HCSHB1427--TAXATION
SPONSOR: McGirl
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonWaysandMeansbyavoteof10to1.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
1427.
Thisbillmodifiesprovisionsrelatingtotaxation.
MEDICALDEVICES(Sections144.030and144.813)
ThisbillauthorizesasalestaxexemptionforsalesofclassIII
medicaldevicesthatuseelectricfieldsforthepurposesof
treatingcancer,includingcomponents,repairparts,anddisposable
orsingle-patient-usesuppliesrequiredforsuchdevices.
Currentlawprovidesasalestaxexemptionforcertaindurable
medicalequipmentasdefinedonJanuary1,1980,bythefederal
Medicareprogram. ThisbillremovesthereferencetoJanuary1,
1980.
Additionally,currentlawprovidesasalestaxexemptionforthe
salesorrentalofmanualandpoweredwheelchairs,includingparts.
Thebillalsoappliestheexemptiontoaccessoriesforsuch
wheelchairs.
PERSONALPROPERTY(Sections144.030and144.615)
Thisbillexemptsfromsalestaxallsalesofusedtangible
personalproperty,includinganytangiblepersonalpropertythatis
soldasecondtimeoranynumberofadditionalsubsequenttimes
aftertheinitialpointofsale,atanauction. Theprovisionsof
thisbillshallnotapplytomotorvehicles,trailers,boats,or
outboardmotorspurchasedoracquiredforuseonthehighwaysor
watersofthisstatewhicharerequiredtobetitled.
RESEARCHANDEXPERIMENTALEXPENDITURES(Section143.121)
Currently,Missouritaxpayersareunabletodeductcertainresearch
andexperimentation expendituresfromtheiradjustedgrossincome
fortaxpurposes. Thislimitationisaresultofthefederal"Tax
CutsandJobsAct"of2017.Thisbillde-couplesMissourifromthe
provisionsofthefederallaw,andallowstaxpayerstodeduct
specifiedresearchandexperimentalexpendituresfromtheirfederal
adjustedgrossincome,beginningwiththe2022taxyear. BINGO(Sections313.057&313.057)
Thisbillrepealsa2%taxonthegrossreceiptsofretailsales
paidoneachpulltabcardsoldinthestate.
Thebillalsorepealsataximposedoneachorganizationconducting
agameofbingowhichannuallyawardsatleast$5000andmorethan
$100inasingleday.
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaythatthisbillwillallowtaxexempt
organizationstoutilizeallincomethattheygeneratetohelppay
fornecessities. SuchtaxexemptorganizationswouldincludeVFWs,
ElksClubs,andAmericanLegions. Mostoftheseorganizationshold
bingos,andanyorganizationhostingabingomustbeclassifiedas
taxexempt.Supportersfurthersaythattheincomethatthesetax
exemptorganizationsreceiveisusedtopromotetheirobjectives,
suchashelpingveterans. Alargeamountoftheincomethey
receiveispaidtowardsthecurrent2%tax,whichgivesthe
organizationsmuchlessofanopportunitytousethosefundsto
promotetheircharitableobjectives. Bingogamesarethehighest
producingrevenueactivitiesthattheseorganizationshost,
requiringthatalotofpeoplearehiredtoruntheevent,and
makingitmuchlessprofitableforsmallertaxexempt
organizations.
TestifyinginpersonforthebillwereRepresentative McGirl;Gary
Grigsby,AssociationofCharitableGamesofMissouri;andJohnE.
Mueller.
OPPONENTS: Thosewhoopposethebillsaythatgamesofchance,
suchasbingo,areveryprofitable,andprovideagooddealof
revenuetostateschools.Therefore,the2%taxshouldbeviewed
asthecostofdoingbusinessforthesetaxexemptorganizationsto
supportstateservices.
TestifyinginpersonagainstthebillwasArnieC.Dienoff.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.