Missouri ~ Sales and Use Tax: Various Changes to Local Sales Tax Provisions Enacted

Legislation has been enacted that modifies various provisions relating to local Missouri sales taxes, as discussed below.

Zoological sales tax: The legislation provides that a local sales tax approved after August 28, 2017, by voters in St. Louis City or St. Louis County for the purpose of funding zoological activities and zoological facilities must not exceed 0.125%. No county other than St. Louis County and St. Louis City can use such county sales tax revenue for the purpose of funding in whole or in part the construction, operation, or maintenance of any zoological activities, zoological facilities, zoological organizations, the Metropolitan Zoological Park and Museum District, or any zoological board. Also, residents of any county that does not adopt a zoological sales tax may be charged an admission fee for zoological facilities, programs, or events that are not part of the main campus of the St. Louis Zoo. Admission to the main campus will remain free.

County sales taxes: The legislation provides that a county must not submit to the voters a proposed sales tax under the County Sales Tax for a period of two years following the date of an election in which it previously submitted a proposed sales tax, regardless of whether the initial proposed sales tax was approved or disapproved by the voters. Also, no county can submit a proposal to the voters that would result in a combined sales tax rate adopted under the County Sales Tax Act in excess of 1%. For any sales tax adopted under the County Sales Tax Act in St. Louis County, 0.375% of such rate must be included in the calculation of the county’s 1% cap.

City sales taxes: The legislation provides that no city can submit a proposal to the voters which would result in a combined sales tax rate adopted under the City Sales Tax Act in excess of 2%.

Sales tax exemptions: Under current law, the Director of Revenue must not send notice to any taxpayer regarding the Missouri Supreme Court’s decision in IBM Corporation v. Director of Revenue 491 S.W.3d 535 (Mo. banc 2016), relating to sales tax exemptions, prior to August 28, 2017. This act extends that date to August 28, 2018.

S.B. 49, Laws 2017, effective August 28, 2017

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup

Leave a Reply

Your email address will not be published.