SS/SCS/SB 165 - This substitute revises certain tax credits available to taxpayers operating new business facilities located within enterprise zones. Existing law prohibits certain new business facilities from qualifying for tax credits after the initial ten-year, even if the business is expanded. This act allows taxpayers eligible for enterprise zone tax credits to qualify for new business facility tax credits if otherwise eligible. The act authorizes the Department of Economic Development to create an enterprise zone in the cities of St. Louis and Clinton.

The act also revises existing law concerning tax credits for contributions to school and youth programs under the Youth Opportunities and Violence Prevention Act. Current law permits only individuals and certain classes of corporations to take the tax credits. The act permits individual proprietorships, partnerships, S Corporations, limited liability companies, cooperatives, and marketing enterprises to take the credits.

The act provides for a Missouri low-income housing tax credit, and it extends the Community College Job Training tax credit program for ten years. A tax credit is authorized for one-half of the purchase price of environmental control equipment used in the production of charcoal in Missouri.

Current law specifies the order in which various tax credits may be taken against state income tax. This act repeals that requirement.

The act clarifies the existing exemption from sales and use tax for replacement machinery and equipment and specifies the exemption of parts.

The act authorizes creation of a special benefit district to allow private parties to assess and tax themselves for community improvements and services. A petition to create a community improvements district (CID) must be approved by the governing body of a city and must specify the size, area, and duration of the district, the maximum rate of taxes which may be imposed, and the method and maximum rate of assessment. Program management is under the direction of a District Board which, depending upon the petition, may be appointed by the chief elected officer of the city, with the consent of its governing body, or elected by qualified voters of the district. Funds from assessments or taxes may be used for public capital improvements, certain private capital improvements, and special services. The petition may also specify maximum borrowing authority, types of services supported, eligible use of funds, and other limitations.

RUSS HEMBREE