SS SB 928 -- SALES TAX COLLECTIONS

SPONSOR:  Lager (Sutherland)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 14 to 0.

This substitute changes the laws regarding sales tax collections.
In its main provisions, the substitute:

(1)  Clarifies that certain purchases made for resale are not to
be considered as retail for sales and use tax purposes when the
subsequent sale is taxed in the state or another state, is for
resale, is excluded from tax, is subject to tax but is exempt, or
is exempt in another state where the subsequent sale occurs;

(2)  Clarifies that operators of amusement parks and places of
entertainment or recreation, including games or athletic events,
must charge sales taxes on the amount of gross receipts charged
for admission, but any subsequent sale of the admissions or
seating accommodations will not be subject to the taxes and
clarifies that operators of hotels, motels, taverns, restaurants,
drugstores, dining cars, or tourist camps must charge sales taxes
on the amount of gross receipts charged for all rooms, meals, and
drinks furnished at the establishment, but any subsequent sale of
those same rooms, meals, and drinks is exempt from sales and use
taxes; and

(3)  Exempts from local sales taxes the sales of sporting clays,
wobble, skeet, and trap targets to a shooting range or similar
business for use in the normal course of business as well as
moneys received by a shooting range or a similar business from
patrons and held for redistribution to patrons at the conclusion
of a shooting event.

The substitute contains an emergency clause.

FISCAL NOTE:   Estimated Cost on General Revenue Fund of More
than $100,000 in FY 2011, FY 2012, and FY 2013.  Estimated Cost
on Other State Funds of Unknown in FY 2011, FY 2012, and FY 2013.

PROPONENTS:  Supporters say that the bill will supersede court
interpretations of state statutes that result in double taxation
by imposing sales taxes on those who sell products to tax exempt
entities such as schools, churches, electric cooperatives, and
state and local governments.  The bill should be limited in scope
and noncontroversial because of the urgent need to benefit
Missouri consumers and businesses.

Testifying for the bill were Senator Lager; Ameren UE; Missouri
Restaurant Association; Missouri Chamber of Commerce and
Industry; Missouri Hotel and Lodging Association; Missouri
Retailers Association; Missouri Association of Counties; Missouri
Municipal League; Association of Missouri Electric Cooperatives;
Associated General Contractors of Missouri; Associated Industries
of Missouri; Boeing Company; Missouri Energy Development
Association; Dale Amick, Southwestern Farm Equipment Dealers
Association; and Richard Wiles and Associates.

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