Missouri Statute | Act | Code |Executive Branch| US Code - US Statute

The department of revenue is in charge of the director of
revenue. The director shall be appointed by the governor, by and with the
advice and consent of the senate, and shall serve at the pleasure of the
governor. (L. 1945 p. 1428 § 1, A.L. 1955 p. 571, A.L. 1957 p. 497, A.L.
1959 H.B. 115, A.L. 1967 p. 100, A.L. 1977 H.B. 841)

Effective 1-1-78

CROSS REFERENCE: For compensation of department head, RSMo 105.950

1. There is hereby created a department of revenue in charge of a
director appointed by the governor, by and with the advice and consent of
the senate. The department shall collect all taxes and fees payable to
the state as provided by law.

2. The powers, duties and functions of the department of revenue, chapter
32, RSMo and others, are transferred by type I transfer to the department
of revenue. All powers, duties and function of the collector of revenue
are transferred to the director of the department by type I transfer and
the position of collector of revenue is abolished.

3. The powers, duties and functions of the state tax commission, chapter
138, RSMo and others, are transferred by type III transfer to the
department of revenue.

4. All of the powers, duties and functions of the state tax commission
relating to administration of the corporation franchise tax chapter 152,
RSMo and others, are transferred by type I transfer to the department of
revenue; provided, however, that the provision of section 138.430, RSMo
relating to appeals from decisions of the director of revenue shall apply
to these taxes.

5. All the powers, duties and functions of the highway reciprocity
commission, chapter 301, RSMo, are transferred by type II transfer to the
department of revenue. (L. 1973 1st Ex. Sess. S.B. 1 § 12)

Effective 5-2-74

*Transferred 1986; formerly section 12 Reorganization Act 1974

CROSS REFERENCE:

Highway reciprocity commission abolished, duties and functions
transferred to highways and transportation commission, RSMo 226.008

Before taking office, the director of revenue shall take and
subscribe an oath or affirmation to support the Constitution of the
United States and of this state, and to demean himself faithfully in
office. He shall also deposit with the secretary of state a bond, with
sureties to be approved by the governor, in the amount of five hundred
thousand dollars payable to the state of Missouri, conditioned on the
faithful performance of the duties of his office and the satisfactory
accounting of all moneys received by him. The premium of said bond shall
be paid out of the appropriation for the department of revenue. (L. 1945
p. 1428 § 2)

The board of public buildings shall provide the director of
revenue and the department of revenue with suitable quarters in the City
of Jefferson. The director of revenue shall establish and maintain
permanent branch offices in the cities of St. Louis and Kansas City, and
may select additional places in the state for special full-time or
temporary offices. (L. 1945 p. 1428 § 7, A.L. 1959 H.B. 115)

Service of a summons and petition upon the director of the
department of revenue may be made in the manner provided by subsections 4
and 5 of section 506.150, RSMo, provided that in lieu of the
acknowledgment provided by said section, service may be made by certified
mail, return receipt requested, and such receipt when returned indicating
delivery of such mail shall serve as proof of service. (L. 1996 S.B. 869)

1. The director of revenue shall:

(1) Prepare estimates of the requirements for appropriation for the
department of revenue and for each division thereof which is under his
supervision;

(2) Procure, either through the division of purchasing, or by other means
authorized by law, supplies, material, equipment or contractual services
for the department of revenue and for each division in the department;

(3) Prescribe, as far as practicable, a central system for payroll in the
department of revenue;

(4) Prepare and submit to each regular session of the general assembly
and to the governor a report of the activities of the department,
including the activities of each division of the department;

(5) Prescribe a seal for the department of revenue.

2. With respect to all divisions in the department, the director shall:

(1) Order and supervise the exchange among the several divisions of
employees, quarters, facilities and equipment, and to this end the heads
of the respective divisions subject to the approval of the director of
revenue, shall cooperate with each other in the use of employees,
quarters, facilities and equipment and with the director of revenue;

(2) Coordinate, consolidate and arrange the functions, procedures and
facilities of the several divisions as is necessary to bring about
economy and efficiency in the operation of the department of revenue and
each division of the department;

(3) Decide questions of policy of the department of revenue and each of
its divisions;

(4) Decide any question arising in the interpretation or carrying out of
chapters 32 and 136, RSMo, between:

(a) The director of revenue and any other officer or employee in the
department of revenue;

(b) The director of revenue and any officer or employee of any other
state department;

(c) Officers and employees of any of the state departments. The decision
of the director of revenue is final;

(5) Administer the provisions of chapters 32 and 136, RSMo, and in case
of any conflict in powers and duties between the director of revenue and
any other administrator, director, officer or employee in the department
of revenue and its several divisions, the powers and duties of the
director of revenue are paramount;

(6) Approve all rules and regulations promulgated by all administrators,
directors, officers or employees who have the authority under the
provisions of chapters 32 and 136, RSMo, to make rules and regulations;

(7) Receive all appropriations to the department of revenue for the use
of the department of revenue and its several divisions and is responsible
for the disbursement and expenditure thereof.

3. The director of revenue may:

(1) Initiate, order and direct the arrangement and rearrangement of the
employees, quarters, facilities and equipment in the department of
revenue and each division of the department which is under his
supervision;

(2) Employ and remove assistants, clerks and other employees in the
department of revenue and each of the divisions of the department which
are under his supervision as the work of the department and its divisions
require, and fix their compensation within the limits of the
appropriation. (L. 1945 p. 1428 § 4, A.L. 1947 V. I p. 479, A.L. 1957 p.
495, A.L. 1958 2d Ex. Sess. p. 170, A.L. 1965 p. 126)

CROSS REFERENCES: Delinquencies, contracts to collect with attorneys and
collection agencies, RSMo 140.850 Fund commissioners, member of board,
RSMo 33.300 Gifts to public school fund, RSMo 166.071 to 166.121 Gross
receipt taxes, city of St. Louis, powers and duties, RSMo 92.073 Seminary
fund, duty to collect amounts due, RSMo 172.661

The director of the department of revenue shall make an estimate
of the amount of tax revenues generated under the provisions of this
section and section 143.072, RSMo, and section 144.800, RSMo. The
director of the department of revenue shall also make a separate
accounting of the amount of income tax refunds and reduced individual
income tax revenues necessitated by decisions of the Supreme Courts of
the United States and the state of Missouri, relating to taxation of
pension benefits. If the director of the department of revenue determines
the amount of revenues finally generated under the provisions of this
section and section 143.072, RSMo, and section 144.800, RSMo, exceeds the
amount of individual income taxes collected on United States government
retirement benefits and any interest accruing thereon, which the state is
obligated to refund and the amount of reduced individual income tax
revenues pursuant to the decisions of the Supreme Courts of the United
States and the state of Missouri, he shall deposit the excess amount into
the budget stabilization fund created pursuant to section 33.285, RSMo.
The director of the department of revenue shall quarterly submit in
writing a report to the senate and the house of representatives, and the
commissioner of administration, describing the methodology used in
arriving at the estimate of the amount of tax revenues generated under
the provisions of this section and section 143.072, RSMo, and section
144.800, RSMo, and the amount of income tax refunds and reduced
individual income tax revenues issued to taxpayers pursuant to the
Supreme Courts' decisions. (L. 1989 1st Ex. Sess. S.B. 2 § 3)

Effective 7-11-89

1. The provisions of this section shall apply to the following:
employer withholding tax as provided in sections 143.191 to 143.265,
RSMo, and sales and use tax, including local sales taxes, as provided in
chapter 144, RSMo.

2. If the director of revenue determines that any person required to
collect, account for, and pay over any tax described in subsection 1 of
this section has, at the time and in the manner prescribed by law or
regulations, failed to collect, truthfully account for, or pay over any
such tax, the director may notify such person in accordance with
subsection 4 of this section and such person shall:

(1) Collect, at the times and in the manner provided by law and
regulations, all of the taxes described in subsection 1 of this section
which become collectible by him after receipt of such notice;

(2) Deposit the taxes so collected, not later than the end of the second
business day after collection, with a financial institution approved by
the director of revenue, in a separate account established in accordance
with subsection 3 of this section; and

(3) Keep in such account the taxes so deposited until payment thereof is
made to the state of Missouri as required by the law and regulations in
respect to such taxes.

3. The separate account referred to in subsection 2 of this section shall
be established under the designation, "(Name of person required to
establish account), Trustee, Special Fund in Trust for the State of
Missouri under Chapter 32, RSMo". The taxes deposited in such account
shall constitute a fund in trust for the state of Missouri payable only
to the director of revenue on demand of the trustee. At no time shall the
amount of funds so deposited in such account exceed the maximum federally
insured limit. It shall be the duty of such person upon whom such notice
is served to notify the director of revenue in writing the name and
address of the financial institution wherein such account is proposed to
be kept.

4. Notice to any person requiring his compliance with the provisions of
this section shall be in writing and shall be hand delivered by the
director of revenue or sent by certified mail to the last mailing address
provided by the taxpayer.

5. The director of revenue may relieve a person from the requirement to
comply with the provisions of this section whenever he is satisfied that
such person will comply with the tax laws of this state. Such notice of
cancellation shall be made in writing and shall take effect at such time
as is specified in the written notice of cancellation.

6. Failure to comply with use of the trust account as required by this
section shall be presumed to be a willful failure to truthfully account
for and pay over the tax with intent to defraud. (L. 1990 H.B. 960 § 4)

Any final decision of the department of revenue which is a result
of a change in policy or interpretation by the department effecting a
particular class of person subject to such decision shall only be applied
prospectively. (L. 1995 S.B. 374 § 1 subsec. 2)

Subject to the provisions of sections 32.090 and 32.091, the
director of revenue shall not sell lists of motor vehicle registrations
or other personal information held by the department of revenue for the
purposes of bulk distribution for surveys, marketing and solicitations.
Individual motor vehicle registration records and other personal
information held by the department of revenue may be disclosed to any
person or organization organized under an act of the Congress of the
United States in accordance with the fee limitations as provided in
section 610.026, RSMo. (L. 1969 H.B. 973 § 1, A.L. 1997 S.B. 19, A.L.
2000 H.B. 1797)

The department of revenue shall not release the home address or
any other information contained in the department's motor vehicle or
driver registration records regarding any person who is a county, state
or federal parole officer or who is a federal pretrial officer or who is
a peace officer pursuant to section 590.100, RSMo, or a member of the
parole officer's, pretrial officer's or peace officer's immediate family
based on a specific request for such information from any person. Any
person who is a county, state or federal parole officer or who is a
federal pretrial officer or who is a peace officer pursuant to section
590.100, RSMo, may notify the department of such status and the
department shall protect the confidentiality of the records on such a
person and his or her immediate family as required by this section. This
section shall not prohibit the department from releasing information on a
motor registration list pursuant to section 32.055 or from releasing
information on any officer who holds a class A, B or C commercial
driver's license pursuant to the Motor Carrier Safety Improvement Act of
1999, as amended, 49 U.S.C. 31309. (L. 1996 H.B. 773 § 1, A.L. 2001 H.B.
80 merged with H.B. 144 & 46 merged with S.B. 4)

1. Except as otherwise specifically provided by law, it shall be
unlawful for the director of revenue, any officer, employee, agent or
deputy or former director, officer, employee, agent or deputy of the
department of revenue, any person engaged or retained by the department
of revenue on an independent contract basis, any person to whom
authorized or unauthorized disclosure is made by the department of
revenue, or any person who lawfully or unlawfully inspects any report or
return filed with the department of revenue or to whom a copy, an
abstract or a portion of any report or return is furnished by the
department of revenue to make known in any manner, to permit the
inspection or use of or to divulge to anyone any information relative to
any such report or return, any information obtained by an investigation
conducted by the department in the discharge of official duty, or any
information received by the director in cooperation with the United
States or other states in the enforcement of the revenue laws of this
state. Such confidential information is limited to information received
by the department in connection with the administration of the tax laws
of this state.

2. Nothing in this section shall be construed to prohibit:

(1) The disclosure of information, returns, reports, or facts shown
thereby, as described in subsection 1 of this section, by any officer,
clerk or other employee of the department of revenue charged with the
custody of such information:

(a) To a taxpayer or the taxpayer's duly authorized representative under
regulations which the director of revenue may prescribe;

(b) In any action or proceeding, civil, criminal or mixed, brought to
enforce the revenue laws of this state;

(c) To the state auditor or the auditor's duly authorized employees as
required by subsection 4 of this section;

(d) To any city officer designated by ordinance of a city within this
state to collect a city earnings tax, upon written request of such
officer, which request states that the request is made for the purpose of
determining or enforcing compliance with such city earnings tax ordinance
and provided that such information disclosed shall be limited to that
sufficient to identify the taxpayer, and further provided that in no
event shall any information be disclosed that will result in the
department of revenue being denied such information by the United States
or any other state. The city officer requesting the identity of taxpayers
filing state returns but not paying city earnings tax shall furnish to
the director of revenue a list of taxpayers paying such earnings tax, and
the director shall compare the list submitted with the director's records
and return to such city official the name and address of any taxpayer who
is a resident of such city who has filed a state tax return but who does
not appear on the list furnished by such city. The director of revenue
may set a fee to reimburse the department for the costs reasonably
incurred in providing this information;

(e) To any employee of any county or other political subdivision imposing
a sales tax which is administered by the state department of revenue
whose office is authorized by the governing body of the county or other
political subdivision to receive any and all records of the state
director of revenue pertaining to the administration, collection and
enforcement of its sales tax. The request for sales tax records and
reports shall include a description of the type of report requested, the
media form including electronic transfer, computer tape or disk, or
printed form, and the frequency desired. The request shall be made by
annual written application and shall be filed with the director of
revenue. The director of revenue may set a fee to reimburse the
department for the costs reasonably incurred in providing this
information. Such city or county or any employee thereof shall be subject
to the same standards for confidentiality as required for the department
of revenue in using the information contained in the reports;

(f) To the director of the department of economic development or the
director's duly authorized employees in discharging the director's
official duties to certify taxpayers eligibility to claim state tax
credits as prescribed by statutes;

(g) To any employee of any political subdivision, such records of the
director of revenue pertaining to the administration, collection and
enforcement of the tax imposed in chapter 149, RSMo, as are necessary for
ensuring compliance with any cigarette or tobacco tax imposed by such
political subdivision. The request for such records shall be made in
writing to the director of revenue, and shall include a description of
the type of information requested and the desired frequency. The director
of revenue may charge a fee to reimburse the department for costs
reasonably incurred in providing such information;

(2) The publication by the director of revenue or of the state auditor in
the audit reports relating to the department of revenue of:

(a) Statistics, statements or explanations so classified as to prevent
the identification of any taxpayer or of any particular reports or
returns and the items thereof;

(b) The names and addresses without any additional information of persons
who filed returns and of persons whose tax refund checks have been
returned undelivered by the United States Post Office;

(3) The director of revenue from permitting the Secretary of the Treasury
of the United States or the Secretary's delegates, the proper officer of
any state of the United States imposing a tax equivalent to any of the
taxes administered by the department of revenue of the state of Missouri
or the appropriate representative of the multistate tax commission to
inspect any return or report required by the respective tax provision of
this state, or may furnish to such officer an abstract of the return or
report or supply the officer with information contained in the return or
disclosed by the report of any authorized investigation. Such permission,
however, shall be granted on condition that the corresponding revenue
statute of the United States or of such other state, as the case may be,
grants substantially similar privileges to the director of revenue and on
further condition that such corresponding statute gives confidential
status to the material with which it is concerned;

(4) The disclosure of information, returns, reports, or facts shown
thereby, by any person on behalf of the director of revenue, in any
action or proceeding to which the director is a party or on behalf of any
party to any action or proceeding pursuant to the revenue laws of this
state when such information is directly involved in the action or
proceeding, in either of which events the court may require the
production of, and may admit in evidence, so much of such information as
is pertinent to the action or proceeding and no more;

(5) The disclosure of information, returns, reports, or facts shown
thereby, by any person to a state or federal prosecuting official,
including, but not limited to, the state and federal attorneys general,
or the official's designees involved in any criminal, quasi-criminal, or
civil investigation, action or proceeding pursuant to the laws of this
state or of the United States when such information is pertinent to an
investigation, action or proceeding involving the administration of the
revenue laws or duties of public office or employment connected therewith;

(6) Any school district from obtaining the aggregate amount of the
financial institution tax paid pursuant to chapter 148, RSMo, by
financial institutions located partially or exclusively within the school
district's boundaries, provided that the school district request such
disclosure in writing to the department of revenue;

(7) The disclosure of records which identify all companies licensed by
this state pursuant to the provisions of subsections 1 and 2 of section
149.035, RSMo. The director of revenue may charge a fee to reimburse the
department for the costs reasonably incurred in providing such records;

(8) The disclosure to the commissioner of administration pursuant to
section 34.040, RSMo, of a list of vendors and their affiliates who meet
the conditions of section 144.635, RSMo, but refuse to collect the use
tax levied pursuant to chapter 144, RSMo, on their sales delivered to
this state.

3. Any person violating any provision of subsection 1 or 2 of this
section shall, upon conviction, be guilty of a class D felony.

4. The state auditor or the auditor's duly authorized employees who have
taken the oath of confidentiality required by section 29.070, RSMo, shall
have the right to inspect any report or return filed with the department
of revenue if such inspection is related to and for the purpose of
auditing the department of revenue; except that, the state auditor or the
auditor's duly authorized employees shall have no greater right of access
to, use and publication of information, audit and related activities with
respect to income tax information obtained by the department of revenue
pursuant to chapter 143, RSMo, or federal statute than specifically
exists pursuant to the laws of the United States and of the income tax
laws of the state of Missouri. (L. 1979 H.B. 296, A.L. 1980 S.B. 910,
A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1993 S.B. 194, A.L. 1994 H.B. 1248
& 1048 merged with S.B. 685, A.L. 1996 H.B. 1098, A.L. 2003 H.B. 600,
A.L. 2004 S.B. 1099)

CROSS REFERENCES: Director to furnish statements to certain persons,
when, RSMo 144.150 Income tax refund setoff, limited waiver of
confidentiality, RSMo 143.788

(1980) Statute does not limit discovery, as to records of Department of
Revenue, to information pertaining to taxpayer who is party to suit, but,
rather, statute was enacted to provide uniform confidentiality for all
taxes administered by Department and to prevent unauthorized disclosure
of confidential information, but was not intended to impede justice by
prohibiting production of necessary records in judicial proceedings.
State ex rel. Von Hoffman Press, Inc. V. Saitz(A.), 607 S.W.2d 219.

Any other provision of the law to the contrary notwithstanding,
no contractual provision between the department of revenue and its agents
which prohibits said agent from employing a lobbyist shall be binding on
said agent, and no subsequent contract shall contain such a provision.
(L. 1997 H.B. 459 § 1)

The director of the department of revenue shall prepare, in
consultation with the commissioner of administration and state treasurer,
a combined financial report for each fiscal year and submit such report
to the governor and the members of the general assembly within sixty days
after the close of the fiscal year. This report shall contain an
interpretative summary of the financial status of the state, including a
statement of the income into each fund, sources of income, unencumbered
balances in each fund, programs for which expenditures were made,
unencumbered balances by appropriations, and estimates of revenue for the
coming fiscal year from the various sources. The report also shall show
the state's indebtedness, its total unencumbered balance, portions of
such balance as may be invested, and the depositaries in which state
funds are located, together with the type of deposit, and such other
information as may be included at the discretion of the director of
revenue or the governor. (RSMo 1939 § 13022, A.L. 1945 p. 1428 § 6, A.L.
1959 S.B. 40, A.L. 1961 p. 411)

Prior revisions: 1929 § 11400; 1919 § 13297; 1909 § 11809

1. The director of revenue, his employees or agents may accept
credit cards in payment of taxes and fees. The type of credit cards
accepted shall be at the discretion of the director.

2. In addition to other fees provided by law, the director of revenue may
set a fee to be added to each credit card transaction equal to the charge
paid by the state or the taxpayer for the use of the credit card by the
taxpayer. No other fees shall be imposed other than those herein
authorized.

(L. 1990 S.B. 768 § 1, A.L. 1992 S.B. 589)

1. The annual rate established under this section shall be such
adjusted rate as is established by the director of revenue under
subsection 2 of this section.

2. The director shall establish an adjusted rate of interest for the
purpose of subsection 1 not later than October twenty-second of any year
if the adjusted prime rate charged by banks during September of that
year, rounded to the nearest full percent, is at least a full percentage
point more or less than the interest rate which is then in effect. Any
such adjusted rate of interest shall be equal to the adjusted prime rate
charged by banks, rounded to the nearest full percent, and shall become
effective on January first of the immediately succeeding year.

3. For purposes of subsection 2, the term "adjusted prime rate charged by
banks" means the average predominant prime rate quoted by commercial
banks to large businesses, as determined by the Board of Governors of the
Federal Reserve System.

4. The annual rate provided in subsection 1 of this section shall apply
not later than January 1, 1984, to amounts outstanding on that date or
arising thereafter; provided, however, prior to January 1, 1984, the
director of revenue may, by rule, implement and apply in lieu of any of
the interest rates for any specific tax or taxes provided for in the
following sentence, the annual rate provided in subsection 1 for amounts
outstanding on the effective date of the implementing rule. If the
director of revenue does not implement the use of the annual rate
provided in subsection 1 prior to January 1, 1984, for any particular
tax, sections 142.180, 142.561, 143.731, 143.761, 144.170, 146.060,
148.050, 148.060, 148.160, 148.180, 148.300*, 148.530* and 149.051, RSMo
1978, and section 147.120, RSMo Supp. 1981, shall continue to be applied
to amounts outstanding prior to January 1, 1984, with respect to
determining interest and other amounts due for periods before January 1,
1984. (L. 1982 H.B. 1351, et al., A.L. 1986 S.B. 669, et al., A.L. 1995
S.B. 374)

*Sections 148.300 and 148.530 were repealed by H.B. 713 § 1, 1983.

1. All moneys received by the Missouri department of revenue for
the dissemination of information and publications to individuals,
businesses, federal, state and local governments shall be deposited in
the state treasury to the credit of the "Department of Revenue
Information Fund" which is hereby created. The state treasurer shall be
custodian of the fund and shall make disbursements from the funds
requested by the Missouri director of revenue for personal services,
expenses, and equipment required to prepare and disseminate requested
information and to refund overpayments for such information and
publications to individuals and organizations and for no other purpose.

2. At the end of each state fiscal year after August 13, 1986, the
Missouri director of revenue shall:

(1) Determine the amount of all moneys derived from highway users as an
incident to their use or right to use the highways of the state which
were deposited into the department of revenue information fund;

(2) Determine the amount of the disbursements from the department of
revenue information fund which were made to produce the moneys referred
to in subdivision (1) of this subsection;

(3) Subtract the amount of disbursements from the income figure referred
to in subdivision (1) of this subsection and deliver this figure to the
state treasurer.

3. The state treasurer shall transfer an amount of money equal to the
figure provided by the director of revenue from the department of revenue
information fund to the state highway department fund. An unexpended
balance in the department of revenue information fund at the end of the
biennium not exceeding twenty-five thousand dollars is exempt from the
provisions of section 33.080, RSMo, relating to transfer of unexpended
balances to the ordinary revenue fund. (L. 1985 H.B. 842 § 2, A.L. 1986
S.B. 669, et al., A.L. 1987 H.B. 89)

Effective 6-25-87

1. The state treasurer shall calculate an annual rate of interest
pursuant to this section and provide the calculated rate of interest to
the director of revenue as determined by subsection 2 of this section.

2. Each calendar quarter the state treasurer shall calculate the annual
rate of interest. The rate of interest shall be equal to the previous
twelve-month annualized average rate of return on all funds invested by
the state treasurer, rounded to the nearest one-tenth of one percent. The
state treasurer shall provide such calculated rate to the director of
revenue not later than thirty days prior to the end of each calendar
quarter. The director of revenue shall apply the calculated rate of
interest to all applicable situations during the next calendar quarter
after the release of the calculated rate of interest.

3. Beginning January 1, 2003, the director of revenue shall apply the
calculated rate of interest as determined by this section to all
applicable situations.

4. In fiscal year 2003, the commissioner of administration shall estimate
the amount of any additional state revenue received pursuant to this
section and shall transfer an equivalent amount of general revenue to the
schools of the future fund created in section 163.005, RSMo. (L. 2002
S.B. 1248)

Effective 6-19-02

1. Notwithstanding any other provision of law to the contrary,
interest shall be allowed and paid on any refund or overpayment at the
rate determined by section 32.068 only if the overpayment is not refunded
within one hundred twenty days from the latest of the following dates:

(1) The last day prescribed for filing a tax return or refund claim,
without regard to any extension of time granted;

(2) The date the return, payment, or claim is filed; or

(3) The date the taxpayer files for a credit or refund and provides
accurate and complete documentation to support such claim.

2. In fiscal year 2003, the commissioner of administration shall estimate
the amount of any additional state revenue received pursuant to this
section and shall transfer an equivalent amount of general revenue to the
schools of the future fund created in section 163.005, RSMo. (L. 2002
S.B. 1248)

Effective 6-19-02

1. The director of revenue, under rules prescribed by him, may
delegate to any political subdivision by cooperative agreement the
auditing of records incident to the administration, collection, and
operation of any tax imposed by that political subdivision under the
authority of the sections set forth in subsection 4 of this section.

2. Once the director of revenue has approved a cooperative agreement made
under this section, the state shall pay to each political subdivision
which performs an audit in accordance with such agreement the one percent
collection fee retained by the state, or an agreed upon portion thereof.

3. The director of revenue shall maintain supervisory control over any
such function or functions delegated by cooperative agreement and may
require such information, reports, and documents, or the modification or
termination of such agreement as may be necessary for the performance of
the duties imposed upon the director of revenue.

4. This section shall apply to taxes authorized by sections 66.600 to
66.635, RSMo, sections 67.500 to 67.545, RSMo, sections 67.550 to 67.580,
RSMo, sections 67.600 to 67.640, RSMo, sections 92.400 to 92.420, RSMo,
sections 94.500 to 94.570, RSMo, and sections 94.600 to 94.655, RSMo.

5. No audit authorized by this section shall be undertaken by any
political subdivision without the specific approval of the director of
revenue. All audits so approved shall be conducted at the location where
the taxpayer's records are maintained. The director of revenue may
authorize a joint audit by the state and one or more political
subdivisions and may use the results of such joint audit for enforcing
and collecting both state and local taxes. The director shall not
authorize more than one audit of the same taxpayer in any one year under
this section. (L. 1983 1st Ex. Sess. H.B. 10)

Effective 1-1-84

1. Notwithstanding other provisions of law, the director of
revenue may destroy motor vehicle, driver's license, or tax reports,
returns and other related documents at any time if such reports, returns,
and other related documents have been photographed, microphotographed,
electronically generated, electronically recorded, photostated,
reproduced on film or other process capable of producing a clear,
accurate and permanent copy of the original. Such film or reproducing
material shall be of durable material and the device used to reproduce
the records, reports, returns, and other related documents on film or
material shall be such as to accurately reproduce and perpetuate the
original records, reports, returns and other documents in all details.

2. The reproductions so made may be used as permanent records of the
original. When microfilm or a similar reproduction is used as a permanent
record by the director of revenue, one copy shall be stored in a
fireproof vault and other copies may be made for use by any person
entitled thereto. All reproductions shall retain the same confidentiality
as is provided in the law regarding the original record.

3. Such photostatic copy, photograph, microphotograph, electronically
generated, electronically recorded, or other process copy shall be deemed
to be an original record for all purposes, and shall be admissible in
evidence in all courts or administrative agencies. A transcript,
exemplification or certified copy of any motor vehicle, driver's license
or tax reports, records, returns and other related documents made from
such photostatic copy, photograph, microphotograph, electronically
generated, electronically recorded, or other process copy shall, for all
purposes be deemed to be a transcript, exemplification or certified copy
of the original and shall be admissible in evidence in all courts or
administrative agencies. No document shall be admissible under this
section unless the offeror shall comply with section 490.692, RSMo.

4. Reproductions made of motor vehicle, driver's license, or tax reports,
returns and related documents hereunder shall be preserved for four years
and thereafter until the director of revenue orders them to be destroyed.

5. Notwithstanding other provisions of law, the department of revenue may
allow the electronic filing, issuance or renewal of any motor vehicle,
driver's license, or tax records, reports, returns and other related
documents. All restrictions imposed by law that apply to the disclosure
of information by the department of revenue shall also apply to any
persons or entities contracting with the director of the department of
revenue to provide electronic filing, issuance or renewal services.
Notwithstanding other provisions of law, any on-line access or access via
other electronic means granted to such persons or entities may be limited
to the persons or entities providing such electronic filing, issuance or
renewal services.

6. A transcript, exemplification or certified copy of any electronically
filed motor vehicle, driver's license or tax reports, records, returns
and other related document upon certification of the director of revenue
shall be admissible in evidence in all courts or administrative agencies
without further proof. "Records, reports, returns, and other related
documents" include, but are not limited to, papers, documents, facsimile
information, microphotographic process, electronically generated or
electronically recorded information, deposited or filed with the
department of revenue.

7. Notwithstanding other provisions of law, the department of revenue may
determine alternative methods for the signing, subscribing or verifying
of a record, report, return, application, driver's license, or other
related document that shall have the same validity and consequences as
the actual signing by the person providing the record, report, return, or
related document.

8. The director of revenue may renew motor vehicle registrations by
electronic means when the information, fees and documents required by
chapters 301, 303 and 307, RSMo, to accompany such application are
provided to the director electronically in a format prescribed by the
director of revenue.

9. The director of revenue may prescribe rules and regulations for the
effective administration of this section. Any rule or portion of a rule,
as that term is defined in section 536.010, RSMo, that is promulgated
pursuant to the authority delegated in this section shall become
effective only if it has been promulgated pursuant to the provisions of
chapter 536, RSMo. Nothing in this section shall be interpreted to repeal
or affect the validity of any rule filed or adopted prior to July 1,
2000, if it fully complied with the provisions of chapter 536, RSMo. This
section and chapter 536, RSMo, are nonseverable and if any of the powers
vested with the general assembly pursuant to chapter 536, RSMo, to
review, to delay the effective date or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after July 1, 2000, shall be
invalid and void. (L. 1986 S.B. 669, et al. § 5, A.L. 1995 S.B. 374, A.L.
1999 H.B. 795, S.B. 19, A.L. 2000 H.B. 1797)

The following words or phrases as used in this section and
section 32.087 shall have the following meaning unless a different
meaning clearly appears from the context:

(1) "Boat" shall only include motorboats and vessels as the terms
"motorboat" and "vessel" are defined in section 306.010, RSMo;

(2) "Farm machinery" means new or used farm tractors, cultivating and
harvesting equipment which ordinarily is attached thereto, combines,
cornpickers, cottonpickers, farm trailers, and such other new or used
farm equipment or machinery which are used exclusively for agricultural
purposes as the director of revenue may exempt by rule or regulation of
the department of revenue;

(3) "Local sales tax" shall mean any tax levied, assessed, or payable
under the local sales tax law;

(4) "Local sales tax law" shall refer specifically to sections 66.600 to
66.630, RSMo, sections 67.391 to 67.395, RSMo, sections 67.500 to 67.545,
RSMo, section 67.547, RSMo, section 67.548, RSMo, sections 67.550 to
67.570, RSMo, section 67.581, RSMo, section 67.582, RSMo, section 67.583,
RSMo, sections 67.590 to 67.594, RSMo, sections 67.700 to 67.727, RSMo,
section 67.729, RSMo, sections 67.730 to 67.739, RSMo, section 67.782,
RSMo, sections 67.1712 to 67.1715, RSMo, sections 92.400 to 92.421, RSMo,
sections 94.500 to 94.550, RSMo, section 94.577, RSMo, sections 94.600 to
94.655, RSMo, and sections 94.700 to 94.755, RSMo, and any provision of
law hereafter enacted authorizing the imposition of a sales tax by a
political subdivision of this state; provided that such sales tax applies
to all transactions which are subject to the taxes imposed under the
provisions of sections 144.010 to 144.525, RSMo;

(5) "Taxing entity" shall refer specifically to any political subdivision
of this state which is authorized by the local sales tax law to impose
one or more local sales taxes. (L. 1991 H.B. 29 § 1, A.L. 2001 S.B. 203)

CROSS REFERENCE: County sales tax, to fund emergency central dispatching
services, law applicable, RSMo 190.337

1. Within ten days after the adoption of any ordinance or order
in favor of adoption of any local sales tax authorized under the local
sales tax law by the voters of a taxing entity, the governing body or
official of such taxing entity shall forward to the director of revenue
by United States registered mail or certified mail a certified copy of
the ordinance or order. The ordinance or order shall reflect the
effective date thereof.

2. Any local sales tax so adopted shall become effective on the first day
of the second calendar quarter after the director of revenue receives
notice of adoption of the local sales tax, except as provided in
subsection 18 of this section.

3. Every retailer within the jurisdiction of one or more taxing entities
which has imposed one or more local sales taxes under the local sales tax
law shall add all taxes so imposed along with the tax imposed by the
sales tax law of the state of Missouri to the sale price and, when added,
the combined tax shall constitute a part of the price, and shall be a
debt of the purchaser to the retailer until paid, and shall be
recoverable at law in the same manner as the purchase price. The combined
rate of the state sales tax and all local sales taxes shall be the sum of
the rates, multiplying the combined rate times the amount of the sale.

4. The brackets required to be established by the director of revenue
under the provisions of section 144.285, RSMo, shall be based upon the
sum of the combined rate of the state sales tax and all local sales taxes
imposed under the provisions of the local sales tax law.

5. The ordinance or order imposing a local sales tax under the local
sales tax law shall impose upon all sellers a tax for the privilege of
engaging in the business of selling tangible personal property or
rendering taxable services at retail to the extent and in the manner
provided in sections 144.010 to 144.525, RSMo, and the rules and
regulations of the director of revenue issued pursuant thereto; except
that the rate of the tax shall be the sum of the combined rate of the
state sales tax or state highway use tax and all local sales taxes
imposed under the provisions of the local sales tax law.

6. On and after the effective date of any local sales tax imposed under
the provisions of the local sales tax law, the director of revenue shall
perform all functions incident to the administration, collection,
enforcement, and operation of the tax, and the director of revenue shall
collect in addition to the sales tax for the state of Missouri all
additional local sales taxes authorized under the authority of the local
sales tax law. All local sales taxes imposed under the local sales tax
law together with all taxes imposed under the sales tax law of the state
of Missouri shall be collected together and reported upon such forms and
under such administrative rules and regulations as may be prescribed by
the director of revenue.

7. All applicable provisions contained in sections 144.010 to 144.525,
RSMo, governing the state sales tax and section 32.057, the uniform
confidentiality provision, shall apply to the collection of any local
sales tax imposed under the local sales tax law except as modified by the
local sales tax law.

8. All exemptions granted to agencies of government, organizations,
persons and to the sale of certain articles and items of tangible
personal property and taxable services under the provisions of sections
144.010 to 144.525, RSMo, as these sections now read and as they may
hereafter be amended, it being the intent of this general assembly to
ensure that the same sales tax exemptions granted from the state sales
tax law also be granted under the local sales tax law, are hereby made
applicable to the imposition and collection of all local sales taxes
imposed under the local sales tax law.

9. The same sales tax permit, exemption certificate and retail
certificate required by sections 144.010 to 144.525, RSMo, for the
administration and collection of the state sales tax shall satisfy the
requirements of the local sales tax law, and no additional permit or
exemption certificate or retail certificate shall be required; except
that the director of revenue may prescribe a form of exemption
certificate for an exemption from any local sales tax imposed by the
local sales tax law.

10. All discounts allowed the retailer under the provisions of the state
sales tax law for the collection of and for payment of taxes under the
provisions of the state sales tax law are hereby allowed and made
applicable to any local sales tax collected under the provisions of the
local sales tax law.

11. The penalties provided in section 32.057 and sections 144.010 to
144.525, RSMo, for a violation of the provisions of those sections are
hereby made applicable to violations of the provisions of the local sales
tax law.

12. (1) For the purposes of any local sales tax imposed by an ordinance
or order under the local sales tax law, all sales, except the sale of
motor vehicles, trailers, boats, and outboard motors, shall be deemed to
be consummated at the place of business of the retailer unless the
tangible personal property sold is delivered by the retailer or his agent
to an out-of-state destination. In the event a retailer has more than one
place of business in this state which participates in the sale, the sale
shall be deemed to be consummated at the place of business of the
retailer where the initial order for the tangible personal property is
taken, even though the order must be forwarded elsewhere for acceptance,
approval of credit, shipment or billing. A sale by a retailer's agent or
employee shall be deemed to be consummated at the place of business from
which he works.

(2) For the purposes of any local sales tax imposed by an ordinance or
order under the local sales tax law, all sales of motor vehicles,
trailers, boats, and outboard motors shall be deemed to be consummated at
the residence of the purchaser and not at the place of business of the
retailer, or the place of business from which the retailer's agent or
employee works.

(3) For the purposes of any local tax imposed by an ordinance or under
the local sales tax law on charges for mobile telecommunications
services, all taxes of mobile telecommunications service shall be imposed
as provided in the Mobile Telecommunications Sourcing Act, 4 U.S.C.
Sections 116 through 124, as amended.

13. Local sales taxes imposed pursuant to the local sales tax law on the
purchase and sale of motor vehicles, trailers, boats, and outboard motors
shall not be collected and remitted by the seller, but shall be collected
by the director of revenue at the time application is made for a
certificate of title, if the address of the applicant is within a taxing
entity imposing a local sales tax under the local sales tax law.

14. The director of revenue and any of his deputies, assistants and
employees who have any duties or responsibilities in connection with the
collection, deposit, transfer, transmittal, disbursement, safekeeping,
accounting, or recording of funds which come into the hands of the
director of revenue under the provisions of the local sales tax law shall
enter a surety bond or bonds payable to any and all taxing entities in
whose behalf such funds have been collected under the local sales tax law
in the amount of one hundred thousand dollars for each such tax; but the
director of revenue may enter into a blanket bond covering himself and
all such deputies, assistants and employees. The cost of any premium for
such bonds shall be paid by the director of revenue from the share of the
collections under the sales tax law retained by the director of revenue
for the benefit of the state.

15. The director of revenue shall annually report on his management of
each trust fund which is created under the local sales tax law and
administration of each local sales tax imposed under the local sales tax
law. He shall provide each taxing entity imposing one or more local sales
taxes authorized by the local sales tax law with a detailed accounting of
the source of all funds received by him for the taxing entity.
Notwithstanding any other provisions of law, the state auditor shall
annually audit each trust fund. A copy of the director's report and
annual audit shall be forwarded to each taxing entity imposing one or
more local sales taxes.

16. Within the boundaries of any taxing entity where one or more local
sales taxes have been imposed, if any person is delinquent in the payment
of the amount required to be paid by him under the local sales tax law or
in the event a determination has been made against him for taxes and
penalty under the local sales tax law, the limitation for bringing suit
for the collection of the delinquent tax and penalty shall be the same as
that provided in sections 144.010 to 144.525, RSMo. Where the director of
revenue has determined that suit must be filed against any person for the
collection of delinquent taxes due the state under the state sales tax
law, and where such person is also delinquent in payment of taxes under
the local sales tax law, the director of revenue shall notify the taxing
entity in the event any person fails or refuses to pay the amount of any
local sales tax due so that appropriate action may be taken by the taxing
entity.

17. Where property is seized by the director of revenue under the
provisions of any law authorizing seizure of the property of a taxpayer
who is delinquent in payment of the tax imposed by the state sales tax
law, and where such taxpayer is also delinquent in payment of any tax
imposed by the local sales tax law, the director of revenue shall permit
the taxing entity to join in any sale of property to pay the delinquent
taxes and penalties due the state and to the taxing entity under the
local sales tax law. The proceeds from such sale shall first be applied
to all sums due the state, and the remainder, if any, shall be applied to
all sums due such taxing entity.

18. If a local sales tax has been in effect for at least one year under
the provisions of the local sales tax law and voters approve reimposition
of the same local sales tax at the same rate at an election as provided
for in the local sales tax law prior to the date such tax is due to
expire, the tax so reimposed shall become effective the first day of the
first calendar quarter after the director receives a certified copy of
the ordinance, order or resolution accompanied by a map clearly showing
the boundaries thereof and the results of such election, provided that
such ordinance, order or resolution and all necessary accompanying
materials are received by the director at least thirty days prior to the
expiration of such tax. Any administrative cost or expense incurred by
the state as a result of the provisions of this subsection shall be paid
by the city or county reimposing such tax. (L. 1991 H.B. 29 § 2, A.L.
1994 S.B. 477, et al., A.L. 2002 H.B. 1890, A.L. 2004 S.B. 1394)

CROSS REFERENCE: County sales tax, to fund emergency central dispatching
services, law applicable, RSMo 190.337

1. The department of revenue shall keep a record of each
application or other document filed with it and each certificate or other
official document issued by it.

2. Except as otherwise provided by law, all records of the department of
revenue are public records and shall be made available to the public
according to procedures established by the department.

3. Personal information obtained by the department shall not be disclosed
to any person requesting such personal information except as provided in
section 32.091. (L. 1997 S.B. 19 § 1, A.L. 2000 H.B. 1797)

1. As used in sections 32.090 and 32.091, the following terms
mean:

(1) "Motor vehicle record", any record that pertains to a motor vehicle
operator's permit, motor vehicle title, motor vehicle registration or
identification card issued by the department of revenue;

(2) "Person", an individual, organization or entity, but does not include
a state or agency thereof;

(3) "Personal information", information that identifies an individual,
including an individual's photograph, Social Security number, driver
identification number, name, address, but not the five-digit zip code,
telephone number, and medical or disability information, but does not
include information on vehicular accidents, driving violations and
driver's status.

2. The department of revenue may disclose individual motor vehicle
records pursuant to Section 2721(b)(11) of Title 18 of the United States
Code and may disclose motor vehicle records in bulk pursuant to Section
2721(b)(12) of Title 18 of the United States Code, as amended by Public
Law 106-69, Section 350, only if the department has obtained the express
consent of the person to whom such personal information pertains.

3. Notwithstanding any other provisions of law to the contrary, the
department of revenue shall not disseminate a person's driver's license
photograph, Social Security number and medical or disability information
from a motor vehicle record, as defined in Section 2725(1) of Title 18 of
the United States Code without the express consent of the person to whom
such information pertains, except for uses permitted under Sections
2721(b)(1), 2721(b)(4), 2721(b)(6) and 2721(b)(9) of Title 18 of the
United States Code.

4. The department of revenue shall disclose any motor vehicle record or
personal information permitted to be disclosed pursuant to Sections
2721(b)(1) to 2721(b)(10) and 2721(b)(13) to 2721(b)(14) of Title 18 of
the United States Code except for the personal information described in
subsection 3 of this section.

5. Pursuant to Section 2721(b)(14) of Title 18 of the United States Code,
any person who has a purpose to disseminate to the public a newspaper,
book, magazine, broadcast or other similar form of public communication,
including dissemination by computer or other electronic means, may
request the department to provide individual or bulk motor vehicle
records, such dissemination being related to the operation of a motor
vehicle or to public safety. Upon receipt of such request, the department
shall release the requested motor vehicle records.

6. This section is not intended to limit media access to any personal
information when such access is provided by agencies or entities in the
interest of public safety and is otherwise authorized by law.

7. The department of revenue shall not collect from persons applying for
any driver's license issued by the department any information by which
such persons can be individually identified, unless the department has
specific statutory authorization to collect such information; nor shall
the department of revenue include on any driver's license, in print,
magnetic, digital, or any other format, any information by which an
individual may be identified, unless the department has specific
statutory authorization to include such information. (L. 1997 S.B. 19 §
2, A.L. 2000 H.B. 1797, A.L. 2001 H.B. 897 merged with S.B. 540)

Sections 32.100 to 32.125 shall be known and may be cited as the
"Neighborhood Assistance Act". (L. 1977 S.B. 375 § 1)

Effective 1-1-78

As used in sections 32.100 to 32.125, the following terms mean:

(1) "Affordable housing assistance activities", money, real or personal
property, or professional services expended or devoted to the
construction, or rehabilitation of affordable housing units;

(2) "Affordable housing unit", a residential unit generally occupied by
persons and families with incomes at or below the levels described in
this subdivision and bearing a cost to the occupant no greater than
thirty percent of the maximum eligible household income for the
affordable housing unit. In the case of owner-occupied units, the cost to
the occupant shall be considered the amount of the gross monthly mortgage
payment, including casualty insurance, mortgage insurance, and taxes. In
the case of rental units, the cost to the occupant shall be considered
the amount of the gross rent. The cost to the occupant shall include the
cost of any utilities, other than telephone. If any utilities are paid
directly by the occupant, the maximum cost that may be paid by the
occupant is to be reduced by a utility allowance prescribed by the
commission. Persons or families are eligible occupants of affordable
housing units if the household combined, adjusted gross income as defined
by the commission is equal to or less than the following percentages of
the median family income for the geographic area in which the residential
unit is located, or the median family income for the state of Missouri,
whichever is larger; ("geographic area" means the metropolitan area or
county designated as an area by the federal Department of Housing and
Urban Development under Section 8 of the United States Housing Act of
1937, as amended, for purposes of determining fair market rental rates):

Percent of State or

Geographic Area Family

Size of Household Median Income

One Person 35%

Two Persons 40%

Three Persons 45%

Four Persons 50%

Five Persons 54%

Six Persons 58%

Seven Persons 62%

Eight Persons 66%

(3) "Business firm", person, firm, a partner in a firm, corporation or a
shareholder in an S corporation doing business in the state of Missouri
and subject to the state income tax imposed by the provisions of chapter
143, RSMo, or a corporation subject to the annual corporation franchise
tax imposed by the provisions of chapter 147, RSMo, or an insurance
company paying an annual tax on its gross premium receipts in this state,
or other financial institution paying taxes to the state of Missouri or
any political subdivision of this state pursuant to the provisions of
chapter 148, RSMo, or an express company which pays an annual tax on its
gross receipts in this state;

(4) "Commission", the Missouri housing development commission;

(5) "Community services", any type of counseling and advice, emergency
assistance or medical care furnished to individuals or groups in the
state of Missouri or transportation services at below-cost rates as
provided in sections 208.250 to 208.275, RSMo;

(6) "Crime prevention", any activity which aids in the reduction of crime
in the state of Missouri;

(7) "Defense industry contractor", a person, corporation or other entity
which will be or has been negatively impacted as a result of its status
as a prime contractor of the Department of Defense or as a second or
third tier contractor. A "second tier contractor" means a person,
corporation or other entity which contracts to perform manufacturing,
maintenance or repair services for a prime contractor of the Department
of Defense, and a "third tier contractor" means a person, corporation or
other entity which contracts with a person, corporation or other entity
which contracts with a prime contractor of the Department of Defense;

(8) "Doing business", among other methods of doing business in the state
of Missouri, a partner in a firm or a shareholder in an S corporation
shall be deemed to be doing business in the state of Missouri if such
firm or S corporation, as the case may be, is doing business in the state
of Missouri;

(9) "Economic development", the acquisition, renovation, improvement, or
the furnishing or equipping of existing buildings and real estate in
distressed or blighted areas of the state when such acquisition,
renovation, improvement, or the furnishing or equipping of the business
development projects will result in the creation or retention of jobs
within the state; or, until June 30, 1996, a defense conversion pilot
project located in a standard metropolitan statistical area which
contains a city with a population of at least three hundred fifty
thousand inhabitants, which will assist Missouri-based defense industry
contractors in their conversion from predominately defense-related
contracting to nondefense-oriented manufacturing. Only neighborhood
organizations, as defined in subdivision (13) of this section, may apply
to conduct economic development projects. Prior to the approval of an
economic development project, the neighborhood organization shall enter
into a contractual agreement with the department of economic development.
Credits approved for economic development projects may not exceed four
million dollars from within any one fiscal year's allocation, except that
for fiscal years 2005, 2006, and 2007 credits approved for economic
development projects shall not exceed six million dollars. Neighborhood
assistance program tax credits for economic development projects and
affordable housing assistance as defined in section 32.111 may be
transferred, sold or assigned by a notarized endorsement thereof naming
the transferee;

(10) "Education", any type of scholastic instruction or scholarship
assistance to an individual who resides in the state of Missouri that
enables the individual to prepare himself or herself for better
opportunities or community awareness activities rendered by a statewide
organization established for the purpose of archeological education and
preservation;

(11) "Homeless assistance pilot project", the program established
pursuant to section 32.117;

(12) "Job training", any type of instruction to an individual who resides
in the state of Missouri that enables the individual to acquire
vocational skills so that the individual can become employable or be able
to seek a higher grade of employment;

(13) "Neighborhood organization", any organization performing community
services or economic development activities in the state of Missouri and:

(a) Holding a ruling from the Internal Revenue Service of the United
States Department of the Treasury that the organization is exempt from
income taxation pursuant to the provisions of the Internal Revenue Code;
or

(b) Incorporated in the state of Missouri as a not-for-profit corporation
pursuant to the provisions of chapter 355, RSMo; or

(c) Designated as a community development corporation by the United
States government pursuant to the provisions of Title VII of the Economic
Opportunity Act of 1964;

(14) "Physical revitalization", furnishing financial assistance, labor,
material, or technical advice to aid in the physical improvement or
rehabilitation of any part or all of a neighborhood area;

(15) "S corporation", a corporation described in Section 1361(a)(1) of
the United States Internal Revenue Code and not subject to the taxes
imposed by section 143.071, RSMo, by reason of section 143.471, RSMo;

(16) "Workfare renovation project", any project initiated pursuant to
sections 215.340 to 215.355, RSMo. (L. 1977 S.B. 375 § 2, A.L. 1980 H.B.
1349 & 1577, A.L. 1982 H.B. 1353, A.L. 1985 H.B. 305, A.L. 1989 H.B. 378,
A.L. 1990 H.B. 960, A.L. 1991 S.B. 185, A.L. 1992 S.B. 661 & 620, A.L.
1993 H.B. 566 merged with S.B. 376, A.L. 1994 H.B. 1248 & 1048, A.L. 1996
H.B. 1237, A.L. 1998 H.B. 1052 merged with H.B. 1201, A.L. 2000 S.B. 894,
A.L. 2004 S.B. 1155)

CROSS REFERENCES: Neighborhood organization may appeal decision of an
administrative officer to board of adjustment, when, procedure, RSMo
89.100 Neighborhood organization may appeal decision of board of
adjustment, when, procedure, RSMo 89.110

Any business firm which engages in the activities of providing
physical revitalization, economic development, job training or education
for individuals, community services, or crime prevention in the state of
Missouri shall receive a tax credit as provided in section 32.115 if the
director of the department of economic development annually approves the
proposal of the business firm; except that, no proposal shall be approved
which does not have the endorsement of the agency of local government
within the area in which the business firm is engaging in such activities
which has adopted an overall community or neighborhood development plan
that the proposal is consistent with such plan. The proposal shall set
forth the program to be conducted, the neighborhood area to be served,
why the program is needed, the estimated amount to be contributed to the
program and the plans for implementing the program. If, in the opinion of
the director of the department of economic development, a business firm's
contribution can more consistently with the purposes of sections 32.100
to 32.125 be made through contributions to a neighborhood organization as
defined in subdivision (13) of section 32.105, tax credits may be allowed
as provided in section 32.115. The director of the department of economic
development is hereby authorized to promulgate rules and regulations for
establishing criteria for evaluating such proposals by business firms for
approval or disapproval and for establishing priorities for approval or
disapproval of such proposals by business firms with the assistance and
approval of the director of the department of revenue. The total amount
of tax credit granted for programs approved pursuant to sections 32.100
to 32.125 shall not exceed fourteen million dollars in fiscal year 1999
and twenty-six million dollars in fiscal year 2000, and any subsequent
fiscal year, except as otherwise provided for proposals approved pursuant
to section 32.111, 32.112 or 32.117. All tax credits authorized pursuant
to the provisions of sections 32.100 to 32.125 may be used as a state
match to secure additional federal funding. (L. 1977 S.B. 375 § 3, A.L.
1980 H.B. 1349 & 1577, A.L. 1989 H.B. 378, A.L. 1990 H.B. 960, A.L. 1998
S.B. 827, A.L. 1999 S.B. 20, A.L. 2000 S.B. 894, A.L. 2004 S.B. 1155)

CROSS REFERENCE: Tax Credit Accountability Act of 2004, additional
requirements, RSMo 135.800 to 135.830

Any business firm which engages in providing affordable housing
assistance activities or market rate housing in distressed communities as
defined in section 135.530, RSMo, in the state of Missouri shall receive
a tax credit as provided in section 32.115 if the commission or its
delegate approves a proposal submitted by one or more business firms for
the provision of affordable housing units or market rate housing in
distressed communities or in accordance with the requirements of
participation in the workfare renovation project in sections 215.340 to
215.355, RSMo. The proposal shall set forth the program of affordable
housing to be conducted, the location and number of affordable housing
units, the neighborhood area to be served, why the program is needed, the
time period for which affordable housing units shall be provided, the
estimated amount to be invested in the program, plans for implementing
the program and a list of the business firms proposing to provide
affordable housing assistance activities which are part of the proposal.
The same type of information shall be provided in proposals for market
rate housing in distressed communities. In the case of rental units of
affordable housing, but not market rate housing in distressed
communities, all proposals approved by the commission shall require a
land use restriction agreement stating the provision of affordable
housing on such property for a time period deemed reasonable by the
commission. In the case of owner-occupied units of affordable housing,
all proposals approved by the commission shall require a land use
restriction agreement for a time period deemed reasonable by the
commission requiring any subsequent owner, except a lender with a
security interest in the property, to be an owner occupant whose income
at the time of acquisition is at or below the level described in section
32.105, and further requiring the acquisition price to any subsequent
owner shall not exceed by more than a five percent annual appreciation
the acquisition price to the original, eligible owner at the time tax
credits are first claimed. The land use restriction agreement shall
constitute a lien as described in subdivision (4) of subsection 3 of
section 32.115. The restriction shall be approved by the property owner
and shall be binding on any subsequent owner of the property unless
otherwise approved by the commission. In approving a proposal, the
commission may authorize the use of tax credits by one or more of the
business firms listed in the proposal and shall establish specific
requirements regarding the degree of completion of affordable housing
assistance activities or market rate housing activities in distressed
communities necessary to be eligible for tax credits provided pursuant to
this section. If, in the opinion of the commission or its delegate, a
business firm's investment can more consistently with the purposes of
this section be made through a neighborhood organization, tax credits may
be allowed as provided in this section. The commission may approve
requests for multiyear credit commitments provided eligibility is
maintained. The commission or its delegate is hereby authorized to
promulgate rules and regulations for establishing criteria for evaluating
such proposals by business firms for approval or disapproval, for
establishing housing priorities for approval or disapproval of such
proposals by business firms, and for the certification of eligibility for
tax credits authorized pursuant to this section. The decision of the
commission or its delegate to approve or disapprove a proposal pursuant
to this section shall be in writing, and if approved, the maximum credit
allowable to the business firm shall be stated. A copy of the decision of
the commission or its delegate shall be transmitted to the director of
revenue and to the governor. A copy of the certification approved by the
commission and a statement of the total amount of credits approved by the
commission, the amount of credits previously taken by the taxpayer and
the amount being claimed for the current tax year shall be filed in a
manner and form designated by the director of revenue for any tax year in
which a tax credit is being claimed. (L. 1990 H.B. 960, A.L. 1993 S.B.
376, A.L. 1996 H.B. 1237, A.L. 1998 H.B. 1052, A.L. 1999 S.B. 20)

Effective 1-1-00

CROSS REFERENCE: Tax Credit Accountability Act of 2004, additional
requirements, RSMo 135.800 to 135.830

Any business firm which makes a contribution to a neighborhood
organization, a significant part of whose activities consist of
affordable housing assistance activities or market rate housing in
distressed communities as defined in section 135.530, RSMo, in the state
of Missouri, shall receive a tax credit as provided in section 32.115 if
the commission approves a proposal submitted by one or more business
firms for the general operating assistance of such neighborhood
organization. The proposal shall set forth the activities of the
neighborhood organization, including the affordable housing assistance
activities or market rate housing in distressed communities, the
neighborhood area to be served, why the activities are needed, the
estimated amount to be contributed to the neighborhood organization, and
a list of the business firms proposing to make the contributions. The
commission is hereby authorized to promulgate rules and regulations
pursuant to section 536.024, RSMo, for establishing criteria for
evaluating such proposals by business firms for approval or disapproval,
and for the certification of eligibility for tax credits authorized
pursuant to this section. The decision of the commission to approve or
disapprove a proposal pursuant to this section shall be in writing and,
if approved, the maximum credit allowable to the business firm shall be
stated. A copy of the decision of the commission shall be transmitted to
the director of revenue and to the governor. A copy of the certification
approved by the commission and a statement of the total amount of credits
approved, the amount of credits previously taken by the taxpayer and the
amount being claimed for the current tax year shall be filed in a manner
and form designated by the director of revenue for any tax year in which
a tax credit is being claimed. (L. 1996 H.B. 1237, A.L. 1999 S.B. 20)

Effective 1-1-00

CROSS REFERENCE: Tax Credit Accountability Act of 2004, additional
requirements, RSMo 135.800 to 135.830

1. The department of revenue shall grant a tax credit, to be
applied in the following order until used, against:

(1) The annual tax on gross premium receipts of insurance companies in
chapter 148, RSMo;

(2) The tax on banks determined pursuant to subdivision (2) of subsection
2 of section 148.030, RSMo;

(3) The tax on banks determined in subdivision (1) of subsection 2 of
section 148.030, RSMo;

(4) The tax on other financial institutions in chapter 148, RSMo;

(5) The corporation franchise tax in chapter 147, RSMo;

(6) The state income tax in chapter 143, RSMo; and

(7) The annual tax on gross receipts of express companies in chapter 153,
RSMo.

2. For proposals approved pursuant to section 32.110:

(1) The amount of the tax credit shall not exceed fifty percent of the
total amount contributed during the taxable year by the business firm or,
in the case of a financial institution, where applicable, during the
relevant income period in programs approved pursuant to section 32.110;

(2) Except as provided in subsection 2 or 5 of this section, a tax credit
of up to seventy percent may be allowed for contributions to programs
where activities fall within the scope of special program priorities as
defined with the approval of the governor in regulations promulgated by
the director of the department of economic development;

(3) Except as provided in subsection 2 or 5 of this section, the tax
credit allowed for contributions to programs located in any community
shall be equal to seventy percent of the total amount contributed where
such community is a city, town or village which has fifteen thousand or
less inhabitants as of the last decennial census and is located in a
county which is either located in:

(a) An area that is not part of a standard metropolitan statistical area;

(b) A standard metropolitan statistical area but such county has only one
city, town or village which has more than fifteen thousand inhabitants; or

(c) A standard metropolitan statistical area and a substantial number of
persons in such county derive their income from agriculture.

Such community may also be in an unincorporated area in such county as
provided in subdivision (1), (2) or (3) of this subsection. Except in no
case shall the total economic benefit of the combined federal and state
tax savings to the taxpayer exceed the amount contributed by the taxpayer
during the tax year;

(4) Such tax credit allocation, equal to seventy percent of the total
amount contributed, shall not exceed four million dollars in fiscal year
1999 and six million dollars in fiscal year 2000 and any subsequent
fiscal year. When the maximum dollar limit on the seventy percent tax
credit allocation is committed, the tax credit allocation for such
programs shall then be equal to fifty percent credit of the total amount
contributed. Regulations establishing special program priorities are to
be promulgated during the first month of each fiscal year and at such
times during the year as the public interest dictates. Such credit shall
not exceed two hundred and fifty thousand dollars annually except as
provided in subdivision (5) of this subsection. No tax credit shall be
approved for any bank, bank and trust company, insurance company, trust
company, national bank, savings association, or building and loan
association for activities that are a part of its normal course of
business. Any tax credit not used in the period the contribution was made
may be carried over the next five succeeding calendar or fiscal years
until the full credit has been claimed. Except as otherwise provided for
proposals approved pursuant to section 32.111, 32.112 or 32.117, in no
event shall the total amount of all other tax credits allowed pursuant to
sections 32.100 to 32.125 exceed thirty-two million dollars in any one
fiscal year, of which six million shall be credits allowed pursuant to
section 135.460, RSMo. If six million dollars in credits are not
approved, then the remaining credits may be used for programs approved
pursuant to sections 32.100 to 32.125;

(5) The credit may exceed two hundred fifty thousand dollars annually and
shall not be limited if community services, crime prevention, education,
job training, physical revitalization or economic development, as defined
by section 32.105, is rendered in an area defined by federal or state law
as an impoverished, economically distressed, or blighted area or as a
neighborhood experiencing problems endangering its existence as a viable
and stable neighborhood, or if the community services, crime prevention,
education, job training, physical revitalization or economic development
is limited to impoverished persons.

3. For proposals approved pursuant to section 32.111:

(1) The amount of the tax credit shall not exceed fifty-five percent of
the total amount invested in affordable housing assistance activities or
market rate housing in distressed communities as defined in section
135.530, RSMo, by a business firm. Whenever such investment is made in
the form of an equity investment or a loan, as opposed to a donation
alone, tax credits may be claimed only where the loan or equity
investment is accompanied by a donation which is eligible for federal
income tax charitable deduction, and where the total value of the tax
credits herein plus the value of the federal income tax charitable
deduction is less than or equal to the value of the donation. Any tax
credit not used in the period for which the credit was approved may be
carried over the next ten succeeding calendar or fiscal years until the
full credit has been allowed. If the affordable housing units or market
rate housing units in distressed communities for which a tax is claimed
are within a larger structure, parts of which are not the subject of a
tax credit claim, then expenditures applicable to the entire structure
shall be reduced on a prorated basis in proportion to the ratio of the
number of square feet devoted to the affordable housing units or market
rate housing units in distressed communities, for purposes of determining
the amount of the tax credit. The total amount of tax credit granted for
programs approved pursuant to section 32.111 for the fiscal year
beginning July 1, 1991, shall not exceed two million dollars, to be
increased by no more than two million dollars each succeeding fiscal
year, until the total tax credits that may be approved reaches ten
million dollars in any fiscal year;

(2) For any year during the compliance period indicated in the land use
restriction agreement, the owner of the affordable housing rental units
for which a credit is being claimed shall certify to the commission that
all tenants renting claimed units are income eligible for affordable
housing units and that the rentals for each claimed unit are in
compliance with the provisions of sections 32.100 to 32.125. The
commission is authorized, in its discretion, to audit the records and
accounts of the owner to verify such certification;

(3) In the case of owner-occupied affordable housing units, the
qualifying owner occupant shall, before the end of the first year in
which credits are claimed, certify to the commission that the occupant is
income eligible during the preceding two years, and at the time of the
initial purchase contract, but not thereafter. The qualifying owner
occupant shall further certify to the commission, before the end of the
first year in which credits are claimed, that during the compliance
period indicated in the land use restriction agreement, the cost of the
affordable housing unit to the occupant for the claimed unit can
reasonably be projected to be in compliance with the provisions of
sections 32.100 to 32.125. Any succeeding owner occupant acquiring the
affordable housing unit during the compliance period indicated in the
land use restriction agreement shall make the same certification;

(4) If at any time during the compliance period the commission determines
a project for which a proposal has been approved is not in compliance
with the applicable provisions of sections 32.100 to 32.125 or rules
promulgated therefor, the commission may within one hundred fifty days of
notice to the owner either seek injunctive enforcement action against the
owner, or seek legal damages against the owner representing the value of
the tax credits, or foreclose on the lien in the land use restriction
agreement, selling the project at a public sale, and paying to the owner
the proceeds of the sale, less the costs of the sale and less the value
of all tax credits allowed herein. The commission shall remit to the
director of revenue the portion of the legal damages collected or the
sale proceeds representing the value of the tax credits. However, except
in the event of intentional fraud by the taxpayer, the proposal's
certificate of eligibility for tax credits shall not be revoked.

4. For proposals approved pursuant to section 32.112, the amount of the
tax credit shall not exceed fifty-five percent of the total amount
contributed to a neighborhood organization by business firms. Any tax
credit not used in the period for which the credit was approved may be
carried over the next ten succeeding calendar or fiscal years until the
full credit has been allowed. The total amount of tax credit granted for
programs approved pursuant to section 32.112 shall not exceed one million
dollars for each fiscal year.

5. The total amount of tax credits used for market rate housing in
distressed communities pursuant to sections 32.100 to 32.125 shall not
exceed thirty percent of the total amount of all tax credits authorized
pursuant to sections 32.111 and 32.112. (L. 1977 S.B. 375 § 4, A.L. 1980
H.B. 1349 & 1577, A.L. 1982 H.B. 1353, A.L. 1985 H.B. 305, A.L. 1986 S.B.
669, et al., A.L. 1989 H.B. 378, A.L. 1990 H.B. 960, A.L. 1993 H.B. 566
merged with S.B. 376, A.L. 1995 H.B. 174, et al., A.L. 1996 H.B. 1237,
A.L. 1998 S.B. 827, A.L. 1999 S.B. 20)

Effective 1-1-00

1. Any business firm which engages in the activity of providing a
homeless assistance project for low-income persons in the state of
Missouri shall receive a tax credit as provided in section 32.115, if the
division of community development within the department of economic
development annually approves the proposal of the business firm. The
proposal shall only be approved if the project is located in a city with
a population of four hundred thousand or more inhabitants which is
located in more than one county and which serves a mix of rural and urban
counties.

2. For purposes of this section "low-income persons" shall mean families
or persons with incomes of fifty percent or less of median income
adjusted for family size as allowed by the Department of Housing and
Urban Development (HUD) under section 8.

3. The purpose of a homeless assistance project shall be to serve
low-income families or persons who are experiencing economic crisis
caused by one or more of the following:

(1) Loss of employment;

(2) Medical disability or emergency;

(3) Loss or delay of some form of public assistance benefits;

(4) Natural disaster;

(5) Substantial change in household composition;

(6) Victimization by criminal activity;

(7) Illegal action by a landlord;

(8) Displacement by government or private action; or

(9) Some other condition which constitutes a hardship.

4. The amount of the tax credit shall not exceed fifty-five percent of
the value of the proposal benefits, which shall include one or more of
the following types of benefits to low-income persons in order to be
eligible:

(1) Payment of rent or mortgage for not more than three months during any
twelve-month period;

(2) Payment to a landlord of a rent deposit or a security deposit for not
more than two months during any twelve-month period;

(3) Case management services which shall include support services such as
child care, education resource assistance, job resource assistance,
counseling, and resource and referral;

(4) Outreach services to low-income persons to prevent homelessness;

(5) Transitional housing facilities with support services.

5. The homeless assistance program shall give priority to the following
types of low-income families or individuals:

(1) Families with minor children who are in imminent danger of removal
from the family because of a lack of suitable housing accommodation;

(2) Single parent household;

(3) Other households with children;

(4) Households with a disabled household member or a household member who
is at least sixty-five years of age;

(5) All other households.

6. The organization implementing a homeless assistance program pursuant
to this section shall make annual reports identifying the goal of the
program, the number of recipients served, the type of services rendered,
and moneys expended to provide the program. The program report shall be
submitted to the governor, speaker of the house of representatives and
the president pro tem of the senate. These reports shall also be
available to the general public upon request.

7. For each of the fiscal years beginning on July 1, 1991, and July 1,
1992, one million dollars in tax credits may be allowed to be used for
the homeless assistance pilot project, pursuant to this section. (L. 1990
H.B. 960)

Effective 10-1-90

The decision of the director of the department of economic
development to approve or disapprove a proposal pursuant to section
32.110 shall be in writing, and if he approves the proposal, he shall
state the maximum credit allowable to the business firm. A copy of the
decision of the director of the department of economic development shall
be transmitted to the director of revenue and to the governor. (L. 1977
S.B. 375 § 5, A.L. 1980 H.B. 1349 & 1577, A.L. 1989 H.B. 378)

No rule or portion of a rule promulgated under the authority of
this chapter shall become effective unless it has been promulgated
pursuant to the provisions of section 536.024, RSMo. (L. 1977 S.B. 375 §
6, A.L. 1981 S.B. 200, A.L. 1990 H.B. 960, A.L. 1993 S.B. 52, A.L. 1995
S.B. 3)

*This section was amended by both S.B. 3 and S.B. 374 during the First
Regular Session of the 88th General Assembly, 1995. Due to possible
conflict, both versions are printed here.

The "Multistate Tax Compact" is hereby enacted into law and
entered into with all jurisdictions legally joining therein, in the form
substantially as follows:

MULTISTATE TAX COMPACT

Article I

The purposes of this compact are to:

1. Facilitate proper determination of state and local tax liability of
multistate taxpayers, including the equitable apportionment of tax bases
and settlement of apportionment disputes.

2. Promote uniformity or compatibility in significant components of tax
systems.

3. Facilitate taxpayer convenience and compliance in the filing of tax
returns and in other phases of tax administration.

4. Avoid duplicative taxation.

Article II

As used in this compact:

1. "State" means a state of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, or any territory or possession of the
United States.

2. "Subdivision" means any governmental unit or special district of a
state.

3. "Taxpayer" means any corporation, partnership, firm, association,
governmental unit or agency or person acting as a business entity in more
than one state.

4. "Income tax" means a tax imposed on or measured by net income
including any tax imposed on or measured by an amount arrived at by
deducting expenses from gross income, one or more forms of which expenses
are not specifically and directly related to particular transactions.

5. "Capital stock tax" means a tax measured in any way by the capital of
a corporation considered in its entirety.

6. "Gross receipts tax" means a tax, other than a sales tax, which is
imposed on or measured by the gross volume of business, in terms of gross
receipts or in other terms, and in the determination of which no
deduction is allowed which would constitute the tax an income tax.

7. "Sales tax" means a tax imposed with respect to the transfer for a
consideration of ownership, possession or custody of tangible personal
property or the rendering of services measured by the price of the
tangible personal property transferred or services rendered and which is
required by state or local law to be separately stated from the sales
price by the seller, or which is customarily separately stated from the
sales price, but does not include a tax imposed exclusively on the sale
of a specifically identified commodity or article or class of commodities
or articles.

8. "Use tax" means a nonrecurring tax, other than a sales tax, which

(a) is imposed on or with respect to the exercise or enjoyment of any
right or power over tangible personal property incident to the ownership,
possession or custody of that property or the leasing of that property
from another including any consumption, keeping, retention, or other use
of tangible personal property; and

(b) is complementary to a sales tax.

9. "Tax" means an income tax, capital stock tax, gross receipts tax,
sales tax, use tax, and any other tax which has a multistate impact,
except that the provisions of articles III, IV and V of this compact
shall apply only to the taxes specifically designated therein and the
provisions of article IX of this compact shall apply only in respect to
determinations pursuant to article IV.

Article III

1. Any taxpayer subject to an income tax whose income is subject to
apportionment and allocation for tax purposes pursuant to the laws of a
party state or pursuant to the laws of subdivisions in two or more party
states may elect to apportion and allocate his income in the manner
provided by the laws of such state or by the laws of such states and
subdivisions without reference to this compact, or may elect to apportion
and allocate in accordance with article IV. This election for any tax
year may be made in all party states or subdivisions thereof or in any
one or more of the party states or subdivisions thereof without reference
to the election made in the others. For the purposes of this paragraph,
taxes imposed by subdivisions shall be considered separately from state
taxes and the apportionment and allocation also may be applied to the
entire tax base. In no instance wherein article IV is employed for all
subdivisions of a state may the sum of all apportionments and allocations
to subdivisions within a state be greater than the apportionment and
allocation that would be assignable to that state if the apportionment or
allocation were being made with respect to a state income tax.

2. Each party state or any subdivision thereof which imposes an income
tax shall provide by law that any taxpayer required to file a return,
whose only activities within the taxing jurisdiction consist of sales and
do not include owning or renting real estate or tangible personal
property, and whose dollar volume of gross sales made during the tax year
within the state or subdivision, as the case may be, is not in excess of
$100,000 may elect to report and pay any tax due on the basis of a
percentage of such volume, and shall adopt rates which shall produce a
tax which reasonably approximates the tax otherwise due. The multistate
tax commission, not more than once in five years, may adjust the $100,000
figure in order to reflect such changes as may occur in the real value of
the dollar, and such adjusted figure, upon adoption by the commission,
shall replace the $100,000 figure specifically provided herein. Each
party state and subdivision thereof may make the same election available
to taxpayers additional to those specified in this paragraph.

3. Nothing in this article relates to the reporting or payment of any tax
other than an income tax.

Article IV

1. As used in this article, unless the context otherwise requires:

(1) "Business income" means income arising from transactions and activity
in the regular course of the taxpayer's trade or business and includes
income from tangible and intangible property if the acquisition,
management, and disposition of the property constitute integral parts of
the taxpayer's regular trade or business operations.

(2) "Commercial domicile" means the principal place from which the trade
or business of the taxpayer is directed or managed.

(3) "Compensation" means wages, salaries, commissions and any other form
of remuneration paid to employees for personal services.

(4) "Financial organization" means any bank, trust company, savings bank,
industrial bank, land bank, safe deposit company, private banker, savings
and loan association, credit union, cooperative bank, small loan company,
sales finance company, investment company, or any type of insurance
company.

(5) "Nonbusiness income" means all income other than business income.

(6) "Public utility" means any business entity

(a) which owns or operates any plant, equipment, property, franchise, or
license for the transmission of communications, transportation of goods
or persons, except by pipeline, or the production, transmission, sale,
delivery, or furnishing of electricity, water or steam; and

(b) whose rates of charges for goods or services have been established or
approved by a federal, state or local government or governmental agency.

(7) "Sales" means all gross receipts of the taxpayer not allocated under
paragraphs of this article.

(8) "State" means any state of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, any territory or possession of
the United States, and any foreign country or political subdivision
thereof.

(9) "This state" means the state in which the relevant tax return is
filed or, in the case of application of this article, to the
apportionment and allocation of income for local tax purposes, the
subdivision or local taxing district in which the relevant tax return is
filed.

2. Any taxpayer having income from business activity which is taxable
both within and without this state, other than activity as a financial
organization or public utility or the rendering of purely personal
services by an individual, shall allocate and apportion his net income as
provided in this article. If a taxpayer has income from business activity
as a public utility but derives the greater percentage of his income from
activities subject to this article, the taxpayer may elect to allocate
and apportion his entire net income as provided in this article.

3. For purposes of allocation and apportionment of income under this
article, a taxpayer is taxable in another state if

(1) in that state he is subject to a net income tax, a franchise tax
measured by net income, a franchise tax for the privilege of doing
business, or a corporate stock tax; or

(2) that state has jurisdiction to subject the taxpayer to a net income
tax regardless of whether, in fact, the state does or does not.

4. Rents and royalties from real or tangible personal property, capital
gains, interest, dividends or patent or copyright royalties, to the
extent that they constitute nonbusiness income, shall be allocated as
provided in paragraphs 5 through 8 of this article.

5. (1) Net rents and royalties from real property located in this state
are allocable to this state.

(2) Net rents and royalties from tangible personal property are allocable
to this state:

(a) if and to the extent that the property is utilized in this state; or

(b) in their entirety if the taxpayer's commercial domicile is in this
state and the taxpayer is not organized under the laws of or taxable in
the state in which the property is utilized.

(3) The extent of utilization of tangible personal property in a state is
determined by multiplying the rents and royalties by a fraction, the
numerator of which is the number of days of physical location of the
property in the state during the rental or royalty period in the taxable
year and the denominator of which is the number of days of physical
location of the property everywhere during all rental or royalty periods
in the taxable year. If the physical location of the property during the
rental or royalty period is unknown or unascertainable by the taxpayer,
tangible personal property is utilized in the state in which the property
was located at the time the rental or royalty payer obtained possession.

6. (1) Capital gains and losses from sales of real property located in
this state are allocable to this state.

(2) Capital gains and losses from sales of tangible personal property are
allocable to this state if

(a) the property had a situs in this state at the time of the sale; or

(b) the taxpayer's commercial domicile is in this state and the taxpayer
is not taxable in the state in which the property had a situs.

(3) Capital gains and losses from sales of intangible personal property
are allocable to this state if the taxpayer's commercial domicile is in
this state.

7. Interest and dividends are allocable to this state if the taxpayer's
commercial domicile is in this state.

8. (1) Patent and copyright royalties are allocable to this state:

(a) if and to the extent that the patent or copyright is utilized by the
payer in this state; or

(b) if and to the extent that the patent copyright is utilized by the
payer in a state in which the taxpayer is not taxable and the taxpayer's
commercial domicile is in this state.

(2) A patent is utilized in a state to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the state
or to the extent that a patented product is produced in the state. If the
basis of receipts from patent royalties does not permit allocation to
states or if the accounting procedures do not reflect states of
utilization, the patent is utilized in the state in which the taxpayer's
commercial domicile is located.

(3) A copyright is utilized in a state to the extent that printing or
other publication originates in the state. If the basis of receipts from
copyright royalties does not permit allocation to states or if the
accounting procedures do not reflect states of utilization, the copyright
is utilized in the state in which the taxpayer's commercial domicile is
located.

9. All business income shall be apportioned to this state by multiplying
the income by a fraction, the numerator of which is the property factor
plus the payroll factor plus the sales factor, and the denominator of
which is three.

10. The property factor is a fraction, the numerator of which is the
average value of the taxpayer's real and tangible personal property owned
or rented and used in this state during the tax period and the
denominator of which is the average value of all the taxpayer's real and
tangible personal property owned or rented and used during the tax period.

11. Property owned by the taxpayer is valued at its original cost.
Property rented by the taxpayer is valued at eight times the net annual
rental rate. Net annual rental rate is the annual rental rate paid by the
taxpayer less any annual rental rate received by the taxpayer from
subrentals.

12. The average value of property shall be determined by averaging the
values at the beginning and ending of the tax period but the tax
administrator may require the averaging of monthly values during the tax
period if reasonably required to reflect properly the average value of
the taxpayer's property.

13. The payroll factor is a fraction, the numerator of which is the total
amount paid in this state during the tax period by the taxpayer for
compensation and the denominator of which is the total compensation paid
everywhere during the tax period.

14. Compensation is paid in this state if:

(1) the individual's service is performed entirely within the state;

(2) the individual's service is performed both within and without the
state, but the service performed without the state is incidental to the
individual's service within the state; or

(3) some of the service is performed in the state; and

(a) the base of operations or, if there is no base of operations, the
place from which the service is directed or controlled is in the state; or

(b) the base of operations or the place from which the service is
directed or controlled is not in any state in which some part of the
service is performed, but the individual's residence is in this state.

15. The sales factor is a fraction, the numerator of which is the total
sales of the taxpayer in this state during the tax period, and the
denominator of which is the total sales of the taxpayer everywhere during
the tax period.

16. Sales of tangible personal property are in this state if:

(1) the property is delivered or shipped to a purchaser, other than the
United States government, within this state regardless of the f.o.b.
point or other conditions of the sale; or

(2) the property is shipped from an office, store, warehouse, factory, or
other place of storage in this state; and

(a) the purchaser is the United States government; or

(b) the taxpayer is not taxable in the state of the purchaser.

17. Sales, other than sales of tangible personal property, are in this
state if:

(1) the income-producing activity is performed in this state; or

(2) the income-producing activity is performed both in and outside this
state and a greater proportion of the income-producing activity is
performed in this state than in any other state, based on costs of
performance.

18. If the allocation and apportionment provisions of this article do not
fairly represent the extent of the taxpayer's business activity in this
state, the taxpayer may petition for or the tax administrator may
require, in respect to all or any part of the taxpayer's business
activity, if reasonable:

(1) separate accounting;

(2) the exclusion of any one or more of the factors;

(3) the inclusion of one or more additional factors which will fairly
represent the taxpayer's business activity in this state; or

(4) the employment of any other method to effectuate an equitable
allocation and apportionment of the taxpayer's income.

Article V

1. Each purchaser liable for a use tax on tangible personal property
shall be entitled to full credit for the combined amount or amounts of
legally imposed sales or use taxes paid by him with respect to the same
property to another state and any subdivision thereof. The credit shall
be applied first against the amount of any use tax due the state, and any
unused portion of the credit shall then be applied against the amount of
any use tax due a subdivision.

2. Whenever a vendor receives and accepts in good faith from a purchaser
a resale or other exemption certificate or other written evidence of
exemption authorized by the appropriate state or subdivision taxing
authority, the vendor shall be relieved of liability for a sales or use
tax with respect to the transaction.

Article VI

1. (a) The multistate tax commission is hereby established. It shall be
composed of one "member" from each party state who shall be the head of
the state agency charged with the administration of the types of taxes to
which this compact applies. If there is more than one such agency the
state shall provide by law for the selection of the commission member
from the heads of the relevant agencies. State law may provide that a
member of the commission be represented by an alternate but only if there
is on file with the commission written notification of the designation
and identity of the alternate. The attorney general of each party state
or his designee, or other counsel if the laws of the party state
specifically provide, shall be entitled to attend the meetings of the
commission, but shall not vote. Such attorneys general, designees, or
other counsel shall receive all notices of meetings required under
paragraph 1 (e) of this article.

(b) Each party state shall provide by law for the selection of
representatives from its subdivisions affected by this compact to consult
with the commission member from that state.

(c) Each member shall be entitled to one vote. The commission shall not
act unless a majority of the members are present, and no action shall be
binding unless approved by a majority of the total number of members.

(d) The commission shall adopt an official seal to be used as it may
provide.

(e) The commission shall hold an annual meeting and such other regular
meetings as its bylaws may provide and such special meetings as its
executive committee may determine. The commission bylaws shall specify
the dates of the annual and any other regular meetings, and shall provide
for the giving of notice of annual, regular and special meetings. Notices
of special meetings shall include the reasons therefor and an agenda of
the items to be considered.

(f) The commission shall elect annually, from among its members, a
chairman, a vice chairman and a treasurer. The commission shall appoint
an executive director who shall serve at its pleasure, and it shall fix
his duties and compensation. The executive director shall be secretary of
the commission. The commission shall make provision for the bonding of
such of its officers and employees as it may deem appropriate.

(g) Irrespective of the civil service, personnel or other merit system
laws of any party state, the executive director shall appoint or
discharge such personnel as may be necessary for the performance of the
functions of the commission and shall fix their duties and compensation.
The commission bylaws shall provide for personnel policies and programs.

(h) The commission may borrow, accept or contract for the services of
personnel from any state, the United States, or any other governmental
entity.

(i) The commission may accept for any of its purposes and functions any
and all donations and grants of money, equipment, supplies, materials and
services, conditional or otherwise, from any governmental entity, and may
utilize and dispose of the same.

(j) The commission may establish one or more offices for the transacting
of its business.

(k) The commission shall adopt bylaws for the conduct of its business.
The commission shall publish its bylaws in convenient form, and shall
file a copy of the bylaws and any amendments thereto with the appropriate
agency or officer in each of the party states.

(l) The commission annually shall make to the governor and legislature of
each party state a report covering its activities for the preceding year.
Any donation or grant accepted by the commission or services borrowed
shall be reported in the annual report of the commission, and shall
include the nature, amount and conditions, if any, of the donation, gift,
grant or services borrowed and the identity of the donor or lender. The
commission may make additional reports as it may deem desirable.

2. (a) To assist in the conduct of its business when the full commission
is not meeting, the commission shall have an executive committee of seven
members, including the chairman, vice chairman, treasurer and four other
members elected annually by the commission. The executive committee,
subject to the provisions of this compact and consistent with the
policies of the commission, shall function as provided in the bylaws of
the commission.

(b) The commission may establish advisory and technical committees,
membership on which may include private persons and public officials, in
furthering any of its activities. Such committees may consider any matter
of concern to the commission, including problems of special interest to
any party state and problems dealing with particular types of taxes.

(c) The commission may establish such additional committees as its bylaws
may provide.

3. In addition to powers conferred elsewhere in this compact, the
commission shall have power to:

(a) Study state and local tax systems and particular types of state and
local taxes.

(b) Develop and recommend proposals for an increase in uniformity or
compatibility of state and local tax laws with a view toward encouraging
the simplification and improvement of state and local tax law and
administration.

(c) Compile and publish information as in its judgment would assist the
party states in implementation of the compact and taxpayers in complying
with state and local tax laws.

(d) Do all things necessary and incidental to the administration of its
functions pursuant to this compact.

4. (a) The commission shall submit to the governor or designated officer
or officers of each party state a budget of its estimated expenditures
for such period as may be required by the laws of that state for
presentation to the legislature thereof.

(b) Each of the commission's budgets of estimated expenditures shall
contain specific recommendations of the amounts to be appropriated by
each of the party states. The total amount of appropriations requested
under any such budget shall be apportioned among the party states as
follows: one-tenth in equal shares; and the remainder in proportion to
the amount of revenue collected by each party state and its subdivisions
from income taxes, capital stock taxes, gross receipts taxes, sales and
use taxes. In determining such amounts, the commission shall employ such
available public sources of information as, in its judgment, present the
most equitable and accurate comparisons among the party states. Each of
the commission's budgets of estimated expenditures and requests for
appropriations shall indicate the sources used in obtaining information
employed in applying the formula contained in this paragraph.

(c) The commission shall not pledge the credit of any party state. The
commission may meet any of its obligations in whole or in part with funds
available to it under paragraph 1 (i) of this article; provided that the
commission takes specific action setting aside such funds prior to
incurring any obligation to be met in whole or in part in such manner.
Except where the commission makes use of funds available to it under
paragraph 1 (i), the commission shall not incur any obligation prior to
the allotment of funds by the party states adequate to meet the same.

(d) The commission shall keep accurate accounts of all receipts and
disbursements. The receipts and disbursements of the commission shall be
subject to the audit and accounting procedures established under its
bylaws. All receipts and disbursements of funds handled by the commission
shall be audited yearly by a certified or licensed public accountant and
the report of the audit shall be included in and become part of the
annual report of the commission.

(e) The accounts of the commission shall be open at any reasonable time
for inspection by duly constituted officers of the party states and by
any persons authorized by the commission.

(f) Nothing contained in this article shall be construed to prevent
commission compliance with laws relating to audit or inspection of
accounts by or on behalf of any government contributing to the support of
the commission.

Article VII

1. Whenever any two or more party states, or subdivisions of party
states, have uniform or similar provisions of law relating to an income
tax, capital stock tax, gross receipts tax, sales or use tax, the
commission may adopt uniform regulations for any phase of the
administration of such law, including assertion of jurisdiction to tax,
or prescribing uniform tax forms. The commission may also act with
respect to the provisions of article IV of this compact.

2. Prior to the adoption of any regulation, the commission shall:

(a) As provided in its bylaws, hold at least one public hearing on due
notice to all affected party states and subdivisions thereof and to all
taxpayers and other persons who have made timely request of the
commission for advance notice of its regulation-making proceedings.

(b) Afford all affected party states and subdivisions and interested
persons an opportunity to submit relevant written data and views, which
shall be considered fully by the commission.

3. The commission shall submit any regulations adopted by it to the
appropriate officials of all party states and subdivisions to which they
might apply. Each such state and subdivision shall consider any such
regulation for adoption in accordance with its own laws and procedures.

Article VIII

1. This article shall be in force only in those party states that
specifically provide therefor by statute.

2. Any party state or subdivision thereof desiring to make or participate
in an audit of any accounts, books, papers, records or other documents
may request the commission to perform the audit on its behalf. In
responding to the request, the commission shall have access to and may
examine, at any reasonable time, such accounts, books, papers, records,
and other documents and any relevant property or stock of merchandise.
The commission may enter into agreements with party states or their
subdivisions for assistance in performance of the audit. The commission
shall make charges, to be paid by the state or local government or
governments for which it performs the service, for any audits performed
by it in order to reimburse itself for the actual costs incurred in
making the audit.

3. The commission may require the attendance of any person within the
state where it is conducting an audit or part thereof at a time and place
fixed by it within such state for the purpose of giving testimony with
respect to any account, book, paper, document, other record, property or
stock of merchandise being examined in connection with the audit. If the
person is not within the jurisdiction, he may be required to attend for
such purpose at any time and place fixed by the commission within the
state of which he is a resident; provided that such state has adopted
this article.

4. The commission may apply to any court having power to issue compulsory
process for orders in aid of its powers and responsibilities pursuant to
this article and any and all such courts shall have jurisdiction to issue
such orders. Failure of any person to obey any such order shall be
punishable as contempt of the issuing court. If the party or subject
matter on account of which the commission seeks an order is within the
jurisdiction of the court to which application is made, such application
may be to a court in the state or subdivision on behalf of which the
audit is being made or a court in the state in which the object of the
order being sought is situated. The provisions of this paragraph apply
only to courts in a state that has adopted this article.

5. The commission may decline to perform any audit requested if it finds
that its available personnel or other resources are insufficient for the
purpose or that, in the terms requested, the audit is impracticable of
satisfactory performance. If the commission, on the basis of its
experience, has reason to believe that an audit of a particular taxpayer,
either at a particular time or on a particular schedule, would be of
interest to a number of party states or their subdivisions, it may offer
to make the audit or audits, the offer to be contingent on sufficient
participation therein as determined by the commission.

6. Information obtained by any audit pursuant to this article shall be
confidential and available only for tax purposes to party states, their
subdivisions or the United States. Availability of information shall be
in accordance with the laws of the states or subdivisions on whose
account the commission performs the audit, and only through the
appropriate agencies or officers of such states or subdivisions. Nothing
in this article shall be construed to require any taxpayer to keep
records for any period not otherwise required by law.

7. Other arrangements made or authorized pursuant to law for cooperative
audit by or on behalf of the party states or any of their subdivisions
are not superseded or invalidated by this article.

8. In no event shall the commission make any charge against a taxpayer
for an audit.

9. As used in this article, "tax" in addition to the meaning ascribed to
it in article II, means any tax or license fee imposed in whole or in
part for revenue purposes.

Article IX

1. Whenever the commission finds a need for settling disputes concerning
apportionments and allocations by arbitration, it may adopt a regulation
placing this article in effect, notwithstanding the provisions of article
VII.

2. The commission shall select and maintain an arbitration panel composed
of officers and employees of state and local governments and private
persons who shall be knowledgeable and experienced in matters of tax law
and administration.

3. Whenever a taxpayer who has elected to employ article IV, or whenever
the laws of the party state or subdivision thereof are substantially
identical with the relevant provisions of article IV, the taxpayer, by
written notice to the commission and to each party state or subdivision
thereof that would be affected, may secure arbitration of an
apportionment or allocation, if he is dissatisfied with the final
administrative determination of the tax agency of the state or
subdivision with respect thereto on the ground that it would subject him
to double or multiple taxation by two or more party states or
subdivisions thereof. Each party state and subdivision thereof hereby
consents to the arbitration as provided herein, and agrees to be bound
thereby.

4. The arbitration board shall be composed of one person selected by the
taxpayer, one by the agency or agencies involved, and one member of the
commission's arbitration panel. If the agencies involved are unable to
agree on the person to be selected by them, such person shall be selected
by lot from the total membership of the arbitration panel. The two
persons selected for the board in the manner provided by the foregoing
provisions of this paragraph shall jointly select the third member of the
board. If they are unable to agree on the selection, the third member
shall be selected by lot from among the total membership of the
arbitration panel. No member of a board selected by lot shall be
qualified to serve if he is an officer or employee or is otherwise
affiliated with any party to the arbitration proceeding. Residence within
the jurisdiction of a party to the arbitration proceeding shall not
constitute affiliation within the meaning of this paragraph.

5. The board may sit in any state or subdivision party to the proceeding,
in the state of the taxpayer's incorporation, residence or domicile, in
any state where the taxpayer does business, or in any place that it finds
most appropriate for gaining access to evidence relevant to the matter
before it.

6. The board shall give due notice of the times and places of its
hearings. The parties shall be entitled to be heard, to present evidence,
and to examine and cross-examine witnesses. The board shall act by
majority vote.

7. The board shall have power to administer oaths, take testimony,
subpoena and require the attendance of witnesses and the production of
accounts, books, papers, records, and other documents, and issue
commissions to take testimony. Subpoenas may be signed by any member of
the board. In case of failure to obey a subpoena, and upon application by
the board, any judge of a court of competent jurisdiction of the state in
which the board is sitting or in which the person to whom the subpoena is
directed may be found may make an order requiring compliance with the
subpoena, and the court may punish failure to obey the order as a
contempt. The provisions of this paragraph apply only in states that have
adopted this article.

8. Unless the parties otherwise agree the expenses and other costs of the
arbitration shall be assessed and allocated among the parties by the
board in such manner as it may determine. The commission shall fix a
schedule of compensation for members of arbitration boards and of other
allowable expenses and costs. No officer or employee of a state or local
government who serves as a member of a board shall be entitled to
compensation therefor unless he is required on account of his service to
forego the regular compensation attaching to his public employment, but
any such board member shall be entitled to expenses.

9. The board shall determine the disputed apportionment or allocation and
any matters necessary thereto. The determinations of the board shall be
final for purposes of making the apportionment or allocation, but for no
other purpose.

10. The board shall file with the commission and with each tax agency
represented in the proceeding: the determination of the board; the
board's written statement of its reasons therefor; the record of the
board's proceedings; and any other documents required by the arbitration
rules of the commission to be filed.

11. The commission shall publish the determinations of boards together
with the statements of the reasons therefor.

12. The commission shall adopt and publish rules of procedure and
practice and shall file a copy of such rules and of any amendment thereto
with the appropriate agency or officer in each of the party states.

13. Nothing contained herein shall prevent at any time a written
compromise of any matter or matters in dispute, if otherwise lawful, by
the parties to the arbitration proceeding.

Article X

1. This compact shall enter into force when enacted into law by any seven
states. Thereafter, this compact shall become effective as to any other
state upon its enactment thereof. The commission shall arrange for
notification of all party states whenever there is a new enactment of the
compact.

2. Any party state may withdraw from this compact by enacting a statute
repealing the same. No withdrawal shall affect any liability already
incurred by or chargeable to a party state prior to the time of such
withdrawal.

3. No proceeding commenced before an arbitration board prior to the
withdrawal of a state and to which the withdrawing state or any
subdivision thereof is a party shall be discontinued or terminated by the
withdrawal, nor shall the board thereby lose jurisdiction over any of the
parties to the proceeding necessary to make a binding determination
therein.

Article XI

Nothing in this compact shall be construed to:

(a) Affect the power of any state or subdivision thereof to fix rates of
taxation, except that a party state shall be obligated to implement
article III 2 of this compact.

(b) Apply to any tax or fixed fee imposed for the registration of a motor
vehicle or any tax on motor fuel, other than a sales tax; provided that
the definition of "tax" in article VIII 9 may apply for the purposes of
that article and the commission's powers of study and recommendation
pursuant to article VI 3 may apply.

(c) Withdraw or limit the jurisdiction of any state or local court or
administrative officer or body with respect to any person, corporation or
other entity or subject matter, except to the extent that such
jurisdiction is expressly conferred by or pursuant to this compact upon
another agency or body.

(d) Supersede or limit the jurisdiction of any court of the United States.

Article XII

This compact shall be liberally construed so as to effectuate the
purposes thereof. The provisions of this compact shall be severable and
if any phrase, clause, sentence or provision of this compact is declared
to be contrary to the constitution of any state or of the United States
or the applicability thereof to any government, agency, person or
circumstance is held invalid, the validity of the remainder of this
compact and the applicability thereof to any government, agency, person
or circumstance shall not be affected thereby. If this compact shall be
held contrary to the constitution of any state participating therein, the
compact shall remain in full force and effect as to the remaining party
states and in full force and effect as to the state affected as to all
severable matters. (L. 1967 p. 102 § 1)

*Article VIII adopted in this state, RSMo 32.205

(1980) The Multistate Tax Compact has altered the focus of an inquiry
from the search for the source of income to a simple showing of the tax
liability in another state. M. V. Marine Co. v. State Tax Commission
(Mo.), 606 S.W.2d 644.

Article VIII of the multistate tax compact shall be in force in
and with respect to the state of Missouri. (L. 1974 H.B. 1290 §1)

The provisions of the compact shall apply to any tax levied by
the state of Missouri or its political subdivisions. (L. 1967 p. 102 § 2,
A.L. 1974 H.B. 1291)

The governor, with the advice and consent of the senate, shall
appoint the member of the multistate tax commission to represent this
state, from among the persons made eligible by article VI 1(a) of the
compact. (L. 1967 p. 102 § 3)

The member representing this state on the multistate tax
commission may be represented thereon by an alternate designated by him.
Any such alternate shall be a principal deputy or assistant of the member
of the commission in the agency which the member heads. (L. 1967 p. 102 §
4)

The governor, after consultation with representatives of local
governments, shall, with the advice and consent of the senate, appoint
three persons who are representative of subdivisions affected or likely
to be affected by the multistate tax compact. The member of the
commission representing this state, and any alternate designated by him,
shall consult regularly with these appointees, in accordance with article
VI 1 (b) of the compact. (L. 1967 p. 102 § 6)

There is hereby established the "Multistate Tax Compact Advisory
Committee" composed of the member of the multistate tax commission
representing this state, any alternate designated by him, the attorney
general or his designee, and two members of the senate, appointed by the
president pro tem thereof and two members of the house of
representatives, appointed by the speaker thereof. The chairman shall be
the member of the commission representing this state. The committee shall
meet on the call of its chairman or at the request of a majority of its
members, but in any event it shall meet not less than three times in each
year. The committee may consider any and all matters relating to
recommendations of the multistate tax commission and the activities of
the members in representing this state thereon. (L. 1967 p. 102 § 7)

The multistate tax compact advisory committee may employ counsel
to represent it or to act for it, and may fix his compensation within the
limits of funds appropriated to the committee. (L. 1967 p. 102 § 5)

In a county where personal property tax records are accessible
via computer, and when proof of motor vehicle liability insurance, safety
inspections and emission inspections where required are verifiable by
computer, the department of revenue shall design and implement a motor
vehicle license renewal system which may be used through the department's
Internet web site connection. The on-line license renewal system shall be
available no later than January 1, 2002. The department of revenue shall
also design and implement an on-line system allowing the filing and
payment of Missouri state taxes through the department's Internet web
site connection. The on-line tax filing and payment system shall be
available for the payment of Missouri state taxes for tax years beginning
on or after January 1, 2002. (L. 2000 H.B. 1797)

1. Notwithstanding any provision of law to the contrary, in any
dispute regarding the potential liability of a taxpayer for collection
and remittance or payment of sales or use tax or related interest,
additions to tax or penalties, the director of revenue may, at the
request of the taxpayer, consider the reasons for the taxpayer's failure
to pay the amounts in dispute.

2. The director may abate all or any portion of any amount assessed or
decide to not assess any such amount pursuant to this section if the
director determines:

(1) The taxpayer took reasonable steps to determine whether the amounts
were owed;

(2) Based on information reasonably available to the taxpayer, the
taxpayer reasonably believed that the transactions at issue were not
subject to tax and that the amounts in dispute were not owed;

(3) At the time of the transactions at issue, the department of revenue
had not issued either:

(a) A regulation that indicated that the transactions at issue were
subject to tax; or

(b) Any other written or oral communication that the taxpayer knew of or
should have known of stating that the transactions at issue were subject
to tax; and

(4) In the discretion of the director, such abatement is in the best
interest of the state and will not undermine compliance by taxpayers with
the tax laws of this state.

3. If the director determines that any amounts may be abated pursuant to
this section, as consideration for the abatement, the taxpayer shall
agree that:

(1) The taxpayer shall bear his or her own costs, including any attorney
fees;

(2) During the three-year period beginning with the date of the
agreement, the taxpayer shall comply with all sales and use tax
obligations arising from the type of transactions that were the basis of
the amounts that are the subject of the agreement and the taxpayer shall
not challenge or protest any such sales or use tax obligations arising
during the three- year period; except that any final decision of a court
of competent jurisdiction finding such transactions to be nontaxable and
any statutory changes that become effective during the three-year period
shall apply to the taxpayer notwithstanding any provision of the
agreement; and

(3) The taxpayer shall not contest in court or otherwise any amount of
the liability sought to be abated.

4. If due to a disagreement concerning the amount to be abated the
taxpayer does not agree to the terms provided by subsection 3 of this
section or if the director determines the amounts in dispute should not
be abated, the director shall issue a final decision setting forth the
director's determination. Within sixty days after the date on which the
director's decision is delivered in person or is mailed to the taxpayer,
whichever is earlier, the taxpayer may file a petition for review of the
final decision with the administrative hearing commission.

5. On petition for review before the administrative hearing commission,
the commission shall consider whether the director's determination was
reasonable based on the factors set forth in subsection 2 of this
section. The commission may:

(1) Issue an order to the director stating an amount to be abated by the
director, if the commission finds the director's decision unreasonable; or

(2) Issue an order denying the relief sought by the taxpayer, if the
commission finds the director's determination reasonable.

6. The provisions of subsection 3 of this section shall apply to any
abatement ordered by the commission.

7. A decision of the administrative hearing commission pursuant to this
section shall not be subject to appeal or petition for review by the
taxpayer or the director. (L. 2002 H.B. 1150, et al.)

Effective 7-1-02

1. In addition to the authority granted to the director of
revenue and the administrative hearing commission pursuant to section
32.375, the director of revenue may agree to compromise any tax,
interest, penalties or additions to tax assessed or collected by the
director of revenue on any of the following grounds:

(1) Doubt as to liability, which exists in any case where there is a
genuine dispute as to the existence or amount of the correct tax
liability under the law;

(2) Doubt as to collectibility, which exists in any case where the amount
assessed including interest, additions to tax and penalties exceeds the
taxpayer's ability to pay as defined by regulations promulgated by the
director of revenue; or

(3) To promote effective tax administration which means that compromise
of the liability will not undermine compliance by taxpayers with the tax
laws and that:

(a) Collection of the full liability will result in severe economic
hardship to the taxpayer; or

(b) Regardless of the taxpayer's financial circumstances, exceptional
circumstances exist such that collection of the full liability will be
detrimental to voluntary compliance by taxpayers. Such exceptional
circumstances include, but are not limited to, instances where the
taxpayer's failure to pay the taxes assessed is the result of
circumstances beyond the reasonable control of the taxpayer and is not
the result of negligence on the part of the taxpayer, or instances where
a reasonable person would not have expected the assessment based on
previous policy of the department of revenue or information provided to
the taxpayer by the department of revenue.

2. As part of the consideration for any compromise of taxes that is based
on subdivision (2) or (3) of subsection 1 of this section, the taxpayer
shall agree:

(1) That the state of Missouri shall keep all payments and other credits
applied to the tax, interest, penalties or additions to tax for the
periods covered by the offer;

(2) That the state of Missouri shall keep any and all amounts otherwise
due the taxpayer as a result of overpayments of any tax or other
liability, including interest, additions to tax and penalties, for
periods ending before or as of the end of the calendar year in which the
offer is accepted; except that the state shall not keep any amounts that,
together with amounts already paid on the compromise, exceed the
liability compromised;

(3) That the taxpayer shall have no right to contest in court or
otherwise the amount of the liability compromised;

(4) That the taxpayer shall bear his or her own costs, including any
attorney fees;

(5) That during the three-year period beginning with the date of the
compromise, the taxpayer shall comply with all tax obligations arising
from issues or transactions related to the issues or transactions that
were the basis of the tax that is the subject of the compromise and that
the taxpayer shall not challenge or protest any such tax obligations
arising during the three-year period; however, any statutory changes that
become effective during the three-year period shall apply to the taxpayer
notwithstanding this provision of the compromise;

(6) That if there is a default in payment of any principal or interest
due under terms of the agreement of compromise, or if the taxpayer fails
to comply with the provisions of the agreement set forth in subdivision
(5) of this subsection, the director of revenue may:

(a) Proceed immediately by suit to collect the entire unpaid balance of
the amount agreed upon; or

(b) Proceed immediately by suit to collect as liquidated damages an
amount equal to the liability compromised, minus any payments already
received under the terms of the agreement, with interest on the unpaid
balance from the date of default; or

(c) Disregard the amount of the compromise and apply all amounts
previously paid under the agreement against the amount of the liability
compromised and assess and collect by levy or suit the balance of the
liability. If the director chooses this option, the taxpayer shall have
the right to contest in court or otherwise the amount of the liability
compromised.

3. The director's remedies under this section are cumulative and the
director may pursue any combination of such remedies together or
consecutively until the entire liability is paid. No action or inaction
by the director shall constitute a waiver or election not to pursue any
remedy granted by this section.

4. The taxpayer requesting to compromise payment of taxes, interest,
additions to tax, or penalties shall provide any information reasonably
requested by the director in order that the director may determine that
the offer is made in good faith.

5. If compromise of taxes is agreed upon, any statute of limitations
applicable to the assessment and collection of the liability compromised
shall be tolled during the period beginning on the date of the compromise
and ending one year after the last payment is due pursuant to the
agreement.

6. The director's decision to reject or accept an offer of compromise
under this section shall be based on consideration of all the facts and
circumstances, including the taxpayer's record of overall compliance with
the tax laws. Notwithstanding any provision of law to the contrary, the
director's decision shall not be subject to review by the administrative
hearing commission or any court.

7. The director shall prescribe guidelines for employees of the Missouri
department of revenue to determine whether an offer-in-compromise is
adequate and should be accepted to resolve a dispute.

8. The director shall establish procedures for an independent
administrative review of any rejection of a proposed offer-in-compromise
made by a taxpayer pursuant to this section before such rejection is
communicated to the taxpayer.

9. The provisions of this section shall not apply to the resolution of
any dispute of tax liability in accordance with section 32.375.

10. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
section shall become effective only if it complies with and is subject to
all of the provisions of chapter 536, RSMo, and, if applicable, section
536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and
if any of the powers vested with the general assembly pursuant to chapter
536, RSMo, to review, to delay the effective date or to disapprove and
annul a rule are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after August 28,
2002, shall be invalid and void. (L. 2002 H.B. 1150, et al.)

Effective 7-1-02

1. Notwithstanding the provisions of any other law to the
contrary, with respect to taxes administered by the department of
revenue, an amnesty from the assessment or payment of all penalties,
additions to tax, and interest shall apply with respect to unpaid taxes
or taxes due and owing reported and paid in full from August 1, 2003, to
October 31, 2003, regardless of whether previously assessed, except for
penalties, additions to tax, and interest paid before August 1, 2003. The
amnesty shall apply only to state tax liabilities due or due but unpaid
on or before December 31, 2002, and shall not extend to any taxpayer who
at the time of payment is a party to any criminal investigations or to
any civil or criminal litigation that is pending in any court of the
United States or this state for nonpayment, delinquency, or fraud in
relation to any state tax imposed by the state of Missouri.

2. Upon written application by the taxpayer, on forms prescribed by the
director of revenue, and upon compliance with this section, the
department of revenue shall not seek to collect any penalty, addition to
tax, or interest which may be applicable. The department of revenue shall
not seek civil or criminal prosecution for any taxpayer for the taxable
period for which the amnesty has been granted.

3. Amnesty shall be granted only to those taxpayers who have applied for
amnesty within the period stated in subsection 1 of this section, who
have filed a tax return for each taxable period for which amnesty is
requested, who have paid the entire balance due within sixty days of
approval by the department of revenue, and who agree to comply with state
tax laws for the next three years from the date of the agreement. No
taxpayer shall be entitled to a waiver of any penalty, addition to tax,
or interest pursuant to this section unless full payment of the tax due
is made in accordance with rules and regulations established by the
director of revenue.

4. If a taxpayer elects to participate in the amnesty program established
pursuant to this section as evidenced by full payment of the tax due as
established by the director of revenue, that election shall constitute an
express and absolute relinquishment of all administrative and judicial
rights of appeal. No tax payment received pursuant to this section shall
be eligible for refund or credit.

5. Nothing in this section shall be interpreted to disallow the
department of revenue to adjust a taxpayer's tax return as a result of
any state or federal audit.

6. A collection fee, not to exceed twenty-five percent of the delinquent
tax amount, may be imposed but shall not be subject to waiver or
abatement. The collection fee shall be in addition to all other penalties
and interest otherwise authorized by law and may be imposed upon any tax
liabilities eligible to be satisfied during the amnesty period
established pursuant to this section that are not satisfied during such
period.

7. The first seventy-five thousand dollars of revenue collected pursuant
to this section shall be used exclusively for postage for notification of
the tax amnesty program established in this section.

8. The department may promulgate such rules or regulations or issue
administrative guidelines as are necessary to administer this section. No
rule or portion of a rule promulgated pursuant to the authority of this
section shall become effective unless it has been promulgated pursuant to
chapter 536, RSMo. (L. 2003 H.B. 600 § 136.320)

Effective 7-1-03

1. Notwithstanding the provisions of any other law to the
contrary, with respect to taxes administered by the department of
revenue, an amnesty from the assessment or payment of all penalties,
additions to tax, and interest shall apply with respect to unpaid taxes
or taxes due and owing reported and paid in full from August 1, 2002, to
October 31, 2002, regardless of whether previously assessed, except for
penalties, additions to tax, and interest paid before August 1, 2002. The
amnesty shall apply only to state tax liabilities due or due but unpaid
on or before December 31, 2001, and shall not extend to any taxpayer who
at the time of payment is a party to any criminal investigations or to
any civil or criminal litigation that is pending in any court of the
United States or this state for nonpayment, delinquency, or fraud in
relation to any state tax imposed by the state of Missouri.

2. Upon written application by the taxpayer, on forms prescribed by the
director of revenue, and upon compliance with the provisions of this
section, the department of revenue shall not seek to collect any penalty,
addition to tax, or interest which may be applicable. The department of
revenue shall not seek civil or criminal prosecution for any taxpayer for
the taxable period for which the amnesty has been granted.

3. Amnesty shall be granted only to those taxpayers who have applied for
amnesty within the period stated in subsection 1 of this section, who
have filed a tax return for each taxable period for which amnesty is
requested, who have paid the entire balance due within sixty days of
approval by the department of revenue, and who agree to comply with state
tax laws for the next three years from the date of the agreement. No
taxpayer shall be entitled to a waiver of any penalty, addition to tax,
or interest pursuant to this section unless full payment of the tax due
is made in accordance with rules and regulations established by the
director of revenue.

4. If a taxpayer elects to participate in the amnesty program established
pursuant to this section as evidenced by full payment of the tax due as
established by the director of revenue, that election shall constitute an
express and absolute relinquishment of all administrative and judicial
rights of appeal. No tax payment received pursuant to this section shall
be eligible for refund or credit.

5. Nothing in this section shall be interpreted to disallow the
department of revenue to adjust a taxpayer's tax return as a result of
any state or federal audit.

6. All tax payments received as a result of the amnesty program
established pursuant to this section shall be deposited in the schools of
the future fund created pursuant to section 163.005*, RSMo, other than
revenues earmarked by the Missouri Constitution.

7. The department may promulgate such rules or regulations or issue
administrative guidelines as are necessary to administer the provisions
of this section. No rule or portion of a rule promulgated pursuant to the
authority of this section shall become effective unless it has been
promulgated pursuant to chapter 536, RSMo. Any rule or portion of a rule,
as that term is defined in section 536.010, RSMo, that is created under
the authority delegated in this section shall become effective only if it
complies with and is subject to all of the provisions of chapter 536,
RSMo, and, if applicable, section 536.028, RSMo. This section and chapter
536, RSMo, are nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536, RSMo, to review, to delay the
effective date or to disapprove and annul a rule are subsequently held
unconstitutional, then the grant of rulemaking authority and any rule
proposed or adopted after August 28, 2002, shall be invalid and void. (L.
2002 H.B. 1150, et al. merged with S.B. 1248 § 136.320)

Effective 7-01-02 (H.B. 1150, et al.)

6-19-02 (S.B. 1248)

*Section "313.820" appears in original rolls of H.B. 1150, et al.;
however "schools of the future fund", created in S.B. 1248, 2002, was
codified as section 163.005.

In the event the department of revenue enters into an agreement
with a taxpayer and said agreement exceeds the department's statutory
authority and the taxpayer has relied to his detriment, the department
shall be permitted to honor said contract. This section shall only apply
to cases where the department has collected sales tax that was not owed
by the taxpayer. (L. 2002 H.B. 1150, et al.)

Effective 7-1-02

1. Notwithstanding any other provision of law, before the
director of revenue enters into any agreement to abate all or part of a
taxpayer's liability to the state, including interest and additions to
tax, the director shall forward a copy of the agreement to the attorney
general before entering into such agreement.

2. Upon receiving the proposed agreement, the attorney general shall,
within ten days, review and approve such agreement for its legal form and
content as may be necessary to protect the legal interest of the state.
If the attorney general does not approve, then the attorney general shall
return the agreement with additional proposed provisions as may be
necessary to the proper enforcement of the agreement as required to
protect the state's legal interest. If the attorney general does not
respond within ten days, or in the case of any agreement that involves an
abatement of the taxpayer's tax liability, including interest and
additions to tax, to the state of one million dollars or more, within
thirty days, the agreement shall be deemed approved.

3. Communications related to the attorney general's review are
attorney-client communications. The attorney general's written
disposition shall be subject to chapter 610, RSMo.

4. The provisions of this section shall terminate January 1, 2005. (L.
2002 H.B. 1150, et al. § 620.012)

Effective 7-1-02

Expires 1-1-05

1. Notwithstanding the provisions of any other law to the
contrary, with respect to taxes administered by the department of revenue
on motor vehicles, trailers, motorcycles, mopeds, motortricycles, boats,
and outboard motors pursuant to subdivision (1) of subsection 1 of
section 144.020, RSMo, and section 144.440, RSMo, and the fees charged
pursuant to subsection 5 of section 301.190, RSMo, an amnesty from the
assessment or payment of all penalties, additions to tax, fees, and
interest due thereon shall apply with respect to taxes due and owing
reported and paid in full from August 1, 2003, to October 31, 2003,
regardless of whether previously assessed, except for penalties,
additions to tax, and interest paid before August 1, 2003. The amnesty
shall apply only to state tax or fee liabilities due on or before
December 31, 2002, and shall not extend to any taxpayer who at the time
of payment is a party to any criminal investigations or to any civil or
criminal litigation that is pending in any court of the United States or
this state for nonpayment, delinquency, or fraud in relation to any state
tax imposed by the state of Missouri.

2. Upon written application by the taxpayer, on forms prescribed by the
director of revenue, and upon compliance with the provisions of this
section, the department of revenue shall not seek to collect any penalty,
addition to tax, or interest which may be applicable. The department of
revenue shall not seek civil or criminal prosecution for any taxpayer for
the taxable period for which the amnesty has been granted.

3. Amnesty shall be granted only to those taxpayers who have applied for
amnesty within the period stated in subsection 1 of this section, who
have filed a tax return for each taxable period for which amnesty is
requested, who have paid the entire balance due within sixty days of
approval by the department of revenue, and who agree to comply with all
state tax laws for the next three years from the date of the agreement.
No taxpayer shall be entitled to a waiver of any penalty, addition to
tax, or interest pursuant to this section unless full payment of the tax
due is made in accordance with rules and regulations established by the
director of revenue.

4. If a taxpayer elects to participate in the amnesty program established
pursuant to this section as evidenced by full payment of the tax due as
established by the director of revenue, that election shall constitute an
express and absolute relinquishment of all administrative and judicial
rights of appeal. No tax payment received pursuant to this section shall
be eligible for refund or credit.

5. The department may promulgate such rules or regulations or issue
administrative guidelines as are necessary to administer the provisions
of this section. Any rule or portion of a rule, as that term is defined
in section 536.010, RSMo, that is created under the authority delegated
in this section shall become effective only if it complies with and is
subject to all of the provisions of chapter 536, RSMo, and, if
applicable, section 536.028, RSMo. This section and chapter 536, RSMo,
are nonseverable and if any of the powers vested with the general
assembly pursuant to chapter 536, RSMo, to review, to delay the effective
date or to disapprove and annul a rule are subsequently held
unconstitutional, then the grant of rulemaking authority and any rule
proposed or adopted after August 28, 2003, shall be invalid and void. (L.
2003 H.B. 600 § 136.325)

Effective 7-1-03

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