0592S.03C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 95
AN ACT
To repeal section 135.621, RSMo, and to enact in lieu
thereof two new sections relating to tax incentives
for certain hygiene products.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 135.621, RSMo, is repealed and two new
sections enacted in lieu thereof, to be known as sections
135.621 and 144.022, to read as follows:
135.621. 1. As used in this section, the following
terms mean:
(1) "Contribution", a donation of cash, stock, bonds,
other marketable securities, or real property;
(2) "Department", the department of social services;
(3) "Diaper bank", a national diaper bank or a
nonprofit entity located in this state established and
operating primarily for the purpose of collecting or
purchasing disposable diapers or other hygiene products for
infants, children, or incontinent adults and that regularly
distributes such diapers or other hygiene products through
two or more schools, health care facilities, governmental
agencies, or other nonprofit entities for eventual
distribution to individuals free of charge;
(4) "National diaper bank", a nonprofit entity located
in this state that meets the following criteria:
(a) Collects, purchases, warehouses, and manages a
community inventory of disposable diapers or other hygiene
products for infants, children, or incontinent adults;
(b) Regularly distributes a consistent and reliable
supply of such diapers or other hy giene products through two
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or more schools, health care facilities, governmental
agencies, or other nonprofit entities for eventual
distribution to individuals free of charge, with the
intention of reducing diaper need; and
(c) Is a member of a national network organization
serving all fifty states through which certification
demonstrates nonprofit best practices, data -driven program
design, and equitable distribution focused on best serving
infants, children, and incontinent adults;
(5) "Tax credit", a credit against the tax otherwise
due under chapter 143, excluding withholding tax imposed
under sections 143.191 to 143.265, or otherwise due under
chapter 148 or 153;
[(5)] (6) "Taxpayer", a person, firm, partner in a
firm, corporation, or shareholder in an S corporation doing
business in the state of Missouri and subject to the state
income tax imposed under chapter 143; an insurance company
paying an annual tax on its gross premium receipts in this
state; any other financia l institution paying taxes to the
state of Missouri or any political subdivision of this state
under chapter 148; an express company that pays an annual
tax on its gross receipts in this state under chapter 153;
an individual subject to the state incom e tax under chapter
143; or any charitable organization that is exempt from
federal income tax and whose Missouri unrelated business
taxable income, if any, would be subject to the state income
tax imposed under chapter 143.
2. For all fiscal years beginning on or after July 1,
2019, a taxpayer shall be allowed to claim a tax credit
against the taxpayer's state tax liability in an amount
equal to fifty percent of the amount of such taxpayer's
contributions to a diaper bank.
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3. The amount of the tax credit claimed shall not
exceed the amount of the taxpayer's state tax liability for
the tax year for which the credit is claimed, and such
taxpayer shall not be allowed to claim a tax credit in
excess of fifty thousand dollars per tax year . However, any
tax credit that cannot be claimed in the tax year the
contribution was made may be carried over only to the next
subsequent tax year. No tax credit issued under this
section shall be assigned, transferred, or sold.
4. Except for any excess credit that is carried over
under subsection 3 of this section, no taxpayer shall be
allowed to claim a tax credit unless the taxpayer
contributes at least one hundred dollars to one or more
diaper banks during the tax year for which the cre dit is
claimed.
5. The department shall determine, at least annually,
which entities in this state qualify as diaper banks. The
department may require of an entity seeking to be classified
as a diaper bank any information which is reasonably
necessary to make such a determination. The department
shall classify an entity as a diaper bank if such entity
satisfies the definition under subsection 1 of this section.
6. The department shall establish a procedure by which
a taxpayer can deter mine if an entity has been classified as
a diaper bank.
7. Diaper banks may decline a contribution from a
taxpayer.
8. The cumulative amount of tax credits that may be
claimed by all the taxpayers contributing to diaper banks in
any one fiscal year shall not exceed five hundred thousand
dollars. Tax credits shall be issued in the order
contributions are received. If the amount of tax credits
redeemed in a tax year is less than five hundred thousand
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dollars, the difference shall be adde d to the cumulative
limit created under this subsection for the next fiscal year
and carried over to subsequent fiscal years until claimed.
9. The department shall establish a procedure by
which, from the beginning of the fiscal year until some
point in time later in the fiscal year to be determined by
the department, the cumulative amount of tax credits are
equally apportioned among all entities classified as diaper
banks. If a diaper bank fails to use all, or some
percentage to be determine d by the department, of its
apportioned tax credits during this predetermined period of
time, the department may reapportion such unused tax credits
to diaper banks that have used all, or some percentage to be
determined by the department, of their app ortioned tax
credits during this predetermined period of time. The
department may establish multiple periods each fiscal year
and reapportion accordingly. To the maximum extent
possible, the department shall establish the procedure
described under this subsection in such a manner as to
ensure that taxpayers can claim as many of the tax credits
as possible, up to the cumulative limit created under
subsection 8 of this section.
10. Each diaper bank shall provide information to the
department concerning the identity of each taxpayer making a
contribution and the amount of the contribution. The
department shall provide the information to the department
of revenue. The department shall be subject to the
confidentiality and penalty provision s of section 32.057
relating to the disclosure of tax information.
11. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the program authorized under
this section shall automatically sunset on December thirty -
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first six years after August 28, [2018] 2025, unless
reauthorized by an act of the general assembly;
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset on
December thirty-first six years after the effect ive date of
the reauthorization of this section;
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset;
and
(4) The provisions of this subsection shall not be
construed to limit or in any way impair the department's
ability to issue tax credits authorized on or before the
date the program authorized under this section expires or a
taxpayer's ability to redeem such tax c redits.
144.022. 1. Notwithstanding other provisions of law
to the contrary, beginning August 28, 2025, the tax levied
and imposed pursuant to this chapter on all retail sales of
diapers, incontinence products, and feminine hygiene
products shall be at the rate of one percent. The revenue
derived from the one percent rate pursuant to this section
shall be deposited by the state treasurer in the general
revenue fund.
2. For the purposes of this section, the following
terms shall mean:
(1) "Diapers", absorbent garments worn by infants or
toddlers who are not toilet -trained or by individuals who
are incapable of controlling their bladder or bowel
movements;
(2) "Feminine hygiene products", personal care
products used to manage menstrual flow including, but not
limited to, tampons, pads, liners, and cups;
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(3) "Incontinence products", products designed
specifically for hygiene matters related to urinary
incontinence.