To repeal sections 144.748 and 144.805, RSMo 1994, relating to sales and use tax, and to enact in lieu thereof two new sections relating to the same subject, with an expiration date.

AS FOLLOWS:

Section A. Sections 144.748 and 144.805, RSMo 1994, are repealed and two new sections enacted in lieu thereof, to be known as sections 144.748 and 144.805, to read as follows:

144.748. 1. In addition to the taxes imposed by section 144.610, there is hereby imposed an additional use tax in the amount of one and one-half percent upon all transactions which are subject to the taxes imposed [under] pursuant to sections 144.600 to 144.745. This tax shall be collected and remitted together with the taxes imposed [under] pursuant to sections 144.600 to 144.745.

2. All provisions of sections 144.600 to 144.745 are hereby made applicable to the tax imposed [under] pursuant to subsection 1 of this section except as [herein] provided in this section, and the director of revenue shall perform all functions incident to the administration, collection, enforcement, and operation of the tax.

3. All such use taxes collected by the director of revenue, less one percent for cost of collection which shall be deposited in the state's general revenue fund, shall be deposited in the "Local Use Tax Fund", which is hereby established, and shall be distributed as provided in this section in accordance with article X, section 10(b), Constitution of Missouri.

4. The additional revenue generated by this section shall not be part of the "total state revenue" within the meaning of article X, sections 17 and 18, Constitution of Missouri. The expenditure of this additional revenue shall not be an "expense of state government" [under] pursuant to article X, section 20, Constitution of Missouri.

5. The director of revenue shall invest moneys in the local use tax fund in the same manner as nonstate funds are invested pursuant to article IV, section 15, Constitution of Missouri. All earnings resulting from the investment of moneys in the local use tax fund shall be credited to the local use tax fund.

6. Not later than the tenth day following the end of each month, the director shall distribute all moneys in the local use tax fund to each political subdivision imposing a local sales tax that is collected by the director on behalf of such political subdivision based upon the political subdivision's pro rata percentage as determined by subsection 7 of this section, except as provided in subsection 10 of this section.

7. The director of revenue shall divide the amount of local sales tax moneys distributed to each such political subdivision each month by the total amount of local sales tax moneys distributed that month to determine that political subdivision's pro rata percentage.

8. The provisions of section 33.080, RSMo, requiring all unexpended balances remaining in various state funds to be transferred and placed to the credit of the ordinary revenue fund of this state at the end of each biennium shall not apply to the local use tax fund.

9. The tax imposed [under] pursuant to this section shall be submitted to the voters of this state only in the event that a final decision of a court of competent jurisdiction holds that the provisions of this section require voter approval.

10. After determining the amounts due pursuant to subsections 6 and 7 of this section, the director of revenue shall add the amounts that would be due all political subdivisions within any county of the first classification having a charter form of government and having a population of nine hundred thousand or more inhabitants together with the amount that would be due the unincorporated areas of such county to obtain a sum total. The director shall distribute one-third of such sum total to the county and to each city, town and village in group B according to section 66.620, RSMo, as modified by this section, a portion of the remainder of such sum total equal to the percentage ratio that the population of each such city, town or village bears to the total population of all such group B cities, towns and villages. For the purposes of this subsection, population shall be determined by the last federal decennial census or the latest census that determines the total population of the county and all political subdivisions [therein] in such county. For the purpose of this subsection, beginning on January 1, 1994, and annually thereafter, each city, town or village in group A according to section 66.620, RSMo, but whose per capita sales tax receipts during the preceding calendar year pursuant to sections 66.600 to 66.630, RSMo, were less than the per capita countywide average of all sales tax receipts during the preceding calendar year, shall be treated as a group B city, town or village until the per capita amount distributed to such city, town or village equals the difference between the per capita sales tax receipts during the preceding calendar year and the per capita countywide average of all sales tax receipts during the preceding calendar year.

11. Prior to January 1, [1997] 2002, there is hereby specifically exempted from the provisions of this section and from the computation of the tax levied, assessed or payable [under] pursuant to this section, the storage, use or consumption of aviation jet fuel at or upon airports within the state of Missouri, which airports are recipients of federal grant funds, have submitted applications for or have been approved for federal grant funds, or which are otherwise eligible to apply for federal grant funds.

144.805. 1. In addition to the exemptions granted [under] pursuant to the provisions of section 144.030, there shall also be specifically exempted from the provisions of sections 144.010 to 144.525, section 144.600 to 144.748, and section 238.235, RSMo, and the provisions of any local sales tax law, as defined in section 32.085, RSMo, and from the computation of the tax levied, assessed or payable [under] pursuant to sections 144.010 to 144.525, sections 144.600 to 144.748, and section 238.235, RSMo, and the provisions of any local sales tax law, as defined in section 32.085, RSMo, all sales of aviation jet fuel in a given calendar year to common carriers engaged in the interstate air transportation of passengers and cargo, and the storage, use and consumption of such aviation jet fuel by such common carriers, if such common carrier has first paid to the state of Missouri, in accordance with the provisions of this chapter, state sales and use taxes [under] pursuant to the foregoing provisions and applicable to the purchase, storage, use or consumption of such aviation jet fuel in a maximum and aggregate amount of one million five hundred thousand dollars of state sales and use taxes in such calendar year.

2. To qualify for the exemption prescribed in subsection 1 of this section, the common carrier shall furnish to the seller a certificate in writing to the effect that an exemption [under] pursuant to this section is applicable to the aviation jet fuel so purchased, stored, used and consumed. The director of revenue shall permit any such common carrier to enter into a direct pay agreement with the department of revenue, pursuant to which such common carrier may pay directly to the department of revenue any applicable sales and use taxes on such aviation jet fuel up to the maximum aggregate amount of one million five hundred thousand dollars in each calendar year. The director of revenue shall adopt appropriate rules and regulations to implement the provisions of this section, and to permit appropriate claims for refunds of any excess sales and use taxes collected in calendar year 1993 or any subsequent year with respect to any such common carrier and aviation jet fuel.

3. The provisions of this section shall apply to all purchases and deliveries of aviation jet fuel from and after May 10, 1993.

4. The provisions of sections 144.805 and 144.807 shall expire on December 31, [1996] 2001.