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Missouri Senate Bill SB759

Missouri 2022 Regular Session

Missouri Senate Bill SB759 Compare Versions

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22 SECOND REGULAR SESSION
33 SENATE BILL NO. 759
44 101ST GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR HOUGH.
66 3894S.01I ADRIANE D. CROUSE, Secretary
77 AN ACT
88 To repeal section 32.087, RSMo, and to enact in lieu thereof one new section relating to local sales
99 taxes.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Section 32.087, RSMo, is repealed and one new 1
1313 section enacted in lieu thereof, to be known as section 32.087, 2
1414 to read as follows:3
1515 32.087. 1. Within ten days after the adoption of any 1
1616 ordinance or order in favor of adoption of any local sales 2
1717 tax authorized under the local sales tax law b y the voters 3
1818 of a taxing entity, the governing body or official of such 4
1919 taxing entity shall forward to the director of revenue by 5
2020 United States registered mail or certified mail a certified 6
2121 copy of the ordinance or order. The ordinance or order 7
2222 shall reflect the effective date thereof. 8
2323 2. Any local sales tax so adopted shall become 9
2424 effective on the first day of the second calendar quarter 10
2525 after the director of revenue receives notice of adoption of 11
2626 the local sales tax, except as provided in s ubsection 18 of 12
2727 this section, and shall be imposed on all transactions on 13
2828 which the Missouri state sales tax is imposed. 14
2929 3. (1) Every retailer within the jurisdiction of one 15
3030 or more taxing entities which has imposed one or more local 16
3131 sales taxes under the local sales tax law shall add all 17
3232 taxes so imposed along with the tax imposed by the sales tax 18 SB 759 2
3333 law of the state of Missouri to the sale price and, when 19
3434 added, the combined tax shall constitute a part of the 20
3535 price, and shall be a debt of the purchaser to the retailer 21
3636 until paid, and shall be recoverable at law in the same 22
3737 manner as the purchase price. The combined rate of the 23
3838 state sales tax and all local sales taxes shall be the sum 24
3939 of the rates, multiplying the combined rate times the a mount 25
4040 of the sale. 26
4141 (2) In addition to any local sales tax imposed or 27
4242 authorized under the local sales tax law as of January 1, 28
4343 2023, any taxing jurisdiction may impose one or more sales 29
4444 taxes on all retail sales made in such taxing jurisdiction 30
4545 which are subject to taxation under the provisions of 31
4646 chapter 144 for any purpose designated by the taxing 32
4747 jurisdiction in its ballot of submission to its voters; 33
4848 provided, however, that no sales tax shall be effective 34
4949 unless the governing body of the taxing jurisdiction submits 35
5050 to the voters of the taxing jurisdiction, at a state general 36
5151 election, a proposal to authorize the taxing jurisdiction to 37
5252 impose a tax under the provisions of this subsection. The 38
5353 taxes authorized by this subsection shall b e in addition to 39
5454 any and all other sales taxes allowed by law. 40
5555 (3) The ballot of submission shall contain, but need 41
5656 not be limited to, the following language: 42
5757 If you are in favor of the question, place an 48
5858 "X" in the box opposite "YES". If you are 49
5959 43
6060 44
6161 45
6262 46
6363 Shall .......... (taxing jurisdiction's name)
6464 impose a sales tax at the rate of ...... (insert
6565 amount) for the purpose of ............. (insert
6666 purpose)?
6767
6868 47 □ YES □ NO SB 759 3
6969 opposed to the question , place an "X" in the box 50
7070 opposite "NO". 51
7171 If a majority of the votes cast on the proposal by the 52
7272 qualified voters voting thereon are in favor of the 53
7373 proposal, then the sales tax shall be in effect. If a 54
7474 majority of the votes cast by the qualified voter s voting 55
7575 are opposed to the proposal, then the governing body of the 56
7676 taxing jurisdiction shall have no power to impose the sales 57
7777 tax authorized by this subsection unless and until the 58
7878 governing body of the taxing jurisdiction shall again have 59
7979 submitted another proposal to authorize it to impose the 60
8080 sales tax under the provisions of this subsection and such 61
8181 proposal is approved by a majority of the qualified voters 62
8282 voting thereon. 63
8383 (4) Sales taxes imposed or authorized under the local 64
8484 sales tax law as of January 1, 2023, and under the 65
8585 provisions of this subsection shall not exceed the following 66
8686 amounts: 67
8787 (a) For local sales taxes imposed and retained by a 68
8888 taxing entity that is incorporated as a city, town, or 69
8989 village, the total combined rate shall not exceed four and 70
9090 one-half percent; 71
9191 (b) For local sales taxes imposed and retained by a 72
9292 county, excluding cities not within a county, the total 73
9393 combined rate shall not exceed four and one -half percent; 74
9494 (c) For local sales taxes imposed and retained by a 75
9595 city not within a county, the total combined rate shall not 76
9696 exceed nine percent; 77
9797 (d) For local sales taxes imposed and retained by all 78
9898 taxing jurisdictions other than those described in 79
9999 paragraphs (a) to (c) of this sub division, the total 80 SB 759 4
100100 combined rate of sales taxes in any given taxing 81
101101 jurisdiction shall not exceed three percent. For the 82
102102 purposes of this paragraph, local sales taxes imposed by 83
103103 taxing entities described in paragraphs (a) to (c) of this 84
104104 subdivision in a given taxing jurisdiction shall not be 85
105105 included in the calculation of the total combined rate of 86
106106 sales taxes under this paragraph. 87
107107 (5) (a) In any election in which more than one sales 88
108108 tax levy is approved by the voters, and the passage of su ch 89
109109 levies results in a combined rate of sales tax in excess of 90
110110 the limits provided for under subdivision (4) of this 91
111111 subsection, only the sales tax levy receiving the most votes 92
112112 shall become effective, provided such levy does not result 93
113113 in a combined rate of sales tax in excess of the limits 94
114114 provided for under subdivision (4) of this subsection. 95
115115 (b) No taxing jurisdiction with a combined rate of 96
116116 sales tax in excess of the rates provided in subdivision (4) 97
117117 of this subsection as of August 28, 20 22, shall be required 98
118118 to reduce or repeal any such sales tax rate. 99
119119 4. The brackets required to be established by the 100
120120 director of revenue under the provisions of section 144.285 101
121121 shall be based upon the sum of the combined rate of the 102
122122 state sales tax and all local sales taxes imposed under the 103
123123 provisions of the local sales tax law. 104
124124 5. (1) The ordinance or order imposing a local sales 105
125125 tax under the local sales tax law shall impose a tax upon 106
126126 all transactions upon which the Missouri state sa les tax is 107
127127 imposed to the extent and in the manner provided in sections 108
128128 144.010 to 144.525, and the rules and regulations of the 109
129129 director of revenue issued pursuant thereto; except that the 110
130130 rate of the tax shall be the sum of the combined rate of the 111
131131 state sales tax or state highway use tax and all local sales 112 SB 759 5
132132 taxes imposed under the provisions of the local sales tax 113
133133 law. 114
134134 (2) Notwithstanding any other provision of law to the 115
135135 contrary, local taxing jurisdictions, except those in which 116
136136 voters have approved a local use tax under section 144.757, 117
137137 shall have placed on the ballot on or after the general 118
138138 election in November 2014, but no later than the general 119
139139 election in November 2022, whether to repeal application of 120
140140 the local sales tax to the titling of motor vehicles, 121
141141 trailers, boats, and outboard motors that are subject to 122
142142 state sales tax under section 144.020 and purchased from a 123
143143 source other than a licensed Missouri dealer. The ballot 124
144144 question presented to the local voters shall contai n 125
145145 substantially the following language: 126
146146 127
147147 128
148148 129
149149 130
150150 131
151151 132
152152 Shall the _________  (local jurisdiction's name)
153153 discontinue applying and collecting the local
154154 sales tax on the titling of motor vehicles,
155155 trailers, boats, and outboard motors that were
156156 purchased from a source other than a licensed
157157 Missouri dealer?
158158
159159 133
160160 134
161161 135
162162 136
163163 137
164164 138
165165 139
166166 140
167167 Approval of this measure will result in a
168168 reduction of local revenue to provide for vital
169169 services for _________   (local jurisdiction's
170170 name) and it will place Missouri dealers of motor
171171 vehicles, outboard motors, boats, and trailers at
172172 a competitive disadvantage to non -Missouri dealers
173173 of motor vehicles, outboard motors, boats, and
174174 trailers.
175175
176176 141 □ YES □ NO
177177 142
178178 143
179179 144
180180 145
181181 If you are in favor of the question, place an "X"
182182 in the box opposite "YES". If you are opposed to
183183 the question, place an "X" in the box opposite
184184 "NO".
185185 SB 759 6
186186 (3) If the ballot question set forth in subdivision 146
187187 (2) of this subsection re ceives a majority of the votes cast 147
188188 in favor of the proposal, or if the local taxing 148
189189 jurisdiction fails to place the ballot question before the 149
190190 voters on or before the general election in November 2022, 150
191191 the local taxing jurisdiction shall cease applyin g the local 151
192192 sales tax to the titling of motor vehicles, trailers, boats, 152
193193 and outboard motors that were purchased from a source other 153
194194 than a licensed Missouri dealer. 154
195195 (4) In addition to the requirement that the ballot 155
196196 question set forth in subdivi sion (2) of this subsection be 156
197197 placed before the voters, the governing body of any local 157
198198 taxing jurisdiction that had previously imposed a local use 158
199199 tax on the use of motor vehicles, trailers, boats, and 159
200200 outboard motors may, at any time, place a propos al on the 160
201201 ballot at any election to repeal application of the local 161
202202 sales tax to the titling of motor vehicles, trailers, boats, 162
203203 and outboard motors purchased from a source other than a 163
204204 licensed Missouri dealer. If a majority of the votes cast 164
205205 by the registered voters voting thereon are in favor of the 165
206206 proposal to repeal application of the local sales tax to 166
207207 such titling, then the local sales tax shall no longer be 167
208208 applied to the titling of motor vehicles, trailers, boats, 168
209209 and outboard motors purc hased from a source other than a 169
210210 licensed Missouri dealer. If a majority of the votes cast 170
211211 by the registered voters voting thereon are opposed to the 171
212212 proposal to repeal application of the local sales tax to 172
213213 such titling, such application shall remain in effect. 173
214214 (5) In addition to the requirement that the ballot 174
215215 question set forth in subdivision (2) of this subsection be 175
216216 placed before the voters on or after the general election in 176
217217 November 2014, and on or before the general election in 177 SB 759 7
218218 November 2022, whenever the governing body of any local 178
219219 taxing jurisdiction imposing a local sales tax on the sale 179
220220 of motor vehicles, trailers, boats, and outboard motors 180
221221 receives a petition, signed by fifteen percent of the 181
222222 registered voters of such jurisdic tion voting in the last 182
223223 gubernatorial election, and calling for a proposal to be 183
224224 placed on the ballot at any election to repeal application 184
225225 of the local sales tax to the titling of motor vehicles, 185
226226 trailers, boats, and outboard motors purchased from a s ource 186
227227 other than a licensed Missouri dealer, the governing body 187
228228 shall submit to the voters of such jurisdiction a proposal 188
229229 to repeal application of the local sales tax to such 189
230230 titling. If a majority of the votes cast by the registered 190
231231 voters voting thereon are in favor of the proposal to repeal 191
232232 application of the local sales tax to such titling, then the 192
233233 local sales tax shall no longer be applied to the titling of 193
234234 motor vehicles, trailers, boats, and outboard motors 194
235235 purchased from a source other t han a licensed Missouri 195
236236 dealer. If a majority of the votes cast by the registered 196
237237 voters voting thereon are opposed to the proposal to repeal 197
238238 application of the local sales tax to such titling, such 198
239239 application shall remain in effect. 199
240240 (6) Nothing in this subsection shall be construed to 200
241241 authorize the voters of any jurisdiction to repeal 201
242242 application of any state sales or use tax. 202
243243 (7) If any local sales tax on the titling of motor 203
244244 vehicles, trailers, boats, and outboard motors purchased 204
245245 from a source other than a licensed Missouri dealer is 205
246246 repealed, such repeal shall take effect on the first day of 206
247247 the second calendar quarter after the election. If any 207
248248 local sales tax on the titling of motor vehicles, trailers, 208
249249 boats, and outboard mo tors purchased from a source other 209 SB 759 8
250250 than a licensed Missouri dealer is required to cease to be 210
251251 applied or collected due to failure of a local taxing 211
252252 jurisdiction to hold an election pursuant to subdivision (2) 212
253253 of this subsection, such cessation shall ta ke effect on 213
254254 March 1, 2023. 214
255255 (8) Notwithstanding any provision of law to the 215
256256 contrary, if any local sales tax on the titling of motor 216
257257 vehicles, trailers, boats, and outboard motors purchased 217
258258 from a source other than a licensed Missouri dealer is 218
259259 repealed after the general election in November 2014, or if 219
260260 the taxing jurisdiction failed to present the ballot to the 220
261261 voters at a general election on or before November 2022, 221
262262 then the governing body of such taxing jurisdiction may, at 222
263263 any election subsequent to the repeal or after the general 223
264264 election in November 2022, if the jurisdiction failed to 224
265265 present the ballot to the voters, place before the voters 225
266266 the issue of imposing a sales tax on the titling of motor 226
267267 vehicles, trailers, boats, and outb oard motors that are 227
268268 subject to state sales tax under section 144.020 that were 228
269269 purchased from a source other than a licensed Missouri 229
270270 dealer. The ballot question presented to the local voters 230
271271 shall contain substantially the following language: 231
272272 232
273273 233
274274 234
275275 235
276276 236
277277 237
278278 Shall the _________  (local jurisdiction's name)
279279 apply and collect the local sales tax on the
280280 titling of motor vehicles, trailers, boats, and
281281 outboard motors that are subject to state sales
282282 tax under section 144.020 and purchased from a
283283 source other than a licensed Missouri dealer?
284284
285285 238
286286 239
287287 240
288288 241
289289 242
290290 243
291291 Approval of this measure will result in an
292292 increase of local revenue to provide for vital
293293 services for _________   (local jurisdiction's
294294 name), and it will remove a competitive advantage
295295 that non-Missouri dealers of motor vehicles,
296296 outboard motors, boats, and trailers have over
297297 SB 759 9
298298 (9) If any local sales tax on the titling of motor 251
299299 vehicles, trailers, boats, and outboard motors purchased 252
300300 from a source other than a licensed Missouri dealer is 253
301301 adopted, such tax shall take effect and be imposed on the 254
302302 first day of the second calendar quarter after the election. 255
303303 6. On and after the effective date of any local sales 256
304304 tax imposed under the provisions of the local sales tax law, 257
305305 the director of revenue shall perform all functions incident 258
306306 to the administration, collection, enforcement, and 259
307307 operation of the tax, and the director of revenue shall 260
308308 collect in addition to the sales tax for the state of 261
309309 Missouri all additional local sales taxes authorized under 262
310310 the authority of the local sales tax law. All local sales 263
311311 taxes imposed under the local sales tax law together with 264
312312 all taxes imposed under the sal es tax law of the state of 265
313313 Missouri shall be collected together and reported upon such 266
314314 forms and under such administrative rules and regulations as 267
315315 may be prescribed by the director of revenue. 268
316316 7. All applicable provisions contained in sections 269
317317 144.010 to 144.525 governing the state sales tax and section 270
318318 32.057, the uniform confidentiality provision, shall apply 271
319319 to the collection of any local sales tax imposed under the 272
320320 local sales tax law except as modified by the local sales 273
321321 tax law. 274
322322 244
323323 245
324324 Missouri dealers of motor vehicles, outboard
325325 motors, boats, and trailers.
326326 246 □ YES □ NO
327327 247
328328 248
329329 249
330330 250
331331 If you are in favor of the question, place an "X"
332332 in the box opposite "YES". If you are opposed to
333333 the question, place an "X" in the box opposite
334334 "NO".
335335 SB 759 10
336336 8. All exemptions granted to agencies of government, 275
337337 organizations, persons and to the sale of certain articles 276
338338 and items of tangible personal property and taxable services 277
339339 under the provisions of sections 144.010 to 144.525, as 278
340340 these sections now read and as they may hereafter be 279
341341 amended, it being the intent of this general assembly to 280
342342 ensure that the same sales tax exemptions granted from the 281
343343 state sales tax law also be granted under the local sales 282
344344 tax law, are hereby made applicable to the imposi tion and 283
345345 collection of all local sales taxes imposed under the local 284
346346 sales tax law. 285
347347 9. The same sales tax permit, exemption certificate 286
348348 and retail certificate required by sections 144.010 to 287
349349 144.525 for the administration and collection of the st ate 288
350350 sales tax shall satisfy the requirements of the local sales 289
351351 tax law, and no additional permit or exemption certificate 290
352352 or retail certificate shall be required; except that the 291
353353 director of revenue may prescribe a form of exemption 292
354354 certificate for an exemption from any local sales tax 293
355355 imposed by the local sales tax law. 294
356356 10. All discounts allowed the retailer under the 295
357357 provisions of the state sales tax law for the collection of 296
358358 and for payment of taxes under the provisions of the state 297
359359 sales tax law are hereby allowed and made applicable to any 298
360360 local sales tax collected under the provisions of the local 299
361361 sales tax law. 300
362362 11. The penalties provided in section 32.057 and 301
363363 sections 144.010 to 144.525 for a violation of the 302
364364 provisions of those sections are hereby made applicable to 303
365365 violations of the provisions of the local sales tax law. 304
366366 12. (1) For the purposes of any local sales tax 305
367367 imposed by an ordinance or order under the local sales tax 306 SB 759 11
368368 law, all sales, except the sale of moto r vehicles, trailers, 307
369369 boats, and outboard motors required to be titled under the 308
370370 laws of the state of Missouri, shall be deemed to be 309
371371 consummated at the place of business of the retailer unless 310
372372 the tangible personal property sold is delivered by the 311
373373 retailer or his agent to an out -of-state destination. In 312
374374 the event a retailer has more than one place of business in 313
375375 this state which participates in the sale, the sale shall be 314
376376 deemed to be consummated at the place of business of the 315
377377 retailer where the initial order for the tangible personal 316
378378 property is taken, even though the order must be forwarded 317
379379 elsewhere for acceptance, approval of credit, shipment or 318
380380 billing. A sale by a retailer's agent or employee shall be 319
381381 deemed to be consummated at the p lace of business from which 320
382382 he works. 321
383383 (2) For the purposes of any local sales tax imposed by 322
384384 an ordinance or order under the local sales tax law, the 323
385385 sales tax upon the titling of all motor vehicles, trailers, 324
386386 boats, and outboard motors shall be imposed at the rate in 325
387387 effect at the location of the residence of the purchaser, 326
388388 and remitted to that local taxing entity, and not at the 327
389389 place of business of the retailer, or the place of business 328
390390 from which the retailer's agent or employee works. 329
391391 (3) For the purposes of any local tax imposed by an 330
392392 ordinance or under the local sales tax law on charges for 331
393393 mobile telecommunications services, all taxes of mobile 332
394394 telecommunications service shall be imposed as provided in 333
395395 the Mobile Telecommunica tions Sourcing Act, 4 U.S.C. 334
396396 Sections 116 through 124, as amended. 335
397397 13. Local sales taxes shall not be imposed on the 336
398398 seller of motor vehicles, trailers, boats, and outboard 337
399399 motors required to be titled under the laws of the state of 338 SB 759 12
400400 Missouri, but shall be collected from the purchaser by the 339
401401 director of revenue at the time application is made for a 340
402402 certificate of title, if the address of the applicant is 341
403403 within a taxing entity imposing a local sales tax under the 342
404404 local sales tax law. 343
405405 14. The director of revenue and any of his deputies, 344
406406 assistants and employees who have any duties or 345
407407 responsibilities in connection with the collection, deposit, 346
408408 transfer, transmittal, disbursement, safekeeping, 347
409409 accounting, or recording of funds which come into the hands 348
410410 of the director of revenue under the provisions of the local 349
411411 sales tax law shall enter a surety bond or bonds payable to 350
412412 any and all taxing entities in whose behalf such funds have 351
413413 been collected under the local sales tax law in the amo unt 352
414414 of one hundred thousand dollars for each such tax; but the 353
415415 director of revenue may enter into a blanket bond covering 354
416416 himself and all such deputies, assistants and employees. 355
417417 The cost of any premium for such bonds shall be paid by the 356
418418 director of revenue from the share of the collections under 357
419419 the sales tax law retained by the director of revenue for 358
420420 the benefit of the state. 359
421421 15. The director of revenue shall annually report on 360
422422 his management of each trust fund which is created under the 361
423423 local sales tax law and administration of each local sales 362
424424 tax imposed under the local sales tax law. He shall provide 363
425425 each taxing entity imposing one or more local sales taxes 364
426426 authorized by the local sales tax law with a detailed 365
427427 accounting of the source of all funds received by him for 366
428428 the taxing entity. Notwithstanding any other provisions of 367
429429 law, the state auditor shall annually audit each trust 368
430430 fund. A copy of the director's report and annual audit 369 SB 759 13
431431 shall be forwarded to each taxing entity i mposing one or 370
432432 more local sales taxes. 371
433433 16. Within the boundaries of any taxing entity where 372
434434 one or more local sales taxes have been imposed, if any 373
435435 person is delinquent in the payment of the amount required 374
436436 to be paid by him under the local sales tax law or in the 375
437437 event a determination has been made against him for taxes 376
438438 and penalty under the local sales tax law, the limitation 377
439439 for bringing suit for the collection of the delinquent tax 378
440440 and penalty shall be the same as that provided in sections 379
441441 144.010 to 144.525. Where the director of revenue has 380
442442 determined that suit must be filed against any person for 381
443443 the collection of delinquent taxes due the state under the 382
444444 state sales tax law, and where such person is also 383
445445 delinquent in payment of ta xes under the local sales tax 384
446446 law, the director of revenue shall notify the taxing entity 385
447447 in the event any person fails or refuses to pay the amount 386
448448 of any local sales tax due so that appropriate action may be 387
449449 taken by the taxing entity. 388
450450 17. Where property is seized by the director of 389
451451 revenue under the provisions of any law authorizing seizure 390
452452 of the property of a taxpayer who is delinquent in payment 391
453453 of the tax imposed by the state sales tax law, and where 392
454454 such taxpayer is also delinquent in payment of any tax 393
455455 imposed by the local sales tax law, the director of revenue 394
456456 shall permit the taxing entity to join in any sale of 395
457457 property to pay the delinquent taxes and penalties due the 396
458458 state and to the taxing entity under the local sales tax 397
459459 law. The proceeds from such sale shall first be applied to 398
460460 all sums due the state, and the remainder, if any, shall be 399
461461 applied to all sums due such taxing entity. 400 SB 759 14
462462 18. If a local sales tax has been in effect for at 401
463463 least one year under the provision s of the local sales tax 402
464464 law and voters approve reimposition of the same local sales 403
465465 tax at the same rate at an election as provided for in the 404
466466 local sales tax law prior to the date such tax is due to 405
467467 expire, the tax so reimposed shall become effective the 406
468468 first day of the first calendar quarter after the director 407
469469 receives a certified copy of the ordinance, order or 408
470470 resolution accompanied by a map clearly showing the 409
471471 boundaries thereof and the results of such election, 410
472472 provided that such ordinance, order or resolution and all 411
473473 necessary accompanying materials are received by the 412
474474 director at least thirty days prior to the expiration of 413
475475 such tax. Any administrative cost or expense incurred by 414
476476 the state as a result of the provisions of this subsect ion 415
477477 shall be paid by the city or county reimposing such tax. 416
478478