HB 1775 Modifies provisions relating to the Department of Revenue

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Current Bill Summary

- Prepared by Senate Research -


SCS/HCS/HB 1775 - This act modifies provisions relating to the Department of Revenue.

CONFIDENTIALITY OF CERTAIN MOTOR VEHICLE AND DRIVER REGISTRATION RECORDS (Section 32.056)

Under current law, the Department of Revenue is prohibited from releasing the home address or vehicle information of certain members of law enforcement or the judiciary. This act specifies that the prohibition also applies to these individuals once they have retired.

These provisions are identical to HB 2843 (2024).

TAX CREDITS FOR NEIGHBORHOOD ASSISTANCE PROGRAMS (Section 32.115)

Current law authorizes a tax credit for business firms which engage in providing affordable housing assistance activities or market rate housing in distressed communities (Housing Credit), with the total amount of such tax credits not to exceed $10 million in a fiscal year. Current law also authorizes a tax credit for business firms which makes a contribution to a neighborhood organization that provides affordable housing assistance activities or market rate housing in distressed communities (Contribution Credit), with the total amount of such tax credits not to exceed $1 million in a fiscal year.

This act provides that any amount of the $10 million in Housing Credits not authorized in a fiscal year may be authorized for Contribution Credits during the same fiscal year, provided that the total combined amount of Housing and Contribution credits shall not exceed $11 million during the fiscal year.

These provisions are identical to SB 1175 (2024) and SB 661 (2023), and substantially similar to HB 2090 (2024).

TAX CREDIT DENIAL GRACE PERIODS (Sections 135.341 and 135.647)

This act modifies provisions relating to tax grace periods following denial of "Champion for Children" tax credits, including specifying the 60-day grace period begins at the time notice is issued by the Department of Revenue, and repealing a provision specifying that any balance left unpaid after 60 days shall be due and payable in the same manner as personal income tax.

This act also enacts a comparable 60-day grace period following denial of "Donated Food" tax credits, specifying that tax balances caused by denial of the tax credit shall not incur additional tax, penalty, or interest if the balance is paid, or approved payment arrangements have been made, within 60 days of notice being issued by the Department of Revenue.

These provisions are identical to HB 2589 (2024).

DEPARTMENT OF REVENUE FEE OFFICES (Section 136.055)

This act increases service fees charged by Department of Revenue fee offices for certain transactions.

In awarding fee office contracts, the act requires the Department of Revenue to provide at least 5% of evaluation credit, rather than "priority" or "special consideration", to applicants meeting certain criteria. The act also specifies that the Director of the Department of Revenue shall not award fee office contracts to entities affiliated in any manner, as defined in the act, with a current employee of the Department or with a former employee of the Department for the one-year period following the employee's termination of employment, and no person affiliated in any manner with an entity awarded a fee office contract shall be affiliated in any manner with a motor vehicle title service agent as prescribed by law.

Under the act, the Director may extend certain fee office contracts by up to 5 years.

One dollar from every fee increased under the act and collected by a contract fee office shall be remitted to the "License Office Distribution Fund" established under the act. The remitted funds shall be held in trust for the fee office contract holders, and shall not be considered state revenue. In the event a court of competent jurisdiction requires money remitted to the fund under the act to be distributed in accordance with certain constitutional provisions, the required remittance to the fund shall be null and void.

Beginning with the fourth quarter of 2025, the amount of money remitted to the fund each quarter shall be distributed equally among fee offices as provided in the act.

These provisions are similar to SB 738 (2024), provisions in HCS/SS#2/SB 862 (2024), provisions in HB 1768 (2024), provisions in CCS/HCS/SB 47 (2023), provisions in HCS/HB 424 (2023), and SCS/SB 366 (2023).

DEPARTMENT OF REVENUE FEE WAIVERS FOR HOMELESS YOUTH (Sections 136.055, 302.178, and 302.181)

This act exempts homeless children, homeless youths, and unaccompanied youths, as defined by law, from certain fees collected by Department of Revenue fee offices. The act also adds these groups to the definition of "emancipated minor" for purposes of proving the supervised driving experience required to obtain an intermediate driver's license, and exempts emancipated minors from intermediate driver's license fees.

The act provides that no fee shall be required or collected from a homeless child, homeless youth, or unaccompanied youth to obtain his or her first nondriver identification card.

A minor's status as a homeless child, homeless youth, or unaccompanied youth under the act shall be verified by a letter signed by a director or designee of a governmental or nonprofit agency providing services to homeless persons, by a local education agency liaison as described under federal law, by a school social worker or counselor, or by an attorney who is representing the minor in a legal matter.

These provisions are identical to SB 772 (2024), provisions in HCS/SS#2/SB 862 (2024), SB 47 (2023), and provisions in HCS/SS/SB 198 (2023), substantially similar to provisions in HCS/HB 355 (2023), identical to SCS/SB 1167 (2022), and similar to HB 2789 (2022), provisions in SCS/HCS/HB 2376 (2022), and provisions in HCS/SS#2/SB 823 (2022).

BIENNIAL ALTERNATIVE FUEL DECALS (Section 142.869)

This act provides that the Department of Revenue shall provide owners of alternative fuel vehicles the option of purchasing biennial alternative fuel decals.

FARM FLEET VEHICLES (Section 301.033)

This act requires the Director of the Department of Revenue to establish a system of registration on an annual or biennial basis, applicable to all farm vehicles owned or purchased by the owner of a farm vehicle fleet. Any owner of more than one farm vehicle required to be registered may register a fleet of farm vehicles on an annual or biennial basis in lieu of standard registration periods.

All farm fleet vehicles shall be registered in April or on a prorated basis as provided in the act, and fees for farm fleet vehicles registered on a calendar year or biennial basis shall be payable not later than the last day of April, with 2 years' fees due for biennial registration. The act requires a certificate of inspection and approval issued no more than 120 days prior to registration. Fees for vehicles subsequently added to an existing farm vehicle fleet shall be prorated as specified in the act.

Farm vehicles registered under this act shall be issued a multi-year special license plate bearing the words "Farm Fleet Vehicle" and not requiring issuance of registration renewal tabs. Upon payment of the registration fees, the Director of the Department of Revenue shall issue a registration certificate or other suitable evidence that annual or biennial fees have been paid, which shall be carried in the vehicle at all times.

These provisions are identical to provisions in SCS/SB 847 (2024), and similar to SB 112 (2023), provisions in SS/SB 762 (2022), provisions in the truly agreed to and finally passed SS#2/HB 661 (2021), HB 153 (2021), provisions in HCS/HB 601 (2021), provisions in HCS/SS/SCS/SB 4 (2021), provisions in HCS/SB 38 (2021), provisions in HCS/SS/SB 46 (2021), and provisions in HCS/SS/SB 89 (2021).

FLAT RATE VEHICLE REGISTRATION FEES (Sections 301.055, 301.070, and 301.140)

This act replaces the current motor vehicle registration fees, based on horsepower, with a flat rate of $25, as well as establishes a single fee amount of $10 for motorcycles, motortricycles, and autocycles.

These provisions are identical to provisions in SCS/SB 847 (2024).

ALTERNATIVE FUEL VEHICLE REGISTRATION (Section 301.110)

Under this act, the Director of the Department of Revenue may stagger collection of alternative fuel decal fees and issuance of alternative fuel decals so that issuance coincides with vehicle registration. The act also provides that Director may issue a receipt of payment in lieu of a decal.

These provisions are identical to provisions in SCS/SB 847 (2024).

5-YEAR VEHICLE REGISTRATIONS (Sections 301.130 and 301.147)

This act specifies that the Director of the Department of Revenue may provide owners of certain motor vehicles less than 5 years old with the option of registering the vehicles for 5 years.

These provisions are similar to HB 2096 (2024) and HB 478 (2023).

DISABLED LICENSE PLATES AND WINDSHIELD PLACARDS (Section 301.142)

This act specifies that disabled windshield placards shall be renewed every 8 years, rather than 4, and makes technical changes to the underlying statute.

The act also provides that applicants for a disabled license plate or windshield placard who have presented proof of disability in the form of a statement from the United States Veterans' Administration verifying that the person is permanently disabled shall not be required to provide physician's statements of physical disability for issuance or renewal of the license plate or windshield placard.

These provisions are similar to provisions in the truly agreed to and finally passed HCS/SS/SCS/SB 912 (2024), provisions in SCS/SB 990 (2024), HB 1451 (2024), and SB 114 (2023).

STAGGERING OF VEHICLE REGISTRATION PERIODS (Sections 301.142 and 301.147)

This act specifies that the Director of the Department of Revenue may stagger expiration dates for disabled person windshield placards (section 301.142), and for motor vehicle registrations (section 301.147.3), for the convenience of applicants.

These provisions are identical to provisions in SCS/SB 847 (2024).

VEHICLE REGISTRATIONS BASED ON MODEL YEAR (Sections 301.147, 307.350, and 643.315)

This act repeals a requirement that biennial vehicle registration be based on the vehicle's model year (section 301.147.1), as well as corresponding language in the requirements for vehicles to undergo safety inspections (section 307.350) and emissions inspections (section 643.315). Under the act, vehicles subject to safety or emissions inspections shall undergo the inspections prior to registration or renewal in any year.

These provisions are identical to provisions in SCS/SB 847 (2024).

VEHICLES OWNED BY POLITICAL SUBDIVISIONS (Section 301.260)

This act directs the Department of Revenue to issue the license plates used on motor vehicles owned by political subdivisions, and authorizes a fee to defray the cost of obtaining the plates from the Department of Corrections.

MISSOURI CONSERVATION HERITAGE FOUNDATION SPECIAL LICENSE PLATES (Section 301.469)

This act modifies the application process for Missouri Conservation Heritage Foundation special license plates by specifying that application and payment for the required emblem-use authorization may be made to the Director of the Department of Revenue at the time of vehicle registration.

These provisions are identical to SB 1015 (2024), HB 1552 (2024), provisions in HB 1768 (2024), and HB 142 (2023).

VEHICLE DEALER ADMINISTRATIVE FEES (Section 301.558)

This act adds trailers and trailer dealers to the statute allowing for certain vehicle dealers to charge administrative fees in connection with the sale or lease of a vehicle.

VEHICLE DEALERS' VEHICLE REGISTRATIONS (Section 301.560)

This act repeals a provision exempting certain fees paid for certain vehicle dealers' vehicle registrations from deposit in the "Motor Vehicle Commission Fund". (Section 301.560.1(4)).

The act also specifies issuance of and fees for registration renewal tabs issued to certain vehicle dealers. (Section 301.560.3).

These provisions are identical to provisions in SCS/SB 847 (2024).

DISABLED AMERICAN VETERANS SPECIAL LICENSE PLATES (Section 301.3061)

This act specifies that the Disabled American Veterans special license plate "shall bear the emblem of the Disabled American Veterans organization", and "shall have an authorized Disabled American Veterans' slogan near the bottom of the plate", rather than specifically describing the emblem and slogan.

These provisions are identical to HB 1459 (2024), provisions in the truly agreed to and finally passed HCS/SS/SCS/SB 912 (2024), provisions in SCS/SB 734 (2024), and provisions in SCS/HB 1067 (2023).

CONTINGENT EFFECTIVE DATE (Section B)

Certain provisions of this act shall take effect as soon as technologically possible following the development and maintenance of the Department of Revenue's modernized, integrated motor vehicle registration and driver licensing system.

ERIC VANDER WEERD


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