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Missouri Senate Bill SB872

Missouri 2024 Regular Session

Missouri Senate Bill SB872 Compare Versions

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22 EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
33 and is intended to be omitted in the law.
44 SECOND REGULAR SESSION
5-[TRULY AGREED TO AND FINALLY PASSED ]
5+[PERFECTED]
66 SENATE SUBSTITUTE NO. 2 FOR
77 SENATE BILL NO. 872
88 102ND GENERAL ASSEMBLY
9-2024
10-3392S.10T
9+INTRODUCED BY SENATOR ESLINGER.
10+3392S.10P KRISTINA MARTIN, Secretary
1111 AN ACT
1212 To repeal sections 67.2677, 67.5122, and 143.121, RSMo, and to enact in lieu thereof four new
1313 sections relating to the taxation of utility infrastructure.
1414
1515 Be it enacted by the General Assembly of the State of Missouri, as follows:
1616 Section A. Sections 67.2677, 67.5122, and 143.121, RSMo, 1
1717 are repealed and four n ew sections enacted in lieu thereof, to 2
1818 be known as sections 67.2677, 67.5122, 143.121, and 144.058, to 3
1919 read as follows:4
2020 67.2677. [1.] For purposes of sections 67.2675 to 1
2121 67.2714, the following terms mean: 2
2222 (1) "Cable operator", as defined in 47 U.S.C. Section 3
2323 522(5); 4
2424 (2) "Cable system", as defined in 47 U.S.C. Section 5
2525 522(7); 6
2626 (3) "Franchise", an initial authorization, or renewal 7
2727 of an authorization, issued by a franchising entity, 8
2828 regardless of whether the authorization is des ignated as a 9
2929 franchise, permit, license, resolution, contract, 10
3030 certificate, agreement, or otherwise, that authorizes the 11
3131 provision of video service and any affiliated or subsidiary 12
32-agreements related to such authorization; 13
32+agreements related to such authorization; 13 SS#2 SB 872 2
3333 (4) "Franchise area", the total geographic area 14
34-authorized to be served by an incumbent cable operator in a 15 SS#2 SB 872 2
34+authorized to be served by an incumbent cable operator in a 15
3535 political subdivision as of August 28, 2007, or, in the case 16
3636 of an incumbent local exchange carrier, as such term is 17
3737 defined in 47 U.S.C. Section 251(h), or affiliate thereof, 18
3838 the area within such political subdivision in which such 19
3939 carrier provides telephone exchange service; 20
4040 (5) "Franchise entity", a political subdivision that 21
4141 was entitled to require franchises and impose fees on cable 22
4242 operators on the day b efore the effective date of sections 23
4343 67.2675 to 67.2714, provided that only one political 24
4444 subdivision may be a franchise entity with regard to a 25
4545 geographic area; 26
4646 (6) (a) "Gross revenues", limited to amounts billed 27
4747 to video service subscribers for the following: 28
4848 a. Recurring charges for video service; and 29
4949 b. Event-based charges for video service, including 30
5050 but not limited to pay -per-view and video-on-demand charges; 31
5151 (b) "Gross revenues" do not include: 32
5252 a. Discounts, refunds, and other price adjustments 33
5353 that reduce the amount of compensation received by an entity 34
5454 holding a video service authorization; 35
5555 b. Uncollectibles; 36
5656 c. Late payment fees; 37
5757 d. Amounts billed to video service subscribers to 38
5858 recover taxes, fees, or surcharges imposed on video service 39
5959 subscribers or video service providers in connection with 40
6060 the provision of video services, including the video service 41
6161 provider fee authorized by this section; 42
6262 e. Fees or other contributions for PEG or I-Net 43
63-support; 44
63+support; 44 SS#2 SB 872 3
6464 f. Charges for services other than video service that 45
6565 are aggregated or bundled with amounts billed to video 46
66-service subscribers, if the entity holding a video service 47 SS#2 SB 872 3
66+service subscribers, if the entity holding a video service 47
6767 authorization reasonably can identify such charges on books 48
6868 and records kept in the regular course of business or by 49
6969 other reasonable means; 50
7070 g. Rental of set top boxes, modems, or other equipment 51
7171 used to provide or facilitate the provision of video service; 52
7272 h. Service charges related to the provision of video 53
7373 service including, but not limited to, activation, 54
7474 installation, repair, and maintenance charges; 55
7575 i. Administrative charges related to the provision of 56
7676 video service including, but not limited to, service order 57
7777 and service termination c harges; or 58
7878 j. A pro rata portion of all revenue derived from 59
7979 advertising, less refunds, rebates, or discounts; 60
8080 (c) Except with respect to the exclusion of the video 61
8181 service provider fee, gross revenues shall be computed in 62
8282 accordance with generally accepted accounting principles; 63
8383 (7) "Household", an apartment, a house, a mobile home, 64
8484 or any other structure or part of a structure intended for 65
8585 residential occupancy as separate living quarters; 66
8686 (8) "Incumbent cable operator", the c able service 67
8787 provider serving cable subscribers in a particular franchise 68
8888 area on September 1, 2007; 69
8989 (9) "Low-income household", a household with an 70
9090 average annual household income of less than thirty -five 71
9191 thousand dollars; 72
9292 (10) "Person", an individual, partnership, 73
9393 association, organization, corporation, trust, or government 74
94-entity; 75
94+entity; 75 SS#2 SB 872 4
9595 (11) "Political subdivision", a city, town, village, 76
9696 county; 77
9797 (12) "Public right-of-way", the area of real property 78
98-in which a political subdivision has a dedicated or acqu ired 79 SS#2 SB 872 4
98+in which a political subdivis ion has a dedicated or acquired 79
9999 right-of-way interest in the real property, including the 80
100100 area on, below, or above the present and future streets, 81
101101 alleys, avenues, roads, highways, parkways, or boulevards 82
102102 dedicated or acquired as right -of-way and utility easements 83
103103 dedicated for compatible uses. The term does not include 84
104104 the airwaves above a right -of-way with regard to wireless 85
105105 telecommunications or other nonwire telecommunications or 86
106106 broadcast service; 87
107107 (13) "Video programming", programming pr ovided by, or 88
108108 generally considered comparable to programming provided by, 89
109109 a television broadcast station, as set forth in 47 U.S.C. 90
110110 Section 522(20); 91
111111 (14) "Video service", the provision of video 92
112112 programming by a video service provider provided through 93
113113 wireline facilities located at least in part in the public 94
114114 right-of-way without regard to delivery technology, 95
115115 including internet protocol technology whether provided as 96
116116 part of a tier, on demand, or on a per-channel basis. This 97
117117 definition includes cable service as defined by 47 U.S.C. 98
118118 Section 522(6), but does not include any video programming 99
119119 provided by a commercial mobile service provider defined in 100
120120 47 U.S.C. Section 332(d), or any video programming [provided 101
121121 solely as part of and ] accessed via a service that enables 102
122122 users to access content, information, electronic mail, or 103
123123 other services offered over the [public] internet, including 104
124124 streaming content; 105
125125 (15) "Video service authorization", the right of a 106
126-video service provider or an incumbent cable operator t hat 107
126+video service provider or an incumbent cable operator that 107 SS#2 SB 872 5
127127 secures permission from the public service commission 108
128128 pursuant to sections 67.2675 to 67.2714, to offer video 109
129-service to subscribers in a political subdivision; 110 SS#2 SB 872 5
129+service to subscribers in a political subdivision; 110
130130 (16) "Video service network", wireline facilities, or 111
131131 any component thereof, located at least in part in the 112
132132 public right-of-way that deliver video service, without 113
133133 regard to delivery technology, including internet protocol 114
134134 technology or any successor technology. The term video 115
135135 service network shall incl ude cable systems; 116
136136 (17) "Video service provider", any person that 117
137137 distributes video service through a video service network 118
138138 pursuant to a video service authorization; 119
139139 (18) "Video service provider fee", the fee imposed 120
140140 under section 67.2689. 121
141141 [2. The repeal and reenactment of this section shall 122
142142 become effective August 28, 2023. ] 123
143143 67.5122. Sections 67.5110 to 67.5122 shall expire on 1
144144 [January 1, 2025] December 31, 2029, except that for small 2
145145 wireless facilities already permitted or collocated on 3
146146 authority poles prior to such date, the rate set forth in 4
147147 section 67.5116 for collocation of small wireless facilities 5
148148 on authority poles shall remain effective for the duration 6
149149 of the permit authorizing the collocation. 7
150150 143.121. 1. The Missouri adjusted gross income of a 1
151151 resident individual shall be the taxpayer's federal adjusted 2
152152 gross income subject to the modifications in this section. 3
153153 2. There shall be added to the taxpayer's federal 4
154154 adjusted gross income: 5
155155 (1) The amount of any federal income tax refund 6
156156 received for a prior year which resulted in a Missouri 7
157157 income tax benefit. The amount added pursuant to this 8
158-subdivision shall not include any amount of a federal income 9
158+subdivision shall not include any amount of a federal income 9 SS#2 SB 872 6
159159 tax refund attributable to a tax credit reducing a 10
160160 taxpayer's federal tax liability pursuant to Public Law 116 - 11
161-136 or 116-260, enacted by the 116th United States Congress, 12 SS#2 SB 872 6
161+136 or 116-260, enacted by the 116th United States Congress, 12
162162 for the tax year beginning on or after January 1, 2020, and 13
163163 ending on or before Decembe r 31, 2020, and deducted from 14
164164 Missouri adjusted gross income pursuant to section 143.171. 15
165165 The amount added under this subdivision shall also not 16
166166 include any amount of a federal income tax refund 17
167167 attributable to a tax credit reducing a taxpayer's feder al 18
168168 tax liability under any other federal law that provides 19
169169 direct economic impact payments to taxpayers to mitigate 20
170170 financial challenges related to the COVID -19 pandemic, and 21
171171 deducted from Missouri adjusted gross income under section 22
172172 143.171; 23
173173 (2) Interest on certain governmental obligations 24
174174 excluded from federal gross income by 26 U.S.C. Section 103 25
175175 of the Internal Revenue Code, as amended. The previous 26
176176 sentence shall not apply to interest on obligations of the 27
177177 state of Missouri or any of it s political subdivisions or 28
178178 authorities and shall not apply to the interest described in 29
179179 subdivision (1) of subsection 3 of this section. The amount 30
180180 added pursuant to this subdivision shall be reduced by the 31
181181 amounts applicable to such interest that wo uld have been 32
182182 deductible in computing the taxable income of the taxpayer 33
183183 except only for the application of 26 U.S.C. Section 265 of 34
184184 the Internal Revenue Code, as amended. The reduction shall 35
185185 only be made if it is at least five hundred dollars; 36
186186 (3) The amount of any deduction that is included in 37
187187 the computation of federal taxable income pursuant to 26 38
188188 U.S.C. Section 168 of the Internal Revenue Code as amended 39
189189 by the Job Creation and Worker Assistance Act of 2002 to the 40
190-extent the amount deducted relates to property purchas ed on 41
190+extent the amount deduc ted relates to property purchased on 41 SS#2 SB 872 7
191191 or after July 1, 2002, but before July 1, 2003, and to the 42
192192 extent the amount deducted exceeds the amount that would 43
193-have been deductible pursuant to 26 U.S.C. Section 168 of 44 SS#2 SB 872 7
193+have been deductible pursuant to 26 U.S.C. Section 168 of 44
194194 the Internal Revenue Code of 1986 as in e ffect on January 1, 45
195195 2002; 46
196196 (4) The amount of any deduction that is included in 47
197197 the computation of federal taxable income for net operating 48
198198 loss allowed by 26 U.S.C. Section 172 of the Internal 49
199199 Revenue Code of 1986, as amended, other than the deduc tion 50
200200 allowed by 26 U.S.C. Section 172(b)(1)(G) and 26 U.S.C. 51
201201 Section 172(i) of the Internal Revenue Code of 1986, as 52
202202 amended, for a net operating loss the taxpayer claims in the 53
203203 tax year in which the net operating loss occurred or carries 54
204204 forward for a period of more than twenty years and carries 55
205205 backward for more than two years. Any amount of net 56
206206 operating loss taken against federal taxable income but 57
207207 disallowed for Missouri income tax purposes pursuant to this 58
208208 subdivision after June 18, 2002, ma y be carried forward and 59
209209 taken against any income on the Missouri income tax return 60
210210 for a period of not more than twenty years from the year of 61
211211 the initial loss; and 62
212212 (5) For nonresident individuals in all taxable years 63
213213 ending on or after December 31, 2006, the amount of any 64
214214 property taxes paid to another state or a political 65
215215 subdivision of another state for which a deduction was 66
216216 allowed on such nonresident's federal return in the taxable 67
217217 year unless such state, political subdivision of a state , or 68
218218 the District of Columbia allows a subtraction from income 69
219219 for property taxes paid to this state for purposes of 70
220220 calculating income for the income tax for such state, 71
221221 political subdivision of a state, or the District of 72
222-Columbia; 73
222+Columbia; 73 SS#2 SB 872 8
223223 (6) For all tax years beginning on or after January 1, 74
224224 2018, any interest expense paid or accrued in a previous 75
225-taxable year, but allowed as a deduction under 26 U.S.C. 76 SS#2 SB 872 8
225+taxable year, but allowed as a deduction under 26 U.S.C. 76
226226 Section 163, as amended, in the current taxable year by 77
227227 reason of the carryforward of disallow ed business interest 78
228228 provisions of 26 U.S.C. Section 163(j), as amended. For the 79
229229 purposes of this subdivision, an interest expense is 80
230230 considered paid or accrued only in the first taxable year 81
231231 the deduction would have been allowable under 26 U.S.C. 82
232232 Section 163, as amended, if the limitation under 26 U.S.C. 83
233233 Section 163(j), as amended, did not exist. 84
234234 3. There shall be subtracted from the taxpayer's 85
235235 federal adjusted gross income the following amounts to the 86
236236 extent included in federal adjusted gro ss income: 87
237237 (1) Interest received on deposits held at a federal 88
238238 reserve bank or interest or dividends on obligations of the 89
239239 United States and its territories and possessions or of any 90
240240 authority, commission or instrumentality of the United 91
241241 States to the extent exempt from Missouri income taxes 92
242242 pursuant to the laws of the United States. The amount 93
243243 subtracted pursuant to this subdivision shall be reduced by 94
244244 any interest on indebtedness incurred to carry the described 95
245245 obligations or securities and by any expenses incurred in 96
246246 the production of interest or dividend income described in 97
247247 this subdivision. The reduction in the previous sentence 98
248248 shall only apply to the extent that such expenses including 99
249249 amortizable bond premiums are deducted in dete rmining the 100
250250 taxpayer's federal adjusted gross income or included in the 101
251251 taxpayer's Missouri itemized deduction. The reduction shall 102
252252 only be made if the expenses total at least five hundred 103
253-dollars; 104
253+dollars; 104 SS#2 SB 872 9
254254 (2) The portion of any gain, from the sale or o ther 105
255255 disposition of property having a higher adjusted basis to 106
256256 the taxpayer for Missouri income tax purposes than for 107
257-federal income tax purposes on December 31, 1972, that does 108 SS#2 SB 872 9
257+federal income tax purposes on December 31, 1972, that does 108
258258 not exceed such difference in basis. If a gain is 109
259259 considered a long-term capital gain for federal income tax 110
260260 purposes, the modification shall be limited to one -half of 111
261261 such portion of the gain; 112
262262 (3) The amount necessary to prevent the taxation 113
263263 pursuant to this chapter of any annuity or other amount of 114
264264 income or gain which was properly included in income or gain 115
265265 and was taxed pursuant to the laws of Missouri for a taxable 116
266266 year prior to January 1, 1973, to the taxpayer, or to a 117
267267 decedent by reason of whose death the taxpayer acquired the 118
268268 right to receive the income or gain, or to a trust or estate 119
269269 from which the taxpayer received the income or gain; 120
270270 (4) Accumulation distributions received by a taxpayer 121
271271 as a beneficiary of a trust to the extent that the same are 122
272272 included in federal adjusted gross income; 123
273273 (5) The amount of any state income tax refund for a 124
274274 prior year which was included in the federal adjusted gross 125
275275 income; 126
276276 (6) The portion of capital gain specified in section 127
277277 135.357 that would otherwise be included in federal adjusted 128
278278 gross income; 129
279279 (7) The amount that would have been deducted in the 130
280280 computation of federal taxable income pursuant to 26 U.S.C. 131
281281 Section 168 of the Internal Revenue Code as in effect on 132
282282 January 1, 2002, to the extent that amount relates to 133
283283 property purchased on or after July 1, 2002, but before July 134
284284 1, 2003, and to the extent that amount exceeds the amount 135
285-actually deducted pursuant to 26 U.S.C. Section 168 of the 136
285+actually deducted pursuant to 26 U.S.C. Section 168 of the 136 SS#2 SB 872 10
286286 Internal Revenue Code as amended by the Job Creation and 137
287287 Worker Assistance Act of 2002; 138
288288 (8) For all tax years beginning on or after January 1, 139
289-2005, the amount of any income received for military service 140 SS#2 SB 872 10
289+2005, the amount of any income received for military service 140
290290 while the taxpayer serves in a combat zone which is included 141
291291 in federal adjusted gross income and not otherwise excluded 142
292292 therefrom. As used in this section, "combat zone" means any 143
293293 area which the President of the United States by Executive 144
294294 Order designates as an area in which Armed Forces of the 145
295295 United States are or have engaged in combat. Service is 146
296296 performed in a combat zone only if performed on or after the 147
297297 date designated by the President by Executive Order as the 148
298298 date of the commencing of combat activities in such zone, 149
299299 and on or before the date designated by the President by 150
300300 Executive Order as the date of the termination of c ombatant 151
301301 activities in such zone; 152
302302 (9) For all tax years ending on or after July 1, 2002, 153
303303 with respect to qualified property that is sold or otherwise 154
304304 disposed of during a taxable year by a taxpayer and for 155
305305 which an additional modification was mad e under subdivision 156
306306 (3) of subsection 2 of this section, the amount by which 157
307307 additional modification made under subdivision (3) of 158
308308 subsection 2 of this section on qualified property has not 159
309309 been recovered through the additional subtractions provided 160
310310 in subdivision (7) of this subsection; 161
311311 (10) For all tax years beginning on or after January 162
312312 1, 2014, the amount of any income received as payment from 163
313313 any program which provides compensation to agricultural 164
314314 producers who have suffered a loss as the result of a 165
315315 disaster or emergency, including the: 166
316316 (a) Livestock Forage Disaster Program; 167
317- (b) Livestock Indemnity Program; 168
317+ (b) Livestock Indemnity Program; 168 SS#2 SB 872 11
318318 (c) Emergency Assistance for Livestock, Honeybees, and 169
319319 Farm-Raised Fish; 170
320320 (d) Emergency Conservation Program ; 171
321- (e) Noninsured Crop Disaster Assistance Program; 172 SS#2 SB 872 11
321+ (e) Noninsured Crop Disaster Assistance Program; 172
322322 (f) Pasture, Rangeland, Forage Pilot Insurance Program; 173
323323 (g) Annual Forage Pilot Program; 174
324324 (h) Livestock Risk Protection Insurance Plan; 175
325325 (i) Livestock Gross Margin Insurance Pla n; 176
326326 (11) For all tax years beginning on or after January 177
327327 1, 2018, any interest expense paid or accrued in the current 178
328328 taxable year, but not deducted as a result of the limitation 179
329329 imposed under 26 U.S.C. Section 163(j), as amended. For the 180
330330 purposes of this subdivision, an interest expense is 181
331331 considered paid or accrued only in the first taxable year 182
332332 the deduction would have been allowable under 26 U.S.C. 183
333333 Section 163, as amended, if the limitation under 26 U.S.C. 184
334334 Section 163(j), as amended, did n ot exist; 185
335335 (12) One hundred percent of any retirement benefits 186
336336 received by any taxpayer as a result of the taxpayer's 187
337337 service in the Armed Forces of the United States, including 188
338338 reserve components and the National Guard of this state, as 189
339339 defined in 32 U.S.C. Sections 101(3) and 109, and any other 190
340340 military force organized under the laws of this state; and 191
341341 (13) For all tax years beginning on or after January 192
342342 1, 2022, one hundred percent of any federal , state, or local 193
343343 grant moneys received [for the purpose of providing or 194
344344 expanding access to broadband internet to areas of the state 195
345345 deemed to be lacking such access ] by the taxpayer if the 196
346346 grant money was disbursed for the express purpose of 197
347347 providing or expanding access to broadband intern et to areas 198
348-of the state deemed to be lacking such access . 199
348+of the state deemed to be lacking such access . 199 SS#2 SB 872 12
349349 4. There shall be added to or subtracted from the 200
350350 taxpayer's federal adjusted gross income the taxpayer's 201
351351 share of the Missouri fiduciary adjustment provided in 202
352-section 143.351. 203 SS#2 SB 872 12
352+section 143.351. 203
353353 5. There shall be added to or subtracted from the 204
354354 taxpayer's federal adjusted gross income the modifications 205
355355 provided in section 143.411. 206
356356 6. In addition to the modifications to a taxpayer's 207
357357 federal adjusted gross income in this section, to calculate 208
358358 Missouri adjusted gross income there shall be subtracted 209
359359 from the taxpayer's federal adjusted gross income any gain 210
360360 recognized pursuant to 26 U.S.C. Section 1033 of the 211
361361 Internal Revenue Code of 1986, as amended, arising from 212
362362 compulsory or involuntary conversion of property as a result 213
363363 of condemnation or the imminence thereof. 214
364364 7. (1) As used in this subsection, "qualified health 215
365365 insurance premium" means the amount paid during the tax year 216
366366 by such taxpayer for any insurance policy primarily 217
367367 providing health care coverage for the taxpayer, the 218
368368 taxpayer's spouse, or the taxpayer's dependents. 219
369369 (2) In addition to the subtractions in subsection 3 of 220
370370 this section, one hundred percent of the amount of qualified 221
371371 health insurance premiums shall be subtracted from the 222
372372 taxpayer's federal adjusted gross income to the extent the 223
373373 amount paid for such premiums is included in federal taxable 224
374374 income. The taxpayer shall provide the department of 225
375375 revenue with proof of the amount of qualified health 226
376376 insurance premiums paid. 227
377377 8. (1) Beginning January 1, 2014, in addition to the 228
378378 subtractions provided in this section, one hundred percent 229
379379 of the cost incurred by a taxpayer for a home energy audit 230
380-conducted by an entity certified by the department of 231
380+conducted by an entity certified by the department of 231 SS#2 SB 872 13
381381 natural resources under section 640.153 or the 232
382382 implementation of any energy efficiency recommendations made 233
383383 in such an audit shall be subtracted from the taxpayer's 234
384-federal adjusted gross income to the extent the amount paid 235 SS#2 SB 872 13
384+federal adjusted gross income to the extent the amount paid 235
385385 for any such activity is included in federal taxable 236
386386 income. The taxpayer shall provide the department of 237
387387 revenue with a summary of any recommendations made in a 238
388388 qualified home energy audit, the name and certification 239
389389 number of the qualified home energy auditor who conduct ed 240
390390 the audit, and proof of the amount paid for any activities 241
391391 under this subsection for which a deduction is claimed. The 242
392392 taxpayer shall also provide a copy of the summary of any 243
393393 recommendations made in a qualified home energy audit to the 244
394394 department of natural resources. 245
395395 (2) At no time shall a deduction claimed under this 246
396396 subsection by an individual taxpayer or taxpayers filing 247
397397 combined returns exceed one thousand dollars per year for 248
398398 individual taxpayers or cumulatively exceed two thousand 249
399399 dollars per year for taxpayers filing combined returns. 250
400400 (3) Any deduction claimed under this subsection shall 251
401401 be claimed for the tax year in which the qualified home 252
402402 energy audit was conducted or in which the implementation of 253
403403 the energy efficiency recommendations occurred. If 254
404404 implementation of the energy efficiency recommendations 255
405405 occurred during more than one year, the deduction may be 256
406406 claimed in more than one year, subject to the limitations 257
407407 provided under subdivision (2) of this subsectio n. 258
408408 (4) A deduction shall not be claimed for any otherwise 259
409409 eligible activity under this subsection if such activity 260
410410 qualified for and received any rebate or other incentive 261
411-through a state-sponsored energy program or through an 262
411+through a state-sponsored energy program or through an 262 SS#2 SB 872 14
412412 electric corporation, gas corporation, electric cooperative, 263
413413 or municipally owned utility. 264
414414 9. The provisions of subsection 8 of this section 265
415-shall expire on December 31, 2020. 266 SS#2 SB 872 14
415+shall expire on December 31, 2020. 266
416416 10. (1) As used in this subsection, the following 267
417417 terms mean: 268
418418 (a) "Beginning farmer", a taxpayer who: 269
419419 a. Has filed at least one but not more than ten 270
420420 Internal Revenue Service Schedule F (Form 1040) Profit or 271
421421 Loss From Farming forms since turning eighteen years of age; 272
422422 b. Is approved for a beginning farmer loan through the 273
423423 USDA Farm Service Agency Beginning Farmer direct or 274
424424 guaranteed loan program; 275
425425 c. Has a farming operation that is determined by the 276
426426 department of agriculture to be new production agriculture 277
427427 but is the principal operator of a farm and has subs tantial 278
428428 farming knowledge; or 279
429429 d. Has been determined by the department of 280
430430 agriculture to be a qualified family member; 281
431431 (b) "Farm owner", an individual who owns farmland and 282
432432 disposes of or relinquishes use of all or some portion of 283
433433 such farmland as follows: 284
434434 a. A sale to a beginning farmer; 285
435435 b. A lease or rental agreement not exceeding ten years 286
436436 with a beginning farmer; or 287
437437 c. A crop-share arrangement not exceeding ten years 288
438438 with a beginning farmer; 289
439439 (c) "Qualified family member", an individual who is 290
440440 related to a farm owner within the fourth degree by blood, 291
441441 marriage, or adoption and who is purchasing or leasing or is 292
442442 in a crop-share arrangement for land from all or a portion 293
443-of such farm owner's farming operation. 294
443+of such farm owner's farming operation. 294 SS#2 SB 872 15
444444 (2) (a) In addition to all other subtractions 295
445445 authorized in this section, a taxpayer who is a farm owner 296
446446 who sells all or a portion of such farmland to a beginning 297
447-farmer may subtract from such taxpayer's Missouri adjusted 298 SS#2 SB 872 15
447+farmer may subtract from such taxpayer's Missouri adjusted 298
448448 gross income an amount to the extent included in federal 299
449449 adjusted gross income as provided in this subdivision. 300
450450 (b) Subject to the limitations in paragraph (c) of 301
451451 this subdivision, the amount that may be subtracted shall be 302
452452 equal to the portion of capital gains received from the sale 303
453453 of such farmland that such taxpayer receives in the tax year 304
454454 for which such taxpayer subtracts such capital gain. 305
455455 (c) A taxpayer may subtract the following amounts and 306
456456 percentages per tax year in total capital gains received 307
457457 from the sale of such farmland under this subdivision: 308
458458 a. For the first two million dollars received, one 309
459459 hundred percent; 310
460460 b. For the next one million dollars received, eighty 311
461461 percent; 312
462462 c. For the next one million dollars received, sixty 313
463463 percent; 314
464464 d. For the next one million dollars received, forty 315
465465 percent; and 316
466466 e. For the next one million dollars received, twenty 317
467467 percent. 318
468468 (d) The department of revenue shall prepare an annual 319
469469 report reviewing the costs and benefits and conta ining 320
470470 statistical information regarding the subtraction of capital 321
471471 gains authorized under this subdivision for the previous tax 322
472472 year including, but not limited to, the total amount of all 323
473473 capital gains subtracted and the number of taxpayers 324
474474 subtracting such capital gains. Such report shall be 325
475-submitted before February first of each year to the 326
475+submitted before February first of each year to the 326 SS#2 SB 872 16
476476 committee on agriculture policy of the Missouri house of 327
477477 representatives and the committee on agriculture, food 328
478478 production and outdoor resources of the Miss ouri senate, or 329
479-the successor committees. 330 SS#2 SB 872 16
479+the successor committees. 330
480480 (3) (a) In addition to all other subtractions 331
481481 authorized in this section, a taxpayer who is a farm owner 332
482482 who enters a lease or rental agreement for all or a portion 333
483483 of such farmland with a beginning farm er may subtract from 334
484484 such taxpayer's Missouri adjusted gross income an amount to 335
485485 the extent included in federal adjusted gross income as 336
486486 provided in this subdivision. 337
487487 (b) Subject to the limitation in paragraph (c) of this 338
488488 subdivision, the amount that may be subtracted shall be 339
489489 equal to the portion of cash rent income received from the 340
490490 lease or rental of such farmland that such taxpayer receives 341
491491 in the tax year for which such taxpayer subtracts such 342
492492 income. 343
493493 (c) No taxpayer shall subtract more than twenty-five 344
494494 thousand dollars per tax year in total cash rent income 345
495495 received from the lease or rental of such farmland under 346
496496 this subdivision. 347
497497 (4) (a) In addition to all other subtractions 348
498498 authorized in this section, a taxpayer who is a farm owner 349
499499 who enters a crop-share arrangement on all or a portion of 350
500500 such farmland with a beginning farmer may subtract from such 351
501501 taxpayer's Missouri adjusted gross income an amount to the 352
502502 extent included in federal adjusted gross income as provided 353
503503 in this subdivision. 354
504504 (b) Subject to the limitation in paragraph (c) of this 355
505505 subdivision, the amount that may be subtracted shall be 356
506-equal to the portion of income received from the crop -share 357
506+equal to the portion of income received from the crop -share 357 SS#2 SB 872 17
507507 arrangement on such farmland that such taxpayer recei ves in 358
508508 the tax year for which such taxpayer subtracts such income. 359
509509 (c) No taxpayer shall subtract more than twenty -five 360
510510 thousand dollars per tax year in total income received from 361
511-the lease or rental of such farmland under this subdivision. 362 SS#2 SB 872 17
511+the lease or rental of such farmland under this subdivision. 362
512512 (5) The department of agriculture shall, by rule, 363
513513 establish a process to verify that a taxpayer is a beginning 364
514514 farmer for purposes of this section and shall provide 365
515515 verification to the beginning farmer and farm seller of such 366
516516 farmer's and seller's cert ification and qualification for 367
517517 the exemption provided in this subsection. 368
518518 144.058. In addition to the other exemptions granted 1
519519 pursuant to this chapter, there is hereby specifically 2
520520 exempted from the provisions of and the computatio n of the 3
521521 tax levied, assessed, or payable pursuant to this chapter 4
522522 and the local sales tax law as defined in section 32.085, 5
523523 electrical energy and gas, whether natural, artificial, or 6
524524 propane; water, coal, and energy sources; chemicals, 7
525525 machinery, equipment, parts, and material used or consumed 8
526526 in connection with or to facilitate the generation, 9
527527 transmission, distribution, sale, or furnishing of 10
528528 electricity for light, heat, or power; and any conduits, 11
529529 ducts, or other devices, materials, apparatus, or property 12
530530 for containing, holding, or carrying conductors used or to 13
531531 be used for the transmission of electricity for light, heat, 14
532532 or power service to consumers. The provisions of this 15
533533 section shall be in addition to any other sales or use tax 16
534534 exemption provided by law. Any public utility, as such term 17
535535 is defined in section 386.020, that realizes any savings as 18
536536 a result of the sales tax exemption provided in this section 19
537537 shall provide the public service commission information on 20
538-the amount of savings realized in such public u tility's next 21
538+the amount of savings realized in such public utility's next 21 SS#2 SB 872 18
539539 general rate proceeding and shall include a statement that 22
540540 such savings will be passed through to the public utility's 23
541541 rate revenue requirement determined in the public utility's 24
542542 next general rate proceeding . As used in this section, 25
543-savings realized shall be calculated as the difference 26 SS#2 SB 872 18
543+savings realized shall be calculated as the difference 26
544544 between sales tax incurred and sales tax expense included in 27
545545 current rates. 28
546546