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Missouri Senate Bill SB459

Missouri 2025 Regular Session

Missouri Senate Bill SB459 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 459
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR SCHNELTING.
66 1401S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To repeal section 32.087, RSMo, and to enact in lieu thereof two new sections relating to local
99 regulations.
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1212 Section A. Section 32.087, RSMo, is repealed and two new 1
1313 sections enacted in lieu thereof, to be known as sections 27.165 2
1414 and 32.087, to read as follows:3
1515 27.165. 1. At the request of any member of the 1
1616 general assembly, the attorney general shall investigate any 2
1717 ordinance, order, or rule adopted or enforced by a taxing 3
1818 entity, as defined in section 32.085, that the member 4
1919 alleges violates state law or the state constitution. 5
2020 2. The attorney general shall produce a written report 6
2121 of findings and conclusions as a result of the investigation 7
2222 within thirty days after receipt of the request and shall 8
2323 provide a copy of the report to the governor, lieutenant 9
2424 governor, director of revenue, and requesting member of the 10
2525 general assembly. If the attorney general concludes that 11
2626 the ordinance, order, or rule under investigation: 12
2727 (1) Violates any provision of state law or the state 13
2828 constitution, then the attorney general shall provide notice 14
2929 to the taxing entity of the violation and that the taxing 15
3030 entity has thirty days to resolve the viola tion. If the 16
3131 attorney general determines that the taxing entity has 17
3232 failed to resolve the violation within thirty days of 18
3333 receiving notice, then the attorney general shall: 19 SB 459 2
3434 (a) Certify that the violation has not been resolved 20
3535 to the director of r evenue, who shall withhold the taxing 21
3636 entity's monthly local sales tax allocation pursuant to 22
3737 subsection 19 of section 32.087; and 23
3838 (b) Monitor the response of the taxing entity. When 24
3939 the offending ordinance, order, or rule is repealed or the 25
4040 violation is otherwise resolved, then the attorney general 26
4141 shall: 27
4242 a. Notify the governor, lieutenant governor, and 28
4343 requesting member of the general assembly that the violation 29
4444 has been resolved; and 30
4545 b. Certify that the violation has been resolv ed to the 31
4646 director of revenue, who shall restore the distribution of 32
4747 the taxing entity's monthly local sales tax pursuant to 33
4848 subsection 19 of section 32.087; 34
4949 (2) May violate a provision of state law or the state 35
5050 constitution, then the attorney ge neral shall bring an 36
5151 action against the taxing entity to resolve the issue in a 37
5252 court of competent jurisdiction; 38
5353 (3) Does not violate any provision of state law or the 39
5454 state constitution, then the attorney general shall take no 40
5555 further action pursuant to this section. 41
5656 3. Before a member of the general assembly may request 42
5757 an investigation by the attorney general of any ordinance, 43
5858 order, or rule pursuant to this section, the member shall 44
5959 first provide notice of the alleged violation of sta te law 45
6060 or the state constitution to the taxing entity. If the 46
6161 taxing entity does not repeal or otherwise resolve the 47
6262 alleged violation within sixty days after receiving notice, 48
6363 then the member may request an investigation by the attorney 49
6464 general pursuant to this section. 50 SB 459 3
6565 32.087. 1. Within ten days after the adoption of any 1
6666 ordinance or order in favor of adoption of any local sales 2
6767 tax authorized under the local sales tax law by the voters 3
6868 of a taxing entity, the governing body or official of such 4
6969 taxing entity shall forward to the director of revenue by 5
7070 United States registered mail or certified mail a certified 6
7171 copy of the ordinance or order. The ordinance or order 7
7272 shall reflect the effective date thereof. 8
7373 2. Any local sales tax so adopted shall become 9
7474 effective on the first day of the second calendar quarter 10
7575 after the director of revenue receives notice of adoption of 11
7676 the local sales tax, except as provided in subsection 18 of 12
7777 this section, and shall be imposed o n all transactions on 13
7878 which the Missouri state sales tax is imposed. 14
7979 3. Every retailer within the jurisdiction of one or 15
8080 more taxing entities which has imposed one or more local 16
8181 sales taxes under the local sales tax law shall add all 17
8282 taxes so imposed along with the tax imposed by the sales tax 18
8383 law of the state of Missouri to the sale price and, when 19
8484 added, the combined tax shall constitute a part of the 20
8585 price, and shall be a debt of the purchaser to the retailer 21
8686 until paid, and shall be recove rable at law in the same 22
8787 manner as the purchase price. The combined rate of the 23
8888 state sales tax and all local sales taxes shall be the sum 24
8989 of the rates, multiplying the combined rate times the amount 25
9090 of the sale. 26
9191 4. The brackets required to be e stablished by the 27
9292 director of revenue under the provisions of section 144.285 28
9393 shall be based upon the sum of the combined rate of the 29
9494 state sales tax and all local sales taxes imposed under the 30
9595 provisions of the local sales tax law. 31 SB 459 4
9696 5. (1) The ordinance or order imposing a local sales 32
9797 tax under the local sales tax law shall impose a tax upon 33
9898 all transactions upon which the Missouri state sales tax is 34
9999 imposed to the extent and in the manner provided in sections 35
100100 144.010 to 144.525, and the rule s and regulations of the 36
101101 director of revenue issued pursuant thereto; except that the 37
102102 rate of the tax shall be the sum of the combined rate of the 38
103103 state sales tax or state highway use tax and all local sales 39
104104 taxes imposed under the provisions of the lo cal sales tax 40
105105 law. 41
106106 (2) Notwithstanding any other provision of law to the 42
107107 contrary, local taxing jurisdictions, except those in which 43
108108 voters have approved a local use tax under section 144.757, 44
109109 shall have placed on the ballot on or after the gener al 45
110110 election in November 2014, but no later than the general 46
111111 election in November 2022, whether to repeal application of 47
112112 the local sales tax to the titling of motor vehicles, 48
113113 trailers, boats, and outboard motors that are subject to 49
114114 state sales tax unde r section 144.020 and purchased from a 50
115115 source other than a licensed Missouri dealer. The ballot 51
116116 question presented to the local voters shall contain 52
117117 substantially the following language: 53
118118 54
119119 55
120120 56
121121 57
122122 58
123123 59
124124 Shall the _________ (local jurisdiction's name)
125125 discontinue applying and collecting the local
126126 sales tax on the titling of motor vehicles,
127127 trailers, boats, and outboard motors that were
128128 purchased from a source other than a licensed
129129 Missouri dealer?
130130
131131 60
132132 61
133133 62
134134 63
135135 64
136136 65
137137 Approval of this measure will result in a
138138 reduction of local revenue to provide for vital
139139 services for _________ (local jurisdiction's name)
140140 and it will place Missouri dealers of motor
141141 vehicles, outboard motors, boats, and trailers a t
142142 a competitive disadvantage to non -Missouri dealers
143143 SB 459 5
144144 (3) If the ballot question set forth in subdivision 73
145145 (2) of this subsection re ceives a majority of the votes cast 74
146146 in favor of the proposal, or if the local taxing 75
147147 jurisdiction fails to place the ballot question before the 76
148148 voters on or before the general election in November 2022, 77
149149 the local taxing jurisdiction shall cease applyin g the local 78
150150 sales tax to the titling of motor vehicles, trailers, boats, 79
151151 and outboard motors that were purchased from a source other 80
152152 than a licensed Missouri dealer. 81
153153 (4) In addition to the requirement that the ballot 82
154154 question set forth in subdivi sion (2) of this subsection be 83
155155 placed before the voters, the governing body of any local 84
156156 taxing jurisdiction that had previously imposed a local use 85
157157 tax on the use of motor vehicles, trailers, boats, and 86
158158 outboard motors may, at any time, place a propos al on the 87
159159 ballot at any election to repeal application of the local 88
160160 sales tax to the titling of motor vehicles, trailers, boats, 89
161161 and outboard motors purchased from a source other than a 90
162162 licensed Missouri dealer. If a majority of the votes cast 91
163163 by the registered voters voting thereon are in favor of the 92
164164 proposal to repeal application of the local sales tax to 93
165165 such titling, then the local sales tax shall no longer be 94
166166 applied to the titling of motor vehicles, trailers, boats, 95
167167 and outboard motors purc hased from a source other than a 96
168168 licensed Missouri dealer. If a majority of the votes cast 97
169169 66
170170 67
171171 of motor vehicles, outboard motors, boats, and
172172 trailers.
173173 68 □ YES □ NO
174174 69
175175 70
176176 71
177177 72
178178 If you are in favor of the question, place an “X”
179179 in the box opposite “YES”. If you are opposed to
180180 the question, place an “X” in the box opposite “NO”.
181181 SB 459 6
182182 by the registered voters voting thereon are opposed to the 98
183183 proposal to repeal application of the local sales tax to 99
184184 such titling, such application shall remain in effect. 100
185185 (5) In addition to the requirement that the ballot 101
186186 question set forth in subdivision (2) of this subsection be 102
187187 placed before the voters on or after the general election in 103
188188 November 2014, and on or before the general election in 104
189189 November 2022, whenever the governing body of any local 105
190190 taxing jurisdiction imposing a local sales tax on the sale 106
191191 of motor vehicles, trailers, boats, and outboard motors 107
192192 receives a petition, signed by fifteen percent of the 108
193193 registered voters of such jurisdic tion voting in the last 109
194194 gubernatorial election, and calling for a proposal to be 110
195195 placed on the ballot at any election to repeal application 111
196196 of the local sales tax to the titling of motor vehicles, 112
197197 trailers, boats, and outboard motors purchased from a s ource 113
198198 other than a licensed Missouri dealer, the governing body 114
199199 shall submit to the voters of such jurisdiction a proposal 115
200200 to repeal application of the local sales tax to such 116
201201 titling. If a majority of the votes cast by the registered 117
202202 voters voting thereon are in favor of the proposal to repeal 118
203203 application of the local sales tax to such titling, then the 119
204204 local sales tax shall no longer be applied to the titling of 120
205205 motor vehicles, trailers, boats, and outboard motors 121
206206 purchased from a source other t han a licensed Missouri 122
207207 dealer. If a majority of the votes cast by the registered 123
208208 voters voting thereon are opposed to the proposal to repeal 124
209209 application of the local sales tax to such titling, such 125
210210 application shall remain in effect. 126
211211 (6) Nothing in this subsection shall be construed to 127
212212 authorize the voters of any jurisdiction to repeal 128
213213 application of any state sales or use tax. 129 SB 459 7
214214 (7) If any local sales tax on the titling of motor 130
215215 vehicles, trailers, boats, and outboard motors purchased 131
216216 from a source other than a licensed Missouri dealer is 132
217217 repealed, such repeal shall take effect on the first day of 133
218218 the second calendar quarter after the election. If any 134
219219 local sales tax on the titling of motor vehicles, trailers, 135
220220 boats, and outboard mo tors purchased from a source other 136
221221 than a licensed Missouri dealer is required to cease to be 137
222222 applied or collected due to failure of a local taxing 138
223223 jurisdiction to hold an election pursuant to subdivision (2) 139
224224 of this subsection, such cessation shall ta ke effect on 140
225225 March 1, 2023. 141
226226 (8) Notwithstanding any provision of law to the 142
227227 contrary, if any local sales tax on the titling of motor 143
228228 vehicles, trailers, boats, and outboard motors purchased 144
229229 from a source other than a licensed Missouri dealer is 145
230230 repealed after the general election in November 2014, or if 146
231231 the taxing jurisdiction failed to present the ballot to the 147
232232 voters at a general election on or before November 2022, 148
233233 then the governing body of such taxing jurisdiction may, at 149
234234 any election subsequent to the repeal or after the general 150
235235 election in November 2022, if the jurisdiction failed to 151
236236 present the ballot to the voters, place before the voters 152
237237 the issue of imposing a sales tax on the titling of motor 153
238238 vehicles, trailers, boats, and outb oard motors that are 154
239239 subject to state sales tax under section 144.020 that were 155
240240 purchased from a source other than a licensed Missouri 156
241241 dealer. The ballot question presented to the local voters 157
242242 shall contain substantially the following language: 158
243243 159
244244 160
245245 161
246246 Shall the _________ (local jurisdiction's name)
247247 apply and collect the local sales tax on the
248248 titling of motor vehicles, trailers, boats, and
249249 SB 459 8
250250 (9) If any local sales tax on the titling of motor 178
251251 vehicles, trailers, boats, and outboard motors purchased 179
252252 from a source other than a licensed Missouri dealer is 180
253253 adopted, such tax shall take effect and be imposed on the 181
254254 first day of the second calendar quarter after the election. 182
255255 6. On and after the effective date of any local sales 183
256256 tax imposed under the provisions of the local sales tax law, 184
257257 the director of revenue shall perform all functions incident 185
258258 to the administration, collection, enforcement, and 186
259259 operation of the tax, and the director of revenue shall 187
260260 collect in addition to the sales tax for the state of 188
261261 Missouri all additional local sales taxes authorized under 189
262262 the authority of the local sales tax law. All local sales 190
263263 taxes imposed under the local sales tax law together with 191
264264 all taxes imposed under the sal es tax law of the state of 192
265265 Missouri shall be collected together and reported upon such 193
266266 forms and under such administrative rules and regulations as 194
267267 may be prescribed by the director of revenue. 195
268268 162
269269 163
270270 164
271271 outboard motors that are subject to state sales
272272 tax under section 144.020 and purchased from a
273273 source other than a licensed Missouri dealer?
274274 165
275275 166
276276 167
277277 168
278278 169
279279 170
280280 171
281281 172
282282 Approval of this measure will result in an
283283 increase of local revenue to provide for vital
284284 services for _________ (local jurisdiction's
285285 name), and it will remove a competitive advantage
286286 that non-Missouri dealers of motor vehicles,
287287 outboard motors, boats, and trailers have over
288288 Missouri dealers of motor vehicles, outboard
289289 motors, boats, and trailers.
290290
291291 173 □ YES □ NO
292292 174
293293 175
294294 176
295295 177
296296 If you are in favor of the question, place an “X”
297297 in the box opposite “YES”. If you are opposed to
298298 the question, place an “X” in the box opposite “NO”.
299299 SB 459 9
300300 7. All applicable provisions contained in sections 196
301301 144.010 to 144.525 governing the state sales tax and section 197
302302 32.057, the uniform confidentiality provision, shall apply 198
303303 to the collection of any local sales tax imposed under the 199
304304 local sales tax law except as modified by the local sales 200
305305 tax law. 201
306306 8. All exemptions granted to agencies of government, 202
307307 organizations, persons and to the sale of certain articles 203
308308 and items of tangible personal property and taxable services 204
309309 under the provisions of sections 144.010 to 144.525, as 205
310310 these sections now read and as they may hereafter be 206
311311 amended, it being the intent of this general assembly to 207
312312 ensure that the same sales tax exemptions granted from the 208
313313 state sales tax law also be granted under the local sales 209
314314 tax law, are hereby made applicable to the imposi tion and 210
315315 collection of all local sales taxes imposed under the local 211
316316 sales tax law. 212
317317 9. The same sales tax permit, exemption certificate 213
318318 and retail certificate required by sections 144.010 to 214
319319 144.525 for the administration and collection of the st ate 215
320320 sales tax shall satisfy the requirements of the local sales 216
321321 tax law, and no additional permit or exemption certificate 217
322322 or retail certificate shall be required; except that the 218
323323 director of revenue may prescribe a form of exemption 219
324324 certificate for an exemption from any local sales tax 220
325325 imposed by the local sales tax law. 221
326326 10. All discounts allowed the retailer under the 222
327327 provisions of the state sales tax law for the collection of 223
328328 and for payment of taxes under the provisions of the state 224
329329 sales tax law are hereby allowed and made applicable to any 225
330330 local sales tax collected under the provisions of the local 226
331331 sales tax law. 227 SB 459 10
332332 11. The penalties provided in section 32.057 and 228
333333 sections 144.010 to 144.525 for a violation of the 229
334334 provisions of those sections are hereby made applicable to 230
335335 violations of the provisions of the local sales tax law. 231
336336 12. (1) For the purposes of any local sales tax 232
337337 imposed by an ordinance or order under the local sales tax 233
338338 law, all sales, except the sale of moto r vehicles, trailers, 234
339339 boats, and outboard motors required to be titled under the 235
340340 laws of the state of Missouri, shall be deemed to be 236
341341 consummated at the place of business of the retailer unless 237
342342 the tangible personal property sold is delivered by the 238
343343 retailer or his agent to an out -of-state destination. In 239
344344 the event a retailer has more than one place of business in 240
345345 this state which participates in the sale, the sale shall be 241
346346 deemed to be consummated at the place of business of the 242
347347 retailer where the initial order for the tangible personal 243
348348 property is taken, even though the order must be forwarded 244
349349 elsewhere for acceptance, approval of credit, shipment or 245
350350 billing. A sale by a retailer's agent or employee shall be 246
351351 deemed to be consummated at the p lace of business from which 247
352352 he works. 248
353353 (2) For the purposes of any local sales tax imposed by 249
354354 an ordinance or order under the local sales tax law, the 250
355355 sales tax upon the titling of all motor vehicles, trailers, 251
356356 boats, and outboard motors shall be imposed at the rate in 252
357357 effect at the location of the residence of the purchaser, 253
358358 and remitted to that local taxing entity, and not at the 254
359359 place of business of the retailer, or the place of business 255
360360 from which the retailer's agent or employee works. 256
361361 (3) For the purposes of any local tax imposed by an 257
362362 ordinance or under the local sales tax law on charges for 258
363363 mobile telecommunications services, all taxes of mobile 259 SB 459 11
364364 telecommunications service shall be imposed as provided in 260
365365 the Mobile Telecommunica tions Sourcing Act, 4 U.S.C. 261
366366 Sections 116 through 124, as amended. 262
367367 13. Local sales taxes shall not be imposed on the 263
368368 seller of motor vehicles, trailers, boats, and outboard 264
369369 motors required to be titled under the laws of the state of 265
370370 Missouri, but shall be collected from the purchaser by the 266
371371 director of revenue at the time application is made for a 267
372372 certificate of title, if the address of the applicant is 268
373373 within a taxing entity imposing a local sales tax under the 269
374374 local sales tax law. 270
375375 14. The director of revenue and any of his deputies, 271
376376 assistants and employees who have any duties or 272
377377 responsibilities in connection with the collection, deposit, 273
378378 transfer, transmittal, disbursement, safekeeping, 274
379379 accounting, or recording of funds which come into the hands 275
380380 of the director of revenue under the provisions of the local 276
381381 sales tax law shall enter a surety bond or bonds payable to 277
382382 any and all taxing entities in whose behalf such funds have 278
383383 been collected under the local sales tax law in the amo unt 279
384384 of one hundred thousand dollars for each such tax; but the 280
385385 director of revenue may enter into a blanket bond covering 281
386386 himself and all such deputies, assistants and employees. 282
387387 The cost of any premium for such bonds shall be paid by the 283
388388 director of revenue from the share of the collections under 284
389389 the sales tax law retained by the director of revenue for 285
390390 the benefit of the state. 286
391391 15. The director of revenue shall annually report on 287
392392 his management of each trust fund which is created under the 288
393393 local sales tax law and administration of each local sales 289
394394 tax imposed under the local sales tax law. He shall provide 290
395395 each taxing entity imposing one or more local sales taxes 291 SB 459 12
396396 authorized by the local sales tax law with a detailed 292
397397 accounting of the source of all funds received by him for 293
398398 the taxing entity. Notwithstanding any other provisions of 294
399399 law, the state auditor shall annually audit each trust 295
400400 fund. A copy of the director's report and annual audit 296
401401 shall be forwarded to each taxing entity i mposing one or 297
402402 more local sales taxes. 298
403403 16. Within the boundaries of any taxing entity where 299
404404 one or more local sales taxes have been imposed, if any 300
405405 person is delinquent in the payment of the amount required 301
406406 to be paid by him under the local sales tax law or in the 302
407407 event a determination has been made against him for taxes 303
408408 and penalty under the local sales tax law, the limitation 304
409409 for bringing suit for the collection of the delinquent tax 305
410410 and penalty shall be the same as that provided in sections 306
411411 144.010 to 144.525. Where the director of revenue has 307
412412 determined that suit must be filed against any person for 308
413413 the collection of delinquent taxes due the state under the 309
414414 state sales tax law, and where such person is also 310
415415 delinquent in payment of ta xes under the local sales tax 311
416416 law, the director of revenue shall notify the taxing entity 312
417417 in the event any person fails or refuses to pay the amount 313
418418 of any local sales tax due so that appropriate action may be 314
419419 taken by the taxing entity. 315
420420 17. Where property is seized by the director of 316
421421 revenue under the provisions of any law authorizing seizure 317
422422 of the property of a taxpayer who is delinquent in payment 318
423423 of the tax imposed by the state sales tax law, and where 319
424424 such taxpayer is also delinquent in payment of any tax 320
425425 imposed by the local sales tax law, the director of revenue 321
426426 shall permit the taxing entity to join in any sale of 322
427427 property to pay the delinquent taxes and penalties due the 323 SB 459 13
428428 state and to the taxing entity under the local sales tax 324
429429 law. The proceeds from such sale shall first be applied to 325
430430 all sums due the state, and the remainder, if any, shall be 326
431431 applied to all sums due such taxing entity. 327
432432 18. If a local sales tax has been in effect for at 328
433433 least one year under the provision s of the local sales tax 329
434434 law and voters approve reimposition of the same local sales 330
435435 tax at the same rate at an election as provided for in the 331
436436 local sales tax law prior to the date such tax is due to 332
437437 expire, the tax so reimposed shall become effective the 333
438438 first day of the first calendar quarter after the director 334
439439 receives a certified copy of the ordinance, order or 335
440440 resolution accompanied by a map clearly showing the 336
441441 boundaries thereof and the results of such election, 337
442442 provided that such ordinance, order or resolution and all 338
443443 necessary accompanying materials are received by the 339
444444 director at least thirty days prior to the expiration of 340
445445 such tax. Any administrative cost or expense incurred by 341
446446 the state as a result of the provisions of this subsect ion 342
447447 shall be paid by the city or county reimposing such tax. 343
448448 19. Upon certification from the attorney general 344
449449 pursuant to section 27.165 that an ordinance, order, or rule 345
450450 adopted or enforced by a taxing entity violates state law or 346
451451 the state constitution, the director of revenue shall 347
452452 withhold the taxing entity's monthly local sales tax 348
453453 allocation and shall continue to withhold the taxing 349
454454 entity's monthly local sales tax allocation until the 350
455455 attorney general certifies to the director of revenu e that 351
456456 the violation has been resolved. 352
457457