CCS/SS/SCS/HS/HB 414 - This act makes numerous changes to the Business Facility and Enterprise Zone tax credit statutes. Other provisions of law related to economic development are changed and some new provisions are enacted. Among the changes are:

(1) The governing authority of an area which is designated as an enterprise zone may petition the Department of Economic Development for a seven-year extension of the designation. Currently, there is a fifteen-year limit to enterprise zone designation. The Joint Committee on Economic Development Policy and Planning must approve this extension;

(2) St. Louis City will be able to have one additional satellite enterprise zone;

(3) The maximum population allowable for an enterprise zone located within a metropolitan statistical area is increased from 39,000 to 59,000;

(4) If the Director of the Department recommends such action, the Joint Committee on Economic Development Policy and Planning may remove an existing enterprise zone designation. At the present time, such authority rests with the Missouri Development Finance Board;

(5) Businesses which are eligible for enterprise zone tax benefits will be identified by Standard Industrial Classification (SIC) codes. Under provisions of section 135.200(6) all retail businesses will be eliminated from eligibility to claim enterprise zone tax benefits as they may do at the present time. The only exceptions are those contained in satellite enterprise zones or in regular enterprise zones wholly or partially in federal empowerment zones or enterprise communities;

(6) A new business facility locating in an enterprise zone may elect to surrender the enterprise zone tax credits, the tax exemptions and tax refunds. In place of these credits, exemptions and refunds, the facility may claim tax credits available under the new or expanded Business Facility Law;

(7) The definition of "facility" is changed to provide that it must be a building which is used as a revenue producing enterprise;

(8) Real property tax abatement would be optional rather than mandatory for the renting or leasing of residential property to low and moderate income persons in enterprise zones;

(9) Each state department which administers tax credits, exemptions or deductions must provide a cost/benefit analysis of the program or programs for the preceding fiscal year and an estimate of the expenditures for the following year. New tax credits except for senior citizen property tax credits cannot be approved until the estimates have been reviewed and approved by the Senate Appropriations and House Budget Committees;

(10) Architectural, engineering or accounting firms with headquarters in Missouri would be exempt from sales tax on the purchase of computers, computer software and computer security systems;

(11) Certain manufacturers of new lead acid storage batteries would be exempt from paying sales taxes on the electricity used in providing the initial charge to the batteries;

(12) Motor fuel cannot be sold at low cost if the intent, but not the effect, is to injure competition or unfairly divert trade from a competitor;

(13) The Missouri Technology Corporation may contract to establish a research alliance to advance technology development;

(14) Sections 447.700-447.718 - The purpose of these sections (SB 353) is to have the Departments of Economic Development, Natural Resources and Revenue cooperate with county and municipal governments to attract buyers for abandoned commercial and industrial properties which are difficult to market due to actual or suspected contamination by solid or hazardous waste;

(15) The Department of Economic Development shall establish an industry quality and productivity improvement program. The Department may develop quality and productivity improvement centers at state universities and community colleges;

(16) Existing school, local government and small business conservation loan funds are combined into the Energy Set-Aside Program Fund. The program is extended to include hospitals, institutions of higher education and private schools (also contained in SB 424);

(17) Authorizes municipalities and counties to impose a sales tax for economic development purposes. The tax rate varies depending upon the population of the county or municipality;

(18) Authorizes Kansas City to create a geographical information system (HB 523);

(19) Changes the date of submission of the annual report of the St. Louis Regional Convention and Visitors Commission;

(20) Increases the maximum tax credit for a person adopting a special needs child from $5,000 to $10,000. A business which provides funding to an individual for this purpose shall be eligible for a tax credit of up to $10,000 (also contained in SBs 345 & 346);

(21) Makes changes in the child labor laws to allow children to be employed in the entertainment industry. The provisions are also in SCS/HCS/HBs 300 & 95 (SB 428);

(22) All sales of court transcripts, depositions, congressional transcripts, exhibits or computer disks containing such information shall be exempt from state and local sales taxes. (Also contained in SB 417).

(23) Repeals the provision pertaining to the governing body of any city, town or village annexing area along a highway or road up to two miles from the existing boundaries of the city, town or village (Section 71.012).

See Truly Agreed To SS/SCS/HCS/HBs 452, et al.
TOM MORTON