Bills of Interest
The 2005 STATE LEGISLATIVE SESSION

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BILLS that MTJ Watched

HJR 12 -- LIMITS ON STATE APPROPRIATIONS

HJR 12 FAILED. It was never brought to the full House for consideration. However, this is a proposal that is not permanently dead. It will resurface in the 2006 legislative session, and perhaps as an initiative petition.

Introduced on January 27 by Rep. Carl Bearden (R), District 16, St. Charles. The bill was referred to the House Budget committee on February 10.

The committee approved the HJR on April 19. It was then referred to the House Rules Committee. There was no further action.

This proposed constitutional amendment prohibits appropriations in any fiscal year from exceeding the total state general revenue appropriations from the previous year by more than the appropriations growth limit. The appropriations growth limit is the greater of zero or the sum of the annual rate of inflation and the annual Missouri population growth.

This proposal is like HJR 49 in the 2004 Session, which was never reported to the full House for debate, and thus failed.

If this amendment were approved, it would permanently damage the state's ability to provide services and programs for Missourians. It appears to be part of the present General Assembly leadership's agenda to totally destroy the state's social welfare programs.

See the Summary and Bill Text of HJR 12: http://www.house.state.mo.us/bills051/bilsum/intro/sHJR12I.htm

MTJ opposes this proposed constitutional amendment, as it did last year.

Last Update: 6/14/05

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HB 54 -- Allows school districts to adopt income and sales taxes upon voter approval.

This bill FAILED. Again, it was never seriously considered.

Prefiled on 12/01/04 by Rep. Bob Dixon (R) District 140, Springfield; and co-sponsor Charles Denison (R), District 135, Springfield. (Dixon is majority caucus chairman.) The bill was assigned to the House Ways and Means committee on 1/27/05. A committee hearing on the bill was held February 16. There was no further action.

This bill allows school districts to adopt by voter approval a personal income tax, sales tax, or both. Moneys raised by the taxes would not be deducted from a district's state school aid. For either tax, the school district must specify the purpose of the tax and the period of time for which the tax will be imposed, not to exceed three years. The income tax is a 5%, 10%, or 15% surcharge on state personal income tax. The sales tax may be up to one cent, in eighth-cent increments. The income tax may also be used for property tax reduction, in which case it may be imposed up to five years. The bill contains technical provisions for the handling and transfer of funds and for the conduct of the elections.

See the Summary and Bill Text for HB 54: http://www.house.state.mo.us/bills051/bills/HB54.htm

A similar bill has been filed in previous sessions, but was never seriously considered. MTJ opposes the authority for school districts to adopt sales taxes, but supports allowing adoption of an income tax. (See archived information on past activities.)

Last Update: 6/14/05

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SB 360 -- Tax changes including corporate tax "loopholes"

This bill FAILED. It was never seriously considered.

Sponsor: Senator Joan Bray
Assgned to Senate Ways & Means Committee on 2/17/05. No further action.
Current Bill Summary

SB 360 - This act makes various modifications to Missouri taxes. The act:

(1) Decouples Missouri's income tax from the federal income tax code. The act adopts the IRC as it was written January 1, 2004 (section 143.091);

(2) Reinstates the decoupling from the federal accelerated depreciation and makes it permanent (section 143.121);

(3) Eliminates the timely filing discount for employers who withhold their employees' income tax (sections 143.225 & 143.261);

(4) Modifies the way losses and operating expenses are deducted among parties for various types of property, including intellectual property. Minimum standards are established regarding what connections among various corporate entities constitute related parties and affiliated groups for multi-state corporate income tax purposes. Under this provision, the entire profit of a unitary group will be aggregated and then divided among the members of the group. This allocation will be based upon the relative incomes of the members, without regard to intra-group transfers of these certain targeted operating expenses ("Geoffrey" scenario). The effect of this provision will be to eliminate income classified by the courts as "non-Missouri source income" (sections 143.431 & 143.434);

(5) Eliminates the filing of single factor apportionment for multistate income tax calculations (sections 143.431, 143.451, 143.461, & 143.471);

(6) Restricts the current definition of "common carrier" for purposes of qualifying for a state and local sales and use tax exemption (sections 144.010 & 144.030); and

(7) Prohibits retailers from obtaining refunds of sales and use taxes without crediting the original purchasers. In the case of over-collections of less than $1,000, such over-collections may be refunded without the higher burden of returning the funds to the purchaser. The $1,000 threshold is an aggregate sum over a five-year period. In the alternative, a retailer, upon submission of an approved plan by the Director of the Department of Revenue, may offer fixed value coupons to customers to satisfy the distribution of the over-collections.

The act has an effective date of 9/1/2005.

See current information about SB 360 and the full bill text at:

http://www.senate.mo.gov/05info/bts_web/Bill.aspx?SessionType=R&BillID=14293


Missourians for Tax Justice supports this bill since it would provide more revenue to meet Missouri's needs in an equitable way.

Last Update: 6/14/05

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SB 399 -- Implements the provisions of the streamlined sales and use tax agreement

This bill failed.

Introduced by Senator Joan Bray; Referred to Senate Ways & Means committee on 2/28/05. No further action.

Current Bill Summary:

This act brings Missouri sales and use tax laws into compliance with the streamlined sales and use tax agreement.

Compliance involves modifying many sections throughout the law, based upon meeting the following criteria:

(1) The sourcing of sales must be changed to be based on receipt. This means that current law is modified, where necessary, to consider the point of sale, and thus the applicable tax rate, to be the point of receipt of the product;

(2) When a city annexes property, the change to the tax rate will take place on the first day of the second calendar quarter after the Director of Revenue receives notice of the boundary change;

(3) The same provisions as in (2) shall apply to rate changes;

(4) All sales taxes must be administered at the state level if they are not already;

(5) All state and local sales taxes must have the same base. This means that exemptions at the state and local level must be identical;

(6) Certain definitions, including a definitions for "delivery charges", "food" "lease or rental", "purchase price", "sales price", "tangible personal property" and other modified definitions, must be adopted from the streamlined sales and use tax agreement;

(7) The Department of Revenue can require electronic filing and payment of the sales and use tax;

(8) Registration for out of state sellers is simplified and no bond is required;

(9) No caps or thresholds may exist on the collection of sales or use taxes; and

(10) Out of state sellers must be offered uniform, simplified, electronic filing.

MTJ does not have a position on this bill at present.

See current information about SB 399 and the full bill text at:
http://www.senate.mo.gov/05info/bts_web/Bill.aspx?SessionType=R&BillID=18443

Last Update: 6/14/05

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SB 539, SB 532, and SB 536 -- Implements many of the 2005 proposed cuts to Medicaid.

SB 539 was signed by the governor on April 26. The finally passed bill incorporates SB 556 (described below).

SB 539 was introduced by Sen. Purgason. It is co-sponsored by Sens. Crowell, Nodler, Bartle, Dolan, Gross and Gibbons.

This act modifies certain provisions dealing with various health care and social services programs, including medicaid, the Missouri Senior RX, and personal care assistance programs.

It was on a "fast track" for action: It was introduced on March 1, referred to the Senate Pensions, Veterans' Affairs and General Laws committee on March 3. The committee held a hearing on the bill on March 7 and on March 10 voted the bill do pass and reported it to the full Senate.

The bill was taken up by the full Senate on March 14 and a Senate Substitute for SB 539 was perfected on March 15. It was then third read and passed by the Senate on March 17, reported to the House and was first read by the House on March 22.

See current information about SB 539 and the full bill text at:
http://www.senate.mo.gov/05info/bts_web/Bill.aspx?SessionType=R&BillID=22520

SB 532 was introduced by Senator Ridgeway. It was referred to the Senate Pensions, Veterans' Affairs and General Laws committee on March 3. There was no further action.

It creates the Medical Ownership Program, a medicaid coverage program dealing with managed health savings accounts.

See current information about SB 532 and the full bill text at: http://www.senate.mo.gov/05info/bts_web/Bill.aspx?SessionType=R&BillID=21828


SB 556 was introduced by Senator Gibbons. Also on a "fast track", the bill was referred to the Senate Pensions, Veterans' Affairs and General Laws committee on March 3. A committee hearing was conducted March 8, and the committee voted the bill "do pass" on March 10. It later became a part of the SB 539 bill that implemented the 2005 cuts in Medicaid.

This act establishes the "Medicaid Reform Commission" to study and review the current Medicaid program and make recommendations for reforms. This has now been incorporated into SB 539.

See current information about SB 556 and the full bill text at:
http://www.senate.mo.gov/05info/bts_web/Bill.aspx?SessionType=R&BillID=22537

It is evident that these three bills are intended to drastically cut the state's Medicaid program, implementing the present leadership's intent to reduce state government by destroying the programs that help Missourians who are unable to help themselves.

Last Update: 6/14/05

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HB 639 -- Betty L. Thompson Scholarship Program and Educational Tax Credits

This bill FAILED. After amendments were made on the House floor that the sponsors considered "damaging," the bill was placed on the House Informal Calendar and died there at the end of the session.

HB 639 was taken up by the full House on April 11. Three amendments were adopted which the sponsors did not agree with. The bill was placed on the House Informal Calendar on April 11, taken up and then again placed on the Informal Calendar on April 25.

State Representatives Jane Cunningham, R-Chesterfield, Ted Hoskins, D-Berkeley, and Rodney Hubbard, D- St. Louis, introduced this tax credit voucher bill (House Committee Substitute Bill 639) that would deplete money from our public schools. This bill, if passed, would allocate up to forty million dollars in any one fiscal year that could be allocated as tax credits for these so called, "Educational Scholarships" (another word for vouchers).

Any corporation, business or individual who makes contributions to an educational assistance organization (another term for private schools) would receive the tax credits.

HB 639 was referred on Feb. 28 to the House Special Committee on Urban Issues. A hearing was held March 2 and on March 14. HCS for HB 639 was approved "Do Pass" by the committee on March 15. The HCS was referred to the House Rules committee the same day. (This committee decides whether the bill should be sent on to the full House, and if there is a time limit on floor debate on the bill.)

All state representatives should be contacted with opposition to this "sneak school voucher bill." It may be back again in the 2006 session. It would weaken funding for public schools.


This bill was opposed by MTJ.  MTJ member organizations who announced opposition are the Missouri League of Women Voters, Missouri National Education Association, the Missouri Federation of Teachers, and the Kansas City Federation of Teachers, Local 691.

See current information about HB 639 and the full bill text at:
http://www.house.state.mo.us/bills051/bills/HB639.HTM

Last Update: 6/14/05

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