes, the zone board shall enter into an agreement with the Department of Economic Development. Such agreement shall specify the estimated number of new jobs to be created, the estimated average wage of new jobs to be created, the estimated net fiscal impact of the new jobs, the estimated costs of improvements, and the estimated amount of withholding tax to be retained over the period of the agreement. The Department shall not approve an agreement unless the zone board commits to the creation of a certain number of new jobs, as described in the act.
The term of such agreement shall not exceed ten years. A zone board may apply to the Department for approval to renew any agreement. In determining whether to approve the renewal of an agreement, the Department shall consider the number of new jobs created and the average wage and net fiscal impact of such new jobs, and the outstanding improvements to be made within the TIME zone, the funding necessary to complete such improvements, and any other factor the Department requires. The Department may approve the renewal of an agreement for a period not to exceed ten years. If a zone board has not met the new job creation requirements by the end of the agreement, the Department shall recapture the withholding taxes retained by the zone board.
The zone board shall submit an annual report to the Department and to the General Assembly, as described in the act.
No political subdivision shall establish a TIME zone with boundaries that overlap the boundaries of an advanced industrial manufacturing (AIM) zone.
The total amount of withholding taxes retained by TIME zones under this act shall not exceed $5 million per year.
This provision shall sunset on August 28, 2023, unless reauthorized by the General Assembly. (Section 620.2250)
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), and is substantially similar to HCS/HB 1695 (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/SCS/SB 616 (2020) and HCS/SS#2/SB 704 (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).
JOSH NORBERG