SCS/HCS#2/HB 713 - This act modifies provisions relating to taxation.SALES TAX REFUNDS
This act requires the Director of Revenue to refund sales and use tax assessments paid by a taxpayer when it is determined by the Administrative Hearing Commission or a court of law that the negligence of or incorrect information provided by an employee of the Department of Revenue resulted in the taxpayer failing to collect and remit sales and use tax assessments that were required to be collected for which the Department of Revenue subsequently audited the taxpayer. A taxpayer shall file a claim for refund not later than April 15, 2024. (Section 136.370)
This provision is identical to SB 203 (2023) and to a provision in SCS/HB 2090 (2022), and is similar to SB 700 (2022), SB 353 (2021), HB 1806 (2020), HCS/HB 422 (2019), HCS/HB 1722 (2018), and HB 223 (2017), and to a provision in SS#2/SCS/SB 649 (2022).
PERSONAL PROPERTY TAXES
Current law requires that personal property be assessed at 33.3% of its true value in money. Beginning January 1, 2024, this act requires that personal property be assessed at 31% of its true value in money.
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. This act instead requires assessors to use the manufacturer's suggested retail price from the year of manufacture of the motor vehicle or farm machinery and apply the ten year depreciation table provided in the act to determine the true value in money of motor vehicles, and apply the five year depreciation table provided in the act to determine the true value in money of farm machinery. 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 substantially similar to SS/SCS/SB 8 (2023) and SB 493 (2023), and to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), SS/SCS/SB 133 (2023), as amended, HCS/SS/SB 143 (2023), and HCS/SB 247 (2023).
INDIVIDUAL INCOME TAX
Current law provides for potential reductions of the individual income tax to an eventual rate of 4.5%, with such reductions conditional on meeting certain net general revenue collections. This act adds an additional five potential reductions to the top rate of tax for an eventual rate of 4.0%. (Section 143.011)
This provision is substantially similar to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SB 143 (2023), HCS/SB 247 (2023), and HCS/HBs 816 & 660 (2023).
CORPORATE INCOME TAX
Current law imposes a tax on the Missouri taxable income of corporations at a rate of 4%. Beginning with the 2024 calendar year, this act reduces such rate of tax to 3.75%. Beginning with the 2025 calendar year, this act allows for three additional potential 0.5% reductions, for an eventual rate of 2.25%. Such additional reductions shall only occur if the amount of corporate income tax revenue collections for the immediately preceding fiscal year exceeds the highest amount of corporate income tax revenue collections from any fiscal year prior to the immediately preceding fiscal year by at least $50 million. (Section 143.071)
This provision is identical to SS/SCS/SBs 93 & 135 (2023) and is substantially similar to HB 1131 (2023) and to a provision in HCS/SS/SB 23 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HCS/SS/SB 143 (2023), HCS/SB 247 (2023), and HCS/HBs 816 & 660 (2023).
BUSINESS INCOME DEDUCTION
Current law authorizes an income tax deduction for a percentage of a taxpayer's business deduction from certain combined sources. This act adds the total combined profit as reported on an IRS Schedule F form and Form 4835. (Section 143.022)
This provision is identical to a provision in HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HS/HCS/HB 356 (2023), and HCS/HB 1023 (2023).
ESOP INCOME TAX DEDUCTION
Current law authorizes an income tax deduction equal to 50% of the net capital gain from selling employer securities to a qualified Missouri employee stock ownership plan, with such deduction scheduled to sunset on December 31, 2022. This act repeals the sunset provision. (Section 143.114)
This provision is identical to HB 512 (2023) and to a provision in CCS/SB 20 (2023), HCS/SS#3/SCS/SB 131 (2023), HCS/SB 247 (2023), HS/HCS/HB 356 (2023), and SCS/HCS/HB 934 (2023), and is similar to a provision in HCS/SS/SB 807 (2022) and HCS/SS/SCS/SB 931 (2022).
RETIREMENT BENEFITS DEDUCTION
Current law authorizes a taxpayer to deduct a maximum of the first $6,000 of any retirement allowance received from any privately funded sources if the taxpayer's Missouri adjusted gross income is less than $16,000 if filing married separately, $25,000 if filing single, or $32,000 if filing married combined. For all tax years beginning on or after January 1, 2024, this act increases such deduction to $12,000 and increases the income thresholds to $32,000, $50,000, and $64,000 respectively. (Section 143.124)
These provisions are identical to provisions in HCS/SS#3/SCS/SB 131 (2023) and HS/HCS/HB 356 (2023), and are substantially similar to SB 241 (2023), SB 448 (2023), SB 585 (2023), HB 156 (2023), HB 456 (2023), HB 662 (2023), HB 1206 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020), and to provisions in SS/SB 190 (2023) and HCS/SB 247 (2023).
BOAT DOCK SALES TAX EXEMPTION
This act authorizes a sales tax exemption for boat dock rentals or leases thereof. (Section 144.030)
This provision is identical to a provision in HCS/SS/SB 143 (2023) and SCS/SB 513 (2023).
DOGS
Current law provides that a dog shall not be permitted in the state unless the owner has paid a dog tax. This act repeals such provision. (Section 273.050)
This provision is identical to a provision in HCS/SS#3/SCS/SB 131 (2023), HCS/SS/SCS/SB 133 (2023), HCS/SB 247 (2023), HCS/HBs 816 & 660 (2023), and HS/HCS/HB 356 (2023).
JOSH NORBERG