HCS/SCS/SBs 457 & 458 - This act allows the date shown by a U.S. Postal Service postmark to constitute proof of timely mailing of license taxes to any city or county in Missouri. the act also requires the Director of Revenue to state the reason for a finding of taxpayer negligence at the time an income tax assessment is proposed. Rules and regulations of the Department of Revenue which are inconsistent with the laws of the state may not be cited as the basis for the penalty assessment.

Under current law, if property is traded in on a purchase, purchasers pay sales or use tax only on the excess, if any, of the purchase price of the new item less any trade-in allowance and any applicable rebate. This act authorizes the reduction in the purchase price of a motor vehicle, trailer, boat or outboard motor only for similar trade-in items upon which a sales or use tax has been paid. The act extends from ninety to one hundred eighty days the length of time before or after which a replacement item may be purchased.

The act exempts from sales and use tax the following items: replacement machinery, equipment and parts; electrical energy used in a material recovery processing plant; certain electrodes; mechanized post hole diggers and lubricants used exclusively for farm machinery and equipment; electrical energy or gas used to manufacture cellular glass products; retreaded tires and retreading equipment, supplies, and materials; pesticides or herbicides used in production of crops, livestock or poultry; dog food for commercially bred dogs; nondomestic game birds; and machinery and equipment required to conduct games of bowling in bowling alleys.

The act also requires that, if a tax-exempt entity issues project exemption certificates for the purchase of tangible personal property and materials which are incorporated into or consumed in the construction of its project and the entity is subsequently found not to have authority to issue such certificates, or if the property and materials purchased are not related to the entity's exempt functions and activities, the issuing entity shall be liable for the tax owed on such personal property and materials.

RUSS HEMBREE