To repeal sections 143.124 and 253.401, RSMo 1994, relating to taxation, and to enact in lieu thereof six new sections relating to the same subject, with an effective date for certain sections and an emergency clause for a certain section.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Sections 143.124 and 253.401, RSMo 1994, are repealed and six new sections enacted in lieu thereof, to be known as sections 143.124, 144.014, 253.401, 253.550, 253.559 and 253.561 to read as follows:

     143.124. 1. Other provisions of law to the contrary notwithstanding, the total amount of all annuities, pensions, or retirement allowances above the amount of six thousand dollars annually provided by any law of this state, the United States, or any other state to any person, or provided to any person through any privately funded annuity, pension or retirement allowance, except as provided in subsection 4 of this section, shall be subject to tax under the provisions of this chapter, in the same manner, to the same extent and under the same conditions as any other taxable income received by the person receiving it. For purposes of this section, annuity, pension, or retirement allowance shall be defined as an annuity, pension or retirement allowance provided by the United States, this state, any other state or any political subdivision or agency or institution of this or any other state or an annuity, pension or retirement allowance provided by any privately funded source.

     2. For the period beginning July 1, 1989, and ending December 31, 1989, there shall be subtracted from Missouri adjusted gross income for that period, determined pursuant to section 143.121, the first three thousand dollars of retirement benefits received by each taxpayer:

     (1) If the taxpayer's filing status is single, head of household or qualifying [widow(er)] widow or widower and [his] the taxpayer's Missouri adjusted gross income is less than twelve thousand five hundred dollars; or

     (2) If the taxpayer's filing status is married filing combined and their combined Missouri adjusted gross income is less than sixteen thousand dollars; or

     (3) If the taxpayer's filing status is married filing separately and [his] the taxpayer's Missouri adjusted gross income is less than eight thousand dollars.

     3. For the tax years beginning on or after January 1, 1990, there shall be subtracted from Missouri adjusted gross income, determined pursuant to section 143.121, the first six thousand dollars of retirement benefits received by each taxpayer:

     (1) If the taxpayer's filing status is single, head of household or qualifying [widow(er)] widow or widower and [his] the taxpayer's Missouri adjusted gross income is less than twenty-five thousand dollars; or

     (2) If the taxpayer's filing status is married filing combined and their combined Missouri adjusted gross income is less than thirty-two thousand dollars; or

     (3) If the taxpayer's filing status is married filing separately and [his] the taxpayer's Missouri adjusted gross income is less than sixteen thousand dollars.

     4. To determine the maximum Missouri adjusted gross income limits referenced in this section, any social security benefits included in Missouri adjusted gross income shall be subtracted. But social security benefits shall not be subtracted for purposes of other computations under this chapter, and are not to be considered as retirement benefits for purposes of this section.

     5. The provisions of subdivisions (1) and (2) of subsection 3 of this section shall apply during all tax years in which the federal Internal Revenue Code provides exemption levels for calculation of the taxability of social security benefits that are the same as the levels in subdivisions (1) and (2) of subsection 3 of this section. If the exemption levels for the calculation of the taxability of social security benefits are adjusted by applicable federal law or regulation, the exemption levels in subdivisions (1) and (2) of subsection 3 of this section shall be accordingly adjusted to the same exemption levels.

     6. For each tax year beginning on or after January 1, 1990, the portion of a taxpayer's lump sum distribution from an annuity or other retirement plan not otherwise included in Missouri adjusted gross income as calculated under this chapter, but subject to taxation under Internal Revenue Code section 402 shall be taxed in an amount equal to ten percent of the taxpayer's federal liability on such distribution for the same tax year.

     7. The exemptions provided for in this section shall not affect the calculation of the income to be used to determine the property tax credit provided in sections 135.010 to 135.035, RSMo.

     [8. The provisions of this section shall apply to all other annuities, pensions and retirement allowances as subsequently defined and provided by law for tax years beginning on or after January 1, 1991.]

     144.014. 1. Notwithstanding other provisions of law to the contrary, beginning July 1, 1997, the tax levied and imposed pursuant to sections 144.010 to 144.525 and sections 144.600 to 144.746 on all retail sales of food shall be at the rate of one percent. The revenue derived from the one percent rate pursuant to this section shall be deposited by the state treasurer in the school district trust fund and shall be distributed as provided in section 144.701.

     2. For the purposes of this section, the term "food" shall include only those products and types of food for which food stamps may be redeemed pursuant to the provisions of the Federal Food Stamp Program as contained in 7 U.S.C. section 2012, as that section now reads or as it may be amended hereafter, and shall not include food dispensed by or through vending machines.

     3. Any person required to collect and remit the sales or use tax on food under the provisions of this section shall be entitled to a refund from the general revenue fund equal to three percent of all state and local sales and use taxes collected by such person on or after July 1, 1997, and prior to July 1, 1998, and remitted by such person on or before the date when the same becomes due in accordance with the provisions of sections 144.080, 144.081, 144.090 and 144.655, on the retail sale of food as defined in this section. This refund shall be in addition to the amount allowed in section 144.140 and shall be made without interest. Such refund shall be made only if such person files a correctly completed claim for refund on or before June 30, 1999, accompanied by such information as the director may require. The director of revenue shall promulgate such rules and regulations under the provisions of section 144.270 as are necessary to facilitate efficient administration of the refund authorized in this section. For the purposes of this subsection, "local sales taxes" shall mean any tax levied, assessed, or payable under the provisions of the "local sales tax law" as defined in section 32.085, RSMo, "local use taxes" shall mean any tax levied, assessed, or payable under the provisions of sections 144.757 to 144.761, and "state sales and use taxes" shall mean any tax levied under the provisions of sections 144.010 to 144.525 and sections 144.600 to 144.746.

     253.401. As used in sections 253.400 to 253.407 and sections 253.550 to 253.561, unless the context requires otherwise:

     (1) "Certified historic structure", a property located in Missouri and listed individually on the National Register of Historic Places;

     [(1)] (2) "Department" means the department of natural resources;

     (3) "Eligible property", property located in Missouri and offered or used for nonresidential purposes, conduct of business, or residential rental;

     [(2)] (4) "Fund" means the historic preservation revolving fund;

     [(3)] (5) "Historic property" or "property" means any building, structure, district, area or site that is significant in the history, architecture, archaeology or culture of this state, its communities or this country, which is eligible for nomination to the National Register of Historic Places;

     (6) "Structure in a certified historic district", a structure located in Missouri which is certified by the department of natural resources as contributing to the historic significance of a certified historic district listed on the National Register of Historic Places, or a local district that has been certified by the United States Department of the Interior.

     253.550. Any individual, partnership, trust or estate, or corporation incurring costs and expenses for the rehabilitation of eligible property as defined in section 253.401, which is a certified historic structure or structure within a certified historic district shall be entitled to a credit against the taxes imposed pursuant to chapter 143, RSMo, on that individual or entity in an amount equal to twenty-five percent of the total costs and expenses of rehabilitation which shall include development, architectural, engineering and other costs, provided the rehabilitation costs associated with rehabilitation and the expenses exceed fifty percent of the total basis in the property and the rehabilitation meets standards consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation as determined by the state historic preservation officer of the Missouri department of natural resources.

     253.559. If the amount of such credit exceeds the total tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the state tax liability may be carried back for credit against the taxes imposed pursuant to chapter 143, RSMo, except for sections 143.191 to 143.265, RSMo, and in preceding years back to 1996 or back three years, whichever is less, and may be carried forward for credit against the income taxes for the succeeding ten years, or until the full credit is used, whichever occurs first. Credits granted to a partnership or multiple owners of property shall be passed through to the partners respectively or owners respectively pro rata or pursuant to an executed agreement among the partners or owners documenting an alternate distribution method.

     253.561. To claim the credit authorized pursuant to this section, the taxpayer shall apply to the Missouri department of natural resources which shall determine the amount of eligible rehabilitation costs and expenses, and whether it meets the standards of the Secretary of the Interior as set forth in section 253.557 and may issue a certificate thereof to the taxpayer. The taxpayer shall attach the certificate to all Missouri income tax returns on which the credit is claimed.

     Section B. Because immediate action is necessary to provide tax relief to the citizens of this state, section 144.014 of this act is deemed necessary for the immediate preservation of the public health, welfare, peace and safety, and is hereby declared to be an emergency act within the meaning of the constitution, and section 144.014 of this act shall be in full force and effect on July 1, 1997, or upon its passage and approval whichever shall later occur.

     Section C. Sections 143.124 and 253.550 to 253.561 shall become effective on January 1, 1998, and shall apply to all taxable years beginning after December 31, 1997.