HCS/SS/SB 143 - This act modifies provisions relating to taxation.NEIGHBORHOOD ASSISTANCE TAX CREDIT
Current law authorizes a tax credit for business firms which engage in providing affordable housing assistance activities or market rate housing in distressed communities, with the amount of such tax credits equal to fifty percent of the total amount contributed. This act increases such tax credit to seventy percent of the total amount contributed. (Section 32.115)
This provision is identical to a provision in HCS/HB 714 (2023) and is substantially similar to HCS/HB 1210 (2023) and to a provision in SCS/SB 455 (2023).
ADMINISTRATION OF PROPERTY TAX ASSESSMENTS
This act requires that certain compensation paid to county assessors, other than county assessors in a first class county, shall be paid from the Assessment Fund. (Sections 53.084 and 137.750)
Current law requires certain reimbursements made to county assessors to be subject to appropriation and made in the manner provided by the Commissioner of Administration. This act provides that such reimbursements shall be made from the Assessment Fund. (Section 53.260)
Current law subjects county assessors to a fine of not less than ten dollars for receiving property lists that have not been sworn to by certain officers. This act repeals such fine. (Section 137.150)
This act allows county assessors to provide certain required notifications by electronic notification at the record owner's request. (Section 137.180)
This act allows the use of satellite imagery and geographic information systems to replace plat books if the required information is included in such systems. (Section 137.220)
Current law provides for the compensation of county recorders for compliance with certain duties relating to the county land list, and also provides for penalties for failure to comply. This act repeals such provisions. (Section 137.415)
This act repeals several sections relating to the administration of property tax assessments, including the repeal of the Office of State Ombudsman for Property Assessment and Taxation within the State Tax Commission.
These provisions are identical to provisions in SB 514 (2023).
SENIOR CITIZEN PROPERTY TAX CREDIT
Current law authorizes an income tax credit for certain senior citizens and disabled veterans in amount equal to a portion of such taxpayer's property tax liabilities, with the amount of the credit dependent on the taxpayer's income and property tax liability. This act modifies the definition of "income" to increase the amount deducted from Missouri adjusted gross income from $2,000 to $2,800, or, for claimants who owned and occupied the residence for the entire year, such amount is increased from $4,000 to $5,800. (Section 135.010)
The maximum allowable credit under current law is limited to $750 in rent constituting property taxes actually paid or $1,100 in actual property tax paid. This act increases such amounts to $1,055 and $1,550, respectively, and annually adjusts such maximum amounts for inflation. (Section 135.025)
Additionally, current law limits the tax credit to qualifying taxpayers with an income of $27,500 or less, or $30,000 in the case of a homestead owned and occupied by a claimant for the entire year. This act increases such maximum income to $38,200, or $42,200 in the case of a homestead owned and occupied by a claimant for the entire year, and annually adjusts both amounts for inflation. (Section 135.030)
These provisions are identical to HCS/HB 1134 (2023) and to provisions in HCS/SB 247 (2023), and are substantially similar to provisions in SS/SCS/SB 15 (2023), HCS/SS/SCS/SB 133 (2023), and HB 1351 (2023).
FIREARMS EXCISE TAX INCOME TAX CREDIT
For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit for taxpayers making sales of firearms or ammunition. The tax credit shall be equal to the amount of the federal firearms and ammunition excise tax imposed on the sale of such firearms and ammunition sold by the taxpayer during the tax year.
Tax credits authorized by the act shall not be refundable, and shall not be transferred, sold, or assigned. A taxpayer shall not be able to claim a tax credit pursuant to the act if the taxpayer also retained sales taxes pursuant to the act for the same federal firearms excise tax paid.
This act shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.098)
This provision is identical to a provision in HCS/SS#3/SCS/SB 131 (2023).
ADOPTION TAX CREDIT
Current law authorizes a nonrefundable tax credit for nonrecurring adoption expenses, not to exceed $10,000 per child, with an annual limit of $6 million dollars in tax credits. This act indexes the maximum per-child credit for inflation, makes the tax credit refundable, removes the $6 million limit, and provides that, for tax years ending on or before December 31, 2023, priority for authorizing tax credits shall be given to applications for special needs children who are residents or wards of residents of this state. (Sections 135.327 to 135.333)
These provisions are identical to provisions in HCS/HB 714 (2023) and are substantially similar to provisions in SCS/SB 455 (2023).
YOUTH OPPORTUNITIES AND VIOLENCE PREVENTION TAX CREDIT
Current law authorizes a tax credit in the amount of 50% of contributions made to certain youth programs. This act increases such tax credit to 70% of the amount of such contributions made. (Section 135.460)
This provision is identical to a provision in SCS/SB 455 (2023) and HCS/HB 714 (2023).
FOOD PANTRY TAX CREDIT
Current law authorizes tax credits for donations made to local food pantries, local soup kitchens, and local homeless shelters, with such tax credits limited to annual authorizations of $1.75 million. This act increases the maximum amount of annual authorizations to $2.75 million.
Additionally, such tax credits are scheduled to sunset on December 31, 2026. This act extends the sunset date to December 31, 2027. (Section 135.647)
This provision is identical to SB 488 (2023) and to a provision in SCS/HCS/HB 154 (2023), and is substantially similar to HCS/HB 653 (2023) and to a provision in HCS/SS/SCS/SB 92 (2023).
CHILD CARE CONTRIBUTION TAX CREDIT
This act establishes the "Child Care Contribution Tax Credit Act".
For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit in an amount up to 75% of the taxpayer's contribution to a child care provider. A child care provider shall issue the taxpayer a contribution verification within sixty days of receiving a contribution, and shall remit such verification to the Department of Economic Development. A failure to issue a contribution verification to a taxpayer shall entitle the taxpayer to a refund of the donation.
Donations made under the act shall be used directly by a child care provider to promote child care for children 12 years of age and younger, shall not be made to a child care provider in which the taxpayer has a direct financial interest, and shall not be made in exchange for care of a child or children of the taxpayer. A child care provider that uses a contribution for an ineligible purpose shall repay to the Department the value of the tax credit used for such ineligible purpose.
Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act.
The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for contributions made to child care providers located in a child care desert, as such term is defined in the act.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1310)
This provision is identical to a provision in SCS/SB 184 (2023), SS#3/HCS/HB 268 (2023), HCS/HB 350 (2023), SCS/HCS/HB 668 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023).
EMPLOYER PROVIDED CHILD CARE ASSISTANCE TAX CREDIT
This act establishes the "Employer-Provided Child Care Assistance Tax Credit Act".
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit in an amount equal to 30% of qualified child care expenditures, as defined in the act, paid or incurred by an employer providing child care for its employees. The amount of the tax credit authorized under this act shall not exceed $200,000 per taxpayer per tax year. A facility shall not be considered a child care facility for the purposes of the act unless enrollment in the facility is open to employees of the taxpayer, and at least 30% of the enrollees of the facility are dependents of employees of the taxpayer if the facility is the principal business of the taxpayer.
Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act.
The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for qualified child care expenditures for child care facilities located in a child care desert, as such term is defined in the act.
Tax credits authorized by this act shall be subject to recapture, as described in the act.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1325)
This provision is identical to a provision in SCS/SB 184 (2023), SS#3/HCS/HB 268 (2023), HCS/HB 350 (2023), SCS/HCS/HB 668 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023).
CHILD CARE PROVIDERS TAX CREDIT
This act establishes the "Child Care Providers Tax Credit Act".
For all tax years beginning on or after January 1, 2024, this act authorizes child care providers with three or more employees to claim a tax credit in an amount equal to the child care provider's eligible employer withholding tax, as defined in the act, and may also claim a tax credit in an amount up to 30% of the child care provider's capital expenditures, as defined in the act, provided that such capital expenditures are not less than $1,000. The amount of the tax credit authorized under this act shall not exceed $200,000 per child care provider per tax year.
A child care provider shall submit to the Department of Elementary and Secondary Education an application for the tax credit on a form to be provided by the Department. The child care provider shall provide proof of any capital expenditures for which the provider is claiming a tax credit.
Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act.
The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for child care providers located in a child care desert, as such term is defined in the act.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1350)
This provision is identical to a provision in SCS/SB 184 (2023), SS#3/HCS/HB 268 (2023), HCS/HB 350 (2023), SCS/HCS/HB 668 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023).
URBAN FARMS TAX CREDIT
Current law authorizes a tax credit for fifty percent of eligible expenses incurred for establishing or improving an urban farm. This act expands such tax credit to include expenses incurred for establishing or improving a small-scale specialty crop farm in a food desert, as such terms are defined in the act. This act also modifies the definition of "urban farm" to provide that urban farms shall not exceed five acres in size. Additionally, the maximum amount of such tax credits that may be authorized in a calendar year is increased from $200,000 to $400,000. (Section 135.1610)
This provision is substantially similar to HB 1383 (2023) and to a provision in SB 636 (2023) and HB 1125 (2023).
GROCERY STORE TAX CREDIT
For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit for expenses incurred in the establishment of a full-service grocery store located in a food desert, as such terms are defined in the act. The tax credit shall be equal to fifty percent of eligible expenses that are in excess of initial expenses, which shall be at least $1 million in eligible expenses if the full-service grocery store is located in a charter county, a first class county, or in St. Louis City, or at least $500,000 if located in any other county.
A taxpayer shall apply to the Department of Economic Development and shall indicate the amount of eligible expenses, the date of the commencement of construction and operations, and any other information required by the Department.
The tax credit authorized by this act shall not exceed $2.5 million per tax year and shall not be refundable, but may be carried forward for three subsequent tax years. The total amount of tax credits authorized under this act shall not exceed $22 million per calendar year, and shall be issued on a first-come, first-served basis.
The Department shall recoup from a taxpayer any amount of tax credits issued if the taxpayer fails to complete construction of the full-service grocery store within five years of commencement of the project or if the taxpayer fails to operate the full-service grocery store for at least ten consecutive years. A taxpayer shall annually submit a report to the Department indicating compliance with the act.
This act shall expire on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1620)
This provision is substantially similar to SCS/SB 790 (2022), HB 2871 (2022), HB 596 (2021), HB 1412 (2021), and HB 1495 (2020), and to a provision contained in SCS/SB 188 (2021).
SUCCESS TAX CREDIT
This act establishes the "Supporting Use of Child Care for Economic Stability and Security (SUCCESS) Tax Credit".
For all tax years beginning on or after January 1, 2024, a taxpayer that claims a federal tax credit for employment-related expenses, as defined pursuant to federal law, relating to the care of a child or other dependent of the taxpayer, shall be eligible for a tax credit equal to the amount of such expenses incurred for up to two qualifying children, as defined in the act, but shall not exceed $1,800 for a child under two years of age or $1,200 for a child two years of age or older.
Tax credits authorized by the act shall not be transferred and, refunded, or carried forward or back to any other tax year.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.2560)
This provision is identical to a provision in HCS/HB 870 (2023) and HCS/HB 350 (2023), and is substantially similar to HB 1335 (2023).
STATE TAX COMMISSION
This act allows computer programs to be substituted for assessment books and assessment rolls if such programs create the required tables and information. (Section 137.110)
Current law provides that the failure of a county clerk to create and forward an abstract of the assessment book to the State Tax Commission by July 20 shall be a misdemeanor. This act repeals such provision. (Sections 137.245 and 137.375)
This act requires the administrative secretary of the State Tax Commission to publish the Commission's annual report on the Commission's website. (Section 138.260)
This act allows the State Tax Commission to use an electronic seal for online documents and files transferred by computer. (Section 138.330)
This act allows pleadings, reports, and decisions relating to hearings of the State Tax Commission to be posted and transmitted electronically. (Sections 138.433 and 138.440)
These provisions are identical to provisions in SB 514 (2023) and HB 134 (2023).
ASSESSMENT OF MOTOR VEHICLES
Current law requires assessors to use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide to determine the true value of motor vehicles for the purposes of property tax assessments. For the 2023 tax year, this act requires the State Tax Commission to require an assessor to use such publication or the Kelley Blue Book, Edmunds, or another similar publication, and allows the assessor to use the current or any of the three immediately previous years' October issue of such publication.
For all tax years beginning on or after January 1, 2024, this act requires assessors to use the manufacturer's suggested retail price as depreciated using a ten year depreciation table provided in the act. When the manufacturer's suggested retail price data is not available from an approved source or the assessor deems it not appropriate for a vehicle, the assessor may obtain a manufacturer's suggested retail price from a source that he or she deems reliable and shall apply the depreciation schedule provided by the act. (Section 137.115)
This provision contains an emergency clause.
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), and HCS/SB 247 (2023), and is substantially similar to SB 493 (2023) and SCS/HCS#2/HB 713 (2023), and to a provision in SS/SCS/SB 133 (2023), as amended, and is similar to SS/SCS/SB 8 (2023).
INDIVIDUAL INCOME TAXES
Current law provides that the top rate of income tax is 4.95%, with additional potential reductions conditional on meeting certain revenue triggers, for an eventual top rate of 4.5%. Beginning with the 2024 calendar year, this act reduces the top rate of tax to 4.5% and maintains the additional potential reductions in current law, for an eventual top rate of 4.05%. (Section 143.011)
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SB 247 (2023), and HCS/HBs 816 & 660 (2023), and is substantially similar to a provision in SCS/HCS#2/HB 713 (2023).
CORPORATE INCOME TAXES
Current law levies a tax on the Missouri taxable income of corporations at a rate of 4.0%. For all tax years beginning on or after January 1, 2024, this act reduces such rate to 2.0%. Additionally, beginning in the 2026 calendar year, the corporate income tax rate shall be reduced to 1.0% if in any fiscal year after the 2024 fiscal year the amount of net corporate income tax revenue collected exceeds the amount collected during the 2024 fiscal year by at least $50 million. Finally, beginning in the calendar year following the calendar year in which the rate of tax is reduced to 1.0%, the corporate income tax rate may be reduced to 0% if during any fiscal year the amount of net general revenue collected during the immediately preceding fiscal year exceeds the amount of net general revenue collected during the fiscal year in which the rate of tax was reduced to 1.0% by at least $250 million.
For all tax years beginning after the fiscal year in which the corporate income tax is eliminated, no corporate income tax credits shall be claimed in any tax years in which there is no tax imposed on the Missouri taxable income of corporations. (Section 143.071)
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HCS/SB 247 (2023), and HCS/HBs 816 & 660 (2023), is substantially similar to HB 1131 (2023), and is similar to SS/SCS/SBs 93 & 135 (2023) and to a provision in SCS/HCS#2/HB 713 (2023).
RETIREMENT BENEFITS INCOME TAX DEDUCTION
Current law allows taxpayers with certain filing status and adjusted gross income below certain thresholds to deduct 100% of Social Security retirement and disability benefits from the taxpayer's Missouri adjusted gross income, with a reduced deduction as the taxpayer's adjusted gross income increases. For all tax years beginning on or after January 1, 2024, this act allows the maximum deduction to all taxpayers regardless of filing status or adjusted gross income and allows the deduction to be taken for Social Security retirement, disability, survivors, and supplemental benefits. (Section 143.125)
This provision is identical to a provision in HCS/SS/SB 23 (2023), HCS/SS#2/SCS/SB 96 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HB 156 (2023), HB 456 (2023), HB 662 (2023), and HCS/HBs 816 & 660 (2023), and is substantially similar to a provision in SS/SB 190 (2023), SB 241 (2023), HCS/SB 247 (2023), SB 448 (2023), SB 585 (2023), HB 1206 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020).
SALES TAX EXEMPTIONS
This act authorizes a sales tax exemption for the purchase of diapers, as defined in the act.
This provision is identical to HB 290 (2023), SB 1124 (2022), and HB 2384 (2022), and to a provision in SS/SCS/SBs 73 & 162 (2023), SCS/HCS/HB 154 (2023), and SS#2/SCS/SB 649 (2022), and is substantially similar to HB 351 (2023), HB 744 (2023), and HCS/HBs 1679, 2859, & 2272 (2022), and to a provision in SCS/SB 184 (2023), HCS/HBs 876, 771, 676 & 551 (2023), and HB 1136 (2023).
This act also provides a sales tax exemption for all purchases of feminine hygiene products, defined as tampons, pads, liners, and cups.
This provision is identical to SB 433 (2023) and SB 897 (2022), and to a provision in SS/SCS/SBs 73 & 162 (2023), is substantially similar to HB 351 (2023) and HCS/HBs 1679 (2022), 2859, & 2272 (2022), and to a provision in SCS/HCS/HB 154 (2023), HCS/HBs 876, 771, 676 & 551 (2023), and HB 1136 (2023), and is similar to SB 800 (2020), HCS/HBs 1306 & 2065 (2020), SB 443 (2019), and HB 747 (2019), and to a provision contained in HCS/SS/SCS/SB 570 (2020).
This act authorizes a sales tax exemption for boat dock rentals or leases thereof.
This provision is identical to a provision in SCS/SB 513 (2023) and SCS/HCS/HB 713 (2023).
Current law provides a sales tax exemption for certain durable medical equipment as defined on January 1, 1980, by the federal Medicare program. This act removes the reference to January 1, 1980.
Additionally, current law provides a sales tax exemption for the sales or rental of manual and powered wheelchairs, including parts. This act applies the exemption to accessories for such wheelchairs. (Section 144.030)
This provision is identical to SB 173 (2023) and to a provision in SCS/HCS/HB 154 (2023), and is similar to SB 943 (2022), HB 1864 (2022), and SB 483 (2021), and to a provision in SS/SCS/SB 649 (2022), SB 743 (2022), CCS/HCS/SB 226 (2021).
FIREARMS EXCISE TAX SALES TAXES
Beginning August 28, 2023, this act provides that all sales of firearms and ammunition sold in this state shall be exempt from state and local sales taxes.
Beginning August 28, 2023, from every remittance of sales tax to the Director of Revenue made by a person selling firearms or ammunition, the person shall be entitled to deduct and retain an amount equal to the amount of the federal firearms and ammunition excise tax paid by such person on the sale of ammunition and firearms sold by such person. (Section 144.064)
This provision is identical to a provision in HCS/SS#3/SCS/SB 131 (2023), is substantially similar to SB 1102 (2022) and SB 567 (2021), and is similar to HB 749 (2023).
JOSH NORBERG