House Committee Substitute

COMMUNITY IMPROVEMENT DISTRICTS

Current law requires the governing body of a municipality to adopt an ordinance to establish a proposed community improvement district. This act requires such ordinance to be approved by a two-thirds majority vote if the proposed district utilizes a sales tax as a proposed funding mechanism. (Sections 67.1421)

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 substantially similar to SB 493 (2023) and HCS#2/HB 713 (2023), and is similar to SS/SCS/SB 8 (2023).

MOTOR FUEL TAX REFUNDS

Current law authorizes refunds for purchases of motor fuel used for tax-exempt purposes. Beginning October 1, 2023, this act authorizes a taxpayer to submit appropriate documentation to an entity exempt from taxation for federal purposes under Section 501(c)(3) of the federal tax code and authorizes such entity to claim the taxpayer's refund. Additionally, the taxpayer may deduct the amount of such refund from the taxpayer's Missouri adjusted gross income.

Current law requires motor fuel tax refunds that are issued for motor fuel tax charged in excess of $0.17/gallon to be issued on a fiscal year basis. This act provides that, beginning with the 2024 fiscal year, such refunds shall be issued on a tax year basis. The act allows a taxpayer to claim such refund based on itemized receipts retained by the taxpayer, with the amount of such refund equal to the amount of motor fuel tax paid by the taxpayer during the tax year. Alternatively, the taxpayer may claim a standard refund in an amount equal to $30 for the 2023 tax year, and increasing to $75 for all tax years beginning on or after January 1, 2026, as described in the act. Such refund shall be submitted on a form with the taxpayer's income tax return and shall have such refund applied to the taxpayer's income tax liability.

Current law provides that the exemption and refund of motor fuel tax charged in excess of $0.17/gallon shall only be available for motor vehicles with a gross weight of 26,000 pounds or less. This act authorizes such exemption and refund for motor vehicles that exceed such weight if the motor vehicle is owned by a corporation licensed in Missouri with its primary headquarters in this state, or owned by a sole proprietor whose home office is located in this state.

This act requires the Department of Revenue to develop a mobile application that allows motor fuel tax refund claims to be submitted on a person's phone at the time of motor fuel purchase in lieu of the procedures authorized by the act. (Sections 142.815, 142.822, and 142.824)

These provisions are identical to HB 519 (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/HBs 816 & 660 (2023).

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/HBs 816 & 660 (2023), and is substantially similar to a provision in SB 241 (2023), SB 247 (2023), SB 448 (2023), SB 585 (2023), SB 871 (2022), HB 2853 (2022), SB 157 (2021), SB 847 (2020), and HB 1725 (2020).

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/HBs 816 & 660 (2023).

TRANSPORTATION DEVELOPMENT DISTRICTS

Current law requires a transportation development district (TDD) to submit a proposed project to the Missouri Highways and Transportation Commission, or to the local transportation authority, as applicable, for approval prior to the construction or funding of any project. This act requires the Missouri Highways and Transportation Commission, or the local transportation authority, as applicable, to approve such projects with a two-thirds majority vote if the proposed project utilizes a sales tax as a proposed funding mechanism. (Section 238.225)

FIRE PROTECTION SALES TAX

Current law authorizes certain fire protection districts to impose a sales tax for the purposes of funding the fire protection district. This act makes technical changes to the legal description of such fire protection districts. (Section 321.246)

This provision is identical to a provision in HCS/HB 648 (2023) and is substantially similar to a provision in HS/HCS/HBs 1108 & 1181 (2023).

DIGITAL ASSET MINING

This act creates new provisions relating to digital mining. Specifically, the act permits any person to run a node or a series of nodes in this state for the purpose of home digital asset mining at the person's private residence. A person or entity may have a digital asset mining business in any area in this state that is zoned for industrial use. Furthermore, any person engaged in home digital asset mining or digital asset mining business shall not be considered a money transmitter.

A political subdivision shall not:

Limit the sound decibels generated from home digital asset mining other than limits set for sound pollution generally;

Impose any requirements on a digital asset mining business that is not also a requirement for data centers in such political subdivision; or

Rezone the area in which a digital asset mining business is located without complying with applicable state and local zoning laws or rezone any area with the intent or effect of discriminating against any digital asset mining business.

A digital asset mining business is entitled to appeal any change in zoning pursuant to any applicable state or local zoning laws.

The public service commission may set rates reflective of cost to serve, but shall not establish a rate schedule for digital asset mining that creates discriminatory rates for digital asset mining businesses. (Section 408.900)

This provision is identical to a provision in HCS/SB 47 (2023) and is substantially similar to SB 536 (2023).

JOSH NORBERG