TRANSIENT GUEST TAXES

This act authorizes the City of Butler to submit to the voters a transient guest tax not to exceed 6% of the charges per occupied room per night. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.1011)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2562 (2020) and to a provision contained in HCS/SS/SCS/SB 570 (2020) and SCS/HB 1700 (2020).

This act authorizes the City of Springfield to submit to the voters a transient guest tax not to exceed 7.5% of the charges per occupied room per night. Such tax shall be used solely for capital investments that can be demonstrated to increase the number of overnight visitors.

Upon approval by the voters, the city may adopt rules and regulations for the internal collection of the tax, or may enter into an agreement with the Department of Revenue for the collection of the tax. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 94.842)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to SB 387 (2019) and HB 1073 (2019), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 616 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), SS/SCS/SBs 46 & 50 (2019), SCS/HCS/HB 674 (2019), SCS/HB 761 (2019), and SCS/HB 1700 (2020).

This act authorizes the City of Ashland to submit to the voters a transient guest tax not to exceed 5% of the charges per occupied room per night. Such tax shall be used for the promotion of tourism, growth of the region, economic development, and public safety, as described in the act. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 94.1014)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to a provision contained in SCS/SB 770 (2020), HCS/HB 1601 (2020), and SCS/HB 1700 (2020).

This act adds the City of Cameron to the list of cities authorized to propose a transient guest tax for the promotion of tourism. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.1360)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2418 (2020) and to a provision contained in SCS/SB 770 (2020), HCS/HB 1601 (2020), and SCS/HB 1700 (2020).

PUBLIC SAFETY SALES TAXES

This act adds the cities of Clinton, Lincoln, Branson West, Cole Camp, Hallsville, Kearney, Smithville, and Claycomo to the list of cities and villages authorized to levy a sales tax upon voter approval for the purposes of improving public safety. The tax shall be 0.25%, 0.5%, 0.75%, or 1%. The vote for such cities shall occur on a general election day not earlier than the 2022 general election. (Sections 94.900 and 94.902)

These provisions are identical to provisions contained in SS#2/SCS/HCS/HB 1854 (2020), and are substantially similar to SB 873 (2020), HB 1309 (2020), HB 1726 (2020), and HB 1731 (2020), and to provisions contained in HCS/SS#2/SCS/SB 523 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), SCS/SB 770 (2020), HCS/SB 774 (2020), SCS/HB 1700 (2020), and HCS/HB 1701 (2020).

FIRE PROTECTION SALES TAXES

Current law authorizes ambulance and fire protection districts in certain counties to propose a sales tax at a rate of up to 0.5%. This act allows such districts to propose a sales tax of up to 1.0%. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 321.552)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2386 (2020) and SB 869 (2020), and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).

LOCAL USE TAX BALLOT LANGUAGE

This act modifies ballot language required for the submission of a local use tax to voters by including language stating that the approval of the local use tax will eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers. (Section 144.757)

This provision is identical to SB 652 (2020) and HB 1584 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), SCS/SB 770 (2020), HB 805 (2020), SB 872 (2020), SS#2/SCS/HCS/HB 1854 (2020), HB 1895 (2020), HB 2172 (2020), HB 2238 (2020), SCS/SB 189 (2019), SS/SCS/SBs 46 & 50 (2019), SS/HCS/HB 255 (2019), SCS/HCS/HB 674 (2019), and HB 701 (2019), and is substantially similar to a provision contained in SCS/SB 529 (2020), SCS/HB 1700 (2020), and HCS#2/HB 1957 (2020).

EARLY CHILDHOOD SALES TAX

This act allows Greene County and any city within the county to impose a sales tax, upon approval of a majority of the voters, not to exceed one-fourth of one percent for the purpose of funding early childhood education in the county or city. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.1790)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 1480 (2020) and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).

CAPITAL IMPROVEMENT SALES TAX

This act makes technical corrections to provisions of law authorizing Clay and Platte counties to propose a capital improvement sales tax. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 67.730)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 1746 (2020) and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).

Current law authorizes the City of Lamar Heights to levy a sales tax of up to 2% on retail sales of food at cafes, cafeterias, lunchrooms, or restaurants for the purpose of funding the construction, maintenance, and operation of capital improvements. This act allows such sales tax to be levied at a rate not to exceed 6% and allows the revenues to be used for general revenue purposes. The vote shall occur on a general election day not earlier than the 2022 general election. (Section 94.838)

This provision is identical to a provision contained in SS#2/SCS/HCS/HB 1854 (2020), and is substantially similar to HB 2180 (2020) and to a provision contained in SCS/SB 770 (2020) and SCS/HB 1700 (2020).

TAX INCREMENT FINANCING

This act modifies local tax increment financing projects by limiting such projects to redevelopment areas that are found to be blighted. This act also provides that a redevelopment area shall not be found to be blighted without a study conducted by a party other than the municipality and developer which details how the redevelopment area meets the definition of "blighted area".

This act modifies the definition of "blighted area".

This act also modifies the definition of "redevelopment plan" and "redevelopment area" to provide that such definitions shall not include "conservation areas" or "economic development areas".

This act modifies local tax increment financing projects by providing that a study shall be conducted by a party other than the proponent of the redevelopment plan, which details how the area meets the definition of an area eligible to receive tax increment financing.

This act prohibits new projects from being authorized in any greenfield area. (Sections 99.805 to 99.843)

These provisions are identical to SB 871 (2020) and SB 311 (2019), are substantially similar to a provision contained in SS/SCS/SB 859 (2018) and HCS/HB 1236 (2018), and are similar to HB 1612 (2020), HCS/SS/SCS/SB 108 (2019), SB 311 (2019), HB 32 (2019), and HB 698 (2019), and to provisions contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020) and HCS/SS#2/SB 704 (2020).

FINANCIAL REPORTS OF POLITICAL SUBDIVISIONS

Current law requires political subdivisions to submit an annual report of the financial transactions of the political subdivision to the State Auditor, with any political subdivision failing to do so subject to a fine of $500 per day. This act provides that any political subdivision that has gross revenues of less than $5,000 or that has not levied or collected sales or use taxes in the fiscal year for which the annual report was not timely filed shall not be subject to the fine. This act also provides that if the annual report was not filed as a result of fraud or other illegal conduct by an employee or officer, such political subdivision shall not be subject to a fine if the annual report is filed within thirty days of the discovery of the fraud or illegal conduct.

The act authorizes the Director of Revenue to make a one-time reduction in the amount of outstanding fines for political subdivisions filing its first annual report after January 1, 2021, or if the Director determines the fine to be uncollectible, as described in the act.

For any political subdivision with outstanding fines or penalties that does not file an annual report by January 1, 2021, or that files such report but fails to file any subsequent report, the Director of Revenue shall initiate the process to disincorporate the political subdivision. If a resident of the political subdivision believes the annual report has not been filed, he or she may file an affidavit with the Department of Revenue, which shall investigate. If the report has not been filed, the political subdivision shall file it within ninety days. If the political subdivision fails after ninety days to file the annual report, the Director of Revenue shall initiate the process to disincorporate the political subdivision.

The question of whether a political subdivision shall be disincorporated shall be submitted to the voters, as described in the act. If a majority of voters vote for disincorporation, the circuit court shall appoint an administrative authority for the political subdivision, as described in the act. (Section 105.145)

This provision is identical to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and SS#2/SCS/HCS/HB 1854 (2020).

WOOD ENERGY TAX CREDIT

Current law provides for a tax credit for the production of certain wood-energy processed wood products, with such tax credit to expire on June 30, 2020. This act extends the tax credit until June 30, 2026. (Section 135.305)

This provision is identical to SB 674 (2020) and HB 2274 (2020), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), HCS/SS#2/SB 704 (2020), and SB 454 (2019).

DOMESTIC VIOLENCE SHELTER TAX CREDIT

Current law authorizes a tax credit for contributions to domestic violence shelters in an amount equal to fifty percent of the contribution, with the maximum annual amount of tax credits limited to $2 million. This act increases the tax credit from fifty percent of the amount contributed to seventy percent beginning July 1, 2021, and increases the limit on the cumulative amount of tax credits claimed by all taxpayers in a fiscal year to $4 million beginning July 1, 2021.

This act also adds a definition of "rape crisis center" to allow taxpayers to receive tax credits for contributions to such facilities. (Section 135.550)

This provision is identical to a provision contained in HCS/SCS/SB 616 (2020), and is substantially similar to SB 958 (2020) and HCS/SB 2349 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020).

PROPERTY TAXES

This act modifies several provisions relating to property taxes.

Current law requires the St. Louis County Assessor to conduct a physical inspection of residential real property prior to increasing the assessed valuation of a property by more than fifteen percent since the last assessment, and requires written notification of such inspection. This act applies such provision to all counties. (Section 137.115)

This provision is identical to a provision contained in HCS/SB 676 (2020) and SB 579 (2020), and is substantially similar to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and HB 1710 (2020).

For property tax assessments and appeals of such assessments, current law provides that, in first class counties, assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15, taxpayers shall appeal to the county board of equalization by the third Monday in June, and the county board of equalization shall meet on the first Monday in July. For all other counties, assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15, taxpayers shall appeal to the county board of equalization by the second Monday in July, and the county board of equalization shall meet on the third Monday in July.

This act modifies such deadlines to provided that, for all counties, assessors shall notify property owners of an increase in the property owner's assessed valuation by June 1, taxpayers shall appeal to the county board of equalization by the first Monday in July, and the county board of equalization shall meet on the third Monday in July. (Sections 137.180 to 137.385, 138.090)

These provisions are similar to a provision contained in HCS/SB 676 (2020), HCS/SS/SCS/SB 570 (2020), HCS/SS/SCS/SB 594 (2020), HCS/SCS/SB 725 (2020), and HB 1710 (2020).

For property tax assessments, current law provides that assessors shall notify property owners of an increase in the property owner's assessed valuation by June 15. This act requires such notifications in St. Louis County to include information regarding the assessment method and computation of value for such property and, for properties valued using sales of comparable properties, a list of such comparable properties and the address or location and purchase prices from sales thereof that the assessor used in determining the assessed valuation of the owner's property. (Section 137.180)

This provision is identical to a provision contained in SB 547 (2020) and SS#2/SCS/HCS/HB 1854 (2020).

For property assessment appeals to the boards of equalization in the City of St. Louis, St. Charles County, and St. Louis County, current law provides that the assessor shall have the burden to prove that the valuation does not exceed the true market value of the property. Additionally, if a physical inspection of a property is required for assessment, the assessor shall have the burden to prove that such inspection was performed. If the assessor fails to provide sufficient evidence that the inspection was performed, the property owner shall prevail on the appeal as a matter of law.

This act applies such provisions to appeals in all counties for which the increase in assessed valuation for the subject property exceeds fifteen percent. (Section 138.060)

This provision is substantially similar to SB 655 (2020) and HB 2047 (2020), and to a provision contained in HCS/SS/SCS/SB 594 (2020), HCS/SB 676 (2020), SB 579 (2020), and HB 1710 (2020), and is similar to a provision contained in HCS/SS/SCS/SB 570 (2020) and HB 1409 (2020).

Current law allows certain counties and St. Louis City to reimburse taxpayers who successfully appeal a property tax assessment to the State Tax Commission for appraisal costs, attorney fees, and court costs, with such reimbursements limited to $1,000 for residential appeals and the lesser of $4,000 or 25% of the tax savings resulting from the appeal for other non-residential appeals. Beginning January 1, 2021, this act increases such limits for St. Louis County to $6,000 for residential appeals and the lesser of $10,000 or 25% of the tax savings resulting from the appeal for other non-residential appeals. (Section 138.434)

This provision is identical to a provision contained in SB 547 (2020) and SS#2/SCS/HCS/HB 1854 (2020).

INCOME TAXES

Current law allows a taxpayer to deduct from his or her Missouri adjusted gross income a portion of his or her federal income taxes paid. This act provides that federal income tax credits received under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act shall not be considered when determining the amount of federal income tax liability allowable as a deduction under current law. (Section 143.171)

This provision is identical to a provision contained in HCS/SB 676 (2020) and is substantially similar to a provision contained in HCS/SS/SCS/SB 570 (2020).

Current law also requires taxpayers who itemize deductions to include any federal income tax refund amounts in his or her Missouri adjusted gross income if such taxpayer previously claimed a deduction for federal income tax liability on his or her Missouri income tax return. This act provides that any amount of a federal income tax refund attributable to a tax credit received under the CARES Act shall not be included in the taxpayer's Missouri adjusted gross income. (Section 143.121)

This provision is identical to a provision contained in HCS/SB 676 (2020) and HCS/SS/SCS/SB 570 (2020).

TAXATION OF PARTNERSHIPS

This act requires taxpayers in a partnership to report and pay any tax due as a result of federal adjustments from an audit or other action taken by the IRS or reported by the taxpayer on an amended federal income tax return. Such report shall be made to the Department of Revenue on forms prescribed by the Department, and payments of additional tax due shall be made no later than 180 days after the final determination date of the IRS action, as defined in the act.

Partners and partnerships shall also report final federal adjustments as a result of partnership level audits or administrative adjustment requests, as defined in the act. Such payments shall be calculated and made as described in the act. Partnerships shall be represented in such actions by the partnership's state partnership representative, which shall be the partnership's federal partnership representative unless otherwise designated in writing.

Partners shall be prohibited from applying any deduction or credit on any amount determined to be owed under this act.

The Department shall assess additional tax, interest, and penalties due as a result of federal adjustments under this act no later than three years after the return was filed, as provided in current law, or one year following the filing of the federal adjustments report under this act. For taxpayers who fail to timely file the federal adjustments report as provided under this act, the Department shall assess additional tax, interest, and penalties either by three years after the return was filed, one year following the filing of the federal adjustments report, or six years after the final determination date, whichever is later.

Taxpayers may make estimated payments of the tax expected to result from a pending IRS aud