HCS SCS SB 808 -- POLITICAL SUBDIVISIONS

SPONSOR:  Callahan (Sutherland)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 9 to 3.

This substitute changes the laws regarding county
classifications, city sales taxes, transient guest and sales
taxes, and continuing education requirements for public
administrators.

COUNTY CLASSIFICATIONS (Section 48.020, RSMo)

The substitute increases the assessed valuation thresholds for a
county to move into a higher classification.  The minimum
assessed valuation threshold for counties of the first
classification is increased from $600 million to $900 million and
from $450 million to $600 million for counties of the second
classification.  All counties with an assessed valuation of less
than $600 million will be third classification counties.

The governing body of any county of the second classification
which, on August 28, 2010, has had an assessed valuation of at
least $600 million for at least one year may, by resolution of
the county governing body, elect to become a county of the first
classification after it has maintained that valuation for the
period of time required under Section 48.030.  Currently, only
the counties of Lincoln and St. Francois qualify.

Any county of the second classification which, on August 28,
2010, has had an assessed valuation of at least $600 million for
at least five years may, by resolution of the county governing
body duly adopted before December 31, 2010, elect to remain a
county of the second classification until the assessed valuation
of the county after 2009 results in placing it in another
classification and it has maintained the necessary valuation for
the period of time required under Section 48.030.  Currently,
only the counties of Christian and Newton qualify.

The required assessed valuation thresholds for changes in county
classification will be increased each year by an amount equal to
the change in the annual average of the federal Consumer Price
Index or zero, whichever is greater.  The State Tax Commission
must calculate and publish the amount so that it is available to
all the counties.

CITY SALES TAXES (Sections 94.510, 94.550, and 94.577)

Currently, under the general city sales tax law, cities may
impose a sales tax, upon voter approval, at a rate of one-half of
1%, seven-eighths of 1%, or 1%; and the City of St. Louis may
impose the tax at a rate not to exceed one and three-eighths
percent, for the benefit of the city.  The substitute specifies
that the combined rate of sales taxes adopted under the city
sales tax law cannot exceed 2%.  This change is not to be
construed as a new tax or an increase in the current levy of an
existing tax for the purpose of Article X, Section 22, of the
Missouri Constitution, commonly known as the Hancock Amendment,
which requires voter approval.  Cities that have already imposed
and collected taxes under the city sales tax law can continue to
do so without voter approval as a continuation of a tax
previously approved by the voters of the city.

Currently, under the capital improvements city sales tax law,
cities not in St. Louis County may impose a sales tax, upon voter
approval, at a rate of one-eighth, one-fourth, three-eighths, or
one-half of 1% for the purpose of funding, operating, and
maintaining capital improvements.  Municipalities in charter
counties are authorized to impose a capital improvements tax
under Section 94.890.  The substitute specifies that the combined
rate of sales taxes adopted under the capital improvement city
sales tax law cannot exceed 1%.  This change is not to be
construed as a new tax or an increase in the current levy of an
existing tax for the purpose of the Hancock Amendment which
requires voter approval.  Cities that have already imposed and
collected taxes under the city sales tax law can continue to do
so without voter approval as a continuation of a tax previously
approved by the voters of the city.

TRANSIENT GUEST AND SALES TAXES

The substitute:

(1)  Authorizes the City of Jefferson City to impose, upon voter
approval, a transient guest tax of up to 7% per occupied room per
night for promoting the city as a convention, visitor, and
tourist center.  Currently, the city is allowed to impose a tax
of up to 5% per occupied room per night (Section 67.1000);

(2)  Authorizes the cities of Ashland and Sugar Creek and
Montgomery County to impose, upon voter approval, a transient
guest tax of between 2% and 5% per occupied room per night for
the promotion of tourism (Section 67.1360);

(3)  Authorizes real property owners in the Cameron School
District located in the counties of Caldwell, Clinton, Daviess,
and DeKalb, upon voter approval, to establish an exhibition
center and recreational facility district and to impose a
one-quarter of 1% sales tax for a period of up to 25 years to
fund the district (Section 67.2000);

(4)  Authorizes the City of Grandview to impose, upon voter
approval, a transient guest tax of up to 5% per occupied room per
night for the promotion of tourism (Section 94.271); and

(5)  Authorizes the City of North Kansas City to impose, upon
voter approval, a transient guest tax of up to one-half of 1% per
occupied room per night for the promotion of tourism and
infrastructure improvements (Section 94.832).

CONTINUING EDUCATION REQUIREMENTS FOR PUBLIC ADMINISTRATORS
(Sections 473.739 and 473.742)

The substitute specifies that the required continuing instruction
for public administrators in certain counties of the first
classification does not have to be classroom instruction in order
for them to receive compensation.

A public administrator from a second, third, or fourth
classification county or St. Louis City who chooses to receive an
annual salary will receive $2,000 of his or her salary only if he
or she has completed at least 20 hours of instruction each year
that has been approved by a professional association of the
county public administrators of Missouri unless the public
administrator is exempted from the training by the association.
The association approving the program must provide a certificate
of completion for the training program and send a list of
certified public administrators to the treasurer of each county.
Public administrators will be reimbursed for expenses incurred
for attending the training in the same manner as other expenses.

The substitute contains an emergency clause.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that the bill will restore the annual
requirement of 20 hours of instruction for elected public
administrators and allow the instruction to be other than in a
classroom.  A public administrator will forfeit $2,000 annually
in salary if he or she fails to complete the training.  There are
no compensation increases in the bill.

Testifying for the bill were Senator Callahan; and Riley Bock and
David Yancey, Missouri Association of Public Administrators.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:15 pm