SCS/SB 529 - 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 SB 872 (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 the state portion of use tax revenues collected under the provisions of this act; any funds appropriated to the Office of the Governor for expenses related 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.
Subject to appropriation, 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.
When 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 the Debt Retirement Fund, which is created by the act for the retirement of debt related to bonds issued by or on behalf of the state, as described in the act. (Section 33.575)
This provision is substantially similar to SB 858 (2020) and to a provision contained in SS#2/SCS/SB 648 (2020), SB 872 (2020), SCS/HB 1700 (2020), and HB 2172 (2020).
ECONOMIC NEXUS
This act modifies the definition of "engaging in business activities within this state" to include vendors that had cumulative gross receipts of at least $100,000 from the sale of tangible personal property for the purpose of storage, use, or consumption in this state in the previous twelve-month period, as described in the act. Vendors meeting such criteria shall be required to collect and remit the use tax as provided under current law. (Section 144.605)
This provision is identical to a provision contained in SS#2/SCS/SB 648 (2020) and SCS/HB 1700 (2020), and is substantially similar to a provision contained in SB 659 (2020), SB 805 (2020), SB 872 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (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 SB 872 (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).
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, and by repealing ballot language specific to St. Louis County and its municipalities. (Section 144.757)
This provision is identical to a provision contained in SCS/HB 1700 (2020), is substantially similar to 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), 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 similar to a provision contained in HCS#2/HB 1957 (2020).
This act provides that the portion of the local use tax imposed by St. Louis County shall be distributed to the cities, towns, villages, and unincorporated areas of the county on the ratio of the population that each such city, town, village, and unincorporated area bears to the total population of the county. (Section 144.759)
This provision is identical to a provision contained in SCS/HB 1700 (2020).
MARKETPLACE FACILITATORS
Beginning January 1, 2022, marketplace facilitators, as defined in the act, that engage in business activities within the state shall register with the Department to collect and remit use tax on sales delivered 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 shall report and remit use tax collected under this act as determined by the Department. 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.
No class action shall be brought against a marketplace facilitator in any court in this state on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected on retail sales facilitated by a marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. (Section 144.752)
This provision is substantially similar to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 805 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
EFFECTIVE DATE
Provisions of this act relating to economic nexus, marketplace facilitators, and the distribution of local use tax revenue in St. Louis County shall become effective January 1, 2022.
Provisions of this act establishing the Cash Operating Expense Fund contain an emergency clause and shall become effective upon passage and approval.
All other provisions of this act shall become effective August 28, 2020.
JOSH NORBERG